REQUEST FOR EXPRESSIONS OF INTEREST

AFRICAN DEVELOPMENT BANK

Immeuble CCIA, Abidjan, Côte d’Ivoire

African Natural Resources Centre

E-mail : M.HARRATHI@AFDB.ORG       

Telephone : +225 20 26 32 13

Department issuing the request : AFRICAN NATURAL RESOURCES CENTRE (ANRC)

Position : INDIVIDUAL CONSULTANT

Place of assignment : Home based

Duration of the assignment : 4 Months

Tentative Date of commencement : 20 July 2020

Deadline for applications : 3^rd  July 2020

Applications to be submitted to: Maali Harrathi (M.HARRATHI@AFDB.ORG) with a copy to  :  C.NYIRAHUKU@AFDB.ORG)

Any questions and requests for clarifications to : Charles Nyirahuku (C.NYIRAHUKU@AFDB.ORG)

TERMS OF REFERENCE

BUILDING RESILIENCE IN AFRICA’S EXTRACTIVE SECTORS

Background :

The African Natural Resources Centre (ANRC) is a non-lending entity of the African Development Bank (AfDB) established to support Regional Member Countries (RMCs) in maximising development outcomes from their natural resources. The ANRC generates knowledge and conducts policy dialogue on harnessing natural resources for accelerated sustainable development in Africa. It also provides technical support to RMCs on natural resources planning, investment and governance, with a focus on land, forestry, fisheries, water, oil, gas and minerals. The ANRC also informs the Bank’s operational work in the natural resources sector.

As part of its Local Content and Value Addition Flagship Program, the ANRC is currently undertaking an assesment of suppliers development programmes in Africa’s extractive sector. This study and combined with the effects of COVID-19 pandemic, have highlighted the need to evaluate opportunities for building resilience to global supply shocks in Africa’s extractive sectors.

The Need for the Study :

Many resource rich countries are characterised by an economic structure based on the export of raw commodities, which generate a significant part of their revenue earnings. Petroleum and minerals in some cases, accounts for up to 90% share of export earnings and a significant share of the gross domestic product (GDP) of these countries¹.

Generally, commodity prices are driven by market forces and other geopolitical externalities beyond the control of producing countries. Commodity prices have traditionally followed cyclical paths, but recent trends suggest that erratic price patterns are becoming the norm. A globalised economy marked by declining multilateralism, trade wars and geopolitical tensions among large producers become major sources of systemic volatility and vulnerability for African resource exporters.

This vulnerability has recently been tested by the unprecedented global health crisis caused by the COVID-19 pandemic. African commodity exporters are currently facing severe budget deficits and disruptions in supply chains, which have been hampered by both imports of critical inputs and services needed in extractives operations, products processing and exportation.

In effect, the fall in oil and gas prices early in March which were attributed to OPEC+ disagreements over oil cuts and the impact of COVID-19 caused disruptions which are likely to push African petroleum dependant economies into recesssion. For example, Nigerian budget forecast for 2020 assumed US$57 / bbl. When the oil price plummeted below US$26, the country had to cut its budget plans by over 20%².

The minerals sector has not been spared either. Most minerals have seen price declines during the COVID-19 pandemic. There has been an exception for gold given its unique characteristics as a safe haven in times of trouble. The price of gold saw an average increase of 13% from January to May 2020 whilst the prices of the other minerals declined by percentages ranging from 5 to 20%. Globally, production at 260 mines in 33 countries has been halted since early March, 2020³. Africa and the Americas are the hardest hit in terms of the number of suspended mining operations with South Africa reporting 54 shut mines as of April 30, 2020. However, South Africa has since lifted the lockdown for mines from May 1, 2020 but at half capacity for underground operations in order to observe all the health protocols, especially social distancing. The mining sector analysis further estimates that US$6.9 billion will be the deficit resulting from disruption of global mining output caused by COVID-19.

Objectives :

The main objective of the study is to assess the impact of COVID-19 on petroleum and mineral demand and -supply chains in Africa and to propose recommendations for building resilience into these chains going forward.

The specific objectives are to :

1. Assess the impacts of COVID- 19 on petroleum and mineral supply chains in Africa ;
2. Identify opportunities and propose strategies for building resilience and recommend ways of reducing vulnerability of African petroleum and mineral sectors to global shocks.

1https://www.uneca.org/sites/default/files/uploaded-documents/stories/eca_analysis_-_covid-19_macroeconomiceffects.pd

• https://www.premiumtimesng.com/coronavirus/382605-coronavirus-nigeria-cuts-oil-benchmark-to-30-slashes-capital-budget-by-20.html
• com: https://www.mining.com/chart-covid-19-disrupts-6-9-billion-of-global-mining-output/

Scope of study :

The scope of the study will include Petroleum and mineral supply chains in Africa.

Methodology :

This assignment  will be conducted virtually

The selection of countries will be discussed and agreed with the winning consultant during an entry meeting for the assignment before the works starts. Applicants are requested to submit a technical proposal outling a methology for delivering the objectives and scope of the assignment within the set timelines.

Deliverables :

A comprehensive, evidence-based analytical report on opportunities for building resilience in African mineral and petroleum supply chains.The report will use evidence on the impact of COVID-19 to make recommendations for coping mechanisms and post-pandemic recovery and resilience strategies in African mineral and petroleum sectors

VII.    Consultant qualifications and experience :

Hold at least a Master’s Degree in Economcis, Petroleum Economics, Mineral Economics, Business Administration, Finance, Supply Chain Management or related disciplines. PhD will be an added advantage :

• Have at least fifteen (15) years of relevant experience in supply chain management, with at least 7 years in the extractive sector of African countries ;
• Good knowledge of local content of petroleum and/or mining industry, evidenced by projects and studies conducted – preferably in African countries ;
• Excellent report writing skills in English and/or French languages ;
• Excellent analytical and numerical skills ;
• A record of peer reviewed publications on the extractive industry in Africa ;
• Knowledge of a computer based supply chain management databases will be an advantage.

VIII.    Time Schedule and selection criteria :

Consultant will be expected to work for no more than 40 person days. The study will be undertaken in no more than 4 months with the following activities and outputs.

The consultant will be selected in accordance with the African Development Bank’s Implementation Manual relating to the Procedures for Acquisition of Consulting Services funded by the Administrative or Capital Expenditure Budget of the Bank Group.

The candidates shall be evaluated based on the following criteria :

Applicants must submit a cover letter, resume, copies of academic certificates and transcripts, and a technical proposal outlining a proposed approach to the background paper (3 pages max.). Applicants should also submit three (3) samples of written work. Appendix 1 gives a template for submission of CVs. Only candidates scoring 70% and above will be shortlisted.

Remuneration :

The shortlisted bidders will be requested to quote a daily rate.

Service conditions :

AfDB conditions for retaining short-term consultants will apply.

Appendix 1:

Please attach an updated Curriculum Vitae on the basis of the template below:

MODEL CURRICULUM VITAE (CV)

MODEL CURRICULUM VITAE – AFDB BAD PDF