5. Unemployment and Training for the Informal Sector

Project Summary

1. Introduction

TVET providers in the SADC region acknowledge a link between the unemployment situation and the informal sector in Member States. They recognise that the informal sector absorbs the majority of the unemployed and provides an avenue for poverty alleviation and the development of an indigenous private sector.

An examination of the current situation reveals that Member States share several features with regard to unemployment and the informal sector. These features include, inter alia, inadequate access to funding for self-employment and for training of the informal sector; inadequate access to appropriate training and to information relevant to persons in the informal sector; inadequate enterprise/marketable skills; lack of recognition of informal sector experience; increase in crime, commercial sex and the incidence of HIV/AIDS; exploitation of the current training needs situation by dubious private sector training operators.

An overall policy for informal sector training among Member States is recommended. The following interventions are proposed as bases for collaboration between TVET providers in the region:

· The provision of integrated training
· The improvement of access to funding and financing
· The improvement of access to TVET programmes
· The provision of business development services.

2. Aims and Objectives of the Project

The overall aim of the project is to provide quality and accessible training and other support services to the informal sector in order to provide gainful employment, job creation and poverty eradication/reduction.

This is to be achieved by:

· Providing integrated training which focuses on the needs of informal sector target groups

· Developing a policy position for governments to provide funding and financing for the informal sector

· Establishing and strengthening savings and credit societies that provide funding and financing for the informal sector

· Establishing business development services for the informal sector to cater for marketing, information, training and consultancy needs

· Providing flexible TVET systems and programmes to increase access by the informal sector.

3. Outcomes

The project will result in the following:

· Informal sector target groups and their training needs will be clearly identified

· Demand-driven curricula and programmes will be developed

· Competent trainers and training facilities will be made available

· The integration of the traditional apprenticeship system and formal training will be achieved

· An assessment and certification system to cater for training of the informal sector will be developed

· Partnerships will be created between governments and relevant stakeholders

· Government commitment to providing funding and financing will be ensured

· Savings and credit societies providing funding and financing for the informal sector will be identified and established

· Business Development Centres and market support systems will be established

· The accessibility and decentralisation of TVET systems and programmes for the informal sector will be ensured.

4. Required inputs

It is envisioned that the project will require human resources, relevant technical expertise, financial resources, infrastructure and information.