"PASET Initiative on Regional TVET Centres of Excellence - World Bank Financed Project in East Africa ” (EASTRIP)

The Partnership for skills in Applied Sciences, Engineering and Technology (PASET)-An African led solution.

-to address systemic gaps in skills and knowledge in priority ASET fields -to build the capacity of African education and training institutions -to train high quality technicians, engineers, and scientists to meet the demands of the economy.

Demand for TVET in Sub-Saharan Africa The on-going economic transformation and regional integration initiatives in SSA is boosting the demand for educated and skilled labor 11 million young Africans will enter the labor market every year over the next 10 years Secondary and post-secondary graduates have trouble findings relevant jobs Much larger supply for unskilled (factory floor) jobs Employers importing experienced skilled labor Graduates at all levels without technical training face an especially crowded job market, reflecting an “aspirational” mismatch as much as a “skills” mismatch Some 11 million youth are expected to enter Africa’s labor market every year for the next decade, according to the World Bank. Job creation in Africa is largely in the informal economy, which also absorbs those who are unable to find employment in the formal sector. Due to sky high unemployment rates, many graduates with a secondary and tertiary education are now becoming self-employed and launching small- and medium-sized enterprises instead of opting for wage employment. While technical and vocational education and training builds a strong skilled workforce, the training does not create jobs. The majority of people in African countries—nearly 80 percent—work in the informal sector, according to the World Bank. An estimated 40 million more youth are projected to drop out of school in the next decade. Lacking adequate work and life skills, many will face an uncertain future. Governments and private sector alike must develop workforce development and training programs that recognize that most youth will be self-employed or work for a small enterprise. Secondary and post-secondary graduates have trouble finding a job because of lack of demand. There is a much larger supply of labor for unskilled (factory floor) jobs than for skilled jobs as mechanics and factory engineers or for office jobs as accountants and managers. Meanwhile, employers are requesting permits to import experienced skilled labor. Graduates at all levels without technical training and some work experience (where they can acquire and demonstrate the equally valuable “soft” skills) face an especially crowded job market, reflecting an aspirational and skills mismatch References: World Bank. 2014. Youth Employment in Sub-Saharan Africa World Bank (2017). The Skills Balancing Act in Sub-Saharan Africa: Investing in Skills for Productivity, Inclusion, and Adaptability. World Bank Enterprise Survey Africa-America Institute (2015). State of Education in Africa Report 2015: A report card on the progress, opportunities and challenges confronting the African education sector Filmer, Deon and Louise Fox (2014). Overview: Youth Employment in Sub-Saharan Africa.

Status of TVET in Sub-Saharan Africa In 2012, technical and vocational programs accounted for only 6 percent of total secondary enrollment in the region Only 2 to 6 percent of education budgets devoted to TVET Many African countries face brain drain of their top talents Companies operating in African repeatedly cite insufficiently skilled labor as a bottleneck to growth Education acquired in schools is not transferable to the skills required in the job market, thus creating a huge gap in the skills formation Women represent a small fraction of the skilled workforce In the TVET sector, enrollment average is only 4 percent compared to global average of 20 percent Little evidence of purposeful inclusion and prioritization in national development plans of skills development Greater attention has centered on the importance of technical and vocational education and training (TVET) in enhancing Africa’s global competitiveness and creating decent employment. Technical and vocational skills development helps to strengthen the local workforce in emerging economies. A skilled workforce also creates an attractive economic environment for investors. Technical and vocational education and training has not been a top priority for many African countries. In 2012, technical and vocational programs accounted for only 6 percent of total secondary enrollment in the region, a slight drop from 7 percent in 1999. TVET programs markedly declined in the 1980s due to budgetary shortfalls in the education sector of many African countries and have never fully recovered. On average, only about 2 to 6 percent of educational budgets are devoted to technical and vocation skills development. Companies operating in African repeatedly cite insufficiently skilled labor as a bottleneck to growth. By improving the knowledge and skills of workers through technical and vocational education and training, local economies can build a skilled workforce to increase the production of goods and services and contribute to economic growth. References: Africa-America Institute (2015). State of Education in Africa Report 2015: A report card on the progress, opportunities and challenges confronting the African education sector

Shortage of specific skills in Sub-Saharan Africa Shortage of TVET level skills is particularly acute in region’s priority industries, including transport, energy, manufacturing (including light manufacturing), and ICT. For instance, 8,000 to 11,500 TVET-level graduates required by 2025 for energy sector in Ethiopia 3,000 technical staff required by 2020 in geothermal industry in the region This shortage, if not addressed, could seriously dampen the industrialization and integration agenda. Demand for training institutes which provide TVET level training is high

THE World Bank REGIONAL SKILLS PROJECT East Africa Skills for Transformation and Regional Integration

Proposed Development Objective (PDO) To increase the access and improve the quality of TVET programs in selected Regional TVET Centers of Excellence and to support regional integration and regional economic corridors in East Africa.

Participating Countries TANZANIA KENYA ETHIOPIA Participating Countries

Project Components Component 1: Component 3: Component 2: Strengthening selected Regional Flagship TVET Institutes for high- quality skills development in priority sectors Component 2: Creating national TVET enabling environments Component 3: Enhancing regional collaboration in TVET and project coordination

Regional Flagship TVET Institutes Sector Focus Regional Flagship TVET Institute Country Transport/Infrastructure   Railway Meles Zenawi Memorial TVET Polytechnic College Ethiopia Ethiopia Railway Academy Marine Kenya Coast National Polytechnic Kenya Air National Institute of Transport Tanzania Road Kombolcha TVET Polytechnic College Building infrastructure Meru National Polytechnic Highway infrastructure Kenya Institute of Building and Highway Technology Power/Energy Power/energy General Wingate Polytechnic College Geothermal KenGen Geothermal Institute Hydro Arusha Technical College Manufacturing Tool making/ leather TVET Institute Textile/garment Hawassa TVET Polytechnic College Textile Kisumu National Polytechnic Leather DIT Mwanza Campus Agro-processing Holeta TVET Polytechnic College ICT DIT Dar es Salaam Campus

Regional Flagship TVET Institutes

SUBCOMPONENTS/ACTIVITIES Strengthening selected Regional Flagship TVET Institutes for high- quality skills development in priority sectors SUBCOMPONENTS/ACTIVITIES   Strengthening governance and management Institutionalizing industry links Developing market relevant competency based training programs Training of TVET managers and teachers Upgrading key training facilities and equipment Outreach and support for non-project national TVET institutes

Creating national TVET enabling environments SUBCOMPONENTS/ACTIVITIES Strengthening national TVET quality assurance Capacity building for TVET policy development and implementation Promoting regional integration Facilitating national project coordination, and M&E

Component 3: Enhancing regional collaboration in TVET and project coordination SUBCOMPONENTS/ACTIVITIES Harmonization of standards and mutual recognition of qualifications for priority occupations Facilitating student and staff mobility through exchange programs Regional project coordination and M&E  

Project Implementation Arrangements

World bank’s Regional Approach to TVET Development: its significance A regional approach to developing the specialized TVET skills can have a number of benefits:- -Regional integration has been an important development agenda for Africa since independence. Agenda 2063 -Exploiting economies of scale to lower costs of training for individual countries on specialized and industry certified training programs, -facilitating mobility of people and skilled labor, -promoting peer learning among countries and institutions -sharing good policies and practices -targeting employment toward regional economic corridors

Regional Approach to TVET Development: its significance -Harmonization of standards and mutual recognition of qualifications are critical for the mobility of skilled labor -A network of Regional Flagship TVET Institutes can provide a learning and knowledge-sharing platform critical for sustainable TVET development at the national and regional levels -A regional flagship approach can complement existing national skills and TVET programs. -Globally, the flagship approach has been used and proven effective in not only serving the short-and medium-term needs of skills development but also in catalyzing broader national reform and injecting dynamism into the system.

Capacity Building and TA, supported by WB, Korea, China EASTRIP Addis Ababa Capacity Building Workshop (January 2018) EASTRIP Study Visit to Korea (March 2018) EASTRIP Nairobi Appraisal Capacity Building Workshop (June 2018) EASTRIP Procurement Capacity Building Workshop in Nairobi (July 2018) Technical Assistance for the development of Strategic Investment Plan for the 16 RFTIs (Dec 2017 – August 2018) EASTRIP Study Visit to China – 2nd Africa China WB Education Partnership Forum (August 2018) EASTRIP visit to power transmission station in Holeta Ethiopia (March 2019) EASTRIP Project Operational Manual Validation Workshop (March 2019) EASTRIP visit to East Industry Park (May 2019) Technical Assistance for capacity building and baseline of graduate tracer study for the 16 RFTIs (June 2019 – December 2019) Scholarships for master degree study in the Chinese Agriculture University (September 2019) Dar es Salaam Institute of Technology and MIT capacity building in short term professional courses (August 2019) References: World Bank (2018). World Development Report Lewis, L & Patrinos, HA (2012). Impact evaluation of private sector participation in education National Centre for Vocational Education Research (2016). Costs and benefits of education and training for the economy, business and individuals https://www.theguardian.com/global-development-professionals-network/2014/jan/15/youth-unemployment-vocational-training-finland

Eastrip current status Board Approval: October, 2018 Effectiveness: IUCEA (3/19); Ethiopia, Kenya, and Tanzania effective soon; Disbursement: 30% advance upon effectiveness and thereafter DLI-based Project implementation: 2019 to 2024 Regional Steering Committee (RSC) operational; National Steering Committee (NSC) in each country being constituted EASTRIP Technical Advisory Board being constituted IUCEA project coordinator recruited and additional members being recruited Project Operation Manual developed Each flagship has an approved Strategic Investment Plan, procurement plan, gender strategy, staff development plan, results framework Each RFTI has a project implementation team and has established Industrial Advisory Board WB and IUCEA ongoing supervision