Project: Digital Skilling Accelerator in Colombia
State of development: Current
Stage of development: Final negotiations
Type of instrument — Impact Bond: No; Outcomes Fund: No; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): Yes; Technical Assistance and Market-building program: No; Other: 
Rationale for using outcome-based finance: Piloting and Learning: Applying a growth and learning mindset and an adaptive management stance, GOYN tests and refines its methodology as needed. ex.: testing new training in English skills for the digital sector and complementary training on gender approach for skilling providers and participants, and tracking metrics frequently. In relation to labor inclusion, employers are unaware of the trends and interests of OYs and the benefits both in competitiveness and tax aspects when hiring them, while OYs do not understand the needs of employers. GOYN involves OY in co-designing solutions and leads change efforts within communities. Dialogue spaces enable shared learning and interaction among stakeholders to exchange perspectives, experiences, and expectations.
Narrative change and communication Strategy: GOYN will elevate learning and use communication and advocacy efforts to influence a positive societal narrative related to the contributions of OY to the country's development and growth.
Key challenges to launch: The main challenges are primarily framed by the untested nature of digital skills initiatives, leaving a void of evidence-based approaches to inclusively and effectively address vulnerable youth. The absence of proven strategies has hindered targeted intervention for those most in need. Additionally, companies' prevalent preference for formal credentials over competencies has contributed to resistance in hiring practices, excluding many capable individuals without traditional degrees.
Strategically supported by the Accelerator is crucial in addressing these barriers comprehensively. By providing expertise and resources, the initiative can test and refine evidence-backed models tailored to vulnerable youth in Cali and Barranquilla. This will not only offer a template for inclusivity but also foster impactful interventions that resonate with this demographic, also, efforts will bridge knowledge gaps, test outcome-based models, and confront industry hesitance. This innovative collaboration aims to empower vulnerable youth, reshape the digital job landscape, and share evidence with stakeholders and policymakers.
Social/developmental challenge: In Colombia, 51% of the young people are Opportunity Youth (OY), defined as youth NEETs, or working informally. In BogotÃ¡, the percentage of OY is 31.1%, in Cali 32.7%, and in Barranquilla 40.9%.
The digital sector in Colombia represents an extraordinary opportunity for the economic inclusion of OY, including women, migrants, and people with disabilities. The Fourth Industrial Revolution (4IR) has led to a rapid increase in opportunities demanding technology-based skills. The shortage of digital professionals in LATAM is 48% (PageGroup, 2021), and by 2025, Colombia's shortage will reach 162,000 jobs requiring IT-related skills. OY has the potential to bridge this gap by acquiring high-demanded skills required to succeed in the future of work.
Therefore, it is required to create and scale innovative pathways that provide access to high-quality, inclusive,  and adequate skills training and job placement to OY while strengthening service providers to foster Tech talent gap closure.
Expected intervention model: INVERSOR/GOYN Bogota has identified a valuable opportunity to work with Outcomes Accelerator to address the growing demand for high-demanded Tech talent in Colombia. Our proposal is based on strengthening and scaling the services we have developed in the last two years and a half, extending them to new cities such as Cali and Barranquilla, with a focus on generating systemic change by (1) creating opportunities for Opportunity Youth (NEET) - OY, (2) improving the efficiency of the labor market, and (3) strengthening collective action. (1) QSD provides information and socio-occupational orientation on the highest-demanded Tech careers, foundational skills leveling, and comprehensive training and employment pathways to facilitate their access to formal labor markets. (2) QSD works closely with companies of the digital sector to promote inclusive employment practices and collaborate to strengthen training providers of short-term programs. (3) QSD promotes coordination among key stakeholders in the digital sector through the 4IR Working Group and a shared learning agenda with key decision and policymakers of youth and Tech-skilling programs and policies. The QSD goal is to foster collaboration between Tech talent's demand and supply actors.
Policy sectors — Employment and private sector development: Yes; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: No; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Primary SDG goal: 8, 10
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: No; Upper-middle-income: Yes; High-income: No
Notes: Data for this pipeline project was last updated in August 2024
Delivery location: Colombia