Technical and Vocational Education and Trainings (TVET) to Increase Employability
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.
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Country & Regions
- Tunisia: South East
- Tunisia: Centre-East
- Tunisia: Centre-West
- Tunisia: South-West
- Tunisia: North-West
- Tunisia: North-East
Sector Classification
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.
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
Technical and Vocational Education and Trainings (TVET) to Increase Employability
Provide technical and vocational training services to align young people's skills to the market's needs and enhance their employment opportunities
Business Case
Market Size and Environment
USD 50 million - USD 100 million
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
15% - 20%
Return profile information was acquired from experts in the Maghreb region.
Investment Timeframe
Medium Term (5–10 years)
Investment timeframe information was acquired from experts in the Maghreb region.
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Capital - Limited Investor Interest
Impact Case
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
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
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
Directly impacted stakeholders
Gender inequality and/or marginalization
Corporates
Indirectly impacted stakeholders
People
Corporates
Public sector
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
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
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
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
Tunisia: South East
Tunisia: Centre-East
Tunisia: Centre-West
Tunisia: South-West
Tunisia: North-West
Tunisia: North-East
References
- (1) EPDC, 2018. Tunisia National Education Profile. https://www.epdc.org/sites/default/files/documents/EPDC_NEP_2018_Tunisia.pdf
- (2) European Training Foundation, 2020. TUNISIA EDUCATION, TRAINING AND EMPLOYMENT DEVELOPMENTS 2020. https://www.etf.europa.eu/sites/default/files/document/Country%20Fiche%202020%20Tunisia%20-%20Education_%20Training%20and%20Employment%20Developments.pdf
- (3) République Tunisienne Ministère de l’Enseignement Supérieur et de la Recherche Scientifique, 2015. Plan stratégique de la réforme de l'enseignement supérieur et de la recherche scientifique 2015 – 2025. https://planipolis.iiep.unesco.org/sites/default/files/ressources/tunisia_plan_strategique_de_la_reforme_lenseignement_superieur_2015-2025.pdf
- (5) World Bank, 2020. Is the status of women in Tunisian society endangered? https://blogs.worldbank.org/arabvoices/status-women-tunisian-society-endangered
- (6) Invest in Tunisia. A Performing Education System. http://www.investintunisia.tn/En/a-performing-education-system_11_143
- (7) World Bank, 2017. Education in Tunisia: Technology as a Tool to Support School Improvement. https://blogs.worldbank.org/arabvoices/tunisia-technology-support-school-improvement
- (8) World Bank Group, 2020. TUNISIA Skills Development for Employment. https://documents1.worldbank.org/curated/en/465581593566209488/pdf/Tunisia-Skills-Development-for-Employment-The-Role-of-Technical-and-Vocational-Education-and-Training.pdf
- (9) Borgen, 2020. Education in Tunisia. https://borgenproject.org/tag/education-in-tunisia/
- (10) World Bank, 2017. Education in Tunisia: Technology as a Tool to Support School Improvement. https://blogs.worldbank.org/arabvoices/tunisia-technology-support-school-improvement
- (11) UNICEF, 2021. Tunisia Country programme document. https://www.unicef.org/executiveboard/media/3191/file/2021-PL11-Tunisia_CPD-EN-ODS.pdf
- (12) World Bank Group, 2020. TUNISIA Skills Development for Employment. https://documents1.worldbank.org/curated/en/465581593566209488/pdf/Tunisia-Skills-Development-for-Employment-The-Role-of-Technical-and-Vocational-Education-and-Training.pdf
- (13) Oxford Business Group. https://oxfordbusinessgroup.com/overview/raising-standards-schools-and-universities-shift-their-focus-quantity-quality-improve-student
- (14) World Bank Group, 2020. TUNISIA Skills Development for Employment. https://documents1.worldbank.org/curated/en/465581593566209488/pdf/Tunisia-Skills-Development-for-Employment-The-Role-of-Technical-and-Vocational-Education-and-Training.pdf
- (15) Brief-Gender Equality in Education
- (16) Statista. Value of government expenditure on education in Tunisia from 2016 to 2018. https://www.statista.com/statistics/1189917/educational-expenditure-value-in-tunisia/
- (17) Oxford Business Group. Education in Tunisia seeing increased private sector interest. https://oxfordbusinessgroup.com/overview/covering-new-ground-private-sector-creating-more-opportunities-investors
- (18) USAID, 2017. Reforming Technical and Vocational Education and Training. https://simtunisie.weebly.com/uploads/1/8/1/2/18128835/aup_tunisia_tvet_assessment_final.pdf in Tunisia
- (19) World Bank Group, 2020. TUNISIA Skills Development for Employment. https://documents1.worldbank.org/curated/en/465581593566209488/pdf/Tunisia-Skills-Development-for-Employment-The-Role-of-Technical-and-Vocational-Education-and-Training.pdf
- (21) UNESCO, 2021. Tunisie : une formation sur mesure pour lutter contre le chômage des jeunes. http://www.iiep.unesco.org/fr/tunisie-une-formation-sur-mesure-pour-lutter-contre-le-chomage-des-jeunes-13921
- (22) European Training Foundation, 2020. TUNISIA EDUCATION, TRAINING AND EMPLOYMENT DEVELOPMENTS 2020. https://www.etf.europa.eu/sites/default/files/document/Country%20Fiche%202020%20Tunisia%20-%20Education_%20Training%20and%20Employment%20Developments.pdf
- (23) Arab Barometer, 2021. Education in Tunisia: Past progress, present decline and future challenges. https://www.arabbarometer.org/2021/03/education-in-tunisia-past-progress-present-decline-and-future-challenges/