Uganda Skills Development Project: Enhancing Vocational Training

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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 
s
upport 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
PSFU on behalf of the MoEFPED will  manage 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
Sectors
: Agriculture; Manufacturing; and
construction
 
Funding modalities
: Cost sharing basis
 
The SDF will be implemented through a
Grant Facility mechanism that will be
co-financed 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.
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:
An independent firm to undertake Technical evaluations
An independent firm to undertake impact assessments
Window 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 self-
employed, 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
Target group [Formal sector]
Medium & large enterprises
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.
Capacity of the training provider
Training institutions legally registered & accredited by
MoES or other body
In company training
Professional trainer
Funds will be paid directly to training provider after
satisfactory training
Activities eligible for support
Skills 
upgrading both practical & relevant theory
Preference to training courses accredited by MoES
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
Funding modalities
Ceiling: US$ 250,000
Grant 80% (Medium Companies
)
Grant 50% (Large companies)
Voucher scheme SDF will cover 90%
Internships 100% of costs
Objectives:
To improve  
labour productivity 
in the informal
sector and therefore  enhance their
competitiveness
.
To enhance production of  
high-quality go
ods
by informal sector hence leading to business
growth and competitiveness
To increase 
employment opportunities 
in Micro
enterprises
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
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
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.
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.
Funding modalities
Applications have a ceiling of US $ 50,000
with element of 90% grant
10% contribution of the applicant can be in
kind
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.
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
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.
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.
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 institution-
provided eligibility criteria is met.
Minor infrastructural development
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
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.
Target group
Eligible applicants for support under Window 4
are:
Private sector organizations,
Informal sector (jua khali) associations,
Trade unions
Training institutions
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
.
Funding modalities
Window 4 will not follow the SDF calendar but
may be launched at any adequate time.
Application will have a maximum ceiling of $
300,000
The grant will provide 90% of the total budget
and the applicant will provide a 10% as matching
grant
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
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
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The Uganda Skills Development Project (USDP) aims to reform and improve the skills development system in Uganda, focusing on creating high-quality, market-relevant vocational training. Through systemic reforms and support for short-term training, the project seeks to enhance productivity and competitiveness in sectors like agriculture and manufacturing. USDP's Grant Facility, managed by PSFU, involves co-financing from the private sector to support training activities. The Steering Committee ensures coordination and accountability, with Technical Assistance for evaluations and impact assessments.

  • Uganda
  • Skills Development
  • Vocational Training
  • Project
  • Capacity Building

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  1. 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. Uganda Skills Development Project (USDP) Purpose of USDP; To support systemic reforms targeted at making the skills development system in the country more efficient and effective. Purpose of USDP; i. To create a scalable model for high quality and market - relevant vocational and technical training which can be replicated across different sectors. ii. To support the delivery of short-term training for workers in the formal and informal sectors iii.

  2. PSFU on behalf of the MoEFPED will manage the Matching grant Facility with the support of the PCU and a private sector dominated Grant Committee, including its fiduciary and safeguard aspects. Amount million operation costs) Amount ;USD 21.8 Million ( 18 M for Grants and 3.8 Support: exceeding 6 months. Maximum duration to undertake any given activity cannot exceed 1 year Support: Practical and technical training activities not Sectors construction Sectors: Agriculture; Manufacturing; and Funding modalities Funding modalities: Cost sharing basis

  3. The SDF will be implemented through a Grant Facility mechanism that will be co-financed by the private sector through a matching grant contribution, and support training activities that lead to improved productivity competitiveness informal sectors. improved productivity and competitiveness in the formal and

  4. USDP Steering Committee To ensure appropriate coordination and accountability. USDP Steering Committee 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, Grants Committee SDF Management Unit Head of Unit (Project Manager), three grant specialists, Project Accountant, Administrative Officer, Procurement officer, Clients relations officer, Accounts assistant, SDF Management Unit Technical Assistance support: An independent firm to undertake Technical evaluations An independent firm to undertake impact assessments Technical Assistance support:

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

  6. Target group [Formal sector] Target group [Formal sector] Medium & large enterprises Type of enterprise Medium enterprises Type of enterprise Description Between 50 and 100 employees. Annual turnover or assets between UGX 360 million and UGX 30 billion More than 100 employees and an annual turnover or assets exceeding UGX 30 billion. Description Large enterprise 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.

  7. Capacity of the training provider Training institutions legally registered & accredited by MoES or other body In company training Professional trainer Funds will be paid directly to training provider after satisfactory training

  8. Activities eligible for support Skills upgrading both practical & relevant theory Preference to training courses accredited by MoES 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

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

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

  11. Target Target group Funding 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 group [Informal will [Informal Sector] be Sector] provided to the following categories of

  12. 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 Capacity of the training provider 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

  13. Eligibility The organization/association / NGO / CBO must have been in existence for at least 1 year and should be duly registered Eligibility For Craftsmen and micro enterprises that don t have legal status can join existing relevant associations for them to access the support.

  14. 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.

  15. Funding modalities Applications have a ceiling of US $ 50,000 with element of 90% grant Funding modalities 10% contribution of the applicant can be in kind 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.

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

  17. Eligibility Applicants / training institutions are Private and autonomous public training institutions which is duly registered and operating under the laws of Uganda Eligibility 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.

  18. 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 Innovative training programs technological advancement of a product. That intent to introduce new subject/models training not yet available in Uganda. new subject/models of 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.

  19. 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 institution- provided eligibility criteria is met. Minor infrastructural development Eligible activities

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

  21. Overview Window 4 is about recognition of prior learning Overview 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. Objectives

  22. Target group Eligible applicants for support under Window 4 are: Private sector organizations, Target group Informal sector (jua khali) associations, Trade unions Training institutions

  23. 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. Eligible activities

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

  25. 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

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

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

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