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Skills Development in Sub-Saharan Africa provides relevant and useful knowledge that should help African leaders and donor agencies find answers to this question.. An update of a World B

W O R L D B A N K

THE WORLD

THE WORLD BANK

The development of the African workforce is at a critical moment Wage employment in

the modern sector is largely stagnant, with those unable to find these jobs left to

pur-sue self-employment in the informal sector Unemployment among urban youth is

sub-stantial and increasing Much of the impact of HIV/AIDS has fallen on the educated and

the skilled What can African governments do to ensure that the workplace skills

need-ed for growth and equity are taught and developneed-ed in a cost-effective way?

Skills Development in Sub-Saharan Africa provides relevant and useful knowledge that

should help African leaders and donor agencies find answers to this question An update

of a World Bank Policy Paper on technical and vocational education and training (TVET),

this review assesses a decade’s progress on TVET development and reform The study

puts into an African context the Bank’s earlier work on TVET, explores issues and recent

developments, and reviews recent literature and policy studies Without being

prescrip-tive, the book provides a comprehensive review of the challenges facing skills

develop-ment in Africa today and the lessons learned over the past decade

Based upon 14 thematic studies covering 20 countries and 70 case studies, the volume

provides a good starting point for the development of country policies and programs,

including a strategic role for governments The wealth of information specific to training

in Africa should be of value not only to African leaders but also to countries in other

will be of great interest to policymakers, leaders, and international donors with a stake

in skills development in the region

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Skills Development in Sub-Saharan Africa

WORLD BANK

REGIONAL AND

SECTORAL STUDIES

Skills Development in Sub-Saharan Africa

Richard K Johanson

Arvil V Adams

THE WORLD BANK

Washington, D.C.

© 2004 The International Bank for Reconstruction and Development / The World Bank

The World Bank

The World Bank does not guarantee the accuracy of the data included in this work The aries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorse- ment or acceptance of such boundaries.

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ISBN 0-8213-5680-1

e-ISBN 0-8213-5681-X

Cover photo:Second-year trainees in machine fitting, working on milling machine; VETA Regional Vocational Training Center, Chan’gombe, Dar Es Salaam, Tanzania; Mr Mayira Skada, instructor Photo by Richard K Johanson, World Bank.

Library of Congress Cataloging-in-Publication Data

Johanson, Richard K.

Skills development in Sub-Saharan Africa / Richard K Johanson, Arvil V Adams

p cm — (World Bank regional and sectoral studies)

Includes bibliographical references and index.

ISBN 0-8213-5680-1

1 Vocational education—Africa, Sub-Saharan 2 Technical education-Africa,

Sub-Saharan I Adams, Arvil V II Title III Series.

LC1047.A357J64 2004

370.11’3’0967—dc22

2003070259

Understanding the Labor Market Context and Developments

Making Reforms Work in Public Training

Opening Markets for Nongovernment Training Institutions

Recognizing Formal Sector Enterprises as Trainers

Building Skills for the Informal Economy

Promoting Training Reforms with Financing

Moving Forward with Reforms

Importance of Training in Sub-Saharan Africa Today

Issues Surrounding TVET

Highlights of Developments in the 1990s

International Assistance for Skills Development

Highlights of the Literature

Modeling Training Decisions

Questions of Particular Relevance to Sub-Saharan Africa

The Africa Regional Review of Skills Development

The Informal Sector

Labor Market Information

Notes

3 Making Reforms Work In Public Training

Introduction

An Assessment of State-Sponsored Training

Making Reforms Work

Priorities and Policy Issues

4 Opening Markets for Nongovernment Training Institutions

Introduction

Scope and Characteristics of Nongovernment Training

Financing and Costs

Importance of Enterprise-Based Training

Pattern and Determinants of Enterprise-Based Training

Benefits of Enterprise-Based Training

Recruitment Practices

Types of Training

Public-Private Partnerships

Collective Support Services

Coping with HIV/AIDS

Notes

161719212628323237393940444751576163636572849191939699 104 106 108109 109 110 111 111 118 120 121 124 124 125 125

6 Building Skills for the Informal Economy

Introduction

Traditional Apprenticeship Training

Initiatives to Support Training Markets

Policies

Training Strategies for the Informal Sector

Toward a Strategy to Improve Traditional Apprenticeship

C Senegal: Private TVE—Main Findings

D Benin: BAA—Improving Traditional Apprenticeship

Training

E Cameroon: APME—Micro Enterprise Support

and Promotion Program

F Cameroon: GIPA—One Association’s Approach

to Improving Traditional Apprenticeship Training

G Kenya: Jua Kali Project: Micro and Small Enterprise

Training and Technology

H Kenya: SITE Project: Improving Traditional

Apprenticeship Training

I Senegal: FEDNAPH—A Trade Association

Providing Skills Training

J Tanzania: VETA/GTZ Project: Pilot Programs

for Informal Sector Training

127 127 129 135 142 142 145 147 148 148149 149 150 159 162 176177 177 183 186 187

189 191 193 195 197 200 204 206 208 210 213

viii Contents

K Uganda: UNIDO/DANIDA/JICA Project:

Master Craftspersons Training

L Zimbabwe: ISTARN—Traditional Apprenticeship Program

M Training Funds in Selected Sub-Saharan African Countries

Principal Sources

References and Selected Bibliography

Tables

a Moderate or Major Impact on the Costs of Running

Their Businesses

Countries, 1993–97

1993–99

and Solutions

in CFA Francs, Mali and Senegal

Technical-Vocational Training, Mali and Senegal

in value added)

as a Means of Skills Development

Church-Owned Training Centers

and Risks

Sub-Saharan African Countries

Countries

215217220224226

35

4245 45 46 46 47 49 6697 98 105 119 130 133 151 155 161 163 166 173 175

7.8 Strengths and Weaknesses of Enterprise Training Schemes

Figures

Investments

2.1 Sub-Saharan Africa: Estimated Proportions of Formal

and Informal Sector Employment

2.2 Labor Force Structure, by Major Economic Sector,

Selected African Countries, 1997

2.3 Informal Sector Employment as a Share of Nonagricultural

Employment, Selected African Countries (1990s)

2.4 Structure of the Urban Informal Sector, Selected

Francophone Countries, 1980s/1990s

2.5 Steps in the Training Process

3.2a Relevance

3.2b Quality (Effectiveness)

3.2c Internal Efficiency

in CFA Francs

by Type of Diploma (1999–2000)

Training: Selected Countries

22 2323 34 48 49 52 53 5864 65 70 71 92 93 94 98100101102103 112 113 114 115 116 117

5.7 Percentage of African Firms Providing Informal Training

by Ownership, 1995

and Nonexporting Firms

Kenya and Zimbabwe, 1995

Boxes

Informal Sector

Delivery

Providers

and Their Fee Policies

with Technical Colleges

117 118120

55 56

raining

607374787983104107

137140 141 143 158 159 160 168 169 170 172

At the close of the 1980s, considerable doubts had begun to emerge amonginternational donor agencies regarding the cost-effectiveness of publiclyowned and managed technical and vocational education and training (TVET).Based on extensive analysis, a 1991 World Bank Policy Paper on TVET found

a diverse market for skills development globally with national training tems consisting of public training, private training, and enterprise-based train-ing The paper’s recommendations called for a strategic policy role for gov-ernments, the opening of markets to private provision of TVET, and thediversification of sources of training finance The study found weaknesses inpublic provision of TVET, but it also found that such provision could be cost-effective when accompanied by new forms of organization, management, andfinancing

sys-A decade later, this review of TVET in Sub-Saharan sys-Africa in the 1990sreinforces many of the findings of the 1991 policy paper It comes at a criti-cal time in African development Economies are weak Wage employment inthe modern sector is largely stagnant, and unemployment among educatedyouth is substantial and increasing The impact of HIV/AIDS on the workforce, although yet to be documented, is huge, with much of the impactfalling on the ranks of the educated and skilled work force In this context,what can African governments do to ensure that the skills required forgrowth and equity are developed in a cost-effective way?

xi

Without being prescriptive, this review provides relevant and usefulknowledge that should help African leaders and donor agencies findanswers to this question These answers will be specific to given countrycontexts, but the review provides lessons from experience in Africa over thelast decade that constitute a good starting point for the development ofcountry policies and programs, including, most importantly, a strategic rolefor governments The wealth of information specific to Africa should be ofvalue not only to African leaders but also to countries in other regions thatare facing similar challenges.

Reforms begun early in the decade have led to positive changes in themanagement and financing of public TVET Although not uniformly suc-cessful, the reforms have demonstrated that institutional autonomy andfinancing mechanisms can work if they establish incentives for both effi-ciency and effectiveness Training funds, especially those that allocateresources through competition, can work although their administration iscomplex Not only private but also public institutions are mobilizing fundsthrough fees and a range of business practices

This study provides new documentation of the extensive scope and acteristics of, and the constraints upon, private TVET The finding thatAfrican enterprises provide a substantial amount of formal and informaltraining in patterns similar to those found in middle-income and developedcountries could provide comfort to African leaders faced with opportunities

char-to change government’s role in training, focusing more on policy and less onprovision Private TVET is not without problems, however, as the studyshows, drawing attention to issues of promoting equity and quality in pri-vate training Addressing these issues and building on the potential of theprivate sector as a partner is recommended as part of a more strategic rolefor the public sector in the provision and financing of TVET

This review does far more than confirm for Africa the global findings ofthe earlier World Bank policy paper By focusing on Africa, it provides adeep and relevant view of the challenges facing skills development in Africatoday A particular case in point is the extensive treatment of training for theinformal sector, especially reforms that have sought to move beyond tradi-tional apprenticeship in an effort to raise informal sector productivity andearnings These have been difficult reforms, but most employment in theregion will continue to be in the informal sector In order for skills training

to contribute to poverty alleviation, high priority must be given to findingeffective models for the informal sector

The absence of good information on the impact of HIV/AIDS on thelabor force and on skill requirements is sobering and worrisome One hopesthat this finding will help convince governments and donors to undertakethe necessary analyses as a matter of priority If the impact is as large as com-monly understood, then addressing the issue will be an important challenge

in developing training policies Added to this challenge is the need for

understanding the stagnant nature of job growth in Africa’s formal omy Analyses of both topics are needed as a guide to future paths for skillsdevelopment

econ-Callisto Madavo Vice PresidentAfrica RegionThe World Bank

A decade after publication of the 1991 World Bank policy paper on cal and Vocational Education and Training, the subject of TVET and itsimpact on productive employment and opportunities for income generationcontinues to spark debate about the responsibility of governments for pro-viding and financing it During this decade, donor interest in TVET haswaned, with increasing attention given to Education For All and the globalinitiatives for human development embodied in the Millennium Develop-ment Goals Donor interest in TVET has moved away from large invest-ments in state capacity to less costly support for policy reforms

Techni-Getting the macroeconomic context right remains the essential first step

in focusing on skills development Training does not create jobs Skills are aderived demand and that demand depends on policies for growth andemployment creation These points are emphasized at several pointsthroughout the study and should be viewed as an overarching theme under-pinning the guidance offered for TVET reforms The best strategy forimproving the quality and incidence of training is likely to be strong growth

in the demand for skilled labor within firms The incentives that this growthprovides for financing and the provision of training are important to the suc-cessful reform of TVET

In no region other than Africa is the trade-off drawn more sharplybetween the achievement of skills development with TVET and the provi-sion of universal basic education Both are important to economic growth

xv

and poverty reduction, but the fiscal and administrative capacity of the state

to meet both goals is limited The presence of HIV/AIDS and the attendantdeskilling of the labor force compounds the problem Defining the role ofthe state in the provision and financing of TVET more strategically is essen-tial to achieving EFA and the poverty reduction goal of the MillenniumDevelopment Goals Confronting this trade-off is the objective of this review

of Sub-Saharan Africa

The experience of the past decade confirms many of the lessons drawnfrom the 1991 policy paper, and further brings a note of optimism amid thepersistent difficulties faced in reforming public TVET systems The decadehas seen new governance arrangements emerging to tackle system frag-mentation Increased institutional autonomy, along with performance-basedbudgeting and diversified financing, is introducing new accountability toTVET Evidence of nongovernment capacity for TVET is reducing pressures

on public spending and opening opportunities for partnership

The role of governments in the provision and financing of TVET has beenreshaped over the past decade, and opportunities exist to deepen thesereforms in Sub-Saharan Africa with further international assistance Publicstakeholders in TVET criticized the 1991 policy paper for its perceived biastoward private training solutions This review provides a clearer rationalefor a public-private partnership by documenting the scope of nongovern-ment provision and financing of TVET and its selective coverage Thisdescription of African training markets helps define a more strategic role forgovernment to play in TVET, while it continues to work in partnerships withnongovernment providers, including enterprises This message will doubt-less resonate in other regions, as well

The study sets out to update knowledge and explore issues and recentdevelopments in TVET and to distill lessons as a guide for future skillsdevelopment in the region It is written to inform clients, donors, and WorldBank staff about TVET experience over the past decade and build a dialoguefrom this experience It is not intended as a prescriptive policy paper but as

a knowledge product The focus is on nonfarm employment, leaving asideskills development in agriculture, which merits a study of its own

The focus of the analysis is on economic lessons Provision and financing

of TVET are examined through the lens of economic efficiency, balancedwith attention to social equity Assessments of skill providers are built uponissues of access, relevance, cost-effectiveness, internal efficiency, financing,and equity TVET has important social objectives, but the attention here is oneconomic objectives and the contribution of skills development to enhancedproductivity, earnings, and poverty reduction

The regional context for the study is one of low economic growth, highpopulation and labor force expansion, and large informal economies Access

to reliable data was an issue Substantial investment has been made in oping new data from thematic and country case studies conducted in part-nership with the U.N Educational, Scientific, and Cultural Organization