Torino Process 2018–2020 Egypt - National Report

In an attempt to decrease unemployment, the GoE is adopting and implementing initiative that have the potential to create employment opportunities for Egyptians, and would require an efficient labour market that can match workers with the most suitable jobs for their skillset. These initiatives are reflected in its vision 2030, it’s the Industrial Strategy and the “MEGA Projects”, currently implemented. However, the Egyptian labour market is currently being characterised by a number of serious factors that affects its efficiency; an increasing labour force, low participation rate and high unemployment (especially among the educated, youth and women).

Overall, the Egyptian labour force is steadily increasing, at an annual rate of around 1.8 percent, however the biggest share of Egyptians in working age (15+) are not in the labour force, yielding a labour force participation rate, in 2017, as low as 45 percent, down from 47 percent  in 2015 and 48 percent in 2013. Crucially, the participation rate of women in the labor market in Egypt (year 2017) is 22 percent, one third of the participation rate of male, 66.9 percent. This low women participation rate, also faces high unemployment rate, recording 23.0 percent, almost three times as much as men unemployment, 8.2 percent in 2017. Thus the majority of women are either active in the informal economic sector or hardly involved in the formal productive labour market activities.

The phenomenon of “educated unemployment”, a typical feature of the Egyptian and regional labour market, continues to persist. Low-educated (illiterate and those who read and write) workers show very low unemployment levels (3.4 and 2.4 percent) whereas much higher unemployment rates are recorded with higher levels of education attainment; university and intermediate secondary level (34 and 48.2 percent). The high rates of unemployment among educated people, is a strong indication of the mismatch between the skills offered by education and training and the skills required by employers in the labour market.

Figure 10: Unemployment by Educational Attainment 2017 (Total, Female and Male) (See Figure 10 in the report in PDF p.21)

According to ILOSTAT data, the youth unemployment rate in 2017 was 29.6 percent, down from 34.1 percent in 2013, and 31.6 percent in 2015. Youth unemployment also varies greatly, again between young men and women. While (year 2017) young men have an unemployment rate of 25.7 percent, young women suffer from 38.3 percent unemployment, down from 52 percent in 2013.

    Figure 11: Youth unemployment rates 2017 

Employment distribution by economic sector, reflects a dominating role for the services sector (including direct tourism employment) with a 48.3 percent share, followed by agriculture 25%, industry 14%, and construction 13%.

In the period from 2015 to 2017, 1.2 million new jobs were created (where services have the highest share of new jobs, followed by construction, then industry and last agriculture with an 8.8 percent share). The low share of the agricultural sector in new jobs has been affected by the share of women employment in agricultural sector, which has decreased from 40 to 37 percent, as reflected in table 3, which also reflect a shift towards services.

Table 3: Employment (aged 15+) by Broad Economic Sectors   Figure 14: Employment Share of Females 2017 (See Table 3 and Figure 14 in the report in PDF p.22)

In addition to the mismatch between skills offered by education and training and skills required by employers (as indicated by the high rates of unemployment among educated people), the relatively high rate of population growth creates further challenges to the system. This is indicated by the employment-to-population ratio which is recorded as low as 27 percent in the last 3 years (for working age of 15+) reflecting the Egyptian economy’s constant need to create employment opportunities, enough to absorb the new entrants into the labour market. The government is aware of these challenges and has embarked on national campaigns to create awareness about the benefits of having small families. However, these are long-term solutions and must be complemented with short and medium-term innovative solutions to improve the quality and relevance of the skills of the Egyptian workforce in order to create opportunities for them in the international as well as the local labour market.

The mismatch between the type and level of skills offered by education and training and the skills required by employers in the labour market is significant, as reflected by the high unemployment rates among university graduates and intermediate secondary graduates. Egypt is facing two types of skills mismatch; quantitative mismatch, is indicated by the short supply of VET graduates to sectors in need of labour force; qualitative mismatch, where the “level of available skills is lower than the required level to perform the job (often associated with changing economic context or changes in technology).

Examples of Egypt’s Quantitative mismatch is the agricultural sector, which employs 25 percent of the workforce, while agricultural technical secondary education represents only 13 percent of all technical secondary schools, in contrast, the manufacturing sector, employs 14 percent of workforce and 48% of total technical secondary education. Capacity for education provision should correspond to the needs of the labour market. (Figure 12 and 15)

Figure 15 : Distribution of Students Among Technical Education Departments   

On the other hand, qualitative mismatch; indicated by employers complain about the competences and attitude of VET graduates, which are not in line with market demands and with the work environment. This is clearly illustrated by the existence of foreign workforce, especially within the industrial sector (from a diverse number of countries, such as India, Pakistan, Syria, China, and African countries, while there were more than 3.4 million unemployed Egyptian, in 2017, CAPMAS reported an increase of 1.1% in the number of foreign workers in Egypt.

There has been several attempts to address the issue of mismatch, through international and national initiatives, which has yielded satisfaction by employers with graduates of these initiatives, indicating that change is possible, and the TVET policy makers must observe and evaluate these pilots and select the successful ones  to scale-up to the national level.

As the LMIS is in the reconstruction phase by the GoE, aiming to achieve informed decision making for VET, and managing the lack of institutional and sustainable mechanisms for identification and anticipation of skills demand and translating them into curricula and training materials and qualifications, may be considered as the main factors contributing to the mismatch between the skills provided and the skills needed and are a major problem that weakens reform of the system, and will probably have a bigger impact with the increasing pace of technological and technical evolution. Some stakehoders also indicate that the mismatch is due to the problems related to implemneting the eduational and training programmes according to recgnised standards by employers and benchmarked with international qualifiqation frameworks.

With a population of more than 100 million, Egypt ranks as the most populous among the Arab countries.  With an estimated annual growth rate of more than 2.6%, it has one of the fastest growing populations in the world. This means approximately 700,000 new entrants to the labour market each year. While most should be absorbed in jobs created by a growing economy, there will also be possibilities for highly skilled Egyptians to work abroad seeking to improve their livelihood and socioeconomic opportunities.

In this context, Egypt has been a major labor exporter since the early 1970s, and has become the largest labor exporter in the MENA region. In 2017, Egyptian migrants amounted to almost 7.5 million, double those in 2015 (3.27 million Egyptians were living abroad).  Three regions constitute the main destinations for Egyptian migrants; 2/3 in Arab countries (Saudi Arabia 56.4%, Jordan 17.2%, the United Arab Emirates 10.8% and Kuwait 9.7%, others 5.9%), 18.4 percent in North America and 10.4 percent in Europe. The presence in Australia is estimated at 3.4 percent, while Asia, South America and Africa together account for only 1 percent.

One of the main features of Egyptian migration flows, during the early 1980s, was that they were composed of both educated and less educated migrants; as Egypt exported doctors, health workers and teachers to the Gulf States, but also many less educated migrants employed in construction. Since then, the percentage of educated migrants has increased and the share of less educated Egyptian migrant workers has declined as they got replaced by Asians workers. On the other hand, migrants to Europe and North America are predominantly (95%) highly educated. In this respect the impact on the labour market, as reflected in some literature, is seen from two different perspective the first is “Brain Drain” (migration of highly educated Egyptians) and the second is “Brain Gain” (returnee with higher levels of skills).

According to the National ICT Strategy 2012-2017 : Towards a Digital Society and Knowledge-based Economy  the GoE has four strategic objectives; 1) Supporting the democratic transition, 2) Promoting digital citizenship and information society, 3) Promoting sustainable development, Strengthening the national economy. In this respect the Ministry of Communication and Information Technology MCIT established various work programs that aim at: drafting and updating policies and guiding principles concerning ICT use in local development, contributing to the development of legislative and regulatory frameworks related to the ICT sector, supporting the development of strategies to increase the spread and use of ICTs and maximize their benefit to users and society, and monitoring developments in technology.

In addition, the MCIT is responsible for the development of the ICT infrastructure and digital services of government entities that aims to enhance the performance of ministries and other government bodies, raising the quality and efficiency of their services to the public, improving the work environment, providing support for decision-making and finding solutions to issues of concern to the community. These efforts will boost local markets and raise demand for ICTs. In this context a number of initiatives are being implemented; ICT for Education, ICT for Health, ICT for Government, e-content, Legislative Services, and Green ICT.

To address the skill mismatch caused by digital transformation, the ICT for Education, included a number of initiatives, including: Modernizing Vocational Schools using ICT, Egyptian Education Initiative, Smart Schools Network, and Personal Computer PC for “Every Top Student Initiative”, Technical Schools Development Project, Education Development Using ICT, Schools Development Initiative, Illiteracy Eradication Initiative, launching of the first Applied Technology School in 2019 in ICT  (I-Tech) in partnership with IBM and ICT for Micro, Small and Medium Enterprises. These initiatives are implementing a number of measures, ranging from refurbishment of schools, providing IT equipment, training teachers, and altering content of programmes.

Policy responses to mismatch, since early 2000, has mainly focused on two measures; skills’ anticipation through establishment of a labour market information system; development of strong ties between VET providers and employers to enhance employers’ engagement and influence on VET at policy and provision level.  

Since 2006, the establishment of a labour market information system has been a priority for VET stakeholders, to accurately identify, address and forecast the knowledge gap in terms of what qualifications, skills and competencies the labour market needs, quantitatively and qualitatively. Thus allowing the VET system to direct its resources efficiently and effectively to address these needs. The first of these initiatives, was the establishment of Egyptian Education, Training and Employment Observatory (EETEO) within the IDSC, during the period 2006-2010, with the support of the EU through the ETF. However, after the 2011 events in Egypt, and the changes in management and staff, the observatory has not resumed the original role envisioned for it. The EU-TVET Egypt Programme is currently working to resolve the issue of where the national LMIS could be hosted at the IDSC with the support of the Ministry of Planning and Economic Development.

In response, another attempt to establish observatories, was adopted by the MoETE, supported by the GIZ, to establish a network of five regional observatories (6^th of October, Aswan, Alexandria, Sadat City, 10^th of Ramadan), capable of producing regional labour market information in a participatory process and propose employment related interventions for the respective region. To ensure sustainability, the observatories rely on a staff seconded from MoETE, MoMM, private sector associations and civil society. So far, the observatories have been able to establish a working relation with public employment offices and have delivered a number of regional labour market reports. The next period will see how these observatories would link at the national level especially as the TVET-Egypt Progarmme is working with the government to identify a national host for the LMIS.

Further, TVET Egypt as part of its support to the reform of the Egyptian VET system is attempting to develop a new LMIS and have been negotiating to either revive the EETEO, or to identify a new host for the new LMIS. The main stakeholders involved in the development are CAPMAS, IDSC, and Ministry of Planning and Economic Development.

Another strategic policy response to the mismatch is attempting to set structures that would allow for developing stronger ties between VET providers and employers, to enhance employers’ engagement and influence at policy and provision level. Since 2006, a number of these structure have been established; 12 Enterprise TVET Partnership, and a number of Local ETPs, the Industrial Training Council, the Buildings Skills Development Council, the National Tourism HRD Council. Currently, none of these structures are active since 2017 due to various reasons associated with legislative and funding challenges as well as the readiness of the private sector to assume its proper role. Additionally, and despite the existence of laws that are related to licensing of workers, there has been little evidence that this has been implemented in the right way. Also the outputs of previous projects such as the National Skills Standards Project (NSSP) have not been widely implemented and there is a threat that new initiatives would duplicate some of these efforts. However, the need to develop strong ties between VET providers and employers still persists. This has been addressed in a number of strategic documents, including the newly proposed labour law (MoM), the TVET ACT (developed by TVET Egypt, the PVTD’s restructuring Plan, as well as being adopted by the FEI, all working to develop Sectoral Skills Councils, where employers may influence the provision of VET. 

In 2018, the MoETE commenced with establishing “a new brand of schools” called Applied Technology Schools (ATS), under a PPP with private sector companies, where companies have three agreement options depending on the level of responsibility they can and/or want to undertake. This includes Full Partnership Agreement, Consortium Partnership, and Associate Partnership. Where Full Partnership is suitable for large and labour-intensive companies as well as with mega national projects, Consortium Partnership, is suitable for medium size enterprises, and Associate Partnership, allows small and micro enterprises to participate in the apprenticeship programmes.

The guiding principle of the ATS model include, Quality through partnership with international awarding bodies, WBL through a balanced equation between work-based learning and classroom learning, Demand-Driven through employers’ commitment to the system, Learner-centred through producing productive and competitive worker, Real change through promoting a culture change where work ethics and productivity are the norm, and finally Partnership with industry through a new competency based model that will play a major role in developing workforce that can transform Egypt into a global manufacturing destination.

There are numerous ongoing and emerging initiatives for Active Labour Market Policies ALMP, to upgrade workers’ skills, promote job creation and assist in matching workers and employers that are being implemented by various stakeholders and NGOs, in many cases supported by donor organisations. According to the ILO study “Towards Evidence-Based Active Labour Market Programmes in Egypt“, the majority of ALMP interventions, almost 86 percent, are being implemented by non-governmental and non-profit organisations. While the remaining 24 percent is being implemented by governmental organisations, donors and VET Providers.

A number of stakeholders are actively promoting and implementing a number of ALMP, including; 1) Non-profit, non-governmental organisations: such as Sawiras Foundation for Social Development SFSD, Injaz Egypt, Caritas, AMIDEAST; 2) Governmental organisations, such as the Ministry of Manpower, MSMEDA, Ministry of Industry, Ministry of Information and Computer Technology MICT and others; 4) Donor organisations, such as the ILO, UNIDO, GAC, USAID, GIZ, European Union; 5) VET Providers

The involvement of VET in Active Labour Market Policies include a number of initiatives; 1) On the job training; dual system, apprenticeship programmes (within MoM VTCs and PVTDs), 2) Entrepreneurship programmes: as extra curriculum activities within TSS, 3) Transition from School to Work including Career Guidance.

Policies for identification and anticipation of skills demands, and the need to translate these skills into curricula and training material, in the last decade has taken different forms. The establishment of the Egyptian Education, Training and Employment Observatory (EETEO), formulation of the Training Councils (for Industry, Building and Construction, and Tourism) and establishment of 12 Enterprise TVET Partnerships (ETPs) for 12 subsectors. Unfortunately, none of these are currently operational due to legislative and funding challenges. To overcome this gap, some of the TVET authorities have opted for social dialogue, as a mechanism for identification and anticipation of skills needs, in which workers and employers become the sources of informed opinion and expertise. This has been adopted by the MoETE supported by WISE (a USAID funded project) to introduce renewable energy (wind and solar energy) in technical secondary education. The outcome was translated into a curriculum and is currently being offered in more than 10 technical secondary schools.

However, currently, various stakeholders are in different stages of introducing models for engaging employers in the identification of sectoral skills needs that can feed into VET provision in a more institutionalised and sustainable manner. This includes: The Sectoral Skills Councils Model produced by TVET Egypt Programme, the Sectoral Board of Directors suggested within the framework of the PVTDs institutional restructuring, the Chamber of Engineering Industry’s initiative supported by EBRD, to pilot a Sector Skills Platform in electrical equipment and cables sub-sector.

Skills recognition services, in Egypt, are currently limited to occupational licencing procedures. Migrants and refugees, may apply to obtain an occupational license to practice one of over 400 occupations. The system is designed to ensure quality in these occupations, and allow workers who have not gone through a formal education or training program to have their skills recognised and their occupations recorded on their passports and IDs. However, the system requires restructuring to improve the process in terms of; consistency in implementation, clarity in standards and criteria, visibility by employers, quality control and better involvement of business and workers’ organisations, as well as awareness in the recognition of certificates by employers.

Limited tracer studies have been conducted to assess the VET contribution to job creation and the impact of ALMP on employment. Establishing a national tracer studies model is an ambitious objective given the scale of the Egyptian VET system, but it would provide invaluable information to be used in the regular monitoring of the Active labour Market Programmes and the VET sector effectiveness. TVET Egypt Programme is currently in the process of conducting a tracer study and institutionalise the process of developing such studies within the different VET providers.

VET providers, especially MoETE, is promoting entrepreneurship as part of TSS programme. Initially, the Deputy Minister for Technical Education (MoETE) coordinated the efforts of several international donor organisations, including TVET Egypt, WISE, SEED, UNIDO and ILO, in an attempt to consolidate their entrepreneurship programmes into a joint product. The effort has yielded the development of the “Student Training for Entrepreneurial Promotion STEP” model, offered to students of technical secondary schools as extra curricula activity.

Further, to integrate entrepreneurial learning within the Technical Education curriculum, more coordination efforts, under MoETE, are exerted by the various donor organisations to produce “A Unified Entrepreneurship and Innovation Curriculum” that could form the basis for entrepreneurship learning within the 2000+ technical secondary schools.

In academic year 2017/2018, more than 2.03 million students were enrolled in the 2914 VET institutes, most of which are admitted into VET through ranking according to school marks (numerical grading).  In Egypt, students who complete their preparatory level education have two options to pursue further education into the secondary level. The first option and the one that most parents prefer for their children is general secondary education and the second, less attractive option is to enter technical or vocational secondary education. Typically the higher performers can choose between general secondary education and technical secondary education, while students with lower grades enter technical or vocational education. Although still a very small percentage in terms of student numbers, some good practice exceptions have been observed, with the provision of high quality technical education mostly in partnership with employers or international organisations, where highly performing students choose to join technical education. Examples include; the Donbosco, the Arab Contractors Schools, the ITECs, El Gouna Hotel School, Sewedy Technical Academy (STA), and the new model schools introduced by the MoETE called Applied Technology Schools (ATS). In the academic year 2019/2020 and for the very rare times if not the first, students from private language schools applied for technical schools through the ATS in partnership with IBM in the ICT field. This development indicates that with the right mix of quality provision, partnerships and incentives, technical education can become and option of choice for students.

Following Egypt’s new constitution in 2014, where the government is mandated to integrate people with disabilities into the society in accordance with the principles of equality and equal opportunity, which would reflect on equal access to educational opportunities, the ministerial decree number 229 of the year 2016 was issued to give students with mild disabilities access to technical education of all kinds (industrial, agricultural, commercial and hospitality). Where “mild disabilities”,  is defined in the Ministerial decree 42 for year 2015 to include; vision disabilities, hearing disabilities, mild to moderate physical and mobility disabilities, and mild intellectual disabilities (including autism and slow learning capabilities).

The Head of the Central Department for Special Education Affairs at the Ministry of Education and Technical Education, recently reported that from 2015 to 2017; 30,000 teachers were trained to deal with integration students, 59,351 students with disabilities that have been integrated into general and technical schools, compared to only 4200 students integrated from 2011 till 2014.

In 2014, by the ministerial decree 562, the MoETE adopted the Labour System, or as referred to in Arabic “Nezam El Ommal”, which offers students (who might drop because they come from low-income families or other social reasons) the opportunity to complete their technical education programme, while working. Students enrolled in the Labour System, need to prove that they are working in an organisation (with social insurance coverage) and must pay an annual tuition of EGP 300 if they do not attend the practical classes which they are entitled to attend. Students are accordingly allowed to enter the examination. Supervision and follow up of the system is conducted by Idara, mudiriya and central level. The system currently host around 350,000 students. According to the ministerial decree, each school may accept students under the category of Labour System up to 20% of the total number of students enrolled. While in principle this system reflects a positive form of work-based learning or recognition of prior learning, in practice the system requires restructuring to overcome some of the operational challenges where some students regard it as an easy way out of regular attendance and thus reflects negatively to the quality and image of technical education. The MoETE has established a task force with various international development partners to reform the system and in cooperate the new changes into a new draft of the education law.

Partnerships with employers to enhance the quality of VET institutions; through upgrading school infrastructure, learning environment, training teachers’ and toping up their salaries, developing work-based programmes, prospects for employment, and day-to-day management of the school.   This model has proven to be successful in attracting participation of higher calibres of students; students with high performance at preparatory level. Example of such models include Applied Technology Schools and the schools implemented under the collaboration agreement between the MoETE and Arab Contractors and other public sector service entities. Another example is the Ghabbour Auto Vocational Training Centres (three VTCs), implemented under a collaboration agreement between the Ghabbour Group and the Productivity and Vocational Training Department (Ministry of Trade and Industry), where the VTCs, due to the perceived quality of education, have attracted higher numbers of students, higher calibre of students as well as managed to increase the annual tuition fees from LE 123 to LE 8000 since the academic year 2017/2018 due to the international team co-managing the VTC. Parents’ willingness to pay higher tuition may be an indication of their appreciation for the higher quality, however, in-depth evaluation of the pilot should be conducted.

Vulnerable groups in Egypt constitute mainly women, youth and children, people living in remote areas, persons with disabilities and refugees. These groups have been supported by several initiatives implemented by national organisations (such as ITC, which has been inactive in last two years, due to change in its affiliation a number of time since 2017). International organisations (e.g. ILO) has also been implementing initiatives targeting these groups. At the systemic level the willingness to address the needs of these groups is well-formulated in some strategic documents, and the next phase will require the implementation of practical action plans. An example of such strategic documents are the Ministerial decrees issued in 2008 for inclusion of learners with mild disabilities in both general and technical secondary education/schools and the high-level national commitment reflected in the 2014 constitution.

Data on progress towards inclusion of students with disabilities, remain limited. Although ministerial decrees have ordered the establishment of an assessment system to monitor the progress made by students with special needs inclusion in mainstream schools in 2010/11. Moreover, compliance with decrees and ensuring consistent application of inclusive education requires the implementation of existing rules, regulations, and monitoring systems which is still work-in-progress. While a ministerial decree in 2008 called for the formation of a committee for inclusion in the MoETE, to be responsible for policy formulation still lack of information surrounds the status and contribution of this committee.

The draft TVET Act, developed by TVET Egypt and is still awaiting to be channelled for legal review and endorsement by the government, affirms the rights of people with special needs in education and training in the same institutions and the same system without discrimination to contribute to the utilization of their energy and integrate them into society properly.

The new labour law proposed by the Ministry of Manpower, gives the SCHRSD the mandate to develop and following up policies for training and qualifying people with special needs and dwarfs.

Egypt is trying to change and develop its traditional education and training systems to upgrade its international competitiveness. To do so, Egypt is building a National Qualifications Framework whose main objective is to replace the old qualifications system that recognises only certificates obtained through formal educational pathways, with a new system that gives more emphasis to lifelong learning, flexibility and that tackles the problem of dead ends in learning pathways. By developing a National Qualifications Framework based on broader criteria linked to international standards, the intention is to enhance Egypt’s educational quality.

Egypt does not yet have mechanisms for the validation of non-formal and informal learning. However, in 2015, NAQAAE reviewed the Egyptian NQF model to incorporate Validation of non-formal and informal learning as one of the expected results and benefits of the NQF. The process of developing the NQF is currently pending approval by the Egyptian Parliament of the NQF Law drafted and presented by NAQAAE.

The number of VET graduates in 2017/2018, recorded 560,039 graduates from different VET levels, where 87% of total VET graduates have graduated from 3 and 5 year TSS programmes, 9% Intermediate technical institutes and finally 4% from other formal Vocational Education. (Figure 16) (See Figure 16 in the report in PDF p.32)

According to data released by the MoETE, the total number of TE graduates recorded by CAPMAS,  (figure 16) does not include those who have entered and passed the 2^nd round of exams, which would increase the number TE graduates to over 600,000 graduate, structuring as follows: follows:

• 50% Graduates of Industrial TSS, of which 97 percent acquired 3 year diploma programme and around 3% acquired the 5 year advanced diploma. In terms of specialisations, 78.4% has specialised in 5 areas: architecture, electrical, decorative, textiles and mechanical.
• 35% Graduates of Commercial TSS, of which 86% have specialised in 3 areas: management and secretariat, marketing and financial market, and legal issues
• 4% Graduates of Hospitality TSS, of which 68% have specialised in Kitchen and Restaurants
• 11% Graduates of Agricultural TSS, of which only 0.6% acquired the 5 year advanced diploma programme. In terms of specialisations: 23% animal production, 25% food processing, 23% crops, 15% laboratories, and 14% agricultural mechanisation and land reclamation.

One of the challenges is the number of dropout students at secondary level. According to Egypt Census 2017, the total number of students dropping out of school was 1,122,763 students, of which students’ dropping out at secondary level (including General, Azhar and Technical Secondary) constitute 31 percent, of which 64 percent are female and 73 percent are students from rural areas.

The main reasons for dropping out of school (Figure 17) for all levels (primary, preparatory and secondary), has indicated very high rates for unwillingness of students and their families to continue education, while access (difficulty of reaching school) and disability recorded a low rate of 5.2 percent and 0.8 percent. Other reasons included financial constraints, death of parents, work, and repetition of failure, parental separation and marriage. Geographically, the highest percentage of dropouts are in Giza (9.3 percent), Sohag (8.5 percent) and Beheira 7.9%.

Figure 17: Main Reasons for Dropping out (ages 6-20)

Many students entering the VET system in Egypt have numeracy and literacy deficiencies – due to weaknesses in basic education, and therefore the MoETE has introduced a corrective measure within technical secondary schools, where students are assessed, in the first two weeks of year-1, to identify deficiency levels, offering a nine week programme to enhance reading and writing skills of those in need. This support should be seen as a priority by other VET providers because, as jobs become more technical, basic literacy and numerical skills are crucial; it makes sure that students can get the most of their choices in education and training; it strengthens workforce skills; it supports transition from school to work or from school to further academic education. Furthermore, this challenge of low numeracy and literacy skills will improve by time as Egypt has embarked since 2018 on an ambitious transformation of its basic education system named “Education 2.0” aiming at addressing all the shortcomings of the current system in terms of curricula development, up-to-date resources through the Egyptian Knowledge Bank, teacher training and assessments. This means that in addition to the above-mentioned short-term remedies taken by MoETE, by 2027, students entering technical and vocational education will be much better equipped with advanced numeracy and literacy as well as crucial life skills.

For students with disabilities, there are two decrees issued for their inclusion in education and for higher access. The first is decree 42 for 2015, for their inclusion in general education and the second decree 229 for inclusion of students with mild disabilities in technical secondary education. While the first decree is detailed including guideline for provision of support to ensure equity, the second decree (concerned with technical education) has limited details. However, it may be assumed that the technical schools will follow the same guidelines for general education as per the relevant. These are:

• Modifying and prepare school environment in terms of accessible buildings and facilities, teaching aids, teaching methods and assessment methods, these may be called “Integration Schools”
• The same curriculum is taught in integration schools, taking into account the type of disability, providing support services and therapeutic and enrichment activities as needed, and facilitating the delivery of curriculum to meet the needs of all children.
• Method of evaluating the academic performance of students is determined and should consider the level and type of disability
• Facilitate the use of all activities and services by disabled students through adapting them to the type and degree of disability
• Educational escorts/a shadow teacher, having the necessary educational qualifications in accordance with international standards, financed by the parents, may follow students in school

A 25% increase in salaries of teachers, school administrators, and psychosocial workers in “Integration Schools”, as a financial incentive, provided that they receive a training, skilling them to deal with students with disabilities and apply for accreditation by the Professional Academy for Teachers.

Integration policies and practices require considerable financial resources for preparing schools, equipping classrooms and training teachers and other supporting staff. The government and civil society will need to carefully monitor that these policies and practices are implemented including allocating the required financial resources, which may be directed to the many other initiatives in the reform. 

Over the last two decades, Egypt, at policy making level, has shown significant interest in and support for inclusive education, as evidenced by policy efforts, political discourse, and partial inclusion initiatives for student with mild disabilities. Following Egypt’s endorsement of the United Nations’ Convention on the Rights of Persons with Disabilities (2007), the Egyptian Ministry of Education and Technical Education MoETE issued a Ministerial Decree in 2009, updated in 2015, mandating the admission of students with mild disabilities in public and private schools that are configured and prepared to receive those students, with the goal of preparing 5,040 schools suited for the inclusion of 152,000 students by 2012. Moreover, most recent National Strategic Plans for Pre-University Education in Egypt contained detailed targets, activities, and indicators for advancing inclusive education. Specifically, the strategic plan for pre-university education in Egypt, 2014-2030 sets a strategic goal to ensure high-quality education for all learners with disabilities and inclusive education for learners with mild disabilities, with the aim of structurally and technically equipping 600 schools annually. A disability law that includes the provision of inclusive education as a main chapter, has been presented to the parliament. Further, in 2016, the ministerial decree number 229 was issued to give students, with mild disabilities, access to technical education of all kinds (industrial, agricultural, commercial and hospitality). In 2017, the MoETE, reported that between 2015 and 2017 around 59,351 students with disabilities have been integrated into general and technical schools, compared to only 4200 students integrated from 2011 till 2014. However, more information is required on the quality of education or type of educational services students with disabilities receive once enrolled.

In 2018, a study conducted by the Population Council “Study of Employment Outcomes among Technical and Vocational Secondary Education Graduates in Egypt”, concluded the structure of the employment status of technical education graduates in the age bracket 17 to 35 ; 46.4% were not in the labor force (18.3% males and 81.7% female), 6.9% unemployed, 11.4% in formal employment (contracts plus social and medical insurance in registered companies), 35.3% work informally (either self-employed, or working in unregistered companies, or working in registered companies without contracts nor health or social insurance).

Challenges towards the employability of VET graduates are attributed to:

Lack of coherence between the field of study and field of employment; which is reflected in the high unemployment rate among intermediate and higher education graduates, the highest among different groups with different educational levels. Despite the progress made to date and the positive reform initiatives underway, the quality and relevance of education is still weak due to the sheer size of the system. The TVET system still needs time and effort to deliver the necessary learning outcomes, skills and competencies for successful transition to the job market.

Employers’ perception of the quality of graduates, employers tend to be highly critical of the quality of graduates of vocational education in terms of competencies, skills and relevance of their knowledge. Employers’ frequently express deep concern not only about their technical skills but also their communication skills, team work, problem solving, work attitude and in some cases even literacy. This view is confirmed by several surveys and assessments with some good practice examples however mostly limited in scope and scale.

The time for the transition-from-school to work is too long. As a result of underdeveloped policies and programmes capable of facilitating the transition from school to work in Egypt, approximately half of male graduates have to wait between two and seven years before they can find their first job. For female graduates, the situation is even worse, only one of four female graduates succeed in finding a job. According to the MoETE, during the past several years the Ministry has worked with several international development partners to establish and build the capacity of Transition from School to Work Units at the central, regional and school level which may improve the situation on the medium to long-term.

Economic factors that have an impact on transition to work, include the dominating informal economic sector and the difficulty of some formal economic sectors to generate enough jobs to absorb the new entrants into the labour force.  

Egypt has a large informal economy that has been increasing dramatically, estimated to represent 40% of GDP, where the informal sector businesses are characterised by their small size and low level of organisation. A study conducted by the Population Council in 2018, on “Employment Outcomes among Technical and Vocational Secondary Education Graduates in Egypt”, indicates that the informal sector (informal enterprise / informal employment in a formal enterprise) has become a major source of employment for a growing number of young people in the age bracket 18 to 29, recording 66.2% (70% of males and 48% of females) in 1998 were in the informal sector, increasing to 74% in 2006, and up to 75% in 2012.

Working in the informal sector may not be a decent option because of the low wages and the non-official work relationships such as the personal and social relationships and the absence of contractual agreements, thus absence of security and safety. This may not be acceptable for those who have invested in higher levels of education, which impedes their entry into the labour market. Further research is needed to investigate the level of skills acquisition for employees in the informal sector as it could be a major source of practical on-the-job training however the quality needs to be assessed and analysed as well.

The shortage of demand for labor force, as a result of some sectors’ difficulty to generate sufficient jobs to absorb the new entrants to the labor market—estimated at 600 thousand new entrant to labour force every year. It is estimated that currently the Egyptian population is 100 million, of which 33 million constitutes the labor force.To create jobs for this large workforce, the economy needs to grow for an extended period (over the coming ten years) at 7 percent per year.

A wide range of training is offered by the numerous VTCs. There are 3 types of training that aim at enhancing employability of VET graduates, according to their objectives as follows:

• Training for the labour market: provided for new entrants into the labour market. Four ministries offer such training, namely the Ministry of Trade and Industry (MoTI), the Ministry of Housing, Ministry of Manpower and the Ministry of Social Solidarity among others.
• Training for specific groups: this type of training targets low income individuals, school dropouts, job-seekers and aims to increasing their income.
• In-service training: for newly employed workers; existing workers who need to be retrained or upgraded and workers who need to be trained for a new trade.

The establishment of a School-to-Work Transition Unit within the MoETE in 2014 by the Ministerial Decree 283 in 2014, as a sustainable career guidance mechanism to ensure the smooth transition of VET students from school to work. The functions of the career guidance units include: to recommend policies, mechanism and standards for school-to-work transition services and to review the impact of initiatives and pilot projects that support students’ school-to-work transition.

Although the bylaw of the Ministerial Decree is still pending, regional (25 governorates) and school level (312 units) school-to-work units have been established at governorate level, and 1700 teachers were trained as facilitators (plus 18 master trainers), mostly within the MoETE, offering career guidance services as well as employment and entrepreneurship functions to 100 thousand students. The initiative is supported by the GIZ’s Employment Promotion Project EPP and other development partners and there are plans to establish more career guidance units at the schools’ level, with the support of TVET Egypt. In addition an integrated curricula for career guidance has been developed as a result of collaborated effort among various donors, including WISE, GIZ and others, to be introduced to all TSS.

All these efforts may be regarded as complementary to the work of the ILO with MoM since 2008 to 2012, implementing the initiative “Transition to Employment: Career Guidance for Youth” or ‘Tawgeeh’, Arabic word for guidance, to improve the capacity of counsellors of Public Employment Services PES working in career guidance for job seekers. In the first phase five career guidance units were established in five PES offices, the staff received intensive training, and job fairs were organised. In the second phase of the project (Transition to Employment: Career Guidance for Youth and Job Creation) was implemented between May 2012 and April 2014: 10 more career guidance units were established and intensive training was conducted on career guidance for counsellors and TVET teachers. By the end of the second phase a total of 13,613 young women and men have been placed in jobs in addition to another 5000 recruited through organised job fairs.

Teaching and learning methods are mostly dependent on the textbooks as the sole source of knowledge, which emphasizes the concepts of memorization. Moreover, practically applying the knowledge acquired, is hindered by the inadequate financial resources, as schools are not able to provide the materials needed for practical training.

Therefore, work-based learning, as a measure to enhance the learning methods has been the focus of VET Providers, as it is perceived to have a strong impact on enhancing relevance, quality and efficiency, in addition to improving the employability of VET graduates. Since the early 1950s, the government has implemented/piloted a number of work-based learning programmes. Some has ceased to exist beyond the funding period (such as the Alternance system) and others have become institutionalised within the VET system (such as the dual system and the PVTD).  

The work-based learning methods currently being implemented in IVET are: 1) the PVTD’s Industrial Apprenticeship scheme, also called Talmaza Sina’eyah, 2) the Dual Education System implemented within a limited number of technical secondary schools, 3) the School in Factory model implemented within technical secondary schools also considered part of the Egyptian Dual system, 4) Training Stations (a PVTD model), and 5) the work-based learning of the newly introduced Applied Technology Schools, currently piloted by the MoETE under PPPs with the private sector, also considered within its bylaws, part of the Egyptian Dual system. On the other hand, CVT work-based learning methods are also implemented within the MoM’s Apprenticeship Scheme for apprentices within the age bracket 12 to 18 years old, through MoM’s 37 vocational training centres.

Other methods of teaching and learning, such as practice versus theory, has been adopted within the 45 VTCs of the PVTD, where students, in the first two years, spend more time in workshops receiving practical training than in classes. PVTD also attempted to adopt competency-based programmes, however, due to limited financial resources for raw materials, they were not able to expand.

The learning environment, including school laboratories and facilities and availability of raw material for training are generally insufficient and/or outdated, equipment in schools is often not up to the required standards, which limits the students’ ability to obtain practical skills and consequently they are not properly qualified for skilled work, unless they are involved in one of the work-based learning programmes.

Realising the importance of Work-based learning to improve the learning and training methods for VET learners, VET providers are exerting effort to upscale work-based learning, from the current 3% to 10% by 2030. This includes, efforts exerted by MoETE (supported by GIZ) to increase the number of students in the dual system and the efforts exerted by the PVTD to expand the training stations within companies. The PVTD has already expanded the training station model from 6 units in 2003 to 46 units in 2017, where 50% were established during in 2016/2017.

However, the intended expansion of work-based learning models needs to address a number of challenges: the capacity of VET institutions to reach and engage the needed number of employer organisations in work-based learning programmes, the capacity of VET institutions to ensure that the companies are adequately equipped and have qualified mentors/trainers/teachers capable of adopting well-planned programmes, the VET providers’ capacity in terms of monitoring resources.

Other measures include emphasising the quality of work-based training through training and qualifying in-company trainers. The Staff Training Institute (PVTD), offers in-company trainers an 8-week pedagogical training followed by examination and assessment, to ensure that students completing their third year in companies and students enrolled in training stations are properly trained.   

A number of measures were put in place to address the shortcomings of the learning environment in VET institutions, this includes; 1) the government committing to spend 67 million Euro for refurbishment and equipping of VET schools, within the framework of implementing the EU funded TVET Egypt Programme. 2) Promoting and implementing the model of Applied Technology Schools, under a PPP model, which will offer students an appropriate learning environment capable of qualifying them for jobs in the labour market. 3) The establishment of the “National Investment Charity Fund for Education” under the new Capital Market Authority Law that (among other tasks) has the potential to solve problems of overcrowded classes and enhancing the learning environment. 4) The long term support of the German government through the TCTI to improve quality and expand the dual system.

The ‘Cadre Law’ issued in 2006, applies to all teachers working for the Ministry of Education and Technical Education, and serves as a legal and institutional base for the professional status (categories) of teachers. The Cadre provides a well-defined career structure along 5 levels following a contractual arrangement as an Assistant Teacher. The five levels include Teacher, Senior Teacher, Senior Teacher A, Expert Teacher and Master Teacher. The Cadre also governs incentives and promotion as well as defines standards of performance and expectation.

For other VET providers, three broad categories of teachers and trainers are considered: 1) ‘Teachers’, who either teach theoretical subjects or practical skills in programmes that are recognized as vocational or technical or they teach general subjects or basic skills (such as mathematics) to students in technical or vocational programmes in general or specialist vocational or technical schools. 2) ‘Instructors’ those work in training centres focusing more on skills and occupational preparation than on technical or vocational subject knowledge and more likely to be workshop-based. 3) ‘Trainers’ or ‘In-company Trainers’, those who work for enterprises where they typically provide support to work-based programmes.

The current composition of the teaching workforce in terms of academic qualification, indicate that overall, 68% of all teachers in Egypt have a bachelor’s degree or above, with 78% of those having graduated from education faculties and 22% from other faculties.

Teachers and trainers are civil servants and are subject to the same standards and procedures as other civil servants, hired on either permanent or temporary contracts. Some VET providers, however, such as PVTD, also hire teachers and trainers as freelancers to deliver a certain number of lectures and/or workshops, and are paid accordingly.

For most VET providers, teachers and trainers are normally recruited, at central level, through public announcement in a public newspaper, applying directly to the central office, through websites, emails or other means.  Selected teachers are placed in schools according to geographical region and based on statistics of teachers’ scarcity and abundance. Teachers on government contract are of two kinds: graduates of Faculty of Education and graduates and Technology and Education College (previously known as Industrial Education Colleges- IECs), in such case they do not need to obtain a teaching certificate, and graduates of any relevant discipline, for example agriculture, hospitality, industrial, etc. (in such case they join Faculty of Education for one year to complete a diploma in education). It should be noted that a positive feature of the system is that membership in Teachers Syndicate is required for entering the teaching profession like most other professions like engineers and doctors.

With a large civil service apparatus, Egypt took bold decisions in the mid nighties to limit its growth and keep it lean in accordance with international good practice and put policies to restrict the new hiring of civil servants. With these policies in place, the recruitment of teachers is limited and subject to special approvals, and only allowed at presidential or prime ministerial level, as was the case in 2014 when the MoETE initiated a process to recruit 30,000 teacher for general education. Consequently, it has become difficult to substitute the retiring teachers and trainers, those who are on “unpaid leaves”, which resulted in shortage in staffing. To overcome these shortages, VET providers are hiring on the basis of non-permanent contracts (one year subject to renew). By 2010, the proportion of teachers on non-permanent contracts have risen to around 45%. Probably much more today. In 2018/2019, the MoETE launched a competition to hire 120 thousand teachers, on the basis of non-permanent contracts, to make up for shortage in teachers.

The quality of VET teachers and trainers, has been described to face a triple interconnected challenge: weak pre-service training, limited in-service professional development, and limited workplace experience. In addition, the social status of VET teachers and wages are very low, making it difficult to attract qualified VET teachers. These quality concerns will further be affected by the increasing number of teachers and trainers hired on the basis of non-permanent contracts (to overcome the shortages of VET teachers caused by the government freeze on recruitment). Teachers hired on non-permanent contracts are meant to be engaged on a trial basis. The establishment of TVETA within the MoETE is intended to address these challenges including the systematic assessment or selection examination of teachers and trainers as well as providing teachers with training opportunities within the private sector to gain practical experience and exposure in the private sector.

In spite of introducing additional financial incentives to teachers (teaching allowance, cadre allowance, and examination allowance) , for teachers and trainers, the salaries are still very low and makes it difficult to attract and retain qualified teachers and trainers.

Membership of the teachers’ union, the Teachers Syndicate, is a requirement for all teachers and hence the union has coverage of all teachers from government private and al-Ahzar schools. The main issues of concern for the syndicate are teachers’ salaries and their professional development. The syndicate opposes performance-based assessment of teachers while condoning the transfer of low-performing teachers to administrative responsibilities and maintaining their benefits.

Significant efforts have been made towards the professional development of VET teachers. These include the establishment of the Teachers’ Cadre (in 2006), the development of a career path and promotional system for teachers, along with a 50% increase in basic pay (in 2007) and bonuses for each promotional level (from 2008); and the establishment of the Professional Academy for Teachers (PAT) in 2008.

Progressing through the Teachers’ Cadre is a six-laddered professional licensing system for teachers, where promotion from one level to the next is subject to completing courses, including writing studies and reports, performance appraisal from their employing institution and passing tests. New teachers are appointed as ‘Assistant Teacher’ for two years and after successfully completing the promotion requirements are upgraded to ‘Teacher’, which is considered as grade one in the ladder. After four years, if he or she successfully completes the promotion requirement, the teacher will be upgraded to ‘First Teacher’, and then successively to ‘First Teacher A’, ‘Expert Teacher’ and ‘Master Teacher’. Promotion brings with it an increase of the ‘Teaching Allowance’ as well as a rank increase on the civil servants’ scale, including higher salary.

A new development to these efforts, include the recent decision to establish the Technical Vocational Education for Teachers’ Academy - TVETA - which was announced by the President of Egypt following the 2018 Youth Conference, to become Egypt’s recognized training and development institution for technical and vocational teachers, trainers and assessors, having a geographical coverage through branches in governorates, will offer the needed capacity for teachers’ training, as well as will enhance the credibility MoETE teachers in particular and technical education in general.

Separately, other VET providers operate pre-service training of their instructors and teachers corresponding to different departmental activities: industry, transport, housing, etc. There are a considerable range of different types of pre-service training of their instructors and teachers institution, with separate funding, philosophies and qualifications, e.g. universities, Egyptian Industrial Education Colleges, and the Staff Training Institute (STI) which serves the training centres operated by the Productivity and Vocational Training Department (PVTD).

Quality assurance for performance of VET teachers, trainers and instructors, at a minimum takes the form of some kind of regular assessment by head teachers, supervisors, department heads, and official inspectors several times per year, where teachers are observed and evaluated. Assessment of teacher/ instructor performance is linked to upward movement on the career ladder or access to training and promotion.

Quality Assurance of pre-service training of VET teachers and instructors take place in universities, faculties of education and/or industrial education are assessed and certified according to the laws and regulations of universities approved by the Supreme Council of Universities. The National Authority for Quality Assurance and Accreditation in Education (NAQAAE) requires that every university faculty operates a quality assurance system.

Egypt is still considered in its early stages of attemptingEgypt is still considered in its early stages of attempting to address the quality and relevance challenges of the VET system despite support to the sector in the past. The system is still not delivering the necessary learning outcomes, skills and competencies that meets the needs of the labour market except for few positive examples where partnership with employers was a key feature. to address the quality and relevance challenges of the VET system despite support to the sector in the past. The system is still not delivering the necessary learning outcomes, skills and competencies that meets the needs of the labour market except for few positive examples where partnership with employers was a key feature.

As for standard for quality assurance purposes, for education (including technical education), this is currently being set by the NAQAAE, however NAQAAE's law does not explicitly mention other vocational training institutions and programmes. In the future, NAQAAE or ETQAAN, whoever has the mandate for VET quality assurance and accreditation, will need to initiate a national process, involving main VET stakeholders, to review and acquire consensus on quality standards for VET, as well as develop measures based on a vision of ‘good VET’.

Quality assurance in VET is one of the areas where the government has been putting an emphasis for some time now. First through the  establishment of the National Authority for Quality Assurance and Accreditation of Education (NAQAAE) in 2006, then making an explicit reference  in the 2014 constitution and  introducing it in Egypt’s Vision  2030, by initiating the development of a National Qualification Framework, and finally launching a VET specific quality assurance and accreditation authority.   

In 2006, the establishment of NAQAAE has provided an institutional set up for quality assurance and accreditation. NAQAAE was established as an independent body reporting to the Prime Minister, responsible for quality assurance and accreditation of both pre-university (including technical schools) and university institutions. The quality assurance general framework adopted by NAQAAE, comprises of nine areas (vision and mission of the institution, leadership and governance, human and financial resources, civil society participation, quality improvement and accountability, learners, teachers, curriculum, educational environment), where each area is defined by specific criteria and described through a set of indicators. NAQAAE operates through the head office in Cairo, plus 6 regional branches; Alexandria, Assuit, Ismailia, Mansoura, Banha and Aswan.

The number of VET institutions accredited since the establishment of NAQAAE remains marginal when compared to basic education, preparatory schools and general secondary education; 41 technical secondary schools compared to 5157 pre-university general education institutions; 1.68% of technical schools vs. 11%. Which has raised some concerns regarding the sustainability of NAQAAE, as funding was reported to decrease since 2013, once NAQAAE turned 5 years in operation, where it had to become self-funded mainly through fees coming from accreditation services, as per its establishment Law 82 of 2006 article 20. Although according to article 12 of NAQAAE's law, accreditation of educational institution is mandatory, however the procedure is a bit heavy on the providers and the fact there are no mechanisms in place to enforce the law has contributed to the small number of institutions/providers applying for accreditation.

At the institutional level, NAQAAE is seeking recognition by international accreditation agencies. The first of which the World Federation for Medical Education, which has awarded NAQAAE a Certificate of Recognition valid till 2029, pending annual monitoring of continued compliance. This WFME recognition Status confirm that the World Federation for Medical Education is satisfied with the accreditation process, post accreditation monitoring, and decision making process of NAQAAE as it relates to basic medical education schools or programmes.

The review of the process for designing and updating VET programmes and the rationalisation of the existing specialties is one of the top priorities for reforming the VET system in Egypt. Since 2015, the MoETE, has been coordinating the curriculum development activities among various international donor organisations; the TVET Egypt Programme, Wise and the USAID. The result of these coordination efforts has been a unified methodology for “Competency Based Curriculum Design”, which has been reviewed among other supporting agencies. By second half of 2019, the CBC Program achievements include 13 industrial programs, 9 agricultural programs, 5 commercial programs and 6 tourism programs and is being implemented in 105 TSSs.

The Competence Based Curriculum Design Methodology, includes 12 steps as demonstrated in figure 18, including: 1) Designing the first draft for occupation programme framework, 2) Validation of the framework with industry representatives, 3) Modifying the framework according to industry representative consultation, 4) Building the programme plan/skeleton, 5) designing the key long life learning competences, 6) Accreditation of the programme, 7) Designing the programme units, 8) Validation of the programme units with the industry representatives and pedagogical professors, 9) Design the student guide, 10) Design teacher guide, 11) Validation of the student and teacher guides, 12) Training on the programme implementation.

Figure 18 - Competence Based Curriculum Design Methodology (See Figure 18 in the report in PDF p.43)   

In addition, the MoETE is working closely with employers, employers’ organisations and other entities in the development of occupational standards, occupational outcomes, and assessment standards. Further, the MoETE is also aware of the need to ensuring alignment to National Qualification Framework, once it is in place.

However, there is no evidence yet that other providers, such as the PVTD and the Ministry of Health, are committed to adopting the Competence Based Curriculum Design Methodology.

In Egypt, more data is required to analyse to what extent the eight EU key competences are included in VET programmes. EU Key competences include: literacy and languages, mathematics, science and engineering, digital competence, personal, social and learning competence, civic competence; entrepreneurship, cultural awareness.

Policies of quality and quality assurance is becoming a priority for providers. The MoETE, in its Transformation Strategy TE 2.0 aims at setting up culture of quality within Technical Education at all levels. The PVTD, supported by TVET Egypt are actively preparing a number of its VTC for Accreditation.

In response to the small number of VET institutions applying for accreditation from NAQAAE, and whether the technical schools have the actual quality to apply and whether NAQAAE accreditation framework is sufficiently adapted to the context of VET, the idea to establish the Egyptian TVET Quality Assurance and Accreditation National Authority (ETQAAN), was initiated following the 2018 Youth Conference and was announced by the President of Egypt. Since then a Draft Law for the establishment of ETQAAN at central and regional level, has been developed, with the objective of “improving the quality of the TVET system in all its components in order to provide a skilled and trained technical workforce in line with the requirements of labor markets, and to serve the economic and social development plans and policies”, and is currently awaiting approval by the Cabinet. ETQAAN, shall establish the general framework for the quality of technical education and vocational training programs, teaching and learning methods and the necessary evaluation methods according to international standards. In order to achieve its objectives. ETQAAN will be responsible for developing quality assurance policies and strategies for the VET as well as developing a national system for quality assurance and accreditation of educational and training institutions and programs, quality concepts and standards, teaching and learning methods, assessment methods, and following up their implementation.

According to the proposed draft law, ETQAAN shall issue two types of accreditation certificates, the first concerned with the accreditation of the institution and the second concerned with the accreditation of the programme. The suggested Quality assurance indicators (to be revised every 3 years) are already set in the draft decree to include both institutions and programs; proportion of teachers, trainers and administrators who receive annual training, ratio of the number of approved educational programs to the total programs offered by the institution, ratio of the number of graduates of the program to the number of enrolled annually, the employment rates of graduates of each program within two years from the date of graduation, percentage of employers satisfaction with the application of the graduates to the walls acquired during the study in his workplace, annual increase in the number of new students enrolled in each program, number of questionnaires or studies carried out by the institution in identifying the needs of the labor market, number of annual meetings / training conducted to spread awareness of the culture of quality inside and outside the institution, proportion of students from vulnerable groups and people with special needs in programs offered by the institution, the extent of the commitment of the providers of technical, vocational and technical education and training service in describing the qualifications granted according to the approved indicators in the national qualifications framework in terms of knowledge, skills and competencies as issued by the National Authority for Quality Assurance and Accreditation in this regard. VET institutions subject to the provisions of the suggested law will be obliged to apply for accreditation within a period not exceeding five years from the date of issuance of the executive bylaw.

In parallel, NAQAAE is proposing to introduce a new position in its organisational structure and management team, Deputy for Technical Education, in addition to the existing 3 deputies (Deputy for Higher Education, Deputy for Azhar Education and Deputy for Pre-university Education). NAQAAE is also welcoming applications/requests for accreditation from Vocational Training Centres. Finally, NAQAAE is also working to update the accreditation standards for technical education schools (3 year programme) to include: 1) Vision, Mission and Core Values, 2) Leadership and Governance, 3) Quality Assurance and Continuous Improvement, 4) Teaching and Learning, 5) Quality of Educational and Training Programs, 6) Financial and Material Resources and Supporting Facilities, 7) Community Participation, 8) Educational and Training Staff, 9) Training for Labor Market, and 10) Safety and occupational health.

According to the MoETE a dedicated quality assurance authority for TVET is in line with international best practices in quality assurance of VET systems. However, the establishment of ETQAAN is still pending cabinet approval and until then most VET institutions and programmes will remain excluded from the quality assurance system.

Back in 2010, NAQAAE was given the mandate for the development of a National Qualification Framework (NQF) that would contribute to improving the quality of education and training provision thus raising the skill levels of the workforce. The mandate was given by the Prime Minister, following a 4 year consultation among various stakeholders (supported by the ETF). The NQF is expected to assist in developing clearer and comparable qualifications, greater access to qualifications and to skills development, improved relevance of qualifications to employers, enterprises and individuals, and the benchmarking and quality assurance of Egyptian qualification against national and international standards, thus facilitating labour mobility. However, nine years have passed since the mandate was given to NAQAAE, and the process of developing the NQF is currently pending approval by the Egyptian Parliament of the NQF Law drafted and presented by NAQAAE. It is expected that the law is being considered in parallel with the on-going discussions related to the establishment of ETQAAN (a quality assurance and accreditation authority for technical educations institutes and programmes at pre-university and higher education levels).

Since 2015, the governance of VET has experienced modifications with a number of organisations becoming inactive or merged with others (such as the Industrial Training Council, the Buildings Skills Development Council, the National HRD Tourism Council, 12 sectoral Enterprise TVET Partnerships ETPs, local ETPs, the Supreme Council for Human Resources Development, and the Ministry of Technical Education and Vocational Training), others were created by means of ministerial and prime ministerial decrees but have not been activated (such the National Human Resources Development Council under the prime Minister’s presidency, the Executive council for Technical and Vocational Education and Training chaired by the Minister of Education, the Executive Council for Manpower Skills Development, and Regional Human Resource Councils at the governorate level chaired by governors), while other stakeholders and structures are in still under establishment (such as ETQAAN, TVETA).

The institutional framework remains highly fragmented, with a large number of stakeholders and institutions, highly un-coordinated, each working autonomously on separate reform initiatives, which is hindering systemic reform. For example, it has been difficult to acquire consensus over a number of strategic initiatives, such as the TVET Strategy and the TVET Act prepared by the TVET Egypt Programme, which could have extended a systematic framework for reform. This has led to lost opportunities in terms of the potential for achieving improvement or innovation. An example of which are the Sectoral Skills Councils (led by TVET Egypt Programme), the piloting of Sectoral Skills Councils being implemented with the collaboration among EBRD and FEI, and the Sectoral Board of Directors suggested within the framework of the PVTDs institutional restructuring.

Despite the fact that different stakeholders have worked autonomously on separate reform initiatives, some common trends are identified which includes; a shift towards more employment oriented focus (transition from school to work, career guidance, etc.), a reform trend leading to quality assurance for TVET, higher level of involvement by employers, and regional reform.

In an attempt to resolve the excessive fragmentation in both policy making and provision of VET, and install the appropriate leadership for the system, in 2014, the GoE established a Ministry for Technical Education and Vocational Training, as an integrated model for providing clear leadership, better co-ordination and monitoring of VET development. However, the Ministry was terminated with the following re-shuffle of cabinet after 7 months of its establishment and the Ministry of Education was renamed the Ministry of Education and Technical Education to reflect that technical education has not received less commitment with the cancellation of the TVET Ministry. Currently, the institutional framework for VET governance, at the policy level, includes three councils that aim to eliminate the fragmentation and build cohesion within the VET system, through a better coordination among VET stakeholders represented in these councils. These councils include: The National Human Resources Development Council NHRDC (presidency of the Prime Minister), plus two executive Councils: Executive TVET Council ETVETC (chaired by Minister of Education and Technical Education), and Executive Workforce Skills Development Council (chaired by Minister of Manpower). Lately there are strong indications by the government to activate these councils, as they remain the highest formal authority in charge of formulating HRD policies and are the only platforms where most of the relevant VET stakeholders are represented. However, to date only the NHRDC and the ETVETC assembled once since 2014

At the central level, a number of Ministries are responsible for centrally administering the VET provision. This includes, Ministry of Education and Technical Education, Ministry of Trade and Industry, Ministry of Housing, Ministry of Health, Ministry of Military Production, Ministry of Manpower, and others. As for post-secondary VET, the Supreme Council for Technical Colleges SCTC (administering the eight Technical Colleges) supervised by Ministry of Higher Education, in addition to the Supreme Council for Technological Education, responsible for administering Technological Universities.  

At the intermediate level, between the central level (Ministries) and the VET providers (schools and VTCs), directorates at the governorate or regional level, are currently acting on instructions and administer centrally made decisions and requirements. Though directorates, administratively follow the Governor (the administrative head of the Governorate) they still retain a technical relationship to their respective line ministries. The operational set up can be described as the de-concentration of administration, rather than any form of decentralisation. Below the Governorate level, there are two additional levels of local administration, notably the Markaz or district level (or metropolitan cities in urban areas), and local administrative units, such as villages, towns, and city neighbourhoods. Each level reports up to the next level, from which it receives its instructions and resources. It should be noted that in 2014, by the Prime Ministerial Decree 705, Regional Councils for VET were also introduced to address the fragmentation at regional level, but has not yet been activated.

Finally, at the level of VET Providers, a large number of technical secondary schools, vocational training centres, training centres, and technical colleges.

There is a strong commitment among various VET stakeholder, to better articulate VET governance reforms, which was demonstrated in a number of document and policy papers, mostly focusing on the institutional set up:

The first and the most advanced towards adoption is the New Labour Law, which was drafted in 2016, and put forward to the parliament by the Ministry of Manpower. In its article 16 and 17, the new Labour Law introduces the establishment (or actually the re-establishment) of the “Supreme Council for Development of Human Skills and Resources”, and Executive Councils at the regional/governorate level. The SCDHSR to be chaired by the Prime Minister and includes a selected number stakeholders (Ministry of Manpower, Ministry of Education and Technical Education, Ministry of Higher Education, Ministry of Trade and Industry, Ministry of Social Solidarity, Ministry of Planning, Ministry of Investment and International Cooperation, Ministry of ICT, in addition to 4 members from employer organisation and 4 members representing labour Unions) to assume the responsibility of developing and monitoring the implementations of national policies and executive strategies for human Resources Development Council”. This Supreme Council, is expected to replace the “National Human Resources Development”, established in 2014, and also chaired by the prime Minister. On the other hand, the Executive Councils at the regional/governorate level will be chaired by the concerned governor and will be responsible for executing plans, decisions and recommendations of the supreme council. It should be noted that regional councils were already introduced in 2014, by a Prime Ministerial Decree (705 of 2014 article 5).

The second is the MoETE’s Transformation Strategy for Technical Education 2.0, which was developed in 2018, and since then has become the adopted reform strategy for Technical Education. The MoETE’s Technical Education 2.0 for the “Transformation of Technical Education”, heavily relies on employers’ input and contribution, giving them a leading role in reform at school level, emphasizing their input to curriculum formulation and engaging them at the provision level.

The third is the amendments to the investment law (law 72 for 2017 article 15), which provided income tax incentives for investors in VET, will help strengthen the role of the private sector in provision of VET services, thus employers will become more influential within the governance of VET.

Also in 2018, the introduction of the Supreme Council for Social Dialogue on Employment, established by the Prime Ministerial Decree 799,chaired by the Minister of Manpower and includes representatives from a number of Ministries (Social Solidarity, Investment and International Cooperation, Trade and Industry, Justice, Education and Technical Education, Parliamentary Affairs, Agriculture and Land Reclamation, Local development, Tourism, Public Business, plus 6 representatives of trade unions and 6 employers(, operational at governorate level through sub-councils under the authority of the governors, The council is responsible for participation in the formulation of national policies for community dialogue in the field of work. Since its establishment, the council has met twice.

Two more important initiatives were also introduced in 2018, following the 6^th Youth conference, when the President Sisi declared 2019 to be the year of education and directed towards the establishment of two new entities; the Egyptian TVET Quality Assurance and Accreditation National Authority (ETQAAN) and the Technical and Vocational Teachers’ Academy (TVETA). Where ETQAAN would operate to ensure quality for the wider VET sector, while TVETA will be responsible for provision of world class training to VET technical teachers, trainers, master trainers, assessors and verifiers. The MoETE is currently taking the leading role for the realisation of these two initiatives, and has progressed to the level of developing the draft laws and submitting for revision by the cabinet.

There are also the TVET Strategy and the TVET Act, developed simultaneously, by TVET Egypt. However, both are at very early stages and it is not clear, if there are consensus among stakeholders regarding the strategy and the TVET Act, and who will take the lead in submitting it to the Parliament. It is worth mentioning that the TVET Strategy aims at addressing the fragmentation within the VET system, strengthening and structuring employer engagement in VET reform within a multi-level system of governance. While the Draft TVET Act, basically, aims at compiling VET legislations in an integrated framework and proposing an institutional framework for VET (central, regional and sectoral levels); including a “Supreme Council for Vocational Education and Training” at policy level, local councils at governorate to cover the local and geographical level, and sectoral skills councils to address the sectoral dimension.

The VET sector, at large, is strongly in the hands of governmental institutions, where, the role of non-state actors in shaping and implementing VET policies is at a minimal level with very limited impact on the VET system at large. Currently, non-state actors are contributing to VET system, through work-based learning, regional observatories, participating in the process of developing the National Qualification Framework, and Skills Standards as well as participating in various councils and committees.

In support of participation of non-state actors in the provision of VET, the government undertook a number of financial and non-financial policies. In the last two years a couple of financial incentives has been offered; the first was included in investment law (law 72 for 2017), chapter 3 article 15, in the form of income tax incentives for investors that invest in and support in the provision of VET, which may attract a larger share of funding and higher level of engagement by the private sector companies, in initiative such as the Applied Technology Schools, a PPP model, currently being piloted and supported by the MoETE;

The second, was included in the amendments to Law 83 regulating special economic zones (Presidential Decree 27, which stipulated that the cabinet may, upon request from the SCZone Authority Board of Directors, grant projects with intensive labor (among other things) a number of incentives; among which is; cover fraction of the Egyptian workers technical training.

On the other hand, since 2006, the GoE undertook a number of initiatives to introduce formal institutional platforms for engaging non-state actors, especially employers, in the governance of VET, this included; 3 Sectoral Councils (Industrial Training Council, the Building’s Skills Development Council and the Tourism Council), twelve Enterprise TVET Partnerships (ETPs) and other locally focused enterprise TVET Partnerships, however, most of these initiatives have not been able to hold their grounds due to the legislative and financial components of their establishment decrees; the Sectoral Councils that were once considered an important progress towards the reform of the Egyptian skills development sector, are no longer active; the ETPs  (sectoral and local) were never integrated in the VET governance structure, and have not been able to resolve their legal status, despite  many efforts to make them sustainable, they are no longer active.

More recently, various VET stakeholders, have introduced a number of institutional measures to enhance the engagement of non-state actors, especially employers, in the provision of VET. Among these initiatives is the Public Private Partnership scheme of work-based learning, introduced by the MoETE and branded as the “Applied Technology Schools”, as well as the Public Private Partnership, implemented within the PVTD training centres and the expansion of the training stations for provision of vocational education within a manufacturing facility. However, it should be noted that, unlike the ATS, the PPP schemes implemented within the PVTD, are charging students considerably high tuitions fees, in some cases, as high as EGP 10 thousand annually.

Another recent initiative, came in 2017, by a ministerial decree (number 304), the Minister of MoETE restructures the National Council for Human Resources Development NCHRD, and putting them in charge of developing policies and monitoring programmes for the dual system. The NCHRD is an entity representing employers in implementing the dual system and coordinating among Regional Units. 

In addition to the current plans to introduction of Sectoral Skills Councils, as well as in the institutional restructuring plan for PVTD approved by the Minister of Trade and Industry, where the PVTD’s proposed organisational restructuring plan emphasises higher levels of involvement of employers in the governance of PVTD at policy level through participation of employers and employers’ organisation in the PVTD’s Board of Trustees, and at provision level through 20 Sectoral Boards of Directors (representing 20 industrial subsectors), allowing employers to influence the PVTD’s deliverables in a way that makes it more responsive to the needs of the labour market, within various industrial sectors.

Expenditure planning for skills development is incremental (based on the previous year’s expenditure), and do not incentivise performance or reflect enrolment and successful completion rates. The funding has limited integration with national economic or social goals and priorities, in the sense that it is not directed to achieve national goals, or to support a competitive sector. A high proportion of VET funding is spent on salaries, leaving few resources for development expenses like training, teaching and learning materials. For example, budget allocation for MoETE technical education is calculated as the annual budget per student, which differs according to the discipline of study, ranging from EGP 6 to 7 thousand per student per year, where 85 percent goes to cover salaries and wages.

Overall, the various VET subsystems all develop and operate budgeting procedures according to their own traditions, and there is no overall rationale or prioritisation in relation to budget methodologies, nor are they linked to objectives or results. With regard to the funding of VET providers, the system is centralised, and budgets allow little flexibility, except when a particular initiative is established and funded.

A major development took place in 2014, when the Egyptian Constitution (approved through a referendum) referred for the first time to both technical education and vocational training in its Article no. 20, committing the government to gradually increase expenditure on education to reach at least 4% of GDP.

An initiative by MoETE to review and reform the regulations for distributing the income generated from the ‘Education and Production Capital Project’ and from the “Labour System” is still under review. The objective of this review is to allow the MoETE to efficiently and effectively use these resources in addressing the challenges at VET school level. A draft of the proposed legislation for the capital project is currently being reviewed by the MoETE legal advisor, while the review of the “Labour System” is still under study.

There are four types of mechanism for VET financing, namely public financing through 1) the public financing (national budget allocated by the Ministry of Finance), 2) funds generated through core activities and 3) enterprise financing (direct and indirect VET financing by enterprises to employees) and 4) financing by international donors (such as the EU, GIZ, USAID, World Bank, Global Affairs Canada).

First: Public financing remains the main source of funding for VET. As the government supports a highly subsidised public education system, including both general education and VET, at both pre-university and tertiary level. In addition to other VET providers’ such as TOMOHAR, Technical Nursing Schools, MoM VTCs, and others. The Ministry of Finance allocates a budget to each ministry, an approach intended to give ministers greater control over budget allocation,  which in turn transfers funds (largely for salaries and running costs) to the directorates (the Muderiya); from there, the funds go to the departments (the Ida rah), before they are distributed to schools or VTCs. However, there are some exceptions, such as the PVTD, which has an individual standing in receiving and negotiating its annual budget with the Ministry of Finance, in spite of being affiliated to the Ministry of Trade and Industry and does not have an autonomous legal identity. In the last couple of years the PVTD budget has increased from LE 160 million to LE 260 million, mainly to cover the increase in salaries.

Second: Funds generated through core activities, such as in the case of NAQAAE, which, in compliance with its establishment law, will be financed through the National Budget for five years, after which it should be financed through income generated. Therefore, NAQAAE is currently self-financed, mainly through fees coming from accreditation procedure. In 2018, NAQAAE’s approved budget amounted to a total of LE 54.8 million for FY 2018/2019 (law 143 for 2018).

Other forms of funds generated through core activities includes VET providers generating revenues through the provision of services or through productive activities, the Capital Project; this includes most of VET providers (such as technical secondary schools and the Productivity and Vocational Training Department). However, money generated is not kept by the VET providers; a large percentage of these revenues are claimed by the Ministry of Finance. In the case of the PVTD, Ministry of Finance claims 52.5% and the rest is used to top up salaries of teachers, trainers, administrative staff and materials.

Third: Enterprise financing of VET comes in so many different forms, the only institutional form is the National Training Fund (training levy), which was introduced in the 2003 Labour Law, administered by the MOM, where companies, employing 10 or more workers, are required to pay a 1 percent of their net profit to the Training Fund. However, since the introduction of the Training Fund in 2003, disputes over the legal status of the training levy have inhibited its implementation to its full capacity, which has prompted the MoM to address areas of concern with the newly proposed labour law.

Other forms of enterprise financing of VET include a wide range of possibilities such as; participating in and supporting work-based learning programmes (such as technical education dual system, MoM’s apprenticeship programme and PVTD), partnering with MoETE in implementation of the Applied Technology Schools, partnering with technical education and PVTD in hosting the “School in Factory” and “Training Stations”, introduction of new specialisations (such as introduction of fast food service by Americana Group and Misr El Kheir NGO), and collaboration for systemic reform of VET (development of NSS and NQF).

Fourth: International donors play an important role in financing VET reform initiatives at central, regional and provision level, some projects also include the provision of equipment and rehabilitation of buildings, however the majority focus on technical assistance and staff capacity building. Some of the most active international donors are the European Union, GIZ, KfW, Italian Agency for Development Cooperation, USAID, JICA, World Bank, Global Affairs Canada and China.

The current mix of funding sources for VET, as well as its sufficiency, may be influenced by a number of policies:

• The Egyptian Constitution’s aspiration (in article 20) to gradually increase expenditure on education to reach at least 4 percent of GDP, which remains an aspiration.
• The newly proposed Labour Law, in its article 18 and 19, attempts to review and amend the basis for the National Training Fund in order to resolve the conflicts with the private sector (see description above). The amendment includes collecting 1% of the total payroll on which social insurance contributions are calculated in the public sector, the public business sector and the private sector, employing thirty workers and more with a minimum of five pounds and a maximum of twenty pounds for each worker employed by them. The new Labour Law, also allows for partial exemption for the companies who offer training to their employees; where exemption shall not exceed 70% (of the calculated 1% of wages on which social insurance is calculated). Sources of financing the National Training Fund, was described to include; public budget, subsidies, donations and the return on investing its financial resources. With the new developments in the VET system in Egypt since 2016 when the proposed labour law as drafted and the establishment of new entities (like ETQAAN, TVETA and Sector Skills Councils) and their sustainability it might be worthwhile for the GoE to reconsider how the revenues of the fund could be effectively used.
• The Investment Law number 72 (2017), includes an income tax incentive for investors that invest in and support VET provision, which may have an impact on attracting a larger share of funding and higher level of engagement by the private sector.
• The Presidential Decree 27 (2015), amending Law 83, regulating special economic zones, stipulated that the cabinet may, upon request from the SCZone Authority Board of Directors, grant projects with intensive labor (among other things) a number of incentives,  among which covering a fraction of the Egyptian workers’ technical training.
• MoETE’s policy for expanding its dual system to increase the number of students in work-based learning.
• MoETE’s “new brand of schools”, the Applied Technology Schools (ATS), implemented under  PPPs, was introduced in 2018, where private sector companies are responsible for funding upgrading school facilities, educational resources and equipment, as well as for funding the running costs of the schools (including bonuses and incentives for  the existing teaching staff, and salaries for new teaching personnel),
• The establishment of the “National Investment Charity Fund for Education” under the new Capital Market Authority Law, allowing the government’s partnership with the private sector, civil society organizations and various state institutions to supplement government budgets with other sources of funding (including governmental and non-governmental sources and banking institutions) where all investment returns to the fund will be directed towards the educational process, aiming at developing teachers and administrators, as well as solving problems of overcrowded classes and enhancing the learning environment. The fund was launched in May 2019 where, in its first meeting, board members have decided to identify supporting the VET system at the top of the fund’s priority list. 

Ministry of Finance and Ministry of Planning play a major role in allocating funds for different Ministries and VET providers. Then each of these (Ministries and VET providers) have developed, and continue to operate, budget allocation procedures following their own distinct rules and procedures for funding its share of VET provision. Allocating resources to VET provision does not follow a unified methodology. There is no rationale or prioritisation of budgeting methodology, probably based on the previous year’s expenditure.

The largest budget allocated to VET is, by far, the one allocated to the technical education sector through the total public expenditure on education (Table 4). According to CAPMAS – Egypt in Figure 2019 - the total public expenditure on education has been increasing, probably to meet the aspiration of the 2014 constitution. In FY 2017/2018, public expenditure on education has reached L.E. 107 billion, compared to 99 billion in 2015/2016. However, public expenditure on education as a percentage of total expenditure has been declining; 8.9 percent in FY 2017/18 compared to 11 percent in 2015/2017, 12.5 percent in 2006/07, 16 percent in 2005/06 and 17 percent in 2000/01. In addition, the ratio of expenditure on education to GDP decreased from 5.3 percent in 2000 to almost 3.7 percent in the last two years. VET policy makers may look at this declining trend as it is not in line with the increasing priority given to the education sector on the government's agenda. (See Table 4 in the report in PDF p. 55).

Adequacy and equity are important principles of a school finance system that aim to ensure that schools systems provide a minimum amount of necessary resources for all students to learn regardless of their socio-economic circumstances.

Decentralised financing was piloted in 2008-09 and 2009-10, with funds transferred from MoETE, for example, to directorates at governorate level and then to departments of education at local level, and finally VET schools. An evaluation in nine governorates judged it as a success that could be a step towards multilevel, multi-actor VET governance. However, the large expenditure on wages is one of the key challenges towards ensuring that schools provide the minimum amount of necessary resources for learning. It has been reported that the share of wages and salaries in total sector expenditure has steadily increased, from 71% in 2000/01 to 83% in 2006/07. At the same time the share of other recurrent expenditure (mainly student-related and school operation-related expenditure) has declined to 12% in 2006/07.