Vocational Education
Vocational Education
Business Model Description
Provide technical and vocational training services, including through blended learning solutions
Expected Impact
Address unemployment issue and gender gap in vocational education by investing in private-sector led TVET programmes
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
- Jordan: Countrywide
Sector Classification
Education
Development need
Sustainability Development Report 2019: score of 78 on SDG 4 (Quality Education), with 'Significant challenges remain'; and score 62.5 on SDG 8 (Decent Work and Economic Growth), with 'Challenges remain'; with “Major Challenges Remain” subscores prevalent across indicators (1). The unemployment rate reached 23% in Q2 2020 (2).
Policy priority
The Education Strategic Plan 2018 – 2022 targets an increase in KG1 enrollment rate from 35% to 52% and for KG2 from 59% to 80% by 2022 (6).
Gender inequalities and marginalization issues
The influx of more than 1.3 million Syrians has placed extra demands on the education system and labor market. In 2019, the unemployment rate reached 25.6% among males, and 78% among females holding undergraduate or higher degree (4).
Investment opportunities introduction
The COVID-19 pandemic has set a need to adapt and to develop online and blended learning solutions. Strong and significant policy momentum for investment in online learning in schools and universities: national strategies and current government plan emphasize education as a priority sector (5).
Pipeline Opportunity
Vocational Education
Provide technical and vocational training services, including through blended learning solutions
Business Case
Market Size and Environment
Growing demand for TVET among Jordanian students and refugees as a result of sucessful business operators and strong demand for graduates by labour market
Potential scaling to public sector TVET centers in Jordan and replication in region (one sucessful operator in the sector is expanding business model in the MENA region)
Increased private sector and venture philanthropy engagement and rise of blended finanice structuring options will play critical role in driving education agenda in region including that of TVET
Indicative Return
20% - 25%
A benchmark business operating in the subsector is targeting returns of about 20% (12)
The Millennium Challenge Corporation has reported a 20% or higher economic rate of return from investments in TVET (13)
Investment Timeframe
Medium Term (5–10 years)
Based on consulted benchmark projects, the projected investment timeframe is expected to be between 5 and 10 years
Market Risks & Scale Obstacles
Human Talent
Capital - Limited Investor Interest
Engagement
Impact Case
Sustainable Development Need
Jordan's Statistics Department reports that 51% of youth between the ages of 15 and 24 were unemployed in 2016. Syrian refugees -an estimated 10% of Jordan’s population- are also in need of employment. (13)
The University graduates are often insufficiently prepared for the workplace. Most universities do not assist graduates in finding employment, contributing to an unemployment rate of 25% for university graduates. There are few links between universities and private sector employees. (13)
There is a mismatch between graduate skills and needs of private sector employers. Most existing and public TVET programmes are based on a supply driven model as opposed to taking into account immediate, short-term skill needs of employers (8)
Gender & Marginalisation
Refugees and lower-income students have limited funds to access education
Women opt out from TVET programs because of gendered social norms that make it more difficult for women to pursue advanced or vocational studies in areas perceived as men's domain. (8)
Expected Development Outcome
Reduced youth unemployment
Higher wages: positive effect of TVET degrees and work experience on wages in private sector (9)
Increased productivity and competitiveness of the economy
Gender & Marginalisation
Increased female enrollment in TVET programs
Increased female labour force participation including in non-traditional sectors
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
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
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Impact Classification
What
Improved private-sector led TVET programmes will reduce unemployment and improve livelihoods. It will also have a positive impact on productivity in the economy.
Risk
Breadth of impact could be affected by barriers to scale including legal landscape and critical shortage of qualified trainers
Impact Thesis
Address unemployment issue and gender gap in vocational education by investing in private-sector led TVET programmes
Enabling Environment
Policy Environment
High-level political support for TVET to reduce unemployment. TVET is clearly referenced in Jordan's Education Plan 2018-2022 as a priority area and in National Strategy for Human Resource Development 2016-2025
Financial Environment
Financial incentives: Various blended finance models support provision of TVET incl through IFC and other IFIs/DFIs
Fiscal incentives: Government and donor agencies are supporting TVET including through scholarships to private TVET programs, regional philanthropies and other donors are also sponsoring students
Regulatory Environment
The Vocational and Technical Skills Development Commission, 2019, is responsible for organizing the vocational training sector. The commission covers vocational secondary education, technical education, continuous training and other vocational programs.
Marketplace Participants
Government
Ministry of Education
Private Sector
Luminus Technical University College (7)
Target Locations
Jordan: Countrywide
References
- (1) Sustainable Development Report 2019.
- (2) Department of Statistics, 2020, Unemployment Rate (http://dosweb.dos.gov.jo/19-0-the-unemployment-rate-during-the-second-quarter-of-2020/)
- (3) Ministry of Education, 2018, Education Strategic Plan 2018 – 2022.
- (4) Human Rights Watch,2017, Jordan: Secondary School Gap for Syrian Refugee Kids.
- (5) Prime Ministry of Jordan. Official Reports. (2020). Available online at: http://www.pm.gov.jo/category/7603/?????.html
- (6) Ministry of Education, Education Strategic Plan 2018-2022. 6b) International Finance Corporation (2018). Case Study: Educating Students for Jobs, Stability, and Growth. Luminus: Transforming Vocational Education in Jordan. 6c) USAID (2020). Final Report: USAID/Jordan Gender Analysis and Assessment, page 8.
- (7) Department of Statistics, Unemployment Rate http://dosweb.dos.gov
- (8) The Jordan National TVET Strategy, 2014 and the European Training Foundation "Technical and Vocational Education and Training in Jordan: Areas for Development Cooperation", 2006
- (9) OECD, Youth Well Being Policy Review of Jordan, 2019
- (10) Education Strategic Plan 2018-2022, p.7
- (11) The Jordan National Employment - Technical and Vocational Education and Training (E-TVET) Strategy 2014-2020
- (12) The Jordan National Employment Strategy ibid
- (13) Luminus Technical University College (http://www.luminuseducation.com/index.php/luminus-technical-university-college/)