From large investments to jobs: Partnering with private sector to promote local employment

Transcription

1 From large investments to jobs: Partnering with private sector to promote local employment A Capacity for Change (C4C) event Jointly organised by GIZ & Expertise France Sonja Palm, Head of Programme E4D/SOGA Nathan Lenzin, Portfolio Advisor E4D/SOGA Page 1

2 E4D/SOGA Employment for Development in Africa Objective: Make private investments in Africa a real driver for growth and local employment Commissioned by the German government (BMZ), co-financed by Norway (NORAD), UK (DFID), EUTF and Korea (KOICA), as well as private companies like Shell; implemented by GIZ Location: 7 partner countries in SSA Budget: 65,7 Mio. Duration: 01/ /2019. Sectors : Natural resource-related investments (infrastructure, transport, services), Agriculture, Green economy Page 2

3 What E4D/SOGA wants to achieve The number of people in jobs has increased by , thereof 35% women The real income of 100,000 people has increased on average by 10% people benefit from improved labour conditions (health, sanitation, work security, working hours, etc.) Initiate partnerships with private sector to leverage our impact and create longlasting change How do we achieve our goals: Through skilling, matching and SME development Page 3

4 Cooperation models with companies Development partnerships Memorandums of Understanding, Letters of Intent Grant Agreements Strategic partnerships (e.g. Industry roundtables, Country-specific steering boards, Public-private working groups) Achievements so far: 50 partnerships 70 partner companies EUR 18 million leveraged from private sector Page 4

5 Selected Partner Companies Page 5

6 Railway project Oil and Gas production and refinery Oil pipeline (planned) Oil production The Northern Corridor (1.700km transit) Page 6

7 Case study: Demand driven driver training Where: Kampala, Uganda What: professional training offer for future heavy goods vehicle drivers Why?: Very few qualified drivers in Uganda Partnership design Regular meetings (1/month) MoU with TOTAL Contract with NGO Verbal/written comitment Co-owning events Goal: train 800 & bring 600 Ugandan drivers into employment Partners: TOTAL, Bolloré, Hima Cement Lafarge, Ministry of Transport and the NGO Safe Way Right Way etc. Driver training (Source: GIZ) Interesting features: Market failure: Would not have happened without GIZ Timing: Large scale investments create demand in coming years Sustainability: viable business case behind the project Transferability: qualified drivers are needed in many sectors From large investments to jobs E4D/SOGA Page 7

8 Professional Driver Training Uganda (PDTU) Official launch in Kampala, July 2017 Plans for the next months Training of new drivers at the facility Coach trainers in their jobs Match trained drivers to companies Refresher training for senior drivers ToT activities ongoing, June 2017 Achievements so far: Establishment of an interim training facility In-kind contribution from industry Training of 12 trainers from several partner schools Industry-led coordination group on driver training Full support from Ministry of Transport Page 8

9 Working with private sector partners: A summary Key take-aways: Large scale investments disrupt labour markets -> opportunities! Working close to core business interest drives impact and job creation Companies can leverage public funds and ensure sustainability Ownership by private sector government is key Challenges remain Private sector commitment is work-in-progress From draft to the signing of partnership agreements takes time Delays in investments have negative implications on project outputs Working with government and private sector is great, but Page 9

10 Thank you for your attention! GIZ - E4D/SOGA Programme Page 10

11 How E4D promotes employment along private investments Enterprise development MSME / supplier development; Start-up support (incl. access to finance, market linkages) Skills development TVET centre up-grading; Teacher training; Curricula development; Business skills training; Career guidance Matching and coordination Matching of TVET graduates; Job fairs, Work placements Page 11

12 Incentives for private partners Business interests Compliance (e.g. local content obligations) Need for quality workers and suppliers Reputation, licence to operate, Corporate Social Responsibility Additional incentives created by E4D Reducing the cost of skilling future workforce of finding future workforce Private Sector Development/Increasing tender readiness and competitiveness Networking and exchange, incl. public sector and representatives from large capital investment projects Private investments in local skills and enterprise development Page 12

13 E4D/SOGA integrated approach Skills Development (TVET) activities labour supply Matching making the labour market work Enterprise development activities labour demand Page 13