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Turnaround Manager - Enterprise Partners
Terms of Reference (ToR)
Enterprise Partners (EP) is a 7-year (2013-2020) wealth creation programme which, inclusive of women and the environment, aims to support the private sector and Ethiopia’s economic growth. By applying the Making Markets Work for the Poor (M4P) approach for sustainable results, it aims to facilitate market development in order to spur innovation and investment that creates jobs and increases incomes for the poor. It does so with a combination of technical assistance and market facilitation in resolving market failures. EP is being implemented by a consortium led by DAI Europe, and includes First Consult, Enclude and ITAD.
The EP pillars are:
Background specific to this assignment
The textile industry has been one of the most dynamic and geographically mobile industries globally. The industry is made up of buyer-driven complex global production networks with suppliers located in developing countries, including Ethiopia. Ethiopia is one of the largest and most resource rich countries in Africa. The textile industry is a bridge for development because it integrates agriculture with industry. It is labour intensive, starting from cotton cultivation to fashion product, with many opportunities for value addition that could benefit Ethiopia. The Ethiopian textile and apparel sector has grown at an average of 51% over the last 5-6 years, with employment targets of up to 174,000 by 2020.
The Government of Ethiopia (GoE) has embarked on an ambitious programme to attract foreign direct investment (FDI), increase production for export and create new jobs. The manufacturing sector is at the centre of the government’s effort to achieve this goal, because of its ability to mobilise foreign investment, create employment and generate foreign currency. Among selected priority sectors that will drive this growth, the textile and apparel value chain constitutes the central pillar in the structural transformation of the Ethiopian economy.
The Ethiopian Growth and Transformation Plan (GTP) set an ambitious target for exports of textiles and apparel which the country was not able to meet. However, the GoE succeeded in attracting large textile and apparel manufacturers to set up factories in Ethiopia. In addition, significant government spending on infrastructure and industrial parks is expected to attract more investments. The GoE is working tirelessly to improve investment-enabling conditions and achieve the targets set in the GTP II for FDI in the textile sector, export value and new jobs creation.
Ethiopian textile and apparel companies export t-shirts, polo shirts, uniforms, nightwear and other garments to international brands, retailers and buying houses. They face many challenges but benefit from duty free access to major markets, cheap, green energy and dedicated infrastructure.
One of the leading vertically integrated textile and apparel facilities operating in Ethiopia is facing internal and external challenges and is operating below capacity.As a result, the facility requires a comprehensive turnaround strategy and potential restructuring to enable it reach its optimum levels of production capacity and efficiency.
The Turnaround Manager is expected to diagnose the current internal and external situation of the factory and then design and execute a comprehensive turnaround strategy, working closely with key internal and external stakeholders.
The scope of work will include a thorough diagnosis of the corporate strategy and core functions of the factory, a gap analysis to identify where the factory can make improvements, and drafting subsequent courses of action for all stakeholders to turn the factory around to long-term sustainability and profitability. In addition, it will require identifying and deploying key personnel and restructuring the organisation based on the findings. The Turnaround Manager must also address the issues related to major stakeholder groups (executives, function managers, employees, lenders, vendors, customers, others). The role of the Turnaround Manager is to make use of existing management staff to undertake the following specific tasks.
The deliverables include strategic advice and implementation of a feasible approach for executing the turnaround plan. This includes:
The assignment will be for one year starting July 2018, or earlier if possible. The first three- months will be for diagnosing the corporate strategy and operations; gap assessment and turnaround recommendations. The following nine months will be implementations of the approved recommendations. The Turnaround Manage may hire additional experts with the prior approval of the Advisory Board.
The Turnaround Manager will be based in Ethiopia and work closely with, and report to, the facility’s Advisory Board.
The senior Turnaround Manager will need to have the following qualifications:
Additional competencies required include:
Last date for submission of applications is 16th July 2018.
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