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A WORLD BANK STUDY Public Disclosure Authorized Public Disclosure Authorized Demand and Supply of Skills in Ghana Public Disclosure Authorized HOW CAN TRAINING PROGRAMS IMPROVE EMPLOYMENT AND PRODUCTIVITY? Public Disclosure Authorized Peter Darvas and Robert Palmer Demand and Supply of Skills in Ghana A WORLD BANK STUDY Demand and Supply of Skills in Ghana How Can Training Programs Improve Employment and Productivity? Peter Darvas and Robert Palmer Washington, D.C. © 2014 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 World Bank Studies are published to communicate the results of the Bank’s work to the development com- munity with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally edited texts. 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Library of Congress Cataloging-in-Publication Data has been requested Demand and Supply of Skills in Ghana • http://dx.doi.org/10.1596/978-1-4648-0280-5 Contents Foreword xi Acknowledgments xiii About the Authors xv Abbreviations xvii Executive Summary 1 Country and Sector Context 1 Social and Economic Demand for Technical and Vocational Skills in Ghana 2 TVET Supply, Coordination, and Financing 4 Policy Recommendations 7 Notes 10 Chapter 1 Context, Drivers, and Challenges of Technical and Vocational Skills Development Reform 11 Introduction 11 The Global Rise in Importance of Technical and Vocational Skills Development 14 Technical and Vocational Skills Development Drivers in Ghana 15 TVET Policy, 2002–13 17 A Framework for Assessing Market and Nonmarket Imperfections Related to TVET in Sub-Saharan Africa 19 Concluding Comments 26 Notes 26 Chapter 2 Demand for TVET 29 Introduction 29 Social Demand for TVET 30 Economic Demand for TVET 34 Skill Demand and Supply in Selected Sectors 40 Concluding Comments 44 Notes 45 Demand and Supply of Skills in Ghana • http://dx.doi.org/10.1596/978-1-4648-0280-5 v vi Contents Chapter 3 TVET Supply, Performance, and Assessment 47 The Suppliers of Technical and Vocational Education and Training in Ghana 47 Formal Public TVET Providers 48 Private Institution TVET Providers 57 Enterprise-Based TVET Providers 58 Concluding Comments 61 Notes 61 Chapter 4 TVET Coordination 63 Introduction 63 The Coordination of TVET Supply and Demand 65 Coordination of Government Strategies, Plans, and Development Partner Support 66 TVET Quality Assurance and Qualifications 68 Concluding Comments 70 Notes 70 Chapter 5 TVET Financing 73 Systemic TVET Financing 73 TVET Financing Modalities 79 Outcomes and Issues 83 Concluding Comments 86 Notes 87 Chapter 6 Policy Recommendations 89 TVET Policy Development and Governance 89 A Demand-Driven, Responsive TVET System 90 Equity Considerations 92 TVET Financing 92 Data, Monitoring and Evaluation, and Information Systems 94 Notes 95 Appendix A Demand for Skills in Selected Economic Sectors 97 Information and Communication Technologies Sector 97 Construction Sector 100 Oil and Gas Sector 102 Livestock Sector 104 Tourism and Hospitality Sector 106 Notes 108 Appendix B TVET Provision in Ghana 109 The Technical Training Institutes 109 National Vocational Training Institute 118 Social Welfare Centers, Department of Social Welfare 124 Demand and Supply of Skills in Ghana • http://dx.doi.org/10.1596/978-1-4648-0280-5 Contents vii The Integrated Community Centers for Employable Skills 126 Opportunities Industrialization Center—Ghana 132 The Youth Leadership and Skills Training Institutes of the National Youth Authority 136 Community Development Vocational/Technical Institutes 140 Ghana Regional Appropriate Technology Industrial Service 144 National Apprenticeship Program 148 Local Enterprise and Skills Development Program 151 The Skills Training and Entrepreneurship Program 152 The Rural Enterprise Project (IFAD, 1995 and Ongoing) 154 Private Vocational Training Institutes 156 Informal Apprenticeship Training 162 Private Formal Enterprise-Based Training 167 The Ghana Industrial Skills Development Center 169 Notes 171 References 177 Boxes B.1 Two-Week Courses for Industry at the Accra Technical Training Centre 115 B.2 ATTC Income, Approximate Breakdown 116 B.3 Training Services Offered by GRATIS 144 B.4 Training Output and Other Services Offered by GRATIS since Its Establishment (to 2006) 146 B.5 Don Bosco Technical Institute, Ashaiman (Tema) 157 Figures 1.1 Framework for Skills Assessment 20 2.1 Firms Identifying Labor Skill Levels as a Major Constraint, by Size: Ghana, 2007, and Sub-Saharan Africa and World, 2006 or Most Recent Year 36 2.2 Portion of Firms Identifying Labor Skill Levels as a Major Constraint: Ghana, 2007, Compared with Other Sub-Saharan Africa Countries, 2006 or Most Recent Year 37 2.3 Skills Lacking in Existing Employees 40 3.1 Firms Offering Formal Training, by Size, Ghana, 2007, and Sub-Saharan Africa and World, 2006 or Most Recent Year 60 Demand and Supply of Skills in Ghana • http://dx.doi.org/10.1596/978-1-4648-0280-5 viii Contents A.1 Mapping the ICT Sector 98 A.2 Supply of Skilled Labor in the Ghana Construction Industry, 2000–10 101 A.3 Typical Petroleum/O&G Value Chain 103 A.4 COTVET Survey Conducted among Students from Two Polytechnics (Accra and Cape Coast) to Assess Students’ Opinions on Their Study Program 107 B.1 Key Actions to Address Hard-to-Fill Vacancies 168 Tables 1.1 Total Enrollment in Primary and Lower Secondary Schools in Ghana 16 1.2 Global Competitive Ranking Index of 144 Countries, Selected Sub-Saharan African Countries, 2012/13 17 2.1 AGI Business Barometer, Top Challenges, by Enterprise Size 37 3.1 Main Public and Private TVET Providers, by Backer, 2012/13 48 3.2 Coverage and Location of Public TVET Institutes, by Type, 2012 49 3.3 TVET Enrollment of Full-Time Students, by Type of Institute and Gender, Latest Year 50 3.4 TVET Staff and In-Service Training, by Type of Institute and Gender, Most Recent Year 53 3.5 Public TVET Training Environment, by Type of Institute, 2012 54 3.6 Private TVET Institutes Covered by EMIS Sample, 2006/07 to 2010/11 57 4.1 National TVET Qualifications Framework 69 5.1 TVET Funding Recommendations, 2002–08 74 5.2 Skills Development Fund Applications and Approvals 78 5.3 Technical Training Institutes’ Actual Unit Costs, 2006–09