In 2006, by Act 718, the Government of Ghana established the Council for Technical and Vocational Education and Training (COTVET). The objective of the Council is to 'coordinate and oversee all aspects of technical and vocational education and training in the country'. One of the Council's functions is to 'source funding to support technical and vocational education and training (TVET) activities'.
The establishment of the Skills Development Fund (SDF) is seen as one of a series of new mechanisms to improve efficiency and effectiveness of the TVET system and ensure sustainable sources of funding for TVET. To achieve this objective the SDF is designed to include responsive policy, governance structures, institutional arrangements, institutional capacities, systems and procedures to support life-long learning in TVET.
The SDF is embedded in the Government's TVET policy which has as its mission to "improve the productivity and competitiveness of the skilled workforce and raise the income-earning capacities of people, especially women and low-income groups, through the provision of quality-oriented, industry-focused, and competency-based training programmes and complementary services".
Currently, the SDF receives funds from DANIDA through its Support to Private Sector Development Phase III (2016 - 2020), and soon, from the Government of Ghana. The scheme is expected to provide COTVET with the opportunity to monitor, evaluate and develop a model for the expansion of the SDF to cover sectors of the Ghanaian economy in which skills and technological development are required to increase the competitiveness of Ghanaian enterprises and provide employment.
The SDF is a challenge fund providing a demand-driven response to three critical challenges encountered by the productive sectors of Ghana: (i) an adequately qualified labour force; (ii) the urgency of providing new entrants to the labour market with gainful, employable skills; and (iii) inadequate access to new technologies and innovations. The SDF caters to the skills needs of the formal and informal sectors of the economy; it is available for continuous skills upgrading and, to a limited extent, pre-employment initiatives.
The Fund will support the following types of training needs and activities:
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