DEVELOPING HUMAN RESOURCES TO SUSTAIN HIGH ECONOMIC GROWTH IN RWANDA: UNVEILING HIDDEN FACTORS FOR A PERFECT SKILLS/LABOR MARKET DEMAND MATCH

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1 TERMS OF REFERENCE DEVELOPING HUMAN RESOURCES TO SUSTAIN HIGH ECONOMIC GROWTH IN RWANDA: UNVEILING HIDDEN FACTORS FOR A PERFECT SKILLS/LABOR MARKET DEMAND MATCH Background The main objective of the country s vision 2020 is to transform Rwanda into a middle-income country by the year This includes achieving a per capita income of US$1240, lowering the poverty rate to 30% and raising average life expectancy to 55 years 1. However, one of the major challenges hindering fast achievement of the above objective is a severe shortage of professional personnel in all sectors. For instance, only one person is currently providing veterinary services to all farmers at sector level. Moreover, there is a severe shortage of adequate skills in designing business plans, which in turns limits access to the financial sector and hinders self-employability for young graduates. Both factors contribute to significant high unemployment rate amongst the youth. Rwanda is committed to achieving most Millennium Development Goals (MDGs) by 2015, and the country is on track for achieving a number of them, including MDG2 Universal Education for all [net enrolment is 95.9% (2011, primary school completion rates is 78.6% (2011)] 2. Rwanda has also achieved a lot in terms of economic development: an average annual economic growth of 8.2 per cent between 2000 and , significantly lower inflation rates in comparison to other EAC countries (only 3.9 in ); a net improvement in food security and in the building of the basic infrastructure such as Roads, hospitals, schools, markets,... However, the sustainability of these important achievements requires innovative approaches that include increasing the country s existing productive potential by multiplying non-farm employment opportunities. One priority of the education sector strategic plan ( ) is to insure that the post-basic education system is adequately tailored to meet labour market needs, both current and future. While, as indicated above, significant improvements have been made in achieving universal access to primary education, the big challenge remains however in improving the quality of secondary and tertiary education to adapt to the labour market needs. 1 Vision 2020 document 2 Statistical yearbook WDI, NBR, P a g e

2 There is a crucial need for Rwandan education system to equip its graduates with employable skills, besides the recognised qualifications awarded to them. Thus, it is very crucial for this research to assess the right skills needed in the labour market (i.e., employable skills needed in all sectors of the economy) in order to build the country s development on the right foundations. There seem to be a general perception in Rwanda (mostly from businesses and companies employing graduates) that too many graduates leave secondary schools and universities with broad and general theoretical knowledge, instead of practical skills needed in their companies. Technical positions such as electricians, masons, construction engineers, marketing agents, financial management specialist, ICT specialist, etc, remain unfilled or are filled by non- Rwandan nationals. Addressing this human resource challenge will require mainly a strategic reform of the educational system to tackle the real needs of the labour market. In the past few years, the government of Rwanda has invested a lot in putting in place Technical and Vocational Education Training (TVET), as any education, training and learning activity leading to the acquisition of knowledge, understanding and skills which are relevant for employment or self-employment. TVET aims at providing recipients with the necessary knowledge and skills to exercise a profession in order to be integrated in the labour market 5. This objective raises two important aspects for considerations: There is need for skills acquired under TVET to address specific labour market needs that are particular to specific regions. As development priorities vary across regions (province, districts,...) the skills needed to implement these priorities also vary accordingly (i.e. matching the specific regional labour market needs to acquired skills by recipients in that particular region); There is need for coordinated mechanism that ensures that graduates are able to get experience in the current market and are empowered to create their own firms. With UN family capacity development support to the Government of Rwanda, embodied in the UNDAP, improving youth employment is an important outcome considered critical to the need for economic transformation. Moreover, employment will be mainstreamed into the national policies, strategies, programs and budget. Capacities of national institutions will be strengthened for effective employment coordination and development of employable and entrepreneurial skills and competencies for the youth and women. National institutions will 5 TVET policy in Rwanda, P a g e

3 also be supported through technical assistance for more effective employment and labour market information mechanisms. Business Development Services providers capacities will be strengthened with a view to offering tailored made services to young men and women. The UNDAP plans to promote Government initiatives and actions that address the country s needs for an alternative structural path to shape the nature of its economic transformation, to expand the employment absorption capacity of the economy while reconciling the mismatch between labor demand and supply. It is in that respect that the findings of this study are expected inform the One UN programmes to achieve effectively the employment related UNDAP outcome. Main objectives of the study This study aims at achieving the following objectives: To assess the short, mid and long term labour market needs across all sectors of the national economy and identify needed skills To assess what is being taught in Schools (i.e. the current curricula at both Secondary and Post-secondary levels) and the mismatch with labour market demand in all sectors of the economy To propose how the said curricula can be adapted in order to adapt graduates skills to the current and future labour market demand; Assess the possibilities of bringing the educators skills to the needed level in order to address the short term mismatches; To propose key recommendation to fill in the identified gaps, in the short term as well as in the medium to long term, both in terms of policy and in terms of programmes. Scope of the study The Consultant will work towards addressing the interface between, on the one hand currently available skills and those projected in the future, if nothing changes, and on the other hand and labour market skill demand in the short, medium or long term,.. This will allow to assess if there is any labour market mismatch, along with the explanation and magnitude of the said mismatch in the current Rwandan context.. Thus, this study will also include the analysis of the effectiveness of the education system at all level, in producing employment ready candidates for the Rwandan evolving labour market. the functionality of the skills development system at all levels in matching skills availability to skills demand and identify skills/labour market challenges for special needs groups such as youth, people living with disability and/or chronic diseases, women, etc. The bid document should clarify the detailed methodology in the technical offer which will also have repercussion on the financial offer. The latter must reflect all the costs that are to be associated with the study particularly as dictated by the proposed methodology. 3 P a g e

4 Deliverables An inception report with detailed methodology, timeline and budget; Draft report submitted and discussed with UNDP and other relevant national stakeholders Final research report with a proposed road map as how the study findings will instil policy dialogue and review. Institutional and contractual arrangement of the study The selected National Consultant will directly report to the Economics Advisor of the UNDP Rwanda Country Office in the Strategy and Policy Unit (SPU). The successful Consultant will be awarded an Individual Consultancy (IC) contract in accordance with rules and regulations governing procurement within UNDP. Duration of the study The study will last 20 working days. The duty station: Kigali, Rwanda. Remuneration Remuneration for this contract will be based upon a competitive detailed budget proposal. Candidates are therefore invited to present such a budget proposal. Terms and Conditions of Payment Payments shall be made according to the following schedule: Twenty per cent (20%) of the contracted amount, after submission of the inception report; Forty per cent (40%) of the contracted amount after the first draft is delivered and accepted Forty per cent (40%) of contracted amount upon final production delivery of the study.. Qualifications A post-graduate degree in economics, economic development, labour economics or a related field; a doctorate degree will be an added advantage; At least 10 years experience in conducting quantitative and qualitative economic research; In-depth knowledge of Rwanda s economy and institutional framework is required; Experience in working with government officials is welcomed; Ability to interpret results and provide practical recommendations; Previous work experience with international organizations or donors; Experience in conducting studies to assess the impact of economic policies on human development is welcomed; 4 P a g e

5 Excellent communication, both written and verbal, in English, is a requirement; Evaluation Criteria Approach: Candidates applications will be evaluated using the Best Value for Money approach (combined scoring method). Technical proposal scores will be weighted 70% whereas the financial proposals will be weighted 30%. However, the financial proposal will only be considered for those scoring at least 70/100 in the technical offer. Below is the breakdown of scores for the technical proposal on 100% basis, which will be brought to 70% Technical Criteria including methodology 1.A post-graduate degree in economics, economic development, or a related field; 2.At least 10 years of experience working conducting quantitative and qualitative economic research /100 points In-depth knowledge of Rwanda s economy and institutional framework 10 5.Ability to interpret results and provide practical recommendations; 10 6.Previous work experience with international organizations or donors, particularly in the area of labour market analysis or economic advisory role 10 7.Excellent communication, particularly writing skills, in English 5 Well designed and appropriate Methodology with a provisional outline of the content of the study; 40 Janvier Wussinu Deputy Country Director Operations UNDP Rwanda 5 P a g e