Technical and Vocational Education and Trainings (TVET) to Increase Employability

Technical and Vocational Education and Trainings (TVET) to Increase Employability

Technical and Vocational Education and Trainings (TVET) to Increase Employability

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Formal Education
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Gender Equality (SDG 5)

Business Model Description

Provide technical and vocational training services to align young people's skills to the market's needs and enhance their employment opportunities

Expected Impact

TVET investments help decrease the unemployment rate while empowering youth, women and rural residents via private-sector-led TVET programs.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Tunisia: South East
  • Tunisia: Centre-East
  • Tunisia: Centre-West
  • Tunisia: South-West
  • Tunisia: North-West
  • Tunisia: North-East
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Education

Development need
The country's education system is still flawed, with 8% of 15-24 year olds not completing primary education. The educational system's skills development is out of step with market demands, impairing youth employability. Regional disparities are most pronounced at the secondary and post-secondary levels of schooling (1).

Policy priority
According to the Strategic Plan for the Reform of Higher Education and Scientific Research, Tunisia's priorities are to improve the quality of education, particularly at the primary and secondary levels and in disadvantaged areas, to increase new graduates' employability, and to reinforce equipment and digital infrastructure (4).

Gender inequalities and marginalization issues
Tunisia plummeted to 106th place in 2020 regarding gender equality in education (4). Significant gender differences in education result in major gaps in access to the labor market and economic resources, with high unemployment rates for young people and women. Also, gender-based violence inhibits women's educational and occupational advancement (5).

Investment opportunities introduction
Education receives around 20% of the government's budget, which largely go towards salaries (9). Additionally, the country has received a series of investment loans from IFIs to enhance the quality and accessibility of education. The government has created programs to encourage the use of digital technologies, increasing schools' access to technology (10).

Key bottlenecks introduction
Despite substantial public spending, the education sector suffers from low performance (11). Investments alone are insufficient unless they are accompanied by quality research and training.

Sub Sector

Formal Education

Development need
Tunisian labor market is marked by high youth unemployment (34.4%) and Not in Education, Employment, or Training (NEET) rates (33%), as well as skills mismatch. However, the currrent TVET system's capacity to adapt training to the needs of individuals and productive sectors is limited (2).

Policy priority
Tunisia has developed one of the region's most advanced TVET systems and identified professional training as an important axis to boost employability (13). Tuning TVET to market needs was one of the first steps to enhance labor productivity as early as in 2012 (12). The government advocated strengthening the vocational sector to encourage graduates to pursue STEM careers (13).

Gender inequalities and marginalization issues
While significant disparities in employment remain between men and women (23% of Tunisian women are unemployed, compared to only 13% of men. Unemployment among qualified young people is 40% for women but just 19% for men.), women enroll in less TVET than men, with 13,7% of males enrolling compared to just 6,2% of females (15).

Investment opportunities introduction
The Ministry of Vocational Training and Employment recently announced a series of new initiatives aimed at strengthening the TVET system through digitalization, training alignment with labor market needs, and the establishment of distinct TVET for distinct 'economic zones' to meet the needs of distinct territories (8).

Key bottlenecks introduction
TVET has long been seen as inferior to higher education. Although technical degrees are more likely than higher education degrees to lead to employment, only 10% of unemployed men and 5% of unemployed women consider TVET beneficial for job searches (compared to 50% in OECD countries), whereas the percentages for higher education are 23 and 28%, respectively (14).

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Technical and Vocational Education and Trainings (TVET) to Increase Employability

Business Model

Provide technical and vocational training services to align young people's skills to the market's needs and enhance their employment opportunities

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 50 million - USD 100 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

136 vocational training centers (17)

Government spending on education in Tunisia surpassed USD 1.8 billion in 2018 (16). Experts in the country point to a market size below USD 100 million for the specific TVET market.

In Tunisia, there are 136 vocational training centres, including 47 sectoral training centres, 61 training and learning centres, 14 training centres for young rural women, 11 centres for training and promotion of self-employment and 1 aeronautic training centre (17).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

Return profile information was acquired from experts in the Maghreb region.

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Investment timeframe information was acquired from experts in the Maghreb region.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 500,000 - USD 1 million

Market Risks & Scale Obstacles

Market - Highly Regulated

According to the 2016 Investment Law, a list of sectors requiring government approval was set. Education is also included in this "negative list". The public sector dominates TVET supply, teaching 89% of newly qualified employees with a TVET diploma (18).

Capital - Limited Investor Interest

The current TVET system is incapable of meeting particular industry needs or sustaining an appealing level of human capital for investors interested in higher added-value businesses (19).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Tunisia's Systematic Country Diagnostic cites skills mismatch and low-quality education as two of the country's primary human capital problems, notably in the country's lagging regions. It emphasizes the low quality of education as a barrier to youth involvement and employment development (19).

Nearly 40% of companies in the MENA region identified skills gaps as a significant hindrance to company growth. Due to the inadequate quality of TVET, these gaps exist ranging from fundamental skills such as creative and independent thinking and problem-solving, to sector-specific skills (19).

Gender & Marginalisation

While an unemployment rate above 15% is unacceptably high, the aggregate statistic conceals significant labor market differences amongst groups, with the most disadvantaged being young, female, and rural (18). As of 2021, the youth unemployment rate in Tunisia is over 40% (21).

Tunisian women unemployment is 23%, compared to 13% for men. Women with higher education have a 40% unemployment rate, double that of qualified men (19.4%) (18). In six southern governorates, women are unemployed at 37%, compared to 13% of men, and 47% of women with higher education (15).

Compared to men, women enroll in TVET programs at a lower rate: 13,7% of males and 6,2% of females attended these courses in 2016 (15). Only 10% of unemployed men and 5% of unemployed women consider TVET beneficial for job search (19).

Expected Development Outcome

TVET is expected to contribute to youth employment facilitation by allowing jobseekers to build and strengthen hard and soft labor market skills. Additionally, it can assist in economic growth, as an appropriately educated workforce is a main determinant affecting corporate performance (19).

Gender & Marginalisation

TVET can also be one of various routes to regional convergence, contributing to and assisting local economies as part of regional economic development strategies (19).

Quality and easily accessible TVET is projected to help decrease unemployment and empower individuals, particularly youth, rural residents, and women.

Primary SDGs addressed

Quality Education (SDG 4)
4 - Quality Education

4.3.1 Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex

4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill

Current Value

ARSP 18.2079% CMFL 25.6229% COPA 22.6156% EMAIL 21.2467% EPRS 16.2401% INST 17.2485% PCPR 16.0858% SOFT 16.5873% TRAF 16.2848%

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Gender Equality (SDG 5)
5 - Gender Equality

Directly impacted stakeholders

Gender inequality and/or marginalization

Youth, rural residents and women

Corporates

TVET providers and formation-related equipment suppliers

Indirectly impacted stakeholders

People

General population benefiting from increased productivity of the workforce

Corporates

Firms having access to a more qualified workforce

Public sector

Government with reduced rate of unemployment

Outcome Risks

As vocational education takes only a few years (1-2) to complete, schools can graduate many students in a short span, which can lead to job market saturation with too many people of similar skillsets.

Gender inequality and/or marginalization risk: Vocational education subjects tend to be male-dominated technical subjects. Without preventive measures, increased TVET might further undermine women.

Impact Risks

Although it is widely agreed that TVET improves school-to-work transition periods, the actual impact of TVET is difficult to quantify due to lack of data and evaluations (19).

If the TVET programs are not aligned with the skills needed in the labor market, the resulting impact especially on youth employability, may be limited.

Impact Classification

C—Contribute to Solutions

What

Positive results are likely to include reduced unemployment, improved livelihoods as well as a more productive workforce and economy

Who

Unemployed population, especially youth, rural residents and women, benefitting from increased educational opportunities

Risk

While TVET model is proven, the availability of data and the alignment of the programs with market needs require consideration.

Impact Thesis

TVET investments help decrease the unemployment rate while empowering youth, women and rural residents via private-sector-led TVET programs.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Strategic Plan for Reforming Higher Education and Scientific Research 2015–2025 has five main objectives: increase quality and employability; promote research and innovation; foster good governance; review university planning for regional balance; and develop teacher training.

With 14 projects overseen by a project management unit, an ambitious VET reform plan (2016–2020) was developed. It aimed to increase attractiveness, support trainer development, engage stakeholders, and improve data collection and analysis (22).

The 2014 TVET Strategic and Orientation Plan makes reference to the establishment of a new governance model based on communication between central and local authorities, as well as public and private providers of TVET (19).

In 1995, Tunisia created the Program for the Enhancement of Vocational Training and Employment to improve the TVET system. It aimed to match skills need by partnering with the commercial sector and realign TVET towards private sector demands by boosting PPP (19).

Tunisia has placed a premium on education since gaining independence in 1956. In 1959, the government implemented an education plan that viewed education as a national investment and a critical factor in determining the nation's economic growth (23)

Financial Environment

Financial incentives: The 2016 Investment Law stipulates that firms may get a refund of up to 70% (capped at 20,000 TND (USD 7,000) for training Tunisian employees in specific skills that meet international standards (19)

Fiscal incentives: Government cofinances trainer wages for Tunisians, for a maximum of 10 years and pays social security payments (19). Education investments are subject to 10% CIT. There is a tax credit system, saving firms 60% of their training costs. Customs duty is waived for equipment import.

Other incentives: Imported equipment is exempt from customs charges and taxes. VAT and consumption taxes are waived on imported and locally purchased equipment. Registration fees paid on the transfer of agricultural land may be reimbursed upon request within a three-year period.

Regulatory Environment

Tunisia Law No. 93-10 of February 17, 1993 on the orientation law of vocational training provided the framework for a national vocational education system (19).

A competency-based approach in TVET was introduced in 2008 by Law No. 2008-10 of February 11, 2008. According to the legislation, each TVET center shall include a public-private advisory group comprised of members from the business sector and UTICA (19).

The 2016 Investment Law provides for a reimbursement of up to 70% (maximum at TND 20,000) for training Tunisian personnel in particular international-standard skills (19).

According to the 2016 Investment Law, a list of sectors requiring government approval was set. Education is included in this "negative list". An investment request is automatically approved if the decision-making authority does not react within a defined period, usually 60 days.

Tunisia adopted a new constitution on 26 January 2014, including articles 38 and 46 guaranteeing the right to education. This is a significant step forward, as the 1959 Constitution did not include a guarantee of the right to education

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Tunisia Umbrella Organization of Citizens Enterprises (CONECT), Maghreb Institute of Economic Sciences and Technology (IMSET), Promesse Formation, Professional Training Institute (IFT), AFCA Informatika, Natech Training, COFISEC Formation

Government

MJSIP, MFPE, Tunisian Agency for Vocational Training (ATFP), National Observatory of Employment and Skills (ONEQ), Nat. Center for Trainer Training (CENAFFIF), Nat.l Center of Continual Training and Professional Promotion (CNFCPP), Nat. Agency for Employment and Self-Employment (ANETI)

Multilaterals

ILO, UNESCO, African Union, USAID Tunisia, French Development Agency (AFD), European Bank for Reconstruction and Development (EBRD), World Bank, OECD, German Development Agency (GIZ), Swiss Agency for Development and Cooperation (SDC),

Non-Profit

Tunisian General Labour Union (UGTT), Tunisian Union of Industry, Commerce and Handicrafts (UTICA), Education for Employment Tunisia (EFE-Tunisie), Tunisian Association for Education and Development, European Training Foundation (ETF)

Public-Private Partnership

Support Program for Training and Professional Integration (PAFIP)

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Tunisia: South East

Although TVET practices would benefit all regions; gender and educational differences are far less prominent in Tunis and other coastal towns, where skilled labor is in greater demand and gender norms are more progressive.
urban

Tunisia: Centre-East

semi-urban

Tunisia: Centre-West

rural

Tunisia: South-West

semi-urban

Tunisia: North-West

urban

Tunisia: North-East

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.