Skills and Knowledge for Youth (SKY) Project
The SKY project aims to increase employability and labor market insertion of disadvantaged youth in Ethiopia through vocational training. It uses a results-based financing (RBF) model where training institutions receive partial payments for completed training and full payment only when trainees secure steady employment or establish successful businesses. The project offers short courses in high-demand occupations such as hairdressing, tailoring, carpentry, and mechanics. In its first three years, nearly 2,000 young people (80% women) completed the three-month training, with 83% finding steady employment or starting their own businesses shortly after. The projects success has led to its recognition by the regional government of Amhara, which now uses SKY curricula as the standard for short training courses across the region.
Pros
High success rate in employment outcomes (83% of graduates finding work or starting businesses)
Incentivizes training institutions to focus on quality and employment outcomes
Scalable model that can be applied in other regions and countries
Promotes gender equality with 80% female participation
Cons
Potential financial strain on training institutions waiting for full payment
May require significant monitoring and evaluation to verify employment outcomes
Could potentially lead to exclusion of harder-to-employ youth if not carefully managed
Partners
Helvetas (implementing organization)
Swiss Agency for Development and Cooperation (SDC)
Regional government of Amhara
Private training institutions
Local artisans and small and medium-sized enterprises (SMEs)