(or groups of individuals) who successfully complete entrepreneurship training at the intermediate level.
Subcomponent 2.2: Provision of Competitive Grants to Private Enterprises for Expanded Employment (US$60 million)
This subcomponent will be implemented by COTVET in partnership with NBSSI, Ministry of Environment, Science, Technology and Innovation (MESTI) and the Ministry of Finance (MoF).
The subcomponent will support at least 700 competitive grants offered to private enterprises over the project implementation period administered through the Skills Development Fund (SDF). The grants are expected to directly impact a total workforce size of at least 42,000 individuals. The grant value will be capped at a specified absolute value or a specified percentage of the total cost of the proposal submitted by the enterprise.
Component 3: Operationalisation of the Ghana Labour Market Information System, Upgrading of District Public Employment Centers and Services, and Independent Performance Reviews of Selected Government Youth Employment and Skills Development Programmes (US$30 million).
Component 3 comprises three subcomponents as follows:
Subcomponent 3.1: Full Development and Operationa- lisation of the Ghana Labor Market Information System (US$6 million)
The GLMIS managed by the Ministry of Employment and Labour Relations (MELR), is at an early stage of development. The first phase of the system was supported by the World Bank through the Ghana Statistics Development Project. The full development and operationalisation of the system is currently hampered by insufficient financial, human, and information and communication technology (ICT) resources. This subcomponent will fund the development, operationalisation, and maintenance of the GLMIS.
Subcomponent 3.2: Upgrading of District Public Employment Centers and Provision of Job Connection and Information Services to Job Seekers and Employers (US$12 million):
The subcomponent will fund the physical refurbishment of selected District Public Employment Centers (PECs) and the capacity development of staff in the said centers, to link job seekers and employers. MELR is the main implementing agency for this
subcomponent. The following are the main activities to be supported by the subcomponent:
Physical refurbishment of 16 PECs, one in each region of the country; and
Capacity development of staff in centers selected for refurbishment so that the staff can better provide job connection services to job seekers and employers.
Subcomponent 3.3: Independent Performance Reviews, and Technical Assistance for Reforming Government Youth Employment and Skills Development Programmes (US$12 million)
This subcomponent will conduct independent performance reviews and provide technical assistance for reforming selected government youth employment and skills development programmes to ensure efficiency, equity, and effectiveness. The subcomponent will fund independent and in-depth reviews of the programmes including the Youth Employment Agency (YEA) and Nation Builders Corps (NABCO) which are the two largest government youth-focused employment programmes in the first two years of project implementation.
Component 4: Capacity Development, Technical Assistance, and Project Management Support for Enhanced Skills and Jobs Impact (US$10 million).
Component 4 comprises two subcomponents as detailed below:
Subcomponent 4.1: Capacity Development and Technical Assistance (US$8 million)
The subcomponent will support the provision of goods, works and services for capacity building and technical assistance to: (i) MoF; (ii) COTVET; (iii) NBSSI; (iv) MELR; and (v) MESTI; for the implementation of their respective obligations under the project. Specifically, the project will support technical, advisory, and capacity- building support for fiduciary; social and environmental management; administrative and operational; monitoring and evaluation; information, communication, and engagement activities.
Subcomponent 4.2: Project Management Support (US$2 million)
This subcomponet will support strengthening the capacity of: (i) MoF; (ii) COTVET; (iii) NBSSI; (iv) MELR; and (iv) MESTI; to carry out project management and
coordination, all through the provision of technical assistance and operating costs required for that purpose.
Component 5: Contingent Emergency Response (US$0 million)
This component has been added to the project in accordance with the Investment Project Financing (IPF) Policy of the Bank to take care of situations of urgent need for assistance. Contingent Emergency Response Component (CERC) will allow for rapid reallocation of project proceeds in the event of a natural or man-made disaster or crisis that has caused, or is likely to cause a major adverse economic or social impact.
Observations
Project Cost and Duration
The Committee noted that the cost of the proposed project is estimated at two hundred million United States dollars (US$200,000,000.00) and will be fully financed with the present IDA credit. The project will be implemented over a six year period and is expected to close on 30th June,
2026.
Job Creation and Employment
The Committee observed that apprenticeship and entrepreneurship skills development coupled with grants to individuals and micro and small enterprises envisaged under the project are expected to create more descent jobs through firm growth and the establishment of new businesses.
An estimated number of 25,000 individuals will receive apprenticeship training under a standardised, quality- assured system under Component 1. Out of this number, about 70 per cent are expected to have jobs six months after the completion of training, totalling to a minimum of 17,500 jobs.
A minimum number of 50,000 individuals are expected to receive entrepreneurship training under subcomponent 2.1. This subcomponent will also support 5,000 individuals through competitive business start-up grants and mentorship support upon the successful participation and completion of an intermediate level of entrepreneurship training. About 70 per cent are expected to have jobs six months after the completion of training, totalling to at least 35,000 individuals.
Under subcomponent 2.2, at least 700 competitive grants will be
provided to private enterprises. A minimum of 42,000 individuals are expected to be employed in these private enterprises six months after the implementation of the grant.
Job multiplier
The Committee was informed that administrative information from NBSSI and COTVET to Government indicate that for every direct job, two to three indirect jobs are created within the income- generating activities that apprentices and entrepreneurs undertake. In line with projection, the jobs under Component 1 and Subcomponent 2.1 are expected to yield 105,000 to 157,500 indirect jobs. In total, expected minimum direct jobs are 94,500, expected minimum indirect jobs are 105,000 and expected total minimum jobs are 199,500.
Robust Labour Market Database
The Committee noted that the Project will fund the full development, operationalisation and maintenance of the Ghana Labour Market Information System (GLMIS) and the physical refurbishment of the District Public Employment Centers (PECs). The investment is expected to provide a reliable, timely and regular labour market data and information on the
status and dynamics of employment in the country for informed decision making. The GLMIS and PECs will improve information flow between the labour demand and supply regarding available jobs and skills needed, thereby matching jobs with the right skills and minimising the cost of job search for both workers and employers.
Economic Recovery
The Committee further observed that the project provides opportunity for economic recovery through the real sector given the devastating impact the outbreak of the COVID- 19 pandemic is having on businesses and job prospects. The impact is more severe on poor, less-educated individuals in rural and urban areas, who tend to be employed in informal economic activities. Economic recovery initiatives are essential for restoring jobs, livelihoods, and economic activities for workers and enterprises during the COVID-19 aftermath period. The interventions under the project are consistent with the economic recovery and Coronavirus Alleviation Programme of Government.
Conclusion
The Committee, in view of the foregoing, therefore respectfully