Photo by UNDP Côte d'Ivoire

TVET Infrastructure and Specialized Courses

Photo by UNDP Côte d'Ivoire

TVET Infrastructure and Specialized Courses

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 GPM)
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.
In 2019, there were 2.3 million youth not in education, employment or training
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Decent Work and Economic Growth (SDG 8)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Gender Equality (SDG 5) Industry, Innovation and Infrastructure (SDG 9)

Business Model Description

Build or acquire educational infrastructure to provide Technical and Vocational Education and Training (TVET). The TVET centers offer tailor-made courses for skills that are in demand locally by selected industries. These include hospital management, healthcare, foundry work, ICT, renewable energy professions, and particularly engineering and construction in large cities. The centers generate revenue through enrolment fees and may enter into agreements with local companies for apprenticeship contracts and staff training to ensure that the training provided is aligned with the industry needs. Private firms can benefit from tax credit for the provision of apprenticeship training, with a nationally determined amount per student.

Expected Impact

Offer professional skills, leading to better-paying jobs, and reduce skill mismatches in the labor market, particularly in high-demand sectors, benefiting businesses and contributing to economic growth.

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.
Region
  • Côte d'Ivoire: Zanzan
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Woroba
  • Côte d'Ivoire: District Autonome d'Abidjan
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Savanes
Learn more

Sector Classification

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

Education

Development need
The primary school enrolment rate in Côte d'Ivoire was 94.4% in 2023, but the completion rate was just 57.9% for lower secondary education (2022). The combined share of vulnerable jobs and unemployed people ranges between 70% and 90%. In addition, Covid-19 has exacerbated regional inequalities with the spread in results widening considerably between rural regions (e.g. Zanzan) and Abidjan (4, 5, 13, 14)

Policy priority
Improving access to education is among the five pillars of the National Development Plan (2021-2025), reaffirmed in the National Youth Policy, which ensures equitable and non-discriminatory access to education. In addition, the Education and Training Sector Plan aims to improve education offer quality and diversity, and increase spending on education, with 1.4 billion USD allocated between 2017 and 2020 (1, 2, 11).

Gender inequalities and marginalization issues
Overall, girls and women have a lower schooling rate. The gender gap is particularly pronounced for secondary education (28% of girls and 35% of boys) but persists for technical and vocational training, with a gender parity index of 1.4 in 2023 (against 0.9 in 2021) (2, 10).

Investment opportunities introduction
Côte d'Ivoire's government has announced substantial allocations under the Education and Training Sector Plan, committing to increase the education budget to USD 2 billion in 2023. In addition, private investors such as I&P offer seed funding for new companies which demonstrates the attractiveness of the sector and the availability of financing (6, 7).

Key bottlenecks introduction
There is a positive correlation between unemployment and education in Côte d'Ivoire. The employment rate of technical school graduates was just 34% in 2022. This shows that the education offer does not correspond to the needs of the labour market, such that investment in education requires careful consideration of demographics and market dynamics (4, 8, 10).

Sub Sector

Formal Education

Development need
Côte d'Ivoire faces a skill mismatch of 75.87% and a pervasive under-skilling issue (59.19%). Despite youth unemployment standing at 5.8%, the majority of jobs are vulnerable and 35.5% of the employed workers are poor. In addition, the demand for formal education is increasing rapidly, as 38.2% of the population is below 15 years old (4, 9).

Policy priority
The government aims to increase the number of schools to accommodate new young populations. In 2023, the Special Support Program for the Integration of Young People in the Northern Regions offered training to 1,753 young in northern regions. The number of technical and vocational training schools, for instance, has increased from 433 in 2011/12 to 747 in 2017/18 (3, 10).

Gender inequalities and marginalization issues
Tertiary education appears to be egalitarian (49% women) but very gendered depending on the subject. Girls represent only 8% and 18% of the cohorts for agricultural and industrial training. 43% of public education resources are monopolized by the richest top 10% while rural children are more likely to be outside the school system (70% of the total) (2, 11).

Investment opportunities introduction
The private sector accounts for over 75% of the total number of schools. The demand for educational services is high growing, as the Ivorian government estimates that there will be almost 15 million school-age children in Côte d'Ivoire by 2025 (2, 11).

Key bottlenecks introduction
Access to finance remains a crucial challenge for investment in private education as private banks may be require collaterals or offer higher rates. Concessional agreements with the state can be negotiated, but public support is fluctuating and the private sector reports long payment times and non-payment issues (90 billion FCFA in 2024 (USD 149 million)) (3, 16).

Pipeline Opportunity

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

TVET Infrastructure and Specialized Courses

Business Model

Build or acquire educational infrastructure to provide Technical and Vocational Education and Training (TVET). The TVET centers offer tailor-made courses for skills that are in demand locally by selected industries. These include hospital management, healthcare, foundry work, ICT, renewable energy professions, and particularly engineering and construction in large cities. The centers generate revenue through enrolment fees and may enter into agreements with local companies for apprenticeship contracts and staff training to ensure that the training provided is aligned with the industry needs. Private firms can benefit from tax credit for the provision of apprenticeship training, with a nationally determined amount per student.

Business Case

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

Market Size and Environment

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

In 2019, there were 2.3 million youth not in education, employment or training

There were over 2 million youth not in education, employment or training in Cote d'Ivoire while over 75% of those arriving on the labor market every year end up in precarious informal jobs, demonstrating the potential for technical and vocational education and training (TVET). Only 117,000 students were enrolled in TVET in 2023, but the number of learners per 100,000 inhabitants has increased by 10.5% between 2021 and 2023 (from 456 to 504) (10, 53).

Indicative Return

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

15% - 20%

In Côte d'Ivoire, an investment of about USD 3 million in TVET institutions can yield 20% gross profit margin as indicated by select examples in the Sub-Saharan Africa, including peer countries in the Economic Community of West African States (ECOWAS) region (40).

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)

In Côte d'Ivoire, investment projects in vocational schools are expected to require three to five years for the implementation, potentially including land acquisition, construction, licensing, and accreditation, therefore yielding positive return in the medium term (40, 52).

Ticket Size

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

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Market - Highly Regulated

Private Technical and Vocational Education and Training establishments are required to obtain an authorization to operate and program-specific approvals from the Ministry of National Education and Literacy. Recognition of degrees and qualifications is also subject to quality and teaching standards (31).

Market - High Level of Competition

Several schools have opened recently, including Supagro. In addition, private vocational schools compete with the public offer (36).

Capital - Requires Subsidy

While the private sector accounts for 60% of TVET education in Côte d'Ivoire, TVET centers are largely concentrated in major urban areas and charge high fees. For centers located in remote areas, or for the opening of spots for disadvantaged pupils, profitability could be lower if education costs are not at least partly covered by public agencies (3, 37).

Impact Case

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

Sustainable Development Need

The gross enrolment rate in higher education increased from 8.2% in 2015 to 15.6% in 2021, and a target of 19.9% for 2023. However, significant disparities remain between regions as enrolment rates are lower in northern regions, leading to unequal educational and economic opportunities (10, 20).

The completion rate for lower secondary education was just 57.4% in 2022. This translates into lower average revenues, as in Côte d'Ivoire each additional year of education is associated with a 10.6% increase in revenues annually (13, 20).

There is a skill mismatch rate of 75.87% in Côte d'Ivoire, with under-skilling being a prominent issue (59.19%), even for graduates. This particularly affect graduates with BTS (technical diplomas), Bachelor's, and Master's degrees, as well as individuals employed without formal contracts. Private actors report difficulties in finding skilled labor in masonry and ironwork (15, 48).

Gender & Marginalisation

Only 2.8% of the poorest students were enrolled in higher education compared to 16.7% of the wealthiest in 2015. Educational inequalities are highly correlated with economic inequalities, limiting social mobility and opportunities for young people from lower-income families (20).

Geographical disparities remain prevalent. For instance, 81% of high school graduates from the Autonomous District of Abidjan pursued higher education, against only 51% of graduates from other districts​ (20).

Public universities in Côte d'Ivoire are concentrated in a few cities: Abidjan, Korhogo, Daloa, and Bouaké, with a recent addition in Man. Individuals born in these cities have higher enrolment rates compared to those born in localities without public universities (20).

Expected Development Outcome

Increasing the range and diversity of education on offer can help improve school enrolment and access to better-paid jobs (20).

The opening of technical and vocational training centers allows young people who have left the school system to access professional training, thus improving inclusion (21).

Providing vocational training aligned with the needs of local industries helps reduce the gap between labor supply and demand, as well as skill mismatches (21).

Gender & Marginalisation

A denser educational offering in rural and semi-urban regions would specifically target students from lower-income and rural families, providing them with greater access to education. Short qualifying programs can serve as a pathway out of poverty and a means to access stable employment (20).

A denser educational offering in rural and semi-urban regions would help address geographical imbalances, providing students from lower-income and rural families with greater access to education. Opening new training centers facilitates access to education by reducing transportation costs and the need to relocate to distant cities.

Expanding private education would increase available options by establishing institutions in areas not currently served by the public education network.

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

4.5.1 Parity indices (female/male, rural/urban, bottom/top wealth quintile and others such as disability status, indigenous peoples and conflict-affected, as data become available) for all education indicators on this list that can be disaggregated

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

Current Value

The number of learners per 100,000 inhabitants was 504 in 2023, and the participation rate of youth and adults in formal and non-formal education over the last 12 months was 2.9% in 2021 (10, 46).

The gender parity index for TVET enrolment was 1.4 in favour of males in 2023 (10).

The youth literacy rate (15-24 years) was 51% in 2021 (10).

Target Value

The 2023 report of the National Development Plan (2021-2025) indicates a target of 510 learners per 100,000 inhabitants for 2023 while the Education and Training Sector Plan reports a target of 828 for 2025 (10).

The objective, outlined in the 2023 annual report of the National Development Plan, is a value of 1 (10).

The Ivorian government aims to ensure that, by 2030, all young people and a significant proportion of adults, both men and women, can read, write, and perform basic arithmetic (11).

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

8.6.1 Proportion of youth (aged 15–24 years) not in education, employment or training

Current Value

In 2022, the proportion of youth (aged 16–24 years) not in education, employment or training was 18.7% overall, 24.6% for females (against 38.4 in 2019) and 12.8% for males (17, 32).

Target Value

The government is seeking to reduce the proportion of young people neither in employment nor in training. In 2024, the government set up a program to train and offer internships to 1,470,984 young people, more than a third of the total number of affected youth (51).

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Gender Equality (SDG 5)
5 - Gender Equality
Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

Directly impacted stakeholders

People

Young people, particularly those who have left the school system, are unemployed or vulnerable, benefit from the opportunity to acquire skills relevant to the job market, leading to stable and higher-paid jobs.

Gender inequality and/or marginalization

Disadvantaged young people and women benefit from the opening of accessible schools and training centers, which helps to narrow the gender and socioeconomic gaps in educational attainment and income, while also addressing unemployment.

Planet

The planet benefits from technical training in sustainable development-related professions, as engineers in renewable energy and scientific expertise can contribute to implement environmentally friendly practices and innovations.

Corporates

Firms benefit from the increased supply of trained, qualified young people. Apprenticeship contracts also enable firms to train employees at a lower cost.

Public sector

The government benefits from fostering private TVET, which aligns with its goals outlined in the National Development Plan and the ten-year TVET strategy, particularly in expanding private vocational training opportunities (1, 30).

Indirectly impacted stakeholders

People

The population benefits from improved employability and higher incomes, which can lead to positive externalities such as increased overall employment and better wages within the community.

Gender inequality and/or marginalization

Gender inequality and/or marginalization: Developing vocational training outside Abidjan contributes to tackling regional imbalances and foster inclusion of vulnerable communities.

Corporates

Suppliers of school equipment and infrastructure (classroom equipment, textbooks, construction) benefit from increased demand.

Public sector

Public sector: The public sector benefits from higher employment through reduced health and vulnerability risks, increased economic contributions, and a decreased reliance on public assistance programs, leading to more sustainable social and economic systems.

Outcome Risks

A rapid increase in the number of trained professionals in certain fields could saturate the job market, especially if the expansion in vocational and technical training programs does not closely align with labor market needs (15).

While apprenticeship agreements with local companies can provide valuable training, there is a risk that companies may exploit apprentices as cheap labor without offering long-term employment or fair wages after the apprenticeship ends (51).

Constructing or expanding educational infrastructure, particularly in large cities, can exacerbate pressures over space, driving up rent prices and worsening access to affordable housing.

The establishment of large, well-funded TVET centers could overshadow smaller, community-based training programs or public institutions. This may reduce the viability of these smaller institutions and have a negative impact on their students' employability.

There is a risk that specialized TVET programs may produce graduates in fields for which there is insufficient local demand, leading to migration to major urban centers ('brain drain').

Impact Risks

If the schools are concentrated in Abidjan, or if tuition fees are too high, the societal gains from additional TVET institutions would be lower.

If the newly created schools fail to obtain credibility, their diplomas might hold less value compared to existing and public institutions, which would limit the impact of these schools.

If the expectations of employers and local market dynamics are misunderstood or not adequately taken into account, the specialized programs may fail to meet the actual needs of the job market.

Impact Classification

C—Contribute to Solutions

What

The opening of new vocational training centers offering skills training at affordable rates.

Who

Young people, particularly women and those who have left the education system or are unemployed would benefit from greater opportunities.

Risk

Training programs may not align with the actual needs of the job market, which could lead to low returns to education, market saturation, and skill shortage for firms.

Contribution

Private education complements and replaces public schools and TVET, forming 60% of the market. They could be better positioned than the public sector as private groups may be directly connected to industry needs (3, 37).

How Much

Private TVET contributes to the government's objective of reaching 20% of TVET enrolment by 2025, against just 5% in 2022 (43).

Impact Thesis

Offer professional skills, leading to better-paying jobs, and reduce skill mismatches in the labor market, particularly in high-demand sectors, benefiting businesses and contributing to economic growth.

Enabling Environment

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Policy Environment

The Vocational Training Development Fund (Fonds de Développement de la Formation Professionnelle or FDFP) has a strategic plan for 2023-2027, aiming to make it the leader in skill development in Côte d'Ivoire. It provides substantial financial support for training initiatives (47).

The Education and Training Sector Plan (PSE) 2016-2025 in Côte d'Ivoire is a comprehensive initiative aimed at transforming the education system by improving access, quality, and management of education at all levels (17).

National Development Plan (2021-2025): aims to equip citizens with skills and knowledge to drive economic growth. To achieve this, two main initiatives have been launched, including the implementation of 11 structural reforms and a renovation of the vocational training system, with the adoption of a new regulatory framework (1).

The National Youth Policy (PNJ) 2021-2025: founded on four guiding principles: human rights (ensuring the fundamental rights of all young people); equity (addressing the needs of marginalized youth); gender equality; and sustainability (11).

The Strategic Reform Plan for Technical Education and Vocational Training (2016-2025) aims to improve accessibility, quality, and governance of vocational training. It plans to enhance partnerships between training institutions and businesses, and develop a certification framework to ensure skills meet market demands (30).

Financial Environment

Financial incentives: Impacts funds such as the Education Impact Fund provide funding to small and medium-sized Ivorian businesses and start-up operating in the education sector, with seed financing (10,000 - 60,000 euros, USD 11,000-65,000) and growth financing (60,000-200,000 euros, USD 65,000-216,000) (23).

Fiscal incentives: The 2022 fiscal annex in Côte d'Ivoire increases the existing tax credit of 500,000 CFA Francs (USD 825) per apprentice per year to 750,000 CFA Francs (USD 1238) for individuals with disabilities. Article 111 ter of the General Tax Code provides for a tax credit for companies that take on students for an internship of up to six months (34, 35).

Other incentives: In 2024, Côte d'Ivoire received euro 132.2 million (USD 143 million) from the World Bank’s IDA to implement Phase 3 of the Youth Employment and Skills Development Project (PEJEDEC), aimed at improving labor market outcomes and strengthening TVET to create jobs for young people (33).

Regulatory Environment

Law No. 2015-635 modifying Law No. 95-696 (1995) made schooling compulsory between the ages of 6 and 16 (article 2-1) including for specific needs children. A mechanism for reintegrating children aged nine to sixteen years who are outside the system is established) (20).

Law No. 2022-795 "guiding technical and vocational teaching and training" provides guidance on TVET. It ensures gratuity in public establishments, non-discrimination (Art 8 and 9), and establishes TVET as a right (Art. 10) (28).

Decree 0061/PM/CAB of January 23, 2023 creates the Interministerial Committee on Youth Policies, Training, Professional Integration, and Civic Service, called ""CI-Jeunesse"", outlining its responsibilities, organization, and operation (11).

Decree No. 2023-667 outlines the regulations surrounding the certificate of professional qualification, which aims to bridge the gap between skills and the labor market's needs (27).

Decree No. 2019-118 establishes a framework for promoting and organizing apprenticeship as a means of professional training, specifying the roles of various stakeholders and aiming to improve youth employability. Chapter IV clarifies the role of the school (29).

Order No. 007 MENETFP/CAB/DEEP of May 3rd, 2019, determines the conditions for granting approvals to private TVET schools (31).

Marketplace Participants

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Private Sector

Education Impact Fund, Eranove, Chamber of Commerce and Industry of Côte d'Ivoire, Comoé Capital, I&P, Yarani, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Supagro, Ivoire Beauty Academy, Eranove Group.

Government

Ministry of National Education, Technical Education, and Vocational Training, Ministry of Employment and Social Protection, Ministry of Youth Promotion and Employment, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

World Bank, United Nations Educational, Scientific and Cultural Organization (UNESCO), United Nations International Children's Emergency Fund (UNICEF), African Development Bank (AfDB), United Nations Development Programme (UNDP), International Labor Organization (ILO).

Non-Profit

Swisscontact, Education Development Center, CARE International, Global Partnership.

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

Côte d'Ivoire: Zanzan

Zanzan is the lowest performing district in terms of school results and the out-of-school rate. It has been reported as having high youth unemployment rates and very limited educational opportunities (5).
rural

Côte d'Ivoire: Vallée du Bandama

Bouaké has a strong agricultural economy, but suffers from a lack of qualified personnel. Representatives of the agro-industrial sector report difficulties in recruiting skilled workers, despite national objectives to increase local processing (19).
rural

Côte d'Ivoire: Woroba

The National Development Plan describes the situation of young people in northern districts as vulnerable, with higher rates of unemployment and poverty (1, 10).
urban

Côte d'Ivoire: District Autonome d'Abidjan

Abidjan hosts a population of 6.3 million inhabitants and is the country's powerhouse, with pressing needs for engineering and construction skills amid rapid infrastructure expansion, which makes it an ideal location for the establishment of TVET centers (45).
semi-urban

Côte d'Ivoire: Bas-Sassandra

San Pedro is a major urban center with 390,000 inhabitants. Its district is the second in the country in terms of economic production and its port and industrial zones require a skilled workforce (45).
rural

Côte d'Ivoire: Savanes

Private actors report pressing needs for skilled agricultural and industrial workers in Boundiali and Sinématiali. In addition, the population in the district is often unable to access existing educational facilities due to distances and limited number of places (48, 49).

References

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