Pipeline
| ID | INDIGO-PL-0074 |
|---|---|
| Project Name - (Value) | Digital Skills Outcomes Fund |
| Contact - Name - (Value) | Lerato Lehoko |
| Contact - Email - (Value) | lerato@yellowwoods.biz |
| State of Development - (Value) | Current |
| State of Development - (Source ID's) | source1 |
| Stage of Development - (Value) | Final negotiations |
| Stage of Development - (Source ID's) | source1 |
| Stage of Development - (Notes) | The project has been mobilizing for over 20 months and is in a highly mobilized state between private sector and government |
| Type of instrument and project - Impact Bond - (Value) | No |
| Type of instrument and project - Outcomes Fund - (Value) | Yes |
| Type of instrument and project - Social Impact Incentives (SIINC) - (Value) | No |
| Type of instrument and project - Social Impact Guarantee - (Value) | No |
| Type of instrument and project - Payment-by-results (no pre-financing) - (Value) | No |
| Type of instrument and project - Technical Assistance and Market-building program (Must involve dedicated grant resources) - (Value) | No |
| (Source ID's) | source1 |
| (Notes) | We are market building together with government and the private sector to scale the pipeline of digital skills. This includes redirecting public, private and donor funding to achieve the scale objectives of the entire country. |
| Part of a larger outcomes-based financing program? - Part of a larger outcomes-based financing program? - (Value) | Yes |
| Part of a larger outcomes-based financing program? - Details - (Value) | We are market building together with government and the private sector to scale the pipeline of digital skills. This includes redirecting public, private and donor funding to achieve the scale objectives of the entire country. |
| Part of a larger outcomes-based financing program? - (Source ID's) | source1 |
| Dates - Expected Launch Date - (Value) | Q4 - 2022 |
| Dates - Total expected project development time - (Value) | 0-6 months |
| Dates - Expected length of project (years) - (Value) | 3 |
| Dates - (Source ID's) | source1 |
| Rationale for using outcome based finance - (Value) | Digital Jobs is one of the only areas in the South African economy where we have more demand for higher complexity digital jobs than supply. We also have a supply and demand mismatch in terms of what skills are being generated. The outcomes financing is intended to realign and scale what the market requires and to do this inclusively. |
| (Source ID's) | source1 |
| Key challenges to launch - (Value) | Challenges in amending government procurement laws to conform with outcomes funding, despite funding being approved by the government. |
| (Source ID's) | source1 |
| Role of the domestic government - Outcomes funder - (Value) | Yes |
| Role of the domestic government - Service provider - (Value) | No |
| Role of the domestic government - Member of project committee - (Value) | Yes |
| Role of the domestic government - No formal role - (Value) | No |
| (Source ID's) | source1 |
| Service providers identified and selected - Request-for-proposals - (Value) | Yes |
| Service providers identified and selected - Direct contracting by outcome funder/investor/intermediary - (Value) | No |
| Service providers identified and selected - Provider-led deal development - (Value) | No |
| (Source ID's) | source1 |
| Feasibility study - (Value) | Yes |
| (Source ID's) | source1 |
| Proposed financing instruments - Debt - (Value) | No |
| Proposed financing instruments - Equity - (Value) | No |
| Proposed financing instruments - Guarantee - (Value) | No |
| Proposed financing instruments - Grant - (Value) | Yes |
| (Source ID's) | source1 |
| Technical assistance grant - Technical assistance grant - (Value) | Yes |
| Technical assistance grant - (Source ID's) | source1 |
| Overall project finance - Estimated Maximum potential outcome payment - Currency - (Value) | ZAR |
| Overall project finance - Estimated Maximum potential outcome payment - Amount - (Value) | 3500000000 |
| Overall project finance - (Source ID's) | source1 |
| Overall project finance - (Notes) | USD 212000000 |
| Purpose and classifications - Social/Developmental challenge - (Value) | South Africa has a youth unemployed rate of about 70%. One million youth enter the job market each year, two thirds of which do not find their way into employment, education, or training. In the digital sector, as a result of the supply and demand mismatch, it is estimated that over 80,000 vacancies go unfilled. |
| Purpose and classifications - Expected intervention model - (Value) | Innovative and efficient and demand driven digital skills apprenticeships to transition poor youth into available vacancies. |
| Purpose and classifications - Policy sector - Employment and private sector development - (Value) | Yes |
| Purpose and classifications - Policy sector - Education - (Value) | Yes |
| Purpose and classifications - Policy sector - Social protection - (Value) | No |
| Purpose and classifications - Policy sector - Criminal justice - (Value) | No |
| Purpose and classifications - Policy sector - Health - (Value) | No |
| Purpose and classifications - Policy sector - Agriculture - (Value) | No |
| Purpose and classifications - Policy sector - Environment and climate change - (Value) | No |
| Purpose and classifications - Policy sector - Water, Sanitation and Hygiene - (Value) | No |
| Purpose and classifications - Policy sector - Energy - (Value) | No |
| Purpose and classifications - Policy sector - Humanitarian - (Value) | No |
| Purpose and classifications - Primary SDG goal - (Value) | 8 |
| Purpose and classifications - Secondary SDG goals - (Value) | 4,17 |
| Purpose and classifications - (Source ID's) | source1 |
| Purpose and classifications - (Notes) | Scaling the development of digital skills across the economy, which can serve all sectors. |
| Service users and beneficiaries - Target population - (Value) | Excluded unemployed individuals that have the right profile for the most in-demand digital entry-level roles. We have mapped the demand requirements for these roles in the South African economy and are looking to stimulate 80,000 new jobs by 2025. |
| Service users and beneficiaries - Targeted number of unique service users or beneficiaries (total) - (Value) | 80000 |
| Service users and beneficiaries - Unit type of targeted service users or beneficiaries - (Value) | Individual |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Low-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Lower-middle-income - (Value) | No |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - Upper-middle-income - (Value) | Yes |
| Service users and beneficiaries - Country Classification of Service and beneficiaries - High-income - (Value) | No |
| Service users and beneficiaries - (Source ID's) | source1 |
| Service users and beneficiaries - (Notes) | 80,000 beneficiaries by 2025 into higher complexity digital jobs |
| Notes - (Value) | Data for this pipeline project was last updated in March 2024 |
| Delivery Locations 1: Service Provision ID - (Value) | deliverylocation1 |
| Delivery Locations 1: Location - Name - (Value) | South Africa |
| Delivery Locations 1: Location - Country - (Value) | ZA |
| Sources 1: Id | source1 |
| Sources 1: Name - (Value) | Data shared by key stakeholders of the project through March 2022 Levoca questionnaire |
| Service Provisions 1: Notes | TBD - An ecosystem facilitator managing several digital skills bootcamps. |
| Outcome Payment Commitments 1: Notes | Bonds4Jobs |
| Outcome Payment Commitments 2: Notes | Department of Higher Education (South Africa) |
| Outcome Payment Commitments 3: Notes | Department of Science and Technology (South Africa) |
| Investments 1: Notes | TBD |
| Intermediary services 1: Notes | Evaluator - TBD |
| Intermediary services 2: Notes | Advisor - Digital Work Accelerator (public/private leadership coalition established to accelerator digital skills for the country) |
| Intermediary services 3: Notes | Other - The Presidency of South Africa – public sector coordination. |
| Outcome Metrics 1: Id | outcomemetric1 |
| Outcome Metrics 1: Outcome Definition - (Value) | Opportunities secured; Work integrated learning; Conversion into new jobs; Conversation into long-term paid opportunities, including learning opportunities. |
| Outcome Metrics 1: Outcome validation Method - (Value) | Non-experimental |