Terms of Reference (TOR)

To Study “The State of Women in Oromia’s Informal Sector: Vulnerabilities and Path towards Formalization”

1.     Background

Gudina Tumsa Foundation (GTF) is a not-for-profit civil society organization registered with the Authority for Civil Societies Organizations (ACSO) with the mandate to operate at national level in Ethiopia. GTF was established by the family and friends of Reverend Gudina Tumsa with aims to carry on his vision through rendering holistic service to the marginalized communities in Ethiopia. The foundation was formed in 1992 and started development service delivery in 1994. The foundation has implemented different projects in nine regional states of Ethiopia.

GTF envisions seeing empowered communities that perceive themselves as capable human beings, equipped to actively engage in all aspects of human life. This is in line with the Reverend Gudina Tumsa’s own words stated below:

“… an integral human development, where the spiritual and physical needs are seen together is the only right approach to the development question in our society.”

GTF has developed and implemented different projects that promote the holistic development vision of the organization. The organization was formed to create a better world for those people who have been left behind and most vulnerable in our society to help them live with dignity and hope.

GTF engages in different thematic areas that are life changing. Accordingly, the foundation engages in the following program areas:

• Women and child support services whereby education, healthcare, and other essential services are provided to marginalized women and children,
• Education program focusing on building schools, production materials and supplies, and teacher supports,
• Health, Water and Environment program focusing on promotion of health services and prevention of disease, WaSH (water, sanitation and hygiene), and environmental protection and conservation through planting trees, etc.
• Livelihood enhancement through different economic empowerment and job creation initiatives for women and youth.
• Policy Advocacy that focuses on influencing Regional Decision Makers towards evidence-based, effective, and responsive policy formulation and implementation

Recently, GTF has commenced the implementation of a project titled “Healthcare and Livelihood Improvement Advocacy Project in Oromia (HaLIAPO)” with the funding secured from the Gates Foundation (GF). The project has been implemented in the Oromia region for 3 years, from January 2024 to December 2026, in collaboration with the two regional states. GTF has signed a Memorandum of Understanding with the regional Presidents to guide the implementation of the project activities in the regions.

The Goal of the project is to contribute to the increased use of evidence and policy analysis by decision-makers, leading to the adoption of policies broadly favorable to agricultural productivity, healthcare and nutrition, financial inclusion, and women’s economic empowerment.

The project employed competent experts in project management, policy analysis, and data analysis who are working as a team. The activities of the project are enormous; recruitment and assignment of pertinent outside thematic experts/consultants is required to undertake studies and research on identified topical issues. One of these thematic study areas to be outsourced is in regards to the thematic area of women’s economic empowerment to conduct a study on “The State of Women in Oromia’s Informal Sector: Vulnerabilities and Path towards Formalization” in alignment with the project’s objective; to provide with a foundational evidence for targeted policy advocacy to empower women in Oromia’s labor market, to inform decision makers and lead to the adoption of policies broadly favorable to women.

2. Introduction to the Assignment

The term ‘informal sector’ emerged in the 1970s, initially considered as an unregistered economy observed in Ghana, and expected to be integrated into a formal economy; however, the sector expanded instead to encompass other forms of informal employment, micro enterprises, household-based work, and the like. By the 1980s and 1990s, international bodies recognized its persistence, and in time, the International Labor Organization (ILO) developed a statistical definition, although a universal consensus remains difficult. The informal sector is now a significant part of the global economy, employing about 2 billion workers and accounting for a third of GDP in developing nations.

This sector constitutes approximately 33.5% of Ethiopia’s economy, and in the Oromia region, there is evidence indicating its growth in urban contexts, driven by factors like poverty and unemployment. Its accessibility and flexibility make it a vital option particularly for women, who face lower barriers to entry.

Globally, women are the majority of informal workers in low-income countries and are often in the most precarious, low-paid positions with limited agency. In case of Ethiopia, women represent 28.6 % of the informal sector compared to 15.7 % for men. Additionally, they experience significant vulnerabilities, including poor conditions, job insecurity, and lack of social protection, alongside increased risks of discrimination and violence.

Research into the specific roles and conditions of women in Oromia’s informal sector is crucial to understand the dynamics of women’s participation to enable policymakers to design and implement appropriate, gender-responsive policies and strategies. Hence, the study aims to provide actionable insights into Oromia’s informal sector, focusing specifically on the urgent needs and conditions of women in this workforce, ultimately equipping the regional government with knowledge to guide policy and action.

3.     The Objectives

The overall objective of the study is to examine the multifaceted vulnerabilities faced by women in Oromia’s informal sector and to evaluate existing policies and programs designed to facilitate their transition into formality. To ultimately set a concrete path forward to improve policy interventions and foster a more supportive environment for women’s economic empowerment.

The Specific objectives are;

• Analyze the informal sector in Oromia, specifically examining its structure, composition, and the roles women play within it.
• Identify the root causes/key factors that drive women into Oromia’s informal sector.
• Investigate the specific vulnerabilities and challenges women face while working in the informal sector in Oromia.
• Evaluate the effectiveness of current policies and programs aimed at enabling women to transition to formality in Oromia.

4.     Scope of the Work

The consultant will conduct a comprehensive study on the role and conditions of women in the informal sector within the Oromia region of Ethiopia. The study’s scope encompasses the following key areas and tasks:

Geographical and Thematic Coverage

The study will focus specifically on the Oromia region, covering both urban and peri-urban contexts where informal business activities are prevalent. Thematically, it will cover the socio-economic dynamics, legal frameworks, and policy implications relevant to informal women work force.

Specific Tasks

The consultant is expected to perform the following specific tasks:

• Assess the state of women in the nonagricultural informal sector in Oromia’s rural contexts, such as but not limited to: (e.g., trade, retail, services such as tailoring, hairdressing, and food preparation; crafts like pottery, basket making, and carpentry)
• Assess the state of women in the informal sector in Oromia’s urban contexts, such as but not limited to: (e.g., street vending, small-scale food processing, local manufacturing of goods like footwear and tailoring)
• Examine the definition, scope, and criteria of the informal sector in regards to informal enterprises, informal workers/employees, informal productive activities, and other key dimensions and actors in the informal sector based on internationally and statistically established standards such as the SDGs, ILO, SNA, and the like.

• Analyze the scope, role, hierarchy, types, and composition of women in Oromia’s informal sector
• Assess the peculiar vulnerabilities women face in the informal sector in terms of number of hours of work, wage, place and conditions of work, lack of social and legal protections etc…
• Establish basic understanding of Oromia’s nonagricultural informal work force and enterprises from the perspective of women in both urban and rural contexts
• Assess and analyze the root causes and drivers of vulnerabilities worker women and enterprises headed by women in the informal sector face
• Map, evaluate and analyze existing policy frameworks, implementation mechanisms and programs such as SME strategies, micro financing, small enterprises support, social protection frameworks and job creation schemes etc… targeted at facilitating transition in to formality
• Evaluate and analyze the role of the government, non-governmental organizations and finance institutions and the like as to their role in addressing the needs of women in the informal sector
• Evaluate and analyze existing implementation mechanisms and programs targeted towards transitioning in to formality
• Analyze the structural barriers and incentives for formalization
• Analyze relatable best practices that are relevant to Oromia’s context by establishing a parallel between the challenges exhibited in Oromia and how other countries came to resolve them; lessons that can be drawn
• Propose a feasible, concrete and comprehensive roadmap on mainly how Oromia should address;
  • Root causes/drivers of women’s informality (informal sector) in Oromia
  • Barriers of women from the formal sector
  • The needs of women in the informal sector: to address women’s vulnerabilities within the informal sector itself
  • Propose suitable comprehensive (short, medium and long term) strategies and structural changes needed to enable women to transition in to formality and improve their livelihood

5.     Methodology

The study should be designed in a way that can provide a comprehensive understanding of the informal sector in the context of Oromia by employing a (mixed–quantitative and qualitative) approach, to analyze the broad patterns of the state of women in general and the specific lived experiences of women in the informal sector in both urban and rural contexts.

Additionally, to have a full picture as to the role of women in the informal sector, mixed surveys; firstly by conducting a household survey to identify women in the informal sector who are home-based or operate mobile businesses. Moreover, to also capture operational, financial, and business-related information from the side of the informal enterprises (products/services, profits, financing challenges, perception of formalization, employment conditions, etc) through enterprise/establishment survey.

The study is also set to target two groups of women: those who are in the informal sector (own account holders, employees, home-based, and the like) and those organized under SME and still operate in the informal sector. This will shed light on the practical applicability of SME and other related policies and programs from the perspective of the women themselves.

Furthermore, conducting in depth interviews is imperative with individual women to gather detailed personal narratives about their experiences and vulnerabilities to ensure those women’s perspectives are central to the research. Focus group discussions (FGDs) can be employed to uncover shared challenges and collective strategies targeting both groups of women referred above.

Policy makers and institutional actors from relevant federal and regional bureaus that work closely and have understanding of the issue in policy design, implementation and challenges in this regard ought to be engaged through key informant interviews. There is also the need to systematically review relevant government policies, strategies, and programs from both federal and Oromia regional administrations to establish a clear understanding of existing policy frameworks.

Implementing necessary quality control measures is required while collecting the data, to ensure the validity and accuracy of the data collected by undertaking close supervision, triangulation and by collecting secondary data from regulatory bodies such as CSA, regional bureaus etc…

The methodology outlined above is not exhaustive; the consultant is encouraged to employ any additional methods deemed necessary to achieve the objectives of the assignment.

6.     Deliverables

• Inception report
• Progress report
• Draft report
• Presentation on validation workshop
• Final report including a road map
• Policy brief

7.     Required Qualifications

The Applicants must have a professional team composition comprising the following fields of specialization and minimum qualifications:

• Lead Consultant (Principal Investigator): PhD in Economics, Developmental Studies, or related fields with 7 years of proven research experience in informal sector dynamics, multi-dimensional socio-economic factors, policy implications, economic empowerment pathways, or related areas.
• Gender expert: Master’s degree in Gender Studies or related field with 7 years of proven research experience in analyzing gender-specific vulnerabilities and empowerment issues.
• Policy Expert: Master’s degree in public policy, Law, or related field with 7 years of proven experience in analyzing and designing effective policies for informal-to-formal sector transitions, and related areas.
• Data Manager: Master’s degree in Statistics or related field with 7 years of proven experience in quantitative research and data management.
• Sociologist: Master’s degree in Sociology or related social science field with 7 years of relevant experience in analyzing social dynamics, informal labor relations, and community contexts.
• Proficient knowledge of Afaan Oromo and English is mandatory.

8. Timeline

The timeline to conduct this assessment will be 60 calendar days.

9. Evaluation

• The technical proposal: 70%
• Financial proposal: 30%

10. How to Apply

Potential consultants or consulting firms should submit their detailed technical and financial proposals, including:

1. Detailed CVs and valid experiences
2. A copy of their renewed business license
3. A copy of their Taxpayer Identification Number (TIN)
4. A copy of their VAT Certificate

All application documents should be sent electronically to jobs@gtfound.org with the subject line “The State of Women in Oromia’s Informal Sector”.

Submission Deadline: 25 November 2025, 4:30 p.m.

 For more information, please contact us at the following address:

• Email: teshome.b@gtfound.org 
• Tel: +251969355555

 Important Notes

• Only shortlisted candidates will be contacted.
• GTF reserves the right to accept or reject any or all bids, in whole or in part, without providing any reason whatsoever.
• Late submissions will not be considered.