A young girl named Joy, who once sold oranges on the streets of Kigali due to financial hardship, has found new opportunities through the World Bank's Rwanda Priority Skills for Growth Program-for-Results (PSG). This initiative has transformed Rwanda's skills development model from a supply-driven approach to one that is market-driven. With $270 million in financing, the program has expanded job-relevant training for out-of-school youth, particularly young females, and established private sector partnerships for on-the-job training.
The PSG Program has been instrumental in aligning training with market needs by fostering collaboration between industry and educational institutions. This collaboration has resulted in competency-based modular programs that ensure training aligns with labor market demands. As a result, 80% of beneficiaries who participated in short-term training under the Rapid Response Training window secured permanent jobs after completing their courses.
The program's impact extends beyond employment rates. Employers have reported high satisfaction with how the training improved workplace productivity. The PSG also encouraged entrepreneurship among graduates, leading to new businesses and additional job creation.
Gender inclusion was a cornerstone of the PSG Program. It supported government gender equality policies and encouraged greater female participation in technical training programs. Women now make up 47.8% of short-term training graduates, with increased access to student loans for long-term STEM programs.
Data-driven decision-making played a crucial role in the success of Rwanda’s reforms. The introduction of a Graduate Tracking System and a modernized Labor Market Information System provided real-time insights into school outcomes and graduate success.
As Rwanda enters its next phase with continued support from the World Bank through the Priority Skills for Growth and Youth Employment Project, it aims to further align training with real-world demand while investing in its people as valuable assets.
Seimane Diouf, Senior Program Assistant at the World Bank, acknowledges Ruth Karimi Charo (Senior Education Specialist) and Sergio Venegas Marin (Economist) for their contributions to this feature.