Training and upskilling centres

Training and upskilling centres

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Training and upskilling centres

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.
Education Infrastructure
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 ROI)
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 100 million - USD 1 billion
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10)

Business Model Description

Upscale technical and vocational education and training centres for adults and youth, offering different courses for improving technical skills and employment opportunities.

Expected Impact

Offer educational and training opportunities for professional self-development to promote more stable livelihoods.

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

Explore the country and target locations of the investment opportunity.
Country
Region
  • Uganda: Karamoja
  • Uganda: Central
  • Uganda: Acholi
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Sector Classification

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

Education

Development need
Uganda has a significant challenge meeting SDG 4 - Quality Education.(I) The inequality-adjusted education index within the Human Development Index (HDI) framework is only 0.371.(II) The quality of education is poor, which is showcased by low levels of literacy and numeracy, combined with high school dropout rates (around 40%).(III)

Policy priority
The National Development Policy III 2020/21 - 2024/25 identified several goals for education: increase labor force transitioning into gainful employment from 35% to 55%, increase average years of schooling from 6 to 11, increase learning adjusted years of schooling from 4.5 to 7 years, and reduce the gender gap index from 0.523 to 0.5.(III)

Key bottlenecks introduction
Uganda has inadequate training programs to support the transition from school to employment. Public services suffer significantly from lack of accountability, cumbersome procedures and corruption.(III)

Pipeline Opportunity

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Investment Opportunity Area

Training and upskilling centres

Business Model

Upscale technical and vocational education and training centres for adults and youth, offering different courses for improving technical skills and 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 100 million - USD 1 billion

Financing for the technical and vocational education and training (TVET) sector grew between 2013 and 2019 and reached USD 75 million (45% of total education budget). However, a USD 175 million financing gap remains, which must be covered by private sector.(14)

81% of Uganda's technical and vocational education and training centres are private. There were an estimated 1,000 private centers in 2011.(1)

Enrolments for business, technical and vocational training grew from 25,000 in 2008 to 129,000 in 2017.(III)

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

15% - 20%

Benchmark statistics for the private education sector estimate a return rate between 18% and 22%. This rate is a benchmark calculated as a cost of equity with a country risk premium, reflecting an average return required by investors.(9)

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)

The total investment timeframe is expected to be medium term, reflecting the characteristics of the business model offering upskilling services.

Market Risks & Scale Obstacles

Limited or inadequate uptake due to social norms and poor quality examples

The technical and vocational education and training (TVET) sector has a negative image in society.(III) Currently, TVET institutions focus on providing certificates instead of skills, which limits their potential and usefulness.(2)

Business - Supply Chain Constraints

The number properly trained teachers and industry participation is low.(2)

Market - Highly Regulated

Low internationalization of TVET limits the experience exchange and implementation of latest discoveries.(III) The overlapping mandates of administrative institutions and lack of institutional framework may slow down sector development.(2)

Impact Case

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Sustainable Development Need

Access to technical and vocational education and training (TVET) varies significantly between urban and rural areas.(14) Less than 50% of districts have access to at least one TVET institution supported by the government that could develop skills necessary for work.(III)

The World Health Organization estimated that with the current level of education and healthcare, Ugandan children aged 18 years can achieve only 38% of their potential productivity.(III)

Gender & Marginalisation

Although the level of illiteracy is similar for both genders, there is high gender disparity in enrolments in secondary schools, universities and technical and vocational education and training (TVET). The highest difference is in TVET, with only 61 women enrolled for every 100 men.(III)

Expected Development Outcome

Increased levels of literacy and numeracy, increased labour productivity, decreased skills gap in the market

Development of new opportunities resulting from highly educated staff, increased incomes and wages, increased access to education, increased chances for new innovations, discoveries or patents

Increased pace of growth in gross domestic product (GDP), increased employment opportunities for women, improved human capital

Gender & Marginalisation

More accessible and high quality technical and vocational education and training (TVET) opportunities for women and young adults

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

4.6.1 Proportion of population in a given age group achieving at least a fixed level of proficiency in functional (a) literacy and (b) numeracy skills, by sex

Gender Equality (SDG 5)
5 - Gender Equality

5.5.2 Proportion of women in managerial positions

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

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

No Poverty (SDG 1)
1 - No Poverty
Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

Young adults benefitting from professional development opportunities

Gender inequality and/or marginalization

Women especially benefitting from professional development opportunities

Corporates

Employers, employees willing to broaden their skills, teachers

Public sector

Government benefitting from increased match between skills needs and supply

Outcome Risks

Some technical and vocational education and training (TVET) courses, despite their high costs, provide just certification instead of concrete skills.(2)

High cost of education often requires taking loans and increasing indebtedness of households.

Impact Classification

C—Contribute to Solutions

What

Providing technical and vocational education and training is likely to have a positive impact because it increases the productivity of the people and contributes to higher economic growth.

Who

Youth and underperforming adults who achieve only a fraction of their possible productivity and experience lower living standards

Risk

Although the business model is market proven, the negative reputation of TVET and its low quality may discourage potential clients.

Impact Thesis

Offer educational and training opportunities for professional self-development to promote more stable livelihoods.

Enabling Environment

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Policy Environment

National Development Plan III (NDPIII) 2020/21 – 2024/25: This plan incudes the following goals: increase the proportion of labour force transitioning into gainful employment and enterprise development from 34.5% to 55%; increase average years of schooling from 6.1 to 11 years; and increase learning adjusted years of schooling from 4.5 to 7 Years.(III)

Technical Vocational Education and Training (TVET) Policy: This policy aims to create an enabling legal framework, increasing people's awareness of TVET benefits, raising involvement of stakeholders and expanding support for continuous learning.(2)

National ICT Policy: This policy recognises the importance of information and communications technology (ICT), emphasising both ICT education and the use of ICT in education.(7)

Financial Environment

Fiscal incentives: All educational articles and materials are tax exempt.(8) Exercise books are value added tax (VAT) exempt.(8) Mathematical sets, textbooks are VAT and import duty exempt.(8) Sewing machines and woodworking machines (frequently used for training) are VAT and import duty exempt.(8)

Other incentives: Taxpayers receive a 100% deduction for scientific research expenditures, as do employers who train permanent resident or provide tertiary education not exceeding 5 years.(8)

Regulatory Environment

The Business, Technical and Vocational Education and Training (BTVET) Act 2008: This Act is the general regulatory framework for BTVET. It defines the scope of education programs, their criteria and requirements for service providers.(1) It also introduced the Uganda Business and Technical Examinations Board (UBTEB), which establishes certification and examination standards.(1)

Education Service Act 2002: This Act specifies the functions of the Education Service Commission. It is responsible, among other things, for reviewing and formulating national standards for education services.(3)

The TVET Policy introduces the TVET Council, two-thirds of whom are industry employers. The council regulates the sector by implementing standards, qualifications, registration and accreditation of institutions. It also recommends beneficiaries of the Skill Development Fund.(2)

National Curriculum Development Centre (NCDC) Act Cap 135: This Act established the National Curriculum Development Centre, which supports curriculum development for TVET institutions.(2)

Marketplace Participants

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Private Sector

African College of Commerce (ACC Kabale), Kabale Institute of Technology and Applied Sciences (KITAS), Agape International Children Ministries (AICM) Vocational Training College

Government

Ministry of Education and Sports (MoES), Directorate of Business, Technical and Vocational Education and Training (BTVET)

Multilaterals

World Bank

Non-Profit

German Corporation for International Cooperation (GIZ), Japan International Cooperation Agency (JICA), Korea International Cooperation Agency (KICA), GIC, Irish Aid, Industrial Training Council (ITC), Uganda Association of Private Vocational Institutions

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

Uganda: Karamoja

The Northern regions are lagging behind in terms of accessibility to and quality of education.(5) The lowest penetration of secondary education was reported in Karamoja and Bunyoro regions.(6)
rural

Uganda: Central

Historically, the unemployment in urban areas tends to be significantly higher than in Uganda's rural areas.(13) This indicates the unemployed urban population could benefit greatly from upskilling and training, because it could help them find employment. Significant regional disparities exist in terms of wealth in Uganda. The majority of the wealthiest districts are located in the Central region, while most of the poorest ones are in the North.(16)
rural

Uganda: Acholi

Significant regional disparities exist in terms of wealth in Uganda. The majority of the wealthiest districts are located in the Central region, while most of the poorest ones are in the North.(16) Disparities in wealth translate directly into productivity scores and access to quality education and skills development. The wealthiest districts tend to generate the larger proportion of the country's gross domestic product (GDP), and therefore attract more investment and develop faster. (16)

References

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    • (I) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (II) United Nations Development Programme (2019). Briefing note for countries on the 2019 Statistical Update: Uganda. (III) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25. (IV) World Bank. The World Bank In Uganda. https://www.worldbank.org/en/country/uganda/overview