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1. The Economic Benefits of Technical and Vocational Education and Training (TVET) in the Kingdom of Swaziland: A case of the National Handicraft Training Centre (NHTC)

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Technical and Vocational Education and Training (TVET) in Swaziland is key for employment and self-employment opportunities which result in economic growth. TVET has proven to be an educational pathway that can be used to significantly reduce the unemployment rate by 2022. TVET graduates acquire skills that empower them to be immediately absorbed by the labour market and/or be self-employed. About 73.1% of the graduates are in productive employment after graduating from NHTC; with 47.6% formally employed, 25.5% self-employed, while 26.2% were unemployed in the period 1995 – 2015. The Benefit-Cost Ratio of NHTC, based on the Government of Swaziland and the Republic of China on Taiwan’s investment in NHTC, is 1:4.66. This means for every E1 invested in NHTC, the economy realises E4.66 through the income generating activities of graduates. The positive return on investment in NHTC indicates that if Government can increase funding to TVET institutions, the economic return can make significant contributions to skills development and GDP growth in the country.
Topic:
Economics, Education, Labor Issues, and Employment
Political Geography:
Africa and Swaziland

2. Quantifying a living wage in Swaziland: A case of the handicraft sector

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The Swaziland MDG Report (MDGR, 2015) documents that to improve wellbeing in Swaziland beyond 2015 requires the country to accelerate efforts geared toward creating lucrative employment and decent work for all, including women, the youth, and people living with disabilities. This is pertinent for the Kingdom of Swaziland given that 28.1% of the economically active population was unemployed in 2014 (ILFS, 2014). Others have argued that the unemployment rate is higher in rural areas, where the actual figure is probably more than 40% (Manyatsi et al., 2013). The handicraft sector has the potential to provide mass employment opportunities. However, undermining handicraft in Swaziland is a lack of appreciation of the potential this sector has toward changing the economic status and livelihoods of the people (Bam, 2014). As a result, the sector is notorious for paying low wages that do not support a decent standard of living, particularly in rural areas. Poor pay or low wages can have adverse impacts on economic growth by depressing per capita consumption.
Topic:
Labor Issues, Employment, Standard of Living, and Wages
Political Geography:
Africa and Swaziland

3. Industry Labor Force Skills Gap Investigation

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
01-2018
Content Type:
Special Report
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Sluggish economic growth coupled with high unemployment rates have become synonymous with the economy in Swaziland. In particular, youth unemployment, which stood at 51.6% in 2014, the last year for which reliable data is available, has skyrocketed amidst limited opportunities for young people in the economy. Put differently, these figures suggest that one in every two young people in Swaziland is unemployed. Moreover, the ‘youth bulge’ – a situation in which the population share of the 15-24 year-olds exceeds 20% and the share of the 0-14 year-olds (often also referred to as the "children bulge" and a good predictor of future youth bulges) is higher than 30% –, means the country’s population is also growing faster than jobs are created. This calls for urgent strategies and public policies that can transform the economy, reignite economic growth, and capitalise on Swaziland’s youthful population. Technical Vocational Education and Training (TVET) has emerged as a credible route for the production of the necessary skills and knowledge that will feed directly into industry in a bid to enhance the employability of young people and create employment. Indeed, the talent, know-how, skills and capabilities of human capital can provide the relevant stock of competencies needed to increase efficiency and overall productivity in industry. However, at the present moment, there is very little information on whether or not the skills produced by the TVET sector in Swaziland are meeting the needs of industry. Conceivably, this has compromised efforts aimed at increasing the contribution of TVET in human capital development in Swaziland. In an attempt to make TVET education more relevant in Swaziland, His Majesty’s government has partnered with the government of the Republic of China on Taiwan, which has agreed to provide assistance in upgrading technical skills in Swaziland with a focus on the automotive, electrical engineering, and information and communications technology (ICT) industries. This Report presents the results of a TVET-industry skills gap analysis in the automotive, electrical engineering, and information and communications technology (ICT) industries in Swaziland. It investigates the relevancy of the skills supplied by the TVET institutions against the skills demanded/required by the three industries considered in this study. Closing the skills gap in the technical and vocational labour force could directly impact the productivity of local companies, create new enterprises, and enable the economy to grow through both formal and informal employment. The study focuses on four objectives: (i) to ascertain the development trends in each of the three industries and specify the existing challenges and opportunities; (ii) to assess the capacity and quality of Swaziland’s TVET system and its position to serve the skills required by industry; (iii) to identify the gaps between the skills supplied by TVET training institutions in Swaziland, (particularly, SCOT, and Gwamile VOCTIM) versus the skills demanded by the automotive, electrical, and ICT industries; and (iv) to recommend strategies for reducing the labour force skills gap within the three focus industries.
Topic:
Economics, Education, Employment, Economic Growth, Training, Vocational Training, and Industry
Political Geography:
Africa and Swaziland