SOFIA, Bulgaria – A latest regional initiative backed by the World Bank aims to equip 18 million young people in eastern and southern Africa with the skills needed to thrive in a rapidly evolving job market. The $972 million Skills for Economic Transformation and Jobs Program (SET4Jobs), launched on February 26, 2026, seeks to address the critical challenge of youth unemployment across the region, where an estimated eight million young people enter the workforce annually, yet fewer than one million secure waged employment.
The program, funded through the International Development Association (IDA), represents a significant investment in Africa’s future, focusing on aligning skills development with the demands of growing industries such as agribusiness, energy, healthcare, tourism, and manufacturing. This comprehensive approach extends beyond training, encompassing vital reforms to improve infrastructure, productivity, and the overall business climate, recognizing that skills alone are insufficient without broader economic opportunities.
The urgency of this initiative stems from a stark reality: approximately 6.5 million youth in eastern and southern Africa are currently neither in school nor employed, with women disproportionately affected – around 3.6 million of those are young women. The program’s eight-year, multi-phase approach is designed to not only increase the number of skilled workers but likewise to improve the quality of employment opportunities, moving away from the prevalence of informal, often poorly compensated jobs that characterize much of the region’s labor market.
Addressing a Critical Skills Gap
The SET4Jobs program is a response to a growing recognition that a mismatch between the skills possessed by young Africans and the needs of employers is a major impediment to economic growth. Ndiamé Diop, World Bank Vice President for Eastern and Southern Africa, emphasized the transformative potential of the initiative, stating, “SET4Jobs is a transformative investment in Africa’s greatest resource – its youth.” According to the World Bank, the program will work closely with the private sector to ensure training programs are aligned with industry needs.
The program’s strategy centers on strengthening tertiary and technical education, applied research, and industry-aligned training. The Inter-University Council for East Africa (IUCEA) will play a crucial role in coordinating these efforts, fostering collaboration between educational institutions and the private sector. A regional knowledge-exchange platform will also be established to facilitate the sharing of best practices and attract additional financing from development partners and private investors. This platform aims to scale successful approaches and drive large-scale job creation across the region.
Countries Targeted for Investment
The initial phase of the SET4Jobs program will focus on seven countries: Comoros, the Democratic Republic of Congo, Madagascar, Mozambique, São Tomé and Príncipe, Tanzania, and Zambia. These nations were selected based on their potential for economic growth, their commitment to reforms, and the significant need for skills development among their youth populations. Funds for NGOs reports that investment projects are planned in each of these countries, tailored to their specific economic contexts and priorities.
The program’s approach recognizes that a one-size-fits-all solution is unlikely to be effective. Each country will develop a customized plan, taking into account its unique challenges and opportunities. This localized approach is intended to maximize the impact of the investment and ensure that the skills developed are relevant to the local labor market.
The Role of the Inter-University Council for East Africa
The IUCEA is expected to be instrumental in coordinating the program’s implementation, strengthening collaboration in higher education, technical training, research, and innovation. Idris Rai, the acting executive secretary of the IUCEA, stated that the initiative will help position universities and training institutions as “engines for employment and shared prosperity” by aligning teaching more closely with industry needs. Radarr Africa highlights the IUCEA’s role in fostering this crucial link between education and employment.
This collaboration will involve developing new curricula, providing training for instructors, and establishing partnerships with businesses to offer internships and apprenticeships. The goal is to create a pipeline of skilled workers who are prepared to meet the demands of the private sector.
Beyond Training: Addressing Systemic Challenges
Although skills development is a central component of the SET4Jobs program, it is not viewed as a panacea. The initiative also recognizes the importance of addressing systemic challenges that hinder job creation, such as inadequate infrastructure, low productivity, and a challenging business climate. The program will support reforms aimed at improving these areas, creating a more favorable environment for investment and economic growth.
These reforms may include investments in transportation, energy, and communication infrastructure, as well as measures to streamline regulations, reduce corruption, and improve access to finance. The program will also promote policies that encourage private sector investment and entrepreneurship.
Attracting Private Sector Investment
A key objective of the SET4Jobs program is to attract additional public and private financing. The $972 million initial investment from the IDA is intended to serve as a catalyst, leveraging additional resources from other donors, investors, and the private sector. The program’s design includes mechanisms for attracting this additional financing, such as risk-sharing facilities and investment guarantees.
The International Finance Corporation (IFC), the World Bank’s private sector arm, is expected to play a key role in mobilizing private investment. The IFC will provide advisory services to businesses and help them identify investment opportunities in the region. The program also aims to create a more predictable and transparent investment climate, making it more attractive for businesses to invest in eastern and southern Africa.
Looking Ahead: A Long-Term Investment in Africa’s Future
The SET4Jobs program represents a long-term commitment to addressing the challenges of youth unemployment and promoting economic growth in eastern and southern Africa. With the region’s youth population projected to continue growing rapidly in the coming decades, officials increasingly view employment creation as essential for stability and long-term prosperity. The program’s architects believe that by connecting skills development to real economic demand, they can reshape the prospects for millions of young Africans and contribute to broader structural transformation.
The success of the program will depend on effective coordination between governments, educational institutions, the private sector, and development partners. It will also require a sustained commitment to reforms and investments that create a more favorable environment for job creation. The World Bank will continue to monitor the program’s progress and provide technical assistance to participating countries.
The next major checkpoint for the SET4Jobs program is a progress review scheduled for December 2026, where initial implementation results and challenges will be assessed. Further updates and detailed country-specific plans will be available on the World Bank’s website. We encourage readers to share their thoughts on this important initiative and its potential impact on the future of eastern and southern Africa in the comments below.