Unemployment and poverty continue to affect previously disadvantaged South Africans, which have sparked interest from public-development finance institution Agence Française Développement (AFD) – also known as the Development Agency of France – to assist in funding initiatives that will promote the function of vocational training centres and build partnerships with various South African institutions in the public and private sectors this year.

“Vocational training systems in developing countries often lack resources and are unable to meet economic and social needs. AFD’s response is to promote systems, guided by economic demand, which aim to meet private-sector needs and foster the social integration of youth through employment,” says AFD head of research Veronique Sauvat.

She notes that it is vital for developing countries to invest in vocational training, as it has lever- age on growth, employment and South Africa’s capacity to adapt to the context of globalised trade and the increasing number of economic, sanitary and climate crises.

AFD operates in countries that are open to international markets, but where businesses are significantly lagging behind in terms of technology, organisation and human resources.

The agency’s aim is to promote the development of training, tailored to public and private demand, from the postprimary level to higher vocational education. It also helps countries boost and modernise their production and service sectors and to benefit from the growth opportunities as a result of the exposure to global markets.

“AFD has a wide range of financial tools in vocational training, which includes loans to States and economic operators, as well as debt-reduction development contracts and grants,” Sauvat points out.

The agency – in partnership with economic role-players – supports States or parastatal bodies by providing loans that will assist in driving economic growth. AFD also supports training projects by private companies or training operators and can refinance banks for their lending operations for training operators and students.

AFD vocational training projects manager Bertrand Ficini notes that AFD has been promoting vocational training actions for about 30 years, in addition to the investments it finances in various sectors of an economy.

AFD became involved in modernising vocational systems in the mid-1990s, when countries, such as Morocco, Tunisia and Vietnam, wanted to adjust the modern sectors of their economies to be internationally competitive.

AFD has been extending its actions to sub-Saharan Africa since 2005 to adapt training systems to the needs of predomin- antly informal economies.

South Africa’s National Development Plan aiming to eliminate poverty and reduce inequality by 2030, funding from the AFD could assist in reaching the desired target.

“With the success that we have witnessed over the years in various countries that have socioeconomic challenges similar to that of South Africa, we believe that, together with different stakeholders in the country, training centres can be established that will drive economic growth,” he concludes.