Presenter: Arvil Van Adams (Consultant)

Commentators: William Experton (Lead Education Specialist, AFTH2) and Jean Fares (Senior Economist, HDNSP)

Chair: Harold Alderman (SP Advisor, AFTHD)

Since the informal sector is the engine of employment and income growth in most low income economies in SSA, governments are seeking to strengthen their efforts to increase earning and profitability in this sector. Skills development is an important part of the equation raising the incomes of those working in the informal sector. Developing skills for the informal economy, however, has proven more difficult than for the formal sector and public training institutions focus mainly on the skill needs of the formal sector and less attention is given to the needs of the informal sector.  Moreover, apprenticeship is the traditional means for providing skills to informal sector enterprises, and they are self-financed, self-regulated, and closely connected with market demand.  While an effective instrument for reaching youth with skills, these traditional apprenticeships have weaknesses and their quality varies widely.

In this context, and as part of the ongoing Multi-year regional ESW to “Increase Earnings and Reduce Poverty in the Informal Sector in Africa”, the attached report provides a guide for Bank staff to prepare country case studies for developing a strategy to help improving skills for the informal sector and strengthening links between education/skills development and informal economy.  More specifically, this methodology guide tries to address the following questions:

• How workers are prepared for informal sector jobs?
• How welfare of those employed in the informal sector can be improved through investments in their skills?
• What are government policies and programs that may encourage investments in skills developments that could raise productivity in informal sector?
• What tools and data sets are most suited to analyzing the issues identified?
• What are the gaps to better understand skills development in the informal sector and areas for further research?

DRAFT Paper (424kb pdf)