Technical education and training for priority sectors of the country (agricultural sector, technology, energy, health, finance, infrastructure)
Technical education and training for priority sectors of the country (agricultural sector, technology, energy, health, finance, infrastructure)
Business Model Description
Invest in scaling and / or establishing education services for training and specialization of technicians in priority sectors of the country (agricultural sector, technology, energy and others) for adults and young people, offering opportunities to improve their technical capacities and opt for better job opportunities to through mixed financing, including private investment, subsidies from foundations and / or potential state subsidies for those critical sectors of the country's economy.
Expected Impact
Increase access to education that will reduce inequalities, unemployment and ultimately improve quality of life.
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
- Paraguay: Cordillera
- Paraguay: Guairá
- Paraguay: Misiones
- Paraguay: Paraguarí
Sector Classification
Education
Development need
Currently, overall school dropout is 59 out of 100 students, that is, of 100 students who started primary school, 59 do not finish basic secondary education (I).
Policy priority
In order to incorporate technology in the education sector, carry out teacher training and performance evaluations, it is planned to invest G. 7 billion (US $ 991 million) within the General Budget Project of the Nation (PGN ) for fiscal year 2021 (II).
Gender inequalities and marginalization issues
The Ministry of Education and Sciences decided to close 1,579 classrooms, in sections of the Basic School, Middle School and Adult Education. This measure will affect low-income families and deprive many children of the right to education, mainly from rural areas, where students travel dozens of kilometers daily to get to the nearest school (I).
Investment opportunities introduction
Paraguay's education sector offers a unique combination of market growth potential, government support and opportunities for technological innovation (III).
Key bottlenecks introduction
The connectivity infrastructure lag presents challenges to maintaining the continuity and quality of education. This situation impedes the modernization of education systems and negatively affects both catch-up and accelerated learning (IV).
Formal Education
Development need
Currently, overall school dropout is 59 out of 100 students, that is, of 100 students who started primary school, 59 do not finish basic secondary education (I).
Policy priority
In order to incorporate technology in the education sector, carry out teacher training and performance evaluations, it is planned to invest G. 7 billion (US $ 991 million) within the General Budget Project of the Nation (PGN ) for fiscal year 2021 (II).
Gender inequalities and marginalization issues
The Ministry of Education and Sciences decided to close 1,579 classrooms, in sections of the Basic School, Middle School and Adult Education. This measure will affect low-income families and deprive many children of the right to education, mainly from rural areas, where students travel dozens of kilometers daily to get to the nearest school (I).
Investment opportunities introduction
Paraguay's education sector offers a unique combination of market growth potential, government support and opportunities for technological innovation (III).
Key bottlenecks introduction
The connectivity infrastructure lag presents challenges to maintaining the continuity and quality of education. This situation impedes the modernization of education systems and negatively affects both catch-up and accelerated learning (IV).
Pipeline Opportunity
Technical education and training for priority sectors of the country (agricultural sector, technology, energy, health, finance, infrastructure)
Invest in scaling and / or establishing education services for training and specialization of technicians in priority sectors of the country (agricultural sector, technology, energy and others) for adults and young people, offering opportunities to improve their technical capacities and opt for better job opportunities to through mixed financing, including private investment, subsidies from foundations and / or potential state subsidies for those critical sectors of the country's economy.
Business Case
Market Size and Environment
49.6% of the population (661,922) lack access to an education
> Of the total of young people between 15 and 24 years of age (1,334,521), only (50.4%) attend a formal educational institution, with higher attendance in urban areas than in rural ones (54, 8% vs. 41.9%) (1).
> As a result, 49.6% of the population (661,922) lack access to an education (1).
> The years of schooling of the population aged 15 years or more has increased by 30%, from 7.06 to 9.16 years respectively. (from 2002 to 2016) (2).
Indicative Return
10% - 15%
5% - 10%
> A thesis study carried out in Colombia regarding a Feasibility Study for the creation and start-up of an institution for Training for work and human development, yielded net margins from 8% in the first year, to 42% in year 5 (3).
> In addition, we can mention a thesis study carried out in Spain for an educational entity, the calculated IRR was 33% at 5 years (3). > The estimated rate of return for an investor is 13.88%.
Investment Timeframe
Short Term (0–5 years)
> In the study regarding the Feasibility for the creation and start-up of an institution for Training for work and human development carried out in Colombia, the investment recovery time is the short term, between 1 to 5 years from the start of the draft (3).
> In the study carried out by an educational institution of a student from the University of Carlos III in Madrid, the recovery period for the average scenario was 3 years (3).
Market Risks & Scale Obstacles
Market - Volatile
Impact Case
Sustainable Development Need
The main problems for the growth of the countries and an obstacle to the Paraguayan economy is the lack of qualified labor, according to the order of importance provided by specialists (3).
The Ministry of Education and Sciences (MEC) does not monitor students and teachers of technical education institutions, since there remains a gap in terms of teaching equipment in the last 20 years (4).
Gender & Marginalisation
There is a higher percentage of women who cannot read or write compared to men, a situation that worsens depending on the economic condition (5).
Expected Development Outcome
> Increase the quality development of the country's priority economic sector and reduce the unemployment rate.
> Provide qualified national labor to companies in priority sectors and improve economic growth.
> Increase labor productivity and improve access to quality education.
Gender & Marginalisation
> Reduce the educational access gap that exists between women and men.
> Increase the empowerment of women through their training and education.
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
2.3.2 Average income of small-scale food producers, by sex and indigenous status
8.5.1 Average hourly earnings of employees, by sex, age, occupation and persons with disabilities
8.6.1 Proportion of youth (aged 15–24 years) not in education, employment or training
Secondary SDGs addressed
Directly impacted stakeholders
People
People
People
Indirectly impacted stakeholders
Corporates
Public sector
Outcome Risks
> If a business model based on high enrollment rates is applied, it can contribute to an increase in educational disparities within society.
Impact Risks
Execution Risks: > Lack of focus on technical education, among other agricultural schools.
Stakeholders: > The lack of trained and specialized teachers in the priority sectors. > insufficient digital literacy of users to make effective use of e-learning platforms.
Drop off: > In the event that the facilities are located far from the capital, it could be an obstacle to the recruitment of trained teachers.
External risks: > Delays in obtaining certifications that allow classes to begin.
Unexpected risks: > Limitations on support from foundations, government and others that make low-income people unable to access education.
Impact Classification
What
The outcome is likely to be positive, because increased access to technical and vocational education could provide the skills necessary to fully integrate into the workforce
Risk
While the model is based on good evidence, external factors such as too low income can limit the breadth of the impact
Impact Thesis
Increase access to education that will reduce inequalities, unemployment and ultimately improve quality of life.
Enabling Environment
Policy Environment
> Strategic Plan for Education 2020 - A 2020 Plan was developed in 2008 by the Ministry of Education and Culture (MEC). This Strategic Plan has as fines the following points, among others: improving the quality of education (7).
The National Development Plan 2030 -Its goals include, among others, a strong investment in the human capital of vulnerable groups, especially tertiary education (8).
National Education Plan 2024 - Ensures access, qualitative improvement, efficiency and equity of Paraguayan education as a public good (9).
Financial Environment
AFD PROEDUC financing - Financing for higher education. The scope of the financing ranges from USD 2,000 to USD 90,000 or its equivalent in guaraníes and the terms are according to each project, up to 10 years and 6 months (13).
The IDB offers loans that promote and finance sustainable and market-based business models that facilitate the participation of private sector companies (14).
Law 60-90 (investment law) protects investments of national and / or foreign origin (15).
Regulatory Environment
Law No. 4995 Higher Education Law - aims to regulate higher education as part of the national educational system, define the types of institutions that integrate, establish their regulations and the mechanisms that ensure the quality (10).
Law No. 1264 General Education Act - which sets out the general principles and purposes that should inspire and guide education (11).
Regulation and Procedures Manual for Vocational Training and Job Training Centers that monitor and monitor Vocational Training institutions of the Permanent Education modality, prepared by the Ministry of Education (12).
Marketplace Participants
Private Sector
Instituto Agropecuario Carlos Pfannl (Paraguay), Instituto Técnico Superior de Electricidad (Paraguay), Itaipú (RSE) (Paraguay), Yacyretá (RSE) (Paraguay).
Government
Ministry of Education and Culture, National University of Asunción, National Service for Professional Promotion (SNPP), SINAFOCAL of the Ministry of Labor
Multilaterals
IDB, European Union (EU), World Bank (WB), Development Bank of America Latina (CAF)
Non-Profit
CIRD Institute, Together for Education, Paraguay Educa, Fund for Excellence in Education and Research (FEEI), Multidisciplinary Organization to Support Teachers and Students (OMAPA)
Target Locations
Paraguay: Cordillera
Paraguay: Guairá
Paraguay: Misiones
Paraguay: Paraguarí
References
- (I) COPROFAM- 2020. El sistema educativo de Paraguay está entre los peores del mundo. https://coprofam.org/2020/02/27/el-sistema-educativo-de-paraguay-esta-entre-los-peores-del-mundo/#:~:text=En%20la%20actualidad%2C%20la%20deserci%C3%B3n,arroja%20n%C3%BAmeros%20a%C3%BAn%20m%C3%A1s%20preocupante. (II) Gobierno Nacional de Paraguay. 2021. Presupuesto general de la nación para el ejercicio fiscal 2021. https://bicameral.congreso.gov.py/application/files/8715/9895/0022/LEY.pdf (III) Banco Mundial. 2023. Banco Mundial aprueba préstamo para mejorar infraestructura educativa en Paraguay. https://www.bancomundial.org/es/news/press-release/2023/04/25/banco-mundial-aprueba-prestamo-para-mejorar-infraestructura-educativa-en-paraguay (IV) BID. 2022. Tres razones para impulsar la conectividad en las escuelas. https://www.iadb.org/es/historia/tres-razones-para-impulsar-la-conectividad-en-las-escuelas
- (1) Agencia de Información Paraguaya. 2020. Dgeec presenta últimas estadísticas sobre situación de los jóvenes en el país. https://www.ip.gov.py/ip/dan-a-conocer-datos-sobre-la-situacion-de-los-jovenes-del-pais/
- (2) Dirección General de Estadística, Encuestas y Censos. 2016. Promedio de años de estudio de la población de 15 y más años de edad por año de la encuesta, según área de residencia, 1997-98 - 2022. Serie comparable. https://www.ine.gov.py/publicacion/6/educacion
- (3) Entrevistas. 2021.
- (4) Última Hora. 2018. Paraguay debe invertir en educación técnica de calidad. https://www.ultimahora.com/paraguay-debe-invertir-educacion-tecnica-calidad-n1304091
- (5) La Nación. 2015. Día Internacional de la Alfabetización: 1 de cada 4 paraguayos solo tiene manejo básico de lectoescritura. https://www.lanacion.com.py/pais/2020/09/08/dia-internacional-de-la-alfabetizacion-1-de-cada-4-paraguayos-tiene-manejo-elemental-de-lectoescritura-en-espanol/
- (6) Instituto Nacional de Estadística. 2022. Juventud en Paraguay: el 27% de la población paraguaya tiene entre 15 a 29 años. https://www.ine.gov.py/news/news-contenido.php?cod-news=1344
- (7) Ministerio de Educación. 2008. Plan Estratégico de Educación Paraguay 2020. https://planipolis.iiep.unesco.org/sites/default/files/ressources/paraguay_plan_estrategico_paraguay2020.pdf
- (8) Gobierno del Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf
- (9) Ministerio de Educación. 2009. Plan Nacional de Educación 2024. https://mec.gov.py/talento/archivo/planes/MEC_plan-educacional-2024.pdf
- (10) Congreso de la nación paraguaya. 2013. Ley Nº 4995. https://www.bacn.gov.py/leyes-paraguayas/4401/ley-n-4995-de-educacion-superior
- (11) Congreso de la nación paraguaya. 1998. Ley Nº 1264. https://www.bacn.gov.py/leyes-paraguayas/3766/ley-n-1264-general-de-educacion
- (12) Gobierno Nacional de Paraguay. s.f. Reglamento y Manual de Procedimientos para los Centros de Formación Profesional y Capacitación Laboral. https://siteal.iiep.unesco.org/sites/default/files/sit_accion_files/formacion_profesional_y_capacitacion_laboral_para_conti.pdf
- (13) Agencia Financiera de Desarrollo. S.F. Acerca de la AFD. https://www.afd.gov.py/que-es-la-afd
- (14) International Finance Corporation. 2011. International Finance Institutions and development through private sector. https://www.deginvest.de/DEG-Englische-Dokumente/PDFs-Download-Center/IFI_and_Development_Trough_the_Private_Sector.pdf
- (15) Congreso de la Nación Paraguaya. 1991. LEY Nº: 60/90. https://www.mic.gov.py/mic/w/industria/ddi/pdf/Ley60-90.pdf