Terms of Reference: Review of the AADFI Prudential Standards, Guidelines, and Rating System (PSGRS)

1. Description of the Global Gateway Investment Climate Reform Facility (GG ICR Facility)

The GG ICR Facility contributes to the development of a conducive, inclusive and sustainable investment climate for the implementation of the European Union’s Global Gateway Strategy in INTPA partner countries. Through targeted advisory services, it enables partner countries to attract investments, while enabling local and European businesses to grow and invest with confidence.

The Global Gateway Investment Climate Reform (GG ICR) Facility is jointly co-financed by the European Union (EU), the Federal Ministry of Economic Development and Cooperation (BMZ) and the Ministère de l’Europe et des Affaires Étrangères (MEAE) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Expertise France (EF) and SNV (Netherlands Development Organisation).

The Global Gateway strategy of the European Union covers five areas: Digital, Climate and Energy, Transport, Health and Education and Research. It allows EU partners to develop their societies and economies and create opportunities for the EU Member States’ private sector to invest and remain competitive. The GG ICR Facility is part of the ‘soft’ measures to materialise the Global Gateway strategy. Through this programme and across all its results, the EU aims at supporting green investments and a transition towards low-carbon circular economies, in line with the ambition of the European Green Deal and with the Paris agreement objectives. It is integrated into the European Consensus on Development ‘our world, our dignity, our future’, specifically with its priorities of promoting inclusive and sustainable growth and jobs. Lastly, it reinforces the EU’s leadership in promoting gender equality and social inclusion, in full alignment with the transformative approach of the Gender Action Plan III, while contributing to the 2030 Agenda’s SDG 5 (gender equality).

1. Context

AADFI (Association of African Development Finance Institutions) is an umbrella organization for development finance institutions (DFIs) in Africa with over 80 members. They provide services to African DFIs to promote sustainable growth through financially strong, resilient, and sustainable national DFIs.

The GG ICR Facility is supporting AADFI to update the Prudential Standards, Guidelines, and Rating System (PSGRS) which were developed in 2008 with support of the AfDB and World Bank as a benchmark for strengthening corporate governance and institutional performance among African DFIs.

Evolving global financial regulations, climate finance imperatives, digital transformation, ESG integration, and blended finance structures require a comprehensive update of the PSGRS to ensure continued relevance and alignment with international best practices.

About the Prudential Standards, Guidelines, and Rating System (PSGRS)

The PSGRS is a consensus-based reference and assessment tool for African Development Finance Institutions, adopted in 2008 by the CEOs of DFIs, the African Development Bank, supervisory ministries,  central banks of African countries, and other key stakeholders. The evaluation tool provides a self-assessment resource for referring institutions to assess their compliance with established performance rules and draw conclusions about the guidance needed for current policies, strategies, and procedures.

The PSGRS includes the following:

• A benchmark of 100 performance rules in the respective areas of governance, financial management, and operational management.
• An integrated assessment system of compliance with these rules using the three rating criteria per management rule, i.e. a total of 300 different criteria, against which the institution concerned can assess itself and submit its self-assessment to the AADFI rating.
• A rating system by the Peer Group, which is responsible for assigning performance ratings, is based on an independent consultant's report that compiles and verifies the self-assessments, compares them vertically by order of merit and horizontally by region, and by biannual and quinquennial time periods, and proposes, where appropriate, improvements to the evaluation processes.
• An annual procedure for issuing and delivering the rating certificates and certificates of participation (certificate of compliance) to the institutions participating in the Peer Review.

Beginning in 2026, the PSGRS self-assessment and rating will be conducted biennially, as decided by the AADFI Board of Directors at its meeting on November 4, 2024.

Rationale for the review

Since the adoption of the PSGRS in 2008, it has been reviewed once, in 2018, after ten years of implementation to address observations and shortcomings aimed at improving the tool. Following the 2018 review, measures were implemented to strengthen the self-assessment and rating process and improve PSGRS assessment results. The review also introduced the Development Impact Potential Assessment and classified PSGRS results into PSGRS Compliance and PSGRS Rating.

However, in recent years, there has been a renewed call to review and update the PSGRS to address current trends and challenges in the financial environment. Most provisions calling for review focus on changes in the nature of African DFIs and their operational environments. Others are concerned with shifts in international financial governance requirements. In any case, it is also timely for AADFI to reassess the DFI ratings and update the criteria by including climate change risks, sustainability, digitalization, ESG, gender, and monitoring and evaluation.

Additionally, the review would be expanded to serve a broader purpose. For example, some regulations, standards, and frameworks applied to African DFIs pose challenges to their implementation because they do not reflect the unique nature of some of the  DFIs. The rules and standards should be appropriate and fit for purpose. Therefore, it is necessary to incorporate these lessons into the PSGRS to provide practical guidance and benchmarks, including for financial reporting and auditing practices, and to ensure their dissemination and broad acceptance within the financial ecosystem.  In particular the experience with applying the current PSGRS shows that it does not take into consideration the peculiarities of member DFIs, which fall into three groups: the financial institutions, which form the bulk of AADFI members; the technical or non-financial institutions, which also carry out development financing on behalf of their governments; and the multilateral (regional and subregional) DFIs.

These observations aligned with the outcome of the AADFI Consultative Workshop on the Implementation of the PSGRS, held from September 3 to 5, 2025, which recommended reviewing and updating the tool. The AADFI Board of Directors approved the PSGRS review at its October 22, 2025, meeting.

The review will involve updating and validating the PSGRS through consultations, workshops, and expert input, ensuring alignment with local and global best practices.

1. Objectives and expected results

The project’s objective is to update the Prudential Standards, Guidelines, and Rating System (PSGRS) for African DFIs (financial, technical and multilateral) to align with both local and international standards.

The updated PSGRS will enable African DFIs to better assess their weaknesses in governance, financial condition, performance, operational guidelines, technological capabilities, climate change risks, and development impact, thereby helping to design solutions to the identified weaknesses.

Expected results are that African DFIs implement governance, financial and operational measures, initiating investment climate improving actions.

DFI supervisory authorities will also be briefed on the revised standards and encouraged to implement any relevant changes to their regulation and oversight of DFIs within their countries.

1. Description of the activities and deliverables

The AADFI secretariat will carry the following responsibilities:

• Setting up a Task Force (composed of 16-20 experts from selected AADFI member DFIs and central banks) that will provide input on areas requiring review and suggest recommendations to be included in the PSGRS.
• Serve as the Secretariat for the Task Force: administer questionnaires, collect updated data and feedback from member DFIs to validate proposed changes.
• Conduct stakeholder consultations: engage central banks, regulatory authorities, and standard-setting bodies to ensure alignment and buy-in.
• Support the validation of the PSGRS framework through workshops and forums: Present the revised framework to DFIs and experts for practical testing and final adjustments.
• Facilitate the approval of the revised PSGRS: secure formal endorsement from AADFI governance bodies.
• Coordinate on dissemination and capacity building: organize training sessions, publish resources, and establish support channels for DFIs.

The GG ICR Facility seeks an expert team to support AADFI with:

1. Preparation and kick-off
   • Prepare kick-off meeting with the AADFI secretariat and GG ICR Facility team to review project implementation logistics and scope (milestones, responsibilities and timeline).
   • Present to the taskforce an update about process and timeline of the project during the inaugural meeting of the taskforce.
2. Assessment and consultation process
   • Review previous ratings and reports: Analyze past PSGRS assessments to identify trends, gaps, and methodological shortcomings.
   • Assess the current PSGRS framework: Evaluate the relevance, clarity, and feasibility of existing indicators (standards) and scoring criteria.
   • Benchmark the PSGRS components against international standards, including global best practices and DFIs’ regulatory guidelines.
   • Administer questionnaires to member DFIs: Collect updated data and feedback from member DFIs to validate proposed changes in the PSGRS.
   • Conduct stakeholder consultations: Engage central banks, regulatory authorities, and standard-setting bodies to ensure alignment and buy-in.
   • Analyze feedback and data: Synthesize survey responses and consultation inputs to refine indicators (standards) and the scoring methodology.
   • Prepare summary of findings for presentation to the AADFI secretariat and the task force.
3. Draft and validate revised framework

• Draft the revised PSGRS framework: prepare updated guidelines, scoring templates, and definitions based on findings and stakeholder input. 
• Organise validation meetings for the revised PSDGRS framework through a workshop or meetings. Present the revised framework to African DFIs and experts for practical testing and final adjustments.
• Prepare technical notes and change log to document all changes made compared to the previous version, including rationale and stakeholder inputs.
• Incorporate feedback from validation meetings and prepare to secure formal endorsement from AADFI’s governance bodies.

1. Final framework and related tools

• Deliver updated PSGRS Framework and related documents:

1. Scoring templates and tools: standardized forms or digital templates for DFIs to submit data and for evaluators to apply the revised scoring system.
2. Updated guidelines for DFIs to implement the PSGRS framework.
3. Technical notes and change log which documents all changes compared to the previous version.
4. Consultation and validation reports: summaries of stakeholder feedback, workshop findings, and pilot test results to demonstrate transparency and alignment.

• Develop implementation roadmap: a timeline and guidance for DFIs on how to transition to the revised framework.
• Produce communication pack: official announcements, bilingual summaries (EN/FR), and briefing notes for dissemination to member DFIs and partners.

1. Capacity building, training and closing meeting

• Develop training and capacity-building materials: a slide deck with case studies for workshops and onboarding sessions.
• Plan dissemination and capacity building: organize 2 training sessions (possibly one session in English, and one in French), publish resources, and establish support channels for African DFIs applying the framework.
• Organize and participate in closing meeting together with AADFI secretariat to close the GG ICR Facility project.

Besides the activities and deliverables described above, the requesting organisation and the expert team is expected to:

• Complete the project closing requirements, including GG ICR Facility’s Technical Assistance Completion (TAC) report.
• Throughout the project support with the collection of communication materials for the GG ICR Facility, such as photos or videos of events and participants, as agreed beforehand with the GG ICR Facility project manager.
• Throughout the project collect M&E data to support GG ICR Facility reporting (signed participants lists for each event, following the template provided by the GG ICR FAcility

1. Timeline, deliverables and time allocation

Deliverable,  Date and Level of effort :

1) Preparation and kick-off, by May 15, 2025:   Up to 2 expert days

2) Assessment and consultation process , by June 30, 2025:   Up to 25 expert days

3) Draft and validate revised framework, by October 15, 2026:   Up to 25 expert days

4) Final framework and related tools, by October 31, 2026:   Up to 15 expert days

5) Capacity building, training and closing meeting, by December 15, 2026:   Up to 8 expert days

• Level of effort: total number of expert days is 75.

The number of days/travel/workshops and the budgets will be contractually agreed as maximum amounts. Assessment will be based on qualification and rate.

• Period of assignment: The project shall last from May 1st, 2026 to December 19, 2026.
• Travel: The location of assignment will be virtual and/or AADFI headquarters.
• Workshops, Training: The contractor implements virtual meetings and workshops as defined above and supports the organisation of physical meetings with the AADFI secretariat.

Data collection

The consultant will be acting as an independent data controller of personal data being processed in connection with the contract and shall ensure that all data collected during the project are processed in accordance with the EU General Data Protection Regulation (GDPR). The consultant will protect sensitive DFI data, ensuring impartiality, managing conflict of interests, and complying with privacy protocols.

1. Qualifications and experience of the team

The position is open to individual consultants or firms with the following credentials:

• General financial experience: At least 10 years of professional experience working with Development Finance Institutions (DFIs) or other financial sector institutions such as multilateral development banks (MDBs) in Africa.
• Specific financial standards experience: Demonstrated expertise in prudential regulation, international financial standards, financial sector governance, institutional performance assessment, benchmarking tools, or risk management frameworks.
• Specific experience in conducting prudential frameworks: Proven experience in developing, revising, or applying prudential frameworks, performance standards, benchmarking systems, diagnostics, or assessment tools for financial institutions.
• Knowledge of latest financial framework trends: Strong understanding of global financial governance frameworks, including but not limited to ESG norms, climate related financial disclosures, blended finance mechanisms, and digital transformation trends in the financial sector.
• Knowledge of African DFI context: Thorough knowledge of DFI mandates, operational models, and the diverse typologies of DFIs (financial, technical/nonfinancial, and multilateral DFIs), especially in the African context.
• Local context: Experience implementing projects in various African countries.

Additional requirements:

• Facilitation: Demonstrated capacity to facilitate multistakeholder consultations and workshops with DFIs, central banks, supervisory authorities, and government partners.
• Analytical and writing: Excellent analytical and writing skills, with the ability to translate complex standards into clear, operational guidance and tools.
• Language: Fluency in English or French is required, with working proficiency in either language, given the bilingual nature of AADFI membership.

1. How to apply? 

SNV is the contracting party for this assignment on behalf of the GG ICR Facility.

Interested experts or team of experts are invited to submit:

1. Technical proposal
2. Financial proposal (including total fee costs in euro, as well as the daily rate).

Please submit your proposal via SmartRecruiters by 18th of April 23:59 CET.  Please note that documents cannot exceed 10MB; you can upload various files in SmartRecruiters (beyond indicated CV).