DC dVET and the ILO hosted this BarCamp, which brought together practitioners, policymakers, researchers, and development partners to explore resilient and sustainable financing models for dual VET in informal economies.

The BarCamp started with a keynote by Salim Akoojee, TVET & Skills Development Expert and co-author of the “Think Piece on Apprenticeship Development in Africa” places special emphasis on financing as a central enabler of quality and transition pathways. To illustrate what sustainable financing can look like in practice, the keynote presents two in‑depth case studies:

• Côte d’Ivoire’s PEJEDEC programme shows how targeted wage subsidies, structured dual training, accredited learning centres, and formal contracts can professionalise traditional apprenticeships without displacing them. The programme has led to a 71‑percentage-point increase in access to formal apprenticeship, strong income gains (15% higher earnings after four years), and more complex, non‑routine work tasks among graduates – evidence that structured financing can lift both skills and productivity.
• Ghana’s TVET Voucher Project (GTVP) demonstrates how digital voucher systems can modernise funding flows, increase transparency, and overcome barriers for both apprentices and master craftspersons. By covering assessment, certification, and competency‑based training costs, the system enables informal-sector workers (including both apprentices and masters) to progress to higher proficiency levels. The MIS‑supported e‑voucher system also ensures traceability, reduces corruption risks, and facilitates evidence-based planning.

Keynote “A Think Piece on Apprenticeship Development – Focus on Financing”, by Salim Akoojee, TVET & Skills Development Expert

In the breakout sessions, participants joined experts from the World Bank, intermediary organisations from Benin and Kenya, and the Ghana TVET Voucher Project to exchange practical experiences and identify what makes financing models work in informal economies. Together, they outlined concrete ways to reduce donor dependency and strengthen VET financing systems that support smoother transitions for young people and workers.

Key messages from the sessions on financing informal skills development are:

1. Financing must be diversified, resilient, and not donor‑dependent

Long-term sustainability is a recurring challenge: many initiatives collapse after external funding phases out. Systems require gradual public financing, levy windows, co‑financing models, or hybrid cost‑sharing arrangements that align with national budgets and economic realities.

2. Intermediary organisations are essential but underfunded actors

Chambers, associations, cooperatives and guilds carry substantial hidden financial burdens (e.g. for mobilising companies, supporting apprentices, facilitating certification), yet often lack dedicated resources. Strengthening their financing (e.g., for coordination, quality assurance, outreach) is key to making dual VET work in informal economies.

3. Indirect financing is often more effective than direct subsidies

Providing equipment, training of trainers (ToT), shared training infrastructures, mobile units, resource centres and other indirect supports can significantly reduce the real cost of participation for MSMEs while improving training quality. Such indirect support is frequently more acceptable and less distortionary than direct payments.

4. Financing schemes must be light-touch, transparent, and audit‑friendly

Given data scarcity and administrative constraints in informal economies, financing should rely on simple verification mechanisms (e.g. logbooks, community checks, peer validation, geolocated photo evidence) ensuring accountability without discouraging participation.

5. Demand‑driven and outcome‑linked financing improves relevance and job outcomes

Results-based financing (RBF) works when indicators mix outputs and outcomes, are flexible, and support institutional autonomy. RBF is effective but data‑hungry, requiring strong monitoring systems and labour‑market alignment to avoid subsidising training that would happen anyway.

6. Voucher systems are a powerful tool for transparency, scale, and user choice

Ghana’s TVET Voucher Project shows how digital voucher systems enable transparent disbursement, empower beneficiaries to choose providers, incentivise provider quality, and accelerate national reforms such as competency-based training and RPL. Geolocated attendance verification increases auditability and reduces fraud.

7. Financing RPL requires clarity, cost transparency, and hybrid models

RPL is not free—even if cheaper than full formal training. Costs include outreach, assessment, verification, certification, and system infrastructure. Financing RPL requires hybrid funding, using public budgets, enterprise contributions, targeted subsidies, and symbolic individual payments. Piggy‑backing on existing training infrastructure reduces costs significantly.

8. Equity considerations are central in financing models

Shared-cost arrangements must acknowledge the vulnerability of informal‑economy learners. Even small fees or wage reductions can exclude disadvantaged groups, making equity-sensitive design (e.g. transport stipends, exam fee waivers, subsidised equipment) critical to widen access.

9. Governments must gradually take ownership of financing

Public funding is key to scaling up pilots, stabilising systems, and integrating informal skills development into national strategies. Effective reforms include unit‑cost frameworks, earmarked training budgets, and integration with social funds. Without government buy‑in, sustainability remains weak.

10. Financing must preserve what works in the informal system while enabling upward mobility

Formal financing mechanisms should not force premature formalisation. Instead, they should:

• strengthen informal apprenticeship systems,
• support quality assurance and safe working conditions,
• recognise skills through RPL and certification, and
• avoid distorting incentives or increasing burdens on micro-enterprises.