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WORLD BANK THE WORLD BANK ISBN 0-8213-5680-1 REGIONAL AND SECTORAL STUDIES Skills Development in Sub-Saharan Africa Skills Development in Sub-Saharan Africa RICHARD K. JOHANSON ARVIL V. ADAMS JOHANSON/ADAMS 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 developed 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 regions that are facing similar challenges. Skills Development in Sub-Saharan Africa will be of great interest to policymakers, leaders, and international donors with a stake in skills development in the region. ËxHSKIMBy356807zv":;:':):+ 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 1818 H Street, NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail feedback@worldbank.org All rights reserved. 1 2 3 4 07 06 05 04 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. 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 v Contents Foreword Preface Acknowledgments Abbreviations and Acronyms Executive Summary 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 Note 1. Introduction and Background Introduction The Rationale for Training xi xv xix xxi 1 3 4 6 7 8 9 11 14 15 15 15 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 Notes 2. Labor Market Context and Developments Introduction Income and Poverty Labor Supply Labor Demand 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 Effectiveness Regulation of Nongovernment Training Providers Issues Notes 5. Recognizing Formal-Sector Enterprises as Trainers Introduction Background 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 vi Contents 16 17 19 21 26 28 32 32 37 39 39 40 44 47 51 57 61 63 63 65 72 84 91 91 93 96 99 104 106 108 109 109 110 111 111 118 120 121 124 124 125 125 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 Training Issues Role of External Agencies Notes 7. Promoting Reforms with Training Finance Introduction Resource Mobilization Sale of Goods and Services Allocation Mechanisms Notes 8. Moving Forward with Reforms The Assessment Government’s Role Role of International Partners A Research Agenda Appendixes Guide to Appendixes A. Mali and Senegal: Rationale for Private Provision of Technical-Vocational Education B. Mali: Private Technical-Vocational Training— Main Findings 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 Contents vii 127 127 129 135 142 142 145 147 148 148 149 149 150 159 162 176 177 177 183 186 187 189 191 193 195 197 200 204 206 208 210 213 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 1.1 Distribution of Country and Case Studies 2.1 African Firms That Ranked the AIDS Epidemic as Having a Moderate or Major Impact on the Costs of Running Their Businesses 2.2 Labor Force Participation Rates, by Gender, 1980 and 1997 2.3 Benin: Time Use, by Women and Men 2.4 Adult Literacy Rates, Selected African Countries, 1985 and 1995 2.5 Gross Enrollment Rates in Africa, 1960–97 2.6 Education Levels of Household Heads, Selected African Countries, 1993–97 2.7 Public Sector Wage-Employment, Selected African Countries, 1993–99 3.1 Secondary Enrollments in Technical-Vocational Subjects 4.1 Obstacles to Nongovernment Technical-Vocational Training and Solutions 4.2 Annual Salaries of Public and Nongovernment TVE Instructors in CFA Francs, Mali and Senegal 4.3 Regulatory Frameworks for Nongovernment Technical-Vocational Training, Mali and Senegal 5.1 Determinants of Enterprise Efficiency (percentage increase in value added) 6.1 Training Needs in the Informal Sector 6.2 Advantages and Disadvantages of Traditional Apprenticeship as a Means of Skills Development 7.1 Revenue-Generating Payroll Taxes in Sub-Saharan Africa 7.2 Tanzania: Sources of Incomes and Training Costs, Selected Church-Owned Training Centers 7.3 Mechanisms for Funding Diversification: Advantages and Risks 7.4 Income Sources of National Training Funds, Selected Sub-Saharan African Countries 7.5 Key Conditions for Training Fund Success 7.6 National Levy-Grant Schemes in Selected Sub-Saharan African Countries 7.7 Weaknesses Common to Levy-Grant Schemes 215 217 220 224 226 35 42 45 45 46 46 47 49 66 97 98 105 119 130 133 151 155 161 163 166 173 175 [...]... Countries 5.4 African Enterprises Providing Informal Training by Firm Size, 19 95 5.5 African Enterprises Providing Formal Training by Firm Size, 19 95 5.6 Percentage of African Firms Providing Formal Training by Ownership, 19 95 ix 17 5 18 2 22 23 23 34 48 49 52 53 58 64 65 70 71 92 93 94 98 10 0 10 1 10 2 10 3 11 2 11 3 11 4 11 5 11 6 11 7 x 5.7 5.8 5.9 Contents Percentage of African Firms Providing Informal Training by... Training 7.7 Malawi: Apprenticeship Allowances 11 7 11 8 12 0 55 56 60 73 74 78 79 83 10 4 10 7 13 2 13 7 14 0 14 1 14 3 15 8 15 9 16 0 16 8 16 9 17 0 17 2 Foreword At the close of the 19 80s, considerable doubts had begun to emerge among international donor agencies regarding the cost-effectiveness of publicly owned and managed technical and vocational education and training (TVET) Based on extensive analysis, a 19 91. .. Zambia: Examination Passes in Nonpublic Institutions by Type of Examination, 19 98–20 01 4.8 Zambia: Training Institutions by Type Ranked by Level of Standards, 20 01 5 .1 Incidence of Formal Training by Industry: Kenya, Zambia, and Zimbabwe, 19 95 5.2 Incidence of Informal Training by Industry: Kenya, Zambia, and Zimbabwe, 19 95 5.3 International Comparison of Incidence of Informal and Formal Training: Selected...Contents 7.8 8 .1 Strengths and Weaknesses of Enterprise Training Schemes Strengths and Weaknesses by Type of Training Provider Figures 1. 1 World Bank Lending for TVET, Total and Africa Region 1. 2 TVET Lending as a Percentage of Total Education Lending 1. 3 World Bank Education and Training Projects with Training Investments 1. 4 Studies Included in the Review 2 .1 Sub-Saharan Africa: Estimated Proportions... Informal Training by Ownership, 19 95 Informal and External Training by Exporting and Nonexporting Firms Workers Receiving Training by Type and Job Category: Kenya and Zimbabwe, 19 95 Boxes 2 .1 Cameroon: Pathways to Entrepreneurship in the Informal Sector 2.2 Constraints on Informal Sector Enterprises 2.3 Namibia: Using Labor Market Information for Flexible Training Delivery 3 .1 Kenya: Evaluation of Public... Industrial Development Organization U.S Agency for International Development VAT VET VETA VSP VTC VTIs VTT Value added tax Vocational education and training Vocational Education and Training Authority (Tanzania) Vocational Skills Project (Ghana) Vocational training center Vocational training institutes Vocational and technical training YTTC Youth technical training center ZIMDEF Zimbabwe Manpower Development. .. Literacy for Livelihood Skills 6.4 Training Follow-Up in Ghana 6.5 Role of Government in Informal Sector Training 7 .1 Zambia: A Tale of Two Community-Based Trade Schools and Their Fee Policies 7.2 Senegal: Introduction of Extra Courses on a Fee-Paying Basis 7.3 Togo: Income Mobilization by Renting Institutional Premises 7.4 Zambia: Traditional Budgeting 7.5 South Africa: Normative Financing Experiment with... During this decade, donor interest in TVET has waned, with increasing attention given to Education For All and the global initiatives for human development embodied in the Millennium Development Goals Donor interest in TVET has moved away from large investments in state capacity to less costly support for policy reforms Getting the macroeconomic context right remains the essential first step in focusing... senior African policymakers and scholars from 14 countries The events and their organizers included a seminar in Sussex, United Kingdom, June 2002, Christopher Colclough, Peter Williams; the International Working Group for Cooperation in Skills Development, Edinburgh, Scotland, October 2002, Donor Consultation, Kenneth King and Michel Carton; and the International Training Center of the ILO, Turin, Italy,... on TVET in Bamako, 19 98 3.3 Employer-Owned and -Managed Training in Brazil 3.4 Zambia: Granting Autonomy to Public Training Institutions 3.5 Plans for the Ghanaian National Qualifications Framework 4 .1 Forms of Regulation 4.2 Zambia: Playing Field Slanted against Nongovernment Providers 6 .1 Senegal: Views on the Position of an Apprentice 6.2 The Role of Informal Sector Associations 6.3 Main Findings from . Contents 16 17 19 21 26 28 32 32 37 39 39 40 44 47 51 57 61 63 63 65 72 84 91 91 93 96 99 10 4 10 6 10 8 10 9 10 9 11 0 11 1 11 1 11 8 12 0 12 1 12 4 12 4 12 5 12 5 6. Building Skills for the Informal Economy Introduction Traditional Apprenticeship Training Initiatives. 19 95 Contents ix 17 5 18 2 22 23 23 34 48 49 52 53 58 64 65 70 71 92 93 94 98 10 0 10 1 10 2 10 3 11 2 11 3 11 4 11 5 11 6 11 7 5.7 Percentage of African Firms Providing Informal Training by. Providing Skills Training J. Tanzania: VETA/GTZ Project: Pilot Programs for Informal Sector Training Contents vii 12 7 12 7 12 9 13 5 14 2 14 2 14 5 14 7 14 8 14 8 14 9 14 9 15 0 15 9 16 2 17 6 17 7