Source:World Bank Group
The World Bank has approved new funding to empower and build the skills of more than 200,000 youths in Rwanda through the Priority Skills for Growth and Youth Empowerment (PSGYE) Program.
The $200 million PSGYE program, funded by the International Development Association* (IDA), aims to improve employability of targeted youths and to strengthen institutional capacity for enhanced service delivery in skills development.
Specifically, the program will increase opportunities for the acquisition of market-demanded skills for youths, including youths Not in Education, Employment, or Training (NEET); improve quality and market relevance of target Technical and Vocational Education and Training (TVET) and degree programs; and strengthen governance of the overall skills development system in Rwanda.
“The PSGYE Program will directly support short-term, market-driven training opportunities for youths (including NEET youth) to acquire skills for employment/self-employment, and for existing workers, particularly in small and micro enterprises, to be upskilled for better productivity,” said Sahr Kpundeh, World Bank Country Manager for Rwanda. “The World Bank is keen to continue partnering with Rwanda in expanding opportunities for youth and fostering inclusive growth and productivity.”
The PSGYE Program will support targeted youth through various interventions such as market-driven short-term training, assessment, and accreditation. It will provide student loans and affordable hostels to enhance access to tertiary education, especially for female students, and will improve the quality and delivery of TVET and degree programs aligned with Rwanda’s priority economic sectors.
“Skills development is crucial for diversifying Rwanda’s economy, improving productivity, creating jobs, and achieving the national Vision 2050 goals of becoming an upper-middle-income economy by 2035 and a high-income economy by 2050,” said Ruth Charo, World Bank Senior Education Specialist. “The program draws from important lessons learned in result-based financing to incentivize a focus on quality aspects of training programs, employment outcomes, equity, and structured linkages between skills development and industry.”
The program’s initiatives are in line with the Government of Rwanda’s broader strategy of human capital development, a crucial component of achieving its Vision 2050 goals. It is also aligned with the World Bank Group Country Partnership Framework for Rwanda (FY21 – FY26) objective of prioritizing human capital development and improving private sector development.
The World Bank’s International Development Association, established in 1960, helps the world’s low-income countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve people’s lives. IDA is one of the largest sources of assistance for its 75 client countries, 39 of which are in Africa. Since 1960, IDA has provided $552 billion to 115 countries. Annual commitments have averaged about $36 billion over the last three years (FY21-FY23), with about 75% going to Africa.
