An internal validation workshop titled "Building TVET Systems for Economic Transformation in Ethiopia" took place at the Policy Studies Institute on April 29, 2025. The research findings underscored the vital role of Technical and Vocational Education and Training (TVET) in promoting economic growth and development in the country. The report aimed to identify the current challenges facing the TVET sector and propose strategic interventions to enhance its effectiveness and relevance in addressing labor market needs. Through a comprehensive analysis, the presentation sought feedback from PSI researchers, fostering discussions on how to improve TVET systems to support Ethiopia's socio-economic transformation.
Dr. Netsanet Jote, Lead Researcher and Centre Coordinator of the Research Development and Data Management Centre
The research was conducted by Dr. Amare Matebu, who is a Lead Researcher, alongside Dr. Netsanet Jote, also a Lead Researcher. The team included Mr. Sisay Sintayehu and Mrs. Zemene Yohanies. Dr. Netsanet, a member of the research team for the project, presented the final research report to the PSI staff. She stated that in many countries, including Ethiopia, a key element of development strategies is supporting young people in acquiring professional skills through Technical and Vocational Education and Training (TVET) programs. She emphasized that TVET systems are essential for addressing skills gaps, promoting inclusive growth, and enhancing productivity in emerging economies. Dr. Netsanet noted that effective TVET programs can contribute to poverty reduction, social inclusion, and sustainable development by providing pathways to decent work and livelihoods.
H.E. Mr. Teferi Tiyaru, Deputy Director General at PSI
Dr. Netsanet explained that Ethiopia has recognized the importance of the TVET sector, having designed a national TVET strategy in 2008. The main objective of this strategy is to produce a competent, motivated, adaptable, and innovative workforce at lower and middle levels. Dr. Netsanet highlighted that the Ethiopian government has developed important components, such as apprenticeships, occupational standards, and the 70/30 principle (70% practical and 30% theoretical), and adopted a competency-based training (CBT) approach as the guiding principle for TVET.
Dr. Netsanet Jote, Lead Researcher and Centre Coordinator of the Research Development and Data Management Centre
However, she pointed out that despite these efforts, the achievements of the TVET sector in Ethiopia have not been satisfactory. Employers have expressed concerns that TVET graduates do not meet the competency requirements of the labor market. Dr. Netsanet identified several challenges facing the TVET sector, including a lack of adequate quality assurance systems, outdated equipment, low competency among TVET teachers, insufficient financing, limited private sector involvement, weak governance structures, and poor training infrastructure. She noted that there is still a lack of value attributed to TVET, resulting in low enrollment as parents and young people often view it as a second option for those unable to pursue higher education.
Sisay Sintayehu, Researcher at PSI
Furthermore, Dr. Netsanet shared that despite the multi-faceted challenges faced by the TVET sector, the top five identified by various stakeholders include a shortage of qualified TVET teachers, a lack of quality apprenticeship or practical training, obsolete training equipment, insufficient funding allocated to TVET, and the need for improved training quality. She concluded that these issues require urgent attention to enhance the effectiveness of the TVET system in Ethiopia.
Dr. Netsanet presented her findings on the skills mismatch in Technical and Vocational Education and Training (TVET) in Ethiopia. She explained that there is a significant gap between the skills students acquire and the skills demanded by the labor market. This mismatch can be attributed to several factors, including inadequate collaboration between TVET institutions and employers, limited information about labor market needs, an emphasis on theoretical rather than practical training, and insufficient feedback from graduates through tracer studies. She noted that the lack of effective collaboration leads to a disconnect between the skills taught in TVET programs and those required by employers. Furthermore, many TVET institutions struggle to adapt to the rapidly changing labor market, resulting in outdated programs.
Dr. Netsanet Jote, Lead Researcher and Centre Coordinator of the Research Development and Data Management Centre
To address the challenges facing Technical and Vocational Education and Training (TVET) in Ethiopia and enhance its relevance for the country's socio-economic transformation, Dr. Netsanet recommended several policy and strategy interventions. First, she emphasized the importance of ensuring that the national TVET strategy is both competency-based and demand-driven. However, she pointed out that the current strategy is not being implemented effectively. The Ministry of Labor and Skills is in the process of revising the strategy for the second time, and Dr. Netsanet suggested that stakeholder engagement be enhanced by involving industry representatives, educational institutions, and community organizations in the design and revision of TVET strategies.
Dr. Habtamu Tesfaye Edjigu, Researcher at PSI
Moreover, Dr. Netsanet highlighted the necessity of aligning TVET with industrial development plans. She stressed that better collaboration between the TVET and industry sectors is essential and called for a defined action plan to facilitate this cooperation. Additionally, Dr. Netsanet urged the government to fully implement critical frameworks such as the TVET Leaders and Trainers Qualification Framework and apprenticeship programs. Effective implementation of these frameworks is crucial to improving the quality and relevance of TVET offerings. Another key recommendation was to promote Public-Private Partnerships (PPPs). Dr. Netsanet advocated for the establishment of PPPs to enhance collaboration between public TVET institutions and the private sector, which would include co-developing curricula and providing practical training opportunities for both trainers and students.
Furthermore, she stressed the importance of capacity building through ongoing professional development for TVET teachers and trainers. This continuous training is vital for improving their ability to deliver effective competency-based training. Dr. Netsanet underscored the need to monitor and evaluate the implementation processes of TVET strategies and programs. Establishing clear monitoring and evaluation frameworks is essential to assess their effectiveness and ensure accountability in achieving the desired outcomes.
Dr. Netsanet also discussed the need to improve the governance structure of the TVET system in Ethiopia. She emphasized strengthening governance and management at both federal and regional levels, defining roles and responsibilities, and implementing regular assessments of TVET programs. Additionally, she suggested enhancing mechanisms for stakeholder coordination through Public-Private Development Partnerships and mainstreaming informal sector training into the national TVET system, recognizing the importance of addressing challenges faced by informal sector training.
Dr. Netsanet addressed the need to minimize skills mismatch in Ethiopia's Technical and Vocational Education and Training (TVET) sector. She emphasized that the government's skill development efforts must align with industry needs and the evolving labor market. She highlighted the importance of improving foundational skills within TVET programs, noting that insufficient attention to these skills limits students' capacity to acquire and upgrade their technical abilities. Dr. Netsanet urged policymakers and TVET institutions to prioritize foundational skills in their curricula.
To further address skills mismatch, she recommended implementing comprehensive Labor Market Information Systems (LMIS) that would collect and analyze data on labor market trends. This information is crucial for developing training programs that ensure the skills taught align with current demand. Dr. Netsanet also called for enhancing key attributes of the TVET system. She suggested that the government focus on co-creating training programs with industry, ensuring strong private sector involvement in training and assessment, providing relevant teaching facilities, and ensuring a market-oriented curriculum. Additionally, she stressed the need to improve access, equity, and affordability of training provision.
In her presentation, Dr. Netsanet advocated for the digitalization of the TVET system. She proposed revising the curricula to include a broader range of digital skills, such as e-learning, digital entrepreneurship, artificial intelligence, and robotics, ensuring that students are equipped with competencies relevant to modern industries. Another critical point she raised was the incorporation of green skills into the curricula. Dr. Netsanet argued that greening TVET plays a vital role in addressing environmental challenges and that the curriculum should equip individuals with the knowledge and skills necessary to transform their workplaces and communities.
Furthermore, she emphasized the importance of improving private sector participation in the TVET system. Dr. Netsanet urged the government to create more opportunities for private sector representatives to engage in TVET governance and decision-making, highlighting the need to raise awareness about the private sector's responsibility in investing in TVET for quality and productivity improvement.
She also discussed the necessity of strengthening quality apprenticeships and practical training by fostering stronger partnerships between TVET institutions and industries. Establishing and enforcing quality standards for apprenticeship programs is essential to ensure that training consistently meets labor market needs.
In addressing the quality and competency of TVET teachers and trainers, Dr. Netsanet proposed several interventions. She emphasized the need for educators to upgrade their knowledge and skills in their subject areas and to improve their collaboration and communication skills, which are essential in the digital era. Dr. Netsanet also called for the reform of instructional planning, delivery, and evaluation systems, ensuring that TVET teachers have the capacity to use appropriate technology to meet the needs of individual learners. Additionally, she highlighted the importance of reforming salary and incentive schemes to attract high-caliber professionals to the TVET sector, creating a motivating work environment. Lastly, she stressed the need to improve TVET training facilities and infrastructure. Dr. Netsanet urged the modernization of training equipment and the strengthening of digital infrastructure to prepare students and trainers for the digital economy by integrating technology into TVET programs. This includes investing in e-learning platforms and digital tools relevant to various trades.
Dr. Netsanet presented several key recommendations for enhancing the Technical and Vocational Education and Training (TVET) system in Ethiopia. She emphasized the importance of strengthening digital infrastructure to prepare students and trainers for the digital economy. According to her, integrating technology into TVET programs is essential, and this includes investing in digital infrastructure, such as implementing e-learning platforms and digital tools relevant to various trades.
She also highlighted the need to reduce negative perceptions towards TVET through awareness creation. Dr. Netsanet stressed that launching awareness campaigns is crucial to showcasing the role of TVET in fostering economic growth and providing viable career paths. She suggested that these campaigns should include success stories of TVET graduates across different fields to inspire and inform the community. Engaging with local communities is vital for promoting a better understanding and acceptance of TVET as a legitimate and rewarding educational pathway, which could help attract more students and support the growth of TVET.
Furthermore, Dr. Netsanet pointed out the necessity of establishing effective skills forecasting mechanisms at the national level. She noted that while some organizations, such as the Ministry of Labor and Skills, occasionally conduct assessments of existing skills, there is currently no well-organized national skills forecasting mechanism in Ethiopia. She advocated for the development of such a system to analyze existing skills and forecast future skill requirements, alongside a robust labor market information system.
Lastly, she emphasized the need to increase funding and resource allocation for TVET. Dr. Netsanet called for an increased budget allocation from the government to ensure that the percentage of the education budget dedicated to TVET aligns with the sector's needs. Additionally, she suggested developing strategies to attract private sector investment through incentives and partnerships, which could significantly enhance financial resources for training programs and infrastructure development. Dr. Netsanet concluded by noting that the ongoing revision of the national TVET strategy presents an opportunity to incorporate performance-based government funding and support systems to ensure sustainable financing for the sector.
Participants in the internal validation workshop raised numerous questions, and the presenter, Dr. Netsanet Jote, along with Mr. Sisay Sintayehu, a member of the research team, addressed several of these inquiries. They assured attendees that they would incorporate the critical feedback received to refine the final research output.
In conclusion, the internal validation workshop on "Building TVET Systems for Economic Transformation in Ethiopia" provided a valuable platform for dialogue and collaboration among stakeholders. The insights shared during the session highlighted the essential role of TVET in driving economic development and addressing the skills gap in the labor market. By identifying current challenges and proposing strategic interventions, the research aims to pave the way for a more effective and responsive TVET system. The constructive feedback from participants will be instrumental in refining the final research output, ultimately contributing to the enhancement of TVET initiatives that support Ethiopia's socio-economic transformation.