1. An overview of Skills Development Facility (SDF) Implemented by Private Sector Foundation Uganda

2. Background Uganda Skills Development Project (USDP)
USD 100 Million Government of Uganda Project, funded by World Bank
Uganda Skills Development Project (USDP) is the Skilling Uganda strategy, the Government’s strategy for national BTVET development.
Purpose of USDP;
To support systemic reforms targeted at making the skills development system in the country more efficient and effective.
To create a scalable model for high quality and market - relevant vocational and technical training which can be replicated across different sectors.
To support the delivery of short-term training for workers in the formal and informal sectors

3. About the Skills Development Facility (SDF)
PSFU on behalf of the MoEFPED is managing the Matching grant Facility with the support of the PCU and a private sector dominated Grant Committee, including its fiduciary and safeguard aspects.
Amount ;USD 21.8 Million ( 18 M for Grants and 3.8 million operation costs)
Support: Practical and technical training activities not exceeding 6 months. Maximum duration to undertake any given activity cannot exceed 1 year
 Funding modalities: Cost sharing basis

4. SDF prioritized sectors
Manufacturing
Construction
Agriculture

5. Objectives of SDF
The SDF is implemented through a Grant Facility mechanism that is co- financed by the private sector through a matching grant contribution, and support training activities that lead to improved productivity and competitiveness in the formal and informal sectors.

6. GOVERNANCE & MANAGEMENT
USDP Steering Committee
To ensure appropriate coordination and accountability.
Grants Committee
GC will ensure that the SDF becomes an efficient and acknowledged instrument for strengthening the skills and competence base of the Ugandan labor force,
SDF Management Unit
Head of Unit (Project Manager), three grant specialists, Project Accountant, Administrative Officer, Procurement officer, Clients relations officer, Accounts Assistant,
Technical Assistance support:
Due diligence / Technical consultants
Activity Monitoring & Results Measurement consultants
Independent Verification consultants

7. SDF Windows
Window 1: Skills shortages in the formal sector with focus on medium and large firms, including increased access to internships – USD 9 Million
Window 2: Skills shortages experienced by self- employed, workers and apprentices in the informal (jua kali) sector, master craftsmen, micro and small enterprises and members of cooperatives – USD 5 Million
Window 3: Support to development of new innovative skills training programs – USD 2 Million
Window 4: Support to systems for certification of skills and competencies acquired through informal and non-formal training – USD 2 Million

8. OPERATIONAL DETAILS OF WINDOW 1
Target group [Formal sector]
Small, Medium & Large enterprises
Employees of the enterprise, somebody the applicant intends to employ
A group of sub-contractors supplying goods or services to the company e.g. farmers.
Type of enterprise
Description
Small enterprises
Between 5 and 50 employees. Annual turnover or total assets up to UGX 360 million.
Medium enterprises
Between 50 and 100 employees. Annual turnover or assets between UGX 360 million and UGX 30 billion
Large enterprise
More than 100 employees and an annual turnover or assets exceeding UGX 30 billion.

9. Capacity of the training provider
Window 1 cont’d.
Capacity of the training provider
Training institutions legally registered & accredited by MoES or other body
In company training
Funds will be paid directly to training provider after satisfactory training

10. Window 1 cont’d. Activities eligible for support
Skills upgrading both practical & relevant theory
Preference to training courses accredited by MoES
Trainees must be permanent employees of the applying company or those the company intends to employ on permanent basis.
Both skilled and semi-skilled workers are eligible for attending SDF sponsored skill upgrading courses.
Support to internship maximum 6 months
 Preference will be given to applicants indicating willingness to take on interns from training
Voucher scheme

11. Window 1 cont’d.
Funding modalities
Ceiling: US$ 250,000
Grant 80% (Medium Companies)
Grant 50% (Large companies)
Voucher scheme SDF will cover 90%
Internships 100% of costs

12. OPERATIONAL DETAILS OF WINDOW 2
Objectives:
To improve labour productivity in the informal sector and therefore enhance their competitiveness.
To enhance production of high-quality goods by informal sector hence leading to business growth and competitiveness
To increase employment opportunities in Micro enterprises

13. Window 2 cont’d. Target group [Informal Sector]
Funding will be provided to the following categories of beneficiaries to address their training needs:
- Self-employed
- workers
- Craftsmen
- Micro and small enterprises
- Cooperatives and Associations
- Non-Government Organizations
- Community Based Organizations (CBOs)
- Trade Unions
Informal sector is characterized by fragmented actors
Intermediary institutions like trade associations, Apex bodies, NGOs, Cooperatives will take lead in applying on behalf of their members

14. Window 2 cont’d. Capacity of the training provider
Private or public vocational training institution, NGOs, business support agencies, advisory center or rural technology facilities provided the instructor (trainer) has adequate professional qualifications
Trainer must demonstrate capacity in terms of knowledge, skills, practical experience, training facilities, machines or tools, most current technology to provide relevant training requested by the applicant
Must have a proven track record for implementation of training programs toward the specified target group.
Training provider will be subject to a quality check
Applicant may be requested for the quotation of three eligible training providers for review

15. Window 2 cont’d. Eligibility
The organization/association / NGO / CBO must have been in existence for at least 1 year and should be duly registered
For Craftsmen and micro enterprises that don’t have legal status can join existing relevant associations for them to access the support.

16. Window 2 cont’d.
The support must strengthen the capacity of associations to cater for the interests of their members.
Short basic entrepreneurship training, short basic Management and IT training
Training in teaching skills is eligible for support for Master craftsmen and the staff associations
SDF will finance training materials, equipment and tools where they are important for training purposes.

17. Window 2 cont’d. Funding modalities
Applications have a ceiling of US $ 50,000 with element of 90% grant
10% contribution of the applicant can be in kind
National umbrella organizations, applying on behalf of affiliated members may exceed US 50,000 but not exceed US $ 100,000
10% of grant can be for equipment.

18. OPERATIONAL DETAILS OF WINDOW 3
Overview
Window 3 deals with innovative skills training with private and autonomous public institutions interested in developing new innovative models for delivery of training.

19. Window 3 cont’d. Eligibility
Applicants / training institutions are Private and ‘autonomous’ public training institutions which is duly registered and operating under the laws of Uganda
Should have track record of delivering labor market relevant trainings
Should provide an estimate of demand for the training program to be introduced and of its sustainability prospect.
Applicant must indicate plan of follow up activities to ease the trainees entry into the market and provide methodology for post training, monitoring and evaluation.
The applying training institution must have been in existence for a minimum of two years.

20. Window 3 cont’d. Innovative training programs
Priority will be given to short and medium term training(Not more than six months) programs that are;
Aligned to technological advancement of a product.
That intent to introduce new subject/models of training not yet available in Uganda.
That cater for groups that have not been catered for before.
It may be based on new models in financing e.g. through income generation or partnership between training provider and company.

21. Curriculum development Development of learning and assessment material
Window 3 cont’d.
Eligible activities
Teachers training
Curriculum development
Development of learning and assessment material
Equipment for instruction purposes
Tools and instruction materials
Pre-employment training is eligible for support
Co-fund cost of partnership with a foreign institution in order to benefit from the experience and the resources of the institution- provided eligibility criteria is met.
Minor infrastructural development

22. Application will have a maximum ceiling of $ 350,000
Window 3 cont’d.
Funding modalities
Application will have a maximum ceiling of $ 350,000
SDF will provide 75% of the total training budget and
The applicant will provide a 25% matching grant

23. OPERATIONAL DETAILS OF WINDOW 4
Overview
Window 4 is about recognition of prior learning
Objectives
To allow workers to have career path and access to attain higher level trainings.
To give workers portable certificates which gives their market values.

24. Eligible applicants for support under Window 4 are:
Window 4 cont’d.
Target group
Eligible applicants for support under Window 4 are:
Private sector / industry organizations,
Informal sector (jua khali) associations,
Trade unions
Training institutions

25. Window 4 cont’d. Eligible activities
Selection of test centres for accreditation
Training of assessors and supervisors
Training of (selected)Trainers
Development of test materials
Development of curricula and learning materials
Equipment for testing purposes for accredited test centre
Assistance to further develop the Worker’s PAS system.

26. Application will have a maximum ceiling of $ 300,000
Window 4 cont’d.
Funding modalities
Window 4 will not follow the SDF calendar but may be launched at any adequate time.
Application will have a maximum ceiling of $ 300,000
The grant will provide 90% of the total budget and the applicant will provide a 10% as matching grant

27. SDF Ineligible Activities
Seminars and conferences designed to stimulate discussions
Induction/orientation programmes (except only those relevant for SDF programmes)
Programmes specific to company procedures/policies
Training for spiritual, cultural and social enhancement, e.g. religious studies and appreciation of music
Professional-training programmes, involving the upgrading of personnel such as doctors, lawyers, accountants and architects
Postgraduate training programmes, involving the pursuance of higher education leading to the award of an advanced diploma, graduate diploma, degree or post degree qualification
Attachment of engineers and senior managers to advance their skills and knowledge in existing or new work areas.
The SDF will not provide funding for further development of the business of the members of the association, who have attended the training, but it would seek collaboration with projects that can offer such follow-up services upon completion of the training

28. Grant cycle Timeline Steps /activities/issues Responsible
At least 3 months before deadline for a call
Sensitization & preparations of applications
PSFU
At least 2 months prior to the deadline
Advertisement of call
Deadline
Applicants, PSFU
Within 1 month after the deadline for applications
Pre-qualification of applications
Within 2 months after the deadline for applications
Verification and capacity assessment process
For projects up to US$10,000, the SDF Team may conduct this and the next step (Fast tracking of Small Grants).
PSFU, Technical Evaluation / Due Diligence Consultant
Within 3 months after the deadline for applications
Appraisal
PSFU, Technical Evaluation / Due Diligence consultant
Within 3½ months after the deadline for applications
Submission to Grant Committee
Within 4 months after the deadline for applications
Decision on applications
Grant Committee
Not later than 10 working days after the decision
Execution process.
Not later than 1 week after the decision
Orientation/training of grantees
Not later than 1 month after the decision
Signing of grant agreement
PSFU Executive Director
Continuously
Activity Monitoring & Results Measurement Consultant
PSFU / Activity Monitoring & Results Measurement consultant
Max. 12 months after grant effectiveness
Completion report .
Grantee/Activity Monitoring & Results Measurement consultant
Grant closure

29. Thank you Private Sector Foundation Uganda (PSFU),
Plot 43, Nakasero Hill Road, Tel: [+256] ,
P.O Box 7683 Kampala, Uganda,
Website: