Appointment of a credible service provider to assist the development bank of southern africa on understanding carbon markets as a blended finance instrument to support infrastructure development

Appointment of a credible service provider to assist the Development Bank of Southern Africa on understanding carbon markets as a blended finance instrument to support infrastructure development. The project will be conducted in collaboration with the Lesotho National Development Corporation (LDC) who will form part of the project steering committee.

Compulsory briefing session: 21 August 2026 at 10:00am via Microsoft Teams. Attendance is a pre-qualification criterion. Closing date and time: 28 August 2026 at 23H55. Enquiries and submission link requests cut-off: 12h00 on 25 August 2026. Project commencement: 1 September 2026. Inception report due: 01 September 2026. Final research paper due: 30 April 2027. Review and feedback process: January 2026.

All enquiries and submission link requests: [email protected]. Complaints about the RFQ or tender process: [email protected]. No enquiries accepted after 12h00 on 25 August 2026.

Bids must be submitted electronically via a OneDrive link. Bidders must request the submission link from [email protected]. Requests and enquiries will not be accepted after 12h00 on 25 August 2026. Late or incomplete submissions will not be accepted. Bids must be submitted on the official forms provided (not re-typed) or online. Bidders must submit a two-folder tender: Folder 1 for functionality and returnable documents, Folder 2 for pricing proposal. Bidders must complete Annexure B for price quotations exceeding R30,000 (VAT included) and attach it to the functional/technical proposal. Bidders must complete and sign all declarations in the RFQ documentation pack, including the standard bidding documents (SBD) prescribed by National Treasury attached as Annexure C. Returnable documents include: CSD Summary Report, Tax PIN issued by SARS, and original and valid B-BBEE status level verification certificate or sworn affidavit. Bidders must acknowledge receipt of the RFQ. Disqualification risks: incomplete information or documentation, fraudulent or inaccurate information, receiving information not available to other vendors through fraudulent means, non-compliance with any RFQ requirement, and submission after the stipulated date and time.

Bidders must submit a two-folder tender: Folder 1 for functionality and returnable documents, Folder 2 for pricing proposal. Must complete Annexure B for price quotations exceeding R30,000 (VAT included). Must complete and sign all declarations as part of the RFQ documentation pack, including the standard bidding documents (SBD) prescribed by National Treasury attached as Annexure C. Must submit original and valid B-BBEE status level verification certificate or sworn affidavit. Must be registered on the Central Supplier Database (CSD) and provide a CSD summary report. Must provide a Tax PIN issued by SARS.

Functionality evaluation threshold is 70 points, with minimum scores per requirement. Price and preference evaluation uses the 80/20 preference point system: Price 80 points, BEE 20 points, total 100 points. Bidders who fail to obtain 70 points or above will not be evaluated further for Price and Specific Goals. Functionality criteria include: Planning/Methodology and Approach (max 20 points, minimum 15 points), Bidding Company Experience (max 20 points, minimum 15 points), Project lead experience (max 20 points, minimum 15 points), Climate finance specialist experience (max 20 points, minimum 15 points), Team member 1 experience (max 10 points, minimum 5 points), Team member 2 experience (max 10 points, minimum 5 points). Bidders may be required to give oral presentations at their own cost, including any travel and subsistence costs for the DBSA evaluation team.

The service provider will conduct research on understanding carbon markets as a blended finance instrument to support infrastructure development in Africa. The scope includes: (a) Differentiate between voluntary and compliance carbon markets, assess carbon standards, and determine the best framework for the African context, including South Africa, with a focus on DFI approaches and case studies. (b) Assess carbon market opportunity for the top five African countries with highest readiness, in addition to South Africa, considering mechanisms like Article 6.2, Article 6.4, CBAM and CORSIA. (c) Assess and quantify the infrastructure gap for each selected country and compare with carbon market potential. (d) Research carbon market financing instruments applicable across selected countries, focusing on DFI-supported instruments such as carbon-linked bonds, results-based finance, guarantees, and blended finance structures. (e) Identify carbon finance instruments that enhance the blending multiplier and how DFIs can assist commercial banks in holding carbon credit assets on balance sheets, considering Basel III capital adequacy limitations. (f) Provide an overview of carbon market readiness across Africa and deep dive into five countries plus South Africa, covering policy and regulatory readiness, institutional and technical capacity, market readiness and investor appetite, social and community readiness, and financial readiness. (g) Analyse global carbon markets and how DFIs have used blended finance tools for infrastructure finance. (h) Assess how carbon revenues or credit issuance can be integrated into carbon market readiness tools, including MRV systems, national registries, benefit-sharing frameworks, and national carbon-market activation plans. (i) Identify challenges and opportunities in implementing carbon markets in Africa, with case studies from other DFIs. (j) Provide practical steps to implementation that can unlock capital, focusing on African DFIs and DBSA, and identify infrastructure sectors highly suited to carbon market financing: renewable energy, waste-to-energy, clean cooking, water and sanitation, transport decarbonisation, industrial decarbonisation, and climate adaptation projects. For each sector, quantify carbon credit potential, build a conceptual model of revenue flow, and identify financing gaps. (k) Conduct financial and economic analysis: financial modelling of hypothetical infrastructure projects with and without carbon revenues, how carbon markets can derisk and attract commercial loans, sensitivity analysis based on carbon price volatility, and assessment of how carbon credits can improve project viability (IRR, DSCR, payback). The project will be conducted in collaboration with the Lesotho National Development Corporation (LDC) who will form part of the project steering committee. Deliverables: a formal written research paper documenting findings, analyses, and insights, including literature review, case studies, survey data, policy implications, and recommendations for the five selected countries and South Africa. An inception report outlining the detailed work plan, methodology, and case study selection must be submitted one month after project initiation, by 01 September 2026. The final research paper must be completed and submitted by 30 April 2027.

The research will employ a blended approach combining quantitative and qualitative elements: a systematic review of existing literature on climate finance instruments, carbon credits and markets, blended finance for infrastructure, and a case study and survey-based approach. Case studies will be selected by the service provider, DBSA team and LDC, based on relevance to carbon market participation, use of blended finance mechanisms, and measurable development impact. A survey of key informants including government officials, DFIs, private investors, and project developers will be conducted. Interviews will be conducted with stakeholders including the International Emissions Trading Association, Department of Forestry, Fisheries and the Environment, Presidential Climate Commission, United Nations Development Programme, international standards and registries (Verra, Gold Standard, Plan Vivo), Eskom, buyers, investors, private sector participants, financial regulators, GIZ's Climate Cluster, National Treasury (South Africa), and at least two private companies trading carbon credits (one in South Africa, one in another selected country).

Bidding company must provide five or more project reference letters on research in carbon markets and climate finance in the financial sector and/or public sector of South Africa and/or the African continent. Project lead must have 8 years or more experience in project management, leading carbon market transactions, and climate finance. Climate finance specialist must have 5 years or more experience in climate finance instruments, carbon market design, and related areas. At least two other team members must have 3 years or more experience each in relevant fields. Bidders must provide detailed CVs and complete Annexure C (abbreviated CV) for all proposed team members, along with an organogram.

All prices must be quoted in South African Rand (ZAR). Bidders must complete Annexure A pricing schedule and provide a detailed cost breakdown of all items, clearly depicting item description (brand name, product code) and associated quantities. The total cost based on the DBSA cost template/model should exactly match the detailed cost breakdown; in case of discrepancies, the higher amount will be used for price evaluation. The cost of marketing and advertising, and other charges must be included in the total price quoted if requested as part of the DBSA cost template/model. Bidders should not include any additional cost elements not specifically requested. If additional items are suggested, they must be separately specified with a clear motivation. The project will be paid for by the DBSA. Costs emanating from the rollout of the study will be debited from the overall budget amount agreed between the DBSA and the service provider as per the terms of the contract.

Bidders must be registered on the Central Supplier Database (CSD) and provide a CSD Summary Report. Bidders must provide a Tax PIN issued by SARS. Bidders must submit an original and valid B-BBEE status level verification certificate or sworn affidavit to qualify for preference points. Bidders must complete and sign all SBD forms, including SBD 4 (Declaration of Interest) and SBD 9 (Certificate of Independent Bid Determination). Bidders must complete Annexure B for price quotations exceeding R30,000 (VAT included). Bidders must complete Annexure C (abbreviated CV) for proposed team members. Bidders must provide proof of authority to sign (e.g., company resolution). Bids will not be considered from persons in the service of the state, companies with directors who are persons in the service of the state, or close corporations with members who are persons in the service of the state. Foreign suppliers must complete the questionnaire to bidding foreign suppliers.

The research focuses on carbon markets and climate finance, with emphasis on environmental sustainability. The study must assess carbon market readiness, including policy and regulatory frameworks, and consider environmental and social benefits such as job creation, public health, and community rights. The research must align with DBSA's commitment to a just transition and green growth. The study must integrate carbon-revenue modelling into national carbon-market activation plans and ensure benefit-sharing frameworks to prevent inequities or exploitation in carbon projects.

The successful bidder will be required to fill in and sign a written contract form (SBD7). The DBSA may require a formal written contract depending on the nature of services. No services must be rendered before an official DBSA appointment letter, signed service contract where applicable, and purchase order have been received. All reports shall be regarded as the exclusive intellectual property of the DBSA. The appointed service provider undertakes to treat all work with the highest degree of confidentiality for the duration of the project and thereafter.

DBSA reserves the right to cancel or reject any quote, not to award to the lowest bidder, award parts to different bidders, or not award at all. DBSA may appoint more than one service provider, waive irregularities, appoint different providers for different levels of work, or retain the right not to select any provider. Bidders may be required to give oral presentations at their own cost, including any travel and subsistence costs for the DBSA evaluation team.

Eligibility criteria: Project lead must have a minimum master's degree (NQF 9) in Climate Finance, Economics, Finance, Environmental Science, Climate policy, engineering or related field. Climate finance specialist must have a minimum master's degree (NQF 9) in Climate Finance, Economics, Environmental Finance, engineering or related field. At least two other team members must have a degree or higher (NQF 7 or higher) in Economics, Environmental Finance, engineering or related field.