$972M World Bank Program Targets 18 Million Youth in Africa

SET4Jobs will operate over eight years through a multi-phase approach, linking skills investments directly to value chains with strong job growth potential.

A new $972 million regional initiative backed by the World Bank’s International Development Association (IDA) aims to equip 18 million young people in Eastern and Southern Africa with better education and job-ready skills by 2034, addressing one of the region’s most urgent economic challenges.

The Skills for Economic Transformation and Jobs Program (SET4Jobs) is designed to drive large-scale job creation by aligning skills training with fast-growing sectors, while supporting reforms to create more business-friendly environments and attract private investment.

A Growing Youth Employment Crisis

Eastern and Southern Africa faces mounting demographic pressure. Each year, approximately 8 million young people enter the labour market — but fewer than one million secure waged employment.

At the same time:

• An estimated 6.5 million youth are neither in education nor employment

• Of these, 3.6 million are women

• Informal employment remains widespread and often low-paying

Without stronger job creation and skills development, the gap between labour supply and opportunity is expected to widen.

Aligning Skills with Growth Sectors

SET4Jobs will operate over eight years through a multi-phase approach, linking skills investments directly to value chains with strong job growth potential.

Priority sectors include:

• Agribusiness

• Energy

• Healthcare

• Tourism

• Manufacturing

“SET4Jobs is a transformative investment in Africa’s greatest resource – its youth,” said Ndiamé Diop, World Bank Vice President for Eastern and Southern Africa. “Working closely with the private sector, we will help align training with growing industries… The goal is to equip millions of young people with the skills needed to get good jobs and drive regional prosperity.”

Seven Countries, One Regional Platform

The program will support investment projects in:

• Comoros

• Democratic Republic of Congo

• Madagascar

• Mozambique

• São Tomé and Príncipe

• Tanzania

• Zambia

The Inter-University Council for East Africa (IUCEA) will oversee regional coordination, strengthening collaboration in tertiary education, technical training, applied research and innovation.

“IUCEA brings deep regional experience in strengthening institutional capacity and advancing industry-aligned training,” said Prof. Idris Rai, Acting Executive Secretary of IUCEA. “Through SET4Jobs, we are transforming higher education and skills development into a powerful engine for jobs and shared prosperity.”

Driving Reform and Private Investment

Beyond training, the program supports broader structural reforms, recognising that skills alone are insufficient without a supportive economic environment.

Key pillars include:

• Investment in physical and human infrastructure

• Productivity-enhancing reforms

• Business climate improvements

• Mobilisation of private capital

SET4Jobs will also establish a regional knowledge-exchange platform, enabling countries to share lessons learned and scale successful approaches.

The initiative is expected to leverage advisory services from both IDA and the International Finance Corporation (IFC), and to serve as a platform for additional development and private-sector financing.

A Long-Term Bet on Youth

With Africa’s youth population projected to continue growing rapidly, policymakers increasingly view job creation and productivity gains as essential for stability and long-term prosperity.

By linking skills training to real economic opportunities and fostering regional collaboration, SET4Jobs aims to shift the employment trajectory for millions of young people — and support broader economic transformation across Eastern and Southern Africa.