Vocational training in the informal sector The outcomes of a field survey in seven African countries Ewa Filipiak, Research Department, French Development Agency Brussels, October 25th, 2007

I. Presentation of the study

Initial observations The informal sector plays a predominant role in job and national wealth creation in developing countries, particularly in Africa. Training systems are focused exclusively on modern, formal companies, while excluding the vast majority of people of working age from any structured system of skills development.

The study’s assumptions Vocational training is a driver of informal sector development. Vocational training can help an economy to rise above survival and subsistence and achieve growth and development.

The methodology used Field surveys and reports in seven African countries – Angola (in cooperation with the French Ministry of Foreign Affairs) – Benin – Cameroon – Ethiopia (in cooperation with the GTZ) – Morocco – Senegal – South Africa A synthesis report

The objectives To understand the situation in the informal sector in each of the countries’ studied To identify existing training measures and schemes To analyse innovative training trends in the informal sector To define the best possible conditions for stimulating the sector through training To draw up some recommendations for action

II. The study’s main observations

1. The informal sector’s predominant position in African economies The informal sector is much larger than imagined Between 31% (South Africa) and 95% (Benin) of the labour market Between 30% (South Africa) and 50-60% (Benin, Cameroon and Senegal) of GDP The informal sector grows to the detriment of the formal sector

Incomes directly proportionate to education levels AFRISTAT Survey Uneducated people earn slightly less that those who have completed primary education People who have been to secondary school earn twice as much as those who have not People who have been through higher education earn five times more than those who have not

2. Skills development routes in the informal sector Formal training (about 5%) Informal or non-formal training (95%) On-the-job training Self-training Traditional apprenticeship The sector trains the great majority of young people in the various countries

Skills development routes in the informal sector (2) Traditional apprenticeship for young people It’s the main training route for young people in Africa, especially West Africa (400,000 apprentices in Senegal as opposed to 7,000 jeunes in technical and vocational education and training)

Skills development routes in the informal sector (3) Continuing training for adults Continuing training schemes are still mainly occasional and limited in scope They are mainly organised by professional bodies, international donors and NGOs

Developing links between formal training provision and the informal sector Public TVET systems have been focusing on formal sector employment and are not adapted to the realities of the labour market. Towards partnership-based management of the systems. Towards incorporation of dual apprenticeship within the overall training system.

III. Key ways to boost the informal sector through vocational training

The prerequisites for effectiveness Training activities must be part of an overall intervention process of informal involving the different stakeholders concerned. Training activities must be part of development strategies (notably regarding any promising occupations identified).

1. Acknowledge the sector as a fully- fledged source of skills development Policy-makers and those in charge of formal systems need to acknowledge the informal sector. Existing and potential schemes should be taken into account in current vocational training reforms. It is urgent to accredit the skills already acquired by informal sector workers.

2. Reorganise traditional apprenticeship slowly but surely Add a theory component to basic work experience for young people Train mastercraftsmen in how to monitor and support their apprentices

3. Train adults at the same time as young people Give adults an opportunity to train at the same time as the young Train them in enterprise management and entrepreneurship Introduce them to new technologies and new technical standards

4. Provide resources to support enterprise creation after training Training for young people is not an end in itself and must help trainees find work. To achieve this, the following resources should be made available to them: – material resources (access to premises, toolboxes, etc.) – financial resources (microcredit) – educational resources (support, mentoring)

5. Introduce pre-vocational training schemes to avoid educational and social wastage The minimum age for apprenticeships (14) penalises those leaving primary school as well as those who are uneducated. Schemes mixing support to consolidate educational achievements with initial work experience should be developed.

6. Develop appropriate long-term financing instruments National funds are mainly spent on formal systems Informal sector training is currently financed by households, enterprises and donor agencies Training funds financed by entreprises and managed by the social partners are developing training in the informal sector Public funds need to be redirected to the informal sector

7. Enhance the constructive role of professional organisations Professional organisations have run some of the most successful training schemes (FENAB in Benin). They ensure that training schemes are adapted to market needs and help those trained find work.

8. Enable informal sector workers to become stakeholders in their own training Successful examples of mentorship, peer training, exchange of experience, etc. … on the condition that informal sector workers are given adequate educational, organisational and finacial support.

9. Give young people a voice in the debate on job market access and enterprise creation Young people feel excluded from economic, social and civic life. They are keen to participate in debates that affect them. There are new initiatives to develop their participation (national, regional and African platforms).

10. In all cases, raise informal sector education levels The informal sector employs the great majority of uneducated and undereducated people Education levels have a direct impact on income derived from informal sector workers’ activities While continuing efforts to achieve universal primary education, alternative routes should be developed at post-primary level

For more information… Country reports «Publications»,«Working Papers» Synthesis report «Publications»,«Notes&Documents 33» Stateco n°99 (joint Afristat-DIAL-INSEE publication) «De l’apprentissage traditionnel à l’apprentissage restructuré en Afrique de l’Ouest» (forthcoming), AFD Notes&Documents.