Project: Tunisia Skills-for-Employment RBF Program
State of development: Current
Stage of development: Early stage
Stage notes: (Just finalized the scoping phase and will start the design & inception to prepare for launch)
Type of instrument — Impact Bond: No; Outcomes Fund: Yes; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: Yes; Other: 
Part of a larger outcomes-based financing program: No 
Expected launch date: Q1 - 2023
Total expected project development time: 6-12 months
Expected length of project (years): 3
Project design process began: Q1-2022
Rationale for using outcome-based finance: The program will be the first results-based financing (RBF) initiative in the skills-for employment space in Tunisia, introducing an innovative model with strong focus on results. The aim is to improve skills matching between workforce and recruiting sectors, ensuring beneficiaries are placed in jobs that are fit for their profile and purpose, as well as supporting their retention in the job over time. The program also aims to provide support to the govenment on the integration of results-based financing mechanisms into the management processes of public funds on employment, as well as through data and learnings generated through the program which can help inform public policies in the country.
Key challenges to launch: Limited capacity of local providers to implement the program at scale, coordination between different public agencies and build consensus around the program during the design phase, access to reliable data on employment for the verification of results.
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: Yes; No formal role: No; Other: Co-build program design, definition of learning agenda, participation in the selection of providers, receive technical assistance on RBF, data and learnings generated through the program, potential financial contribution to the program.
Service providers identified and selected — Request-for-proposals: Yes; Direct contracting by outcome funder/investor/intermediary: No; Provider-led deal development: No; Other: They will be selected in a two phased process comprising Expression of Interest for the shortlist of organizations that can partipate in the Request for Proposals stage.
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: Yes; Other: 
Technical assistance grant: Yes — 
Estimated maximum potential outcome payment: 5000000 USD
Overall project finance notes: This is the figure for the first stage of the programme. 
Social/developmental challenge: Tunisia is faced with high unemployment levels, with 57% of job seekers being below 30 years old and 75% below 35, with significant geographical and gender disparities.
Expected intervention model: TBD, but around skills training and preparation for job interviews, placement, workplace training and mediation.
Policy sectors — Employment and private sector development: Yes; Education: Yes; 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: ; Other: 
Secondary SDG goals: 4,8
Target population: All job seekers under specific criteria related to unemployment length and potential criteria for inclusion of groups from vulnerable backgrounds (with potential focus on youth TBC during design & inception)
Targeted number of unique service users or beneficiaries: 2000
Unit type of targeted beneficiaries: Individual
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: Yes; Upper-middle-income: No; High-income: No
Beneficiary notes: Around 2,000 beneficiaries in the programme's first phase (approximately 3 years). The fund will initiatlly be focused on the program’s first phase. Based on the results achieved, we will be pursuing the second phase to scale the model - number of beneficiaries not yet defined - and then a final stage for the exit
Notes: Data for this pipeline project was last updated in May 2024
Delivery location: Tunisia