Digaf Microcredit Provider S.C. seeks to engage a qualified individual consultant, consulting firm, or consortium with strong expertise in insurance market development, financial sector feasibility studies, business model design, and Ethiopian financial s

REQUEST FOR PROPOSAL (RFP)

Consultancy Service for Micro Insurance Feasibility & Market Assessment

Client: Digaf Microcredit Provider S.C.

Issuing Office: CEO Office

Issue Date: May 14, 2026

Submission Deadline: May 25, 2026

1. Background

Digaf Microcredit Provider S.C. is a licensed microfinance institution operating in Ethiopia with a strategic focus on expanding inclusive financial services through technology-enabled delivery models.

As part of its long-term growth strategy, Digaf intends to assess the commercial viability, market opportunity, operational readiness, and strategic feasibility of establishing a standalone Micro Insurance business in Ethiopia.

Considering that the National Bank of Ethiopia (NBE) has already issued regulatory directives governing insurance and Micro Insurance operations, Digaf's primary objective is not merely regulatory interpretation, but rather a practical assessment of whether establishing a Micro Insurance business is strategically viable, commercially sustainable, operationally feasible, and institutionally scalable within the Ethiopian market context.

To support this initiative, Digaf seeks to engage a qualified individual consultant, consulting firm, or consortium with strong expertise in insurance market development, financial sector feasibility studies, business model design, and Ethiopian financial sector operations.

2. Objective of the Assignment

The objective of this consultancy is to provide Digaf with a comprehensive and practical feasibility assessment of establishing a standalone licensed Micro Insurance business in Ethiopia, including:

• Market opportunity assessment
• Business model viability analysis
• Product opportunity analysis
• Strategic positioning recommendations
• Operational and institutional readiness assessment
• Financial sustainability considerations
• Regulatory fit assessment
• Recommended implementation pathway and phased roadmap

The assignment should enable Digaf's Board and Management to make an informed strategic decision regarding entry into the Micro Insurance sector.

3. Scope of Work

The selected consultant will be expected to undertake, at minimum, the following:

3.1 Market Feasibility & Industry Assessment

• Assess the current Micro Insurance landscape in Ethiopia
• Analyze market size, penetration gaps, and growth potential
• Identify underserved customer segments and market opportunities
• Assess customer demand drivers and adoption barriers
• Benchmark relevant local and regional Micro Insurance models
• Evaluate competitive landscape and positioning opportunities

3.2 Product & Business Model Assessment

• Identify viable Micro Insurance product categories under current regulations
• Recommend high-potential initial product lines for Digaf
• Provide high-level product structuring guidance
• Assess distribution model options (digital, embedded finance, agent- based, employer-based, partnerships, etc.)
• Evaluate strategic alignment with Digaf's existing digital lending ecosystem
• Assess potential cross-selling and ecosystem integration opportunities

3.3 Financial & Commercial Viability Assessment

• Assess startup and operational cost considerations
• Provide high-level business case analysis
• Evaluate revenue potential and sustainability considerations
• Assess capital and solvency implications at a strategic level
• Identify major financial success factors and constraints
• Evaluate scalability potential and phased growth scenarios

3.4 Operational & Institutional Readiness

• Assess operational model requirements
• Identify technology and digital infrastructure considerations
• Evaluate organizational and human resource requirements
• Identify strategic partnerships and ecosystem dependencies
• Assess implementation complexity and operational readiness gaps

3.5 Regulatory & Licensing Assessment

• Provide a practical assessment of key regulatory requirements under applicable NBE directives
• Identify licensing pathways and major compliance obligations
• Highlight key regulatory considerations affecting business viability
• Identify major compliance risks and implementation implications

Note: Detailed legal interpretation of directives is not the primary focus of the assignment, as core regulatory requirements are already publicly available through NBE directives.

3.6 Risk Assessment

• Identify key strategic, operational, market, financial, and regulatory risks
• Assess critical feasibility constraints
• Recommend practical mitigation measures
• Highlight key success conditions required for market entry

4. Expected Deliverables

• The consultant is expected to deliver the following within the assignment period:
• Micro Insurance Market & Feasibility Assessment Report
• Business Model & Strategic Positioning Assessment
• Operational Readiness & Implementation Considerations Report
• Key Risks, Constraints & Mitigation Recommendations
• Preliminary Roadmap & Phased Implementation Timeline
• Board-Level Executive Summary Presentation
• All deliverables must be clear, practical, actionable, and suitable for Board-level strategic decision-making.

5. Duration of the Assignment

The assignment is expected to be completed within two (2) weeks from the date of contract signing.

6. Consultant Qualification Requirements

Interested firms/consultants must demonstrate:

• Proven experience in insurance, Micro Insurance, fintech, or financial sector advisory
• Experience conducting feasibility studies and market assessments
• Strong understanding of Ethiopian financial sector operations
• Familiarity with insurance and Micro Insurance regulatory environments
• Experience in financial services business model design and institutional structuring
• Strategic advisory experience for financial institutions
• Multidisciplinary capability covering financial, operational, market, and regulatory expertise

7. Proposal Submission Requirements

Interested bidders are required to submit:

A. Technical Proposal

Including:

• Understanding of the assignment
• Proposed methodology and approach
• Market assessment framework
• Work plan and timeline
• Team composition and qualifications
• Relevant experience and references

B. Financial Proposal

Including:

• Detailed professional fee breakdown
• Applicable taxes
• Any reimbursable expenses (if applicable)

8. Evaluation Criteria

• Proposals will be evaluated based on:
• Technical quality and methodology
• Understanding of the Micro Insurance market
• Relevant experience and expertise
• Practical feasibility assessment capability
• Team composition and qualifications
• Financial competitiveness

9. Submission Instructions

Interested consultants/firms should submit both Technical and Financial Proposals electronically in PDF format no later than May 25, 2026.

Submissions should be sent to: abigya.mesfin@digafcredit.com

Digaf Microcredit Provider S.C.

CEO Office

10. Rights Reserved

Digaf Microcredit Provider S.C. reserves the right to accept or reject any proposal, wholly or partially, and to cancel the RFP process at any stage without assigning any reason thereof.

Tender details

• Deadline: 2026-05-25
• Bid closing time: 17:00
• Bid opening: 2026-05-25 17:00
• Bid opening (note): No Specific Opening Date and Time
• Region: Addis Ababa
• Publishing entity: Digaf Microcredit Provider S.Co
• Published: May 17, 2026
• Posted at: 2026-05-18T16:13:02.000Z