An overview of Skills Development Facility SDF Implemented

An overview of Skills Development Facility (SDF) Implemented by Private Sector Foundation Uganda

Background Uganda Skills Development Project (USDP) � USD 100 Million Government of Uganda Project, funded by World Bank � Uganda Skills Development Project (USDP) is the Skilling Uganda strategy, the Government’s strategy for national BTVET development. Purpose of USDP; i. To support systemic reforms targeted at making the skills development system in the country more efficient and effective. ii. To create a scalable model for high quality and market - relevant vocational and technical training which can be replicated across different sectors. iii. To support the delivery of short-term training for workers in the formal and informal sectors

About the Skills Development Facility (SDF) � � PSFU on behalf of the Mo. EFPED is managing the Matching grant Facility with the support of the PCU and a private sector dominated Grant Committee, including its fiduciary and safeguard aspects. Amount ; USD 21. 8 Million ( 18 M for Grants and 3. 8 million operation costs) Support: Practical and technical training activities not exceeding 6 months. Maximum duration to undertake any given activity cannot exceed 1 year Funding modalities: Cost sharing basis

SDF prioritized sectors Manufacturing Agriculture Construction

Objectives of SDF The SDF is implemented through a Grant Facility mechanism that is cofinanced by the private sector through a matching grant contribution, and support training activities that lead to improved productivity and competitiveness in the formal and informal sectors.

GOVERNANCE & MANAGEMENT USDP Steering Committee � To ensure appropriate coordination and accountability. Grants Committee � GC will ensure that the SDF becomes an efficient and acknowledged instrument for strengthening the skills and competence base of the Ugandan labor force, SDF Management Unit � Head of Unit (Project Manager), three grant specialists, Project Accountant, Administrative Officer, Procurement officer, Clients relations officer, Accounts Assistant, Technical Assistance support: � Due diligence / Technical consultants � Activity Monitoring & Results Measurement consultants � Independent Verification consultants

� Window SDF Windows 1: Skills shortages in the formal sector with focus on medium and large firms, including increased access to internships – USD 9 Million � Window 2: Skills shortages experienced by selfemployed, workers and apprentices in the informal (jua kali) sector, master craftsmen, micro and small enterprises and members of cooperatives – USD 5 Million � Window 3: Support to development of new innovative skills training programs – USD 2 Million � Window 4: Support to systems for certification of skills and competencies acquired through informal and non-formal training – USD 2 Million

OPERATIONAL DETAILS OF WINDOW 1 Target group [Formal sector] � Small, Medium Type of enterprise & Large enterprises Description Small enterprises Between 5 and 50 employees. Annual turnover or total assets up to UGX 360 million. Medium enterprises Between 50 and 100 employees. Annual turnover or assets between UGX 360 million and UGX 30 billion Large enterprise More than 100 employees and an annual turnover or assets exceeding UGX 30 billion. � Employees of the enterprise, somebody the applicant intends to employ �A group of sub-contractors supplying goods or services to the company e. g. farmers.

Window 1 cont’d. Capacity of the training provider � Training institutions legally registered & accredited by Mo. ES or other body � In company training � Funds will be paid directly to training provider after satisfactory training

Window 1 cont’d. Activities eligible for support � Skills upgrading both practical & relevant theory � Preference to training courses accredited by Mo. ES � Trainees must be permanent employees of the applying company or those the company intends to employ on permanent basis. � Both skilled and semi-skilled workers are eligible for attending SDF sponsored skill upgrading courses. � Support to internship maximum 6 months � Preference will be given to applicants indicating willingness to take on interns from training � Voucher scheme

Window 1 cont’d. Funding modalities � Ceiling: US$ 250, 000 � Grant 80% (Medium Companies) � Grant 50% (Large companies) � Voucher scheme SDF will cover 90% � Internships 100% of costs

OPERATIONAL DETAILS OF WINDOW 2 Objectives: � To improve labour productivity in the informal sector and therefore enhance their competitiveness. � To enhance production of high-quality goods by informal sector hence leading to business growth and competitiveness � To increase employment opportunities in Micro enterprises

Window 2 cont’d. Target group [Informal Sector] � � � Funding will be provided to the following categories of beneficiaries to address their training needs: - Self-employed - workers - Craftsmen - Micro and small enterprises - Cooperatives and Associations - Non-Government Organizations - Community Based Organizations (CBOs) - Trade Unions Informal sector is characterized by fragmented actors Intermediary institutions like trade associations, Apex bodies, NGOs, Cooperatives will take lead in applying on behalf of their members

Window 2 cont’d. Capacity of the training provider � � � Private or public vocational training institution, NGOs, business support agencies, advisory center or rural technology facilities provided the instructor (trainer) has adequate professional qualifications Trainer must demonstrate capacity in terms of knowledge, skills, practical experience, training facilities, machines or tools, most current technology to provide relevant training requested by the applicant Must have a proven track record for implementation of training programs toward the specified target group. Training provider will be subject to a quality check Applicant may be requested for the quotation of three eligible training providers for review

Window 2 cont’d. Eligibility � The organization/association / NGO / CBO must have been in existence for at least 1 year and should be duly registered � For Craftsmen and micro enterprises that don’t have legal status can join existing relevant associations for them to access the support.

Window 2 cont’d. � The support must strengthen the capacity of associations to cater for the interests of their members. � Short basic entrepreneurship training, short basic Management and IT training � Training in teaching skills is eligible for support for Master craftsmen and the staff associations � SDF will finance training materials, equipment and tools where they are important for training purposes.

Window 2 cont’d. Funding modalities � Applications have a ceiling of US $ 50, 000 with element of 90% grant � 10% kind contribution of the applicant can be in � National umbrella organizations, applying on behalf of affiliated members may exceed US 50, 000 but not exceed US $ 100, 000 � 10% of grant can be for equipment.

OPERATIONAL DETAILS OF WINDOW 3 Overview Window 3 deals with innovative skills training with private and autonomous public institutions interested in developing new innovative models for delivery of training.

Eligibility Window 3 cont’d. ◦ Applicants / training institutions are Private and ‘autonomous’ public training institutions which is duly registered and operating under the laws of Uganda � � Should have track record of delivering labor market relevant trainings Should provide an estimate of demand for the training program to be introduced and of its sustainability prospect. Applicant must indicate plan of follow up activities to ease the trainees entry into the market and provide methodology for post training, monitoring and evaluation. The applying training institution must have been in existence for a minimum of two years.

Window 3 cont’d. Innovative training programs Priority will be given to short and medium term training(Not more than six months) programs that are; � Aligned to technological advancement of a product. � That intent to introduce new subject/models of training not yet available in Uganda. � That cater for groups that have not been catered for before. � It may be based on new models in financing e. g. through income generation or partnership between training provider and company.

Window 3 cont’d. Eligible activities � Teachers training � Curriculum development � Development of learning and assessment material � Equipment for instruction purposes � Tools and instruction materials � Pre-employment training is eligible for support � Co-fund cost of partnership with a foreign institution in order to benefit from the experience and the resources of the institutionprovided eligibility criteria is met. � Minor infrastructural development

Window 3 cont’d. Funding modalities � Application will have a maximum ceiling of $ 350, 000 � SDF will provide 75% of the total training budget and � The applicant will provide a 25% matching grant

OPERATIONAL DETAILS OF WINDOW 4 Overview Window 4 is about recognition of prior learning Objectives � To allow workers to have career path and access to attain higher level trainings. � To give workers portable certificates which gives their market values.

Window 4 cont’d. Target group Eligible applicants for support under Window 4 are: � Private sector / industry organizations, � Informal � Trade sector (jua khali) associations, unions � Training institutions

Window 4 cont’d. Eligible activities � Selection of test centres for accreditation � Training of assessors and supervisors � Training of (selected)Trainers � Development of test materials � Development of curricula and learning materials � Equipment for testing purposes for accredited test centre � Assistance to further develop the Worker’s PAS system.

Window 4 cont’d. Funding modalities � Window 4 will not follow the SDF calendar but may be launched at any adequate time. � Application 300, 000 � The will have a maximum ceiling of $ grant will provide 90% of the total budget and the applicant will provide a 10% as matching grant

SDF Ineligible Activities � � � � Seminars and conferences designed to stimulate discussions Induction/orientation programmes (except only those relevant for SDF programmes) Programmes specific to company procedures/policies Training for spiritual, cultural and social enhancement, e. g. religious studies and appreciation of music Professional-training programmes, involving the upgrading of personnel such as doctors, lawyers, accountants and architects Postgraduate training programmes, involving the pursuance of higher education leading to the award of an advanced diploma, graduate diploma, degree or post degree qualification Attachment of engineers and senior managers to advance their skills and knowledge in existing or new work areas. The SDF will not provide funding for further development of the business of the members of the association, who have attended the training, but it would seek collaboration with projects that can offer such follow-up services upon completion of the training

Grant cycle Timeline Steps /activities/issues Responsible At least 3 months before deadline for a call Sensitization & preparations of applications PSFU At least 2 months prior to the deadline Advertisement of call PSFU Deadline Applicants, PSFU Within 1 month after the deadline for applications Pre-qualification of applications PSFU Within 2 months after the deadline for applications Verification and capacity assessment process For projects up to US$10, 000, the SDF Team may conduct this and the next step (Fast tracking of Small Grants). PSFU, Technical Evaluation / Due Diligence Consultant Within 3 months after the deadline for applications Appraisal PSFU, Technical Evaluation / Due Diligence consultant Within 3½ months after the deadline for applications Submission to Grant Committee PSFU Within 4 months after the deadline for applications Decision on applications Grant Committee Not later than 10 working days after the decision Execution process. PSFU Not later than 1 week after the decision Orientation/training of grantees PSFU Not later than 1 month after the decision Signing of grant agreement PSFU Executive Director Continuously Activity Monitoring & Results Measurement Consultant PSFU / Activity Monitoring & Results Measurement consultant Max. 12 months after grant effectiveness Completion report. Grantee/Activity Monitoring & Results Measurement consultant Max. 12 months after grant Grant closure PSFU

Thank you Private Sector Foundation Uganda (PSFU), Plot 43, Nakasero Hill Road, Tel: [+256] 0312 263850, P. O Box 7683 Kampala, Uganda, Email: psfu@psfuganda. org. ug, Website: www. psfuganda. org. ug