10021350-Lot 2: Support for employment promotion structures to improve employment support services

Benin's economy is growing rapidly, with real GDP growth estimated at approximately 6.4 % in 2023 and expected to remain above 6 % over the coming years. Despite this positive economic dynamic, the labour market remains unable to provide sufficient decent employment opportunities for the growing population. MSMEs account for more than 95 % of registered enterprises and constitute the backbone of the economy. However, they continue to face major structural constraints including low productivity and innovation, weak market integration, limited access to finance and skilled labour, insufficient support services, low digitalisation and inadequate quality assurance mechanisms. These challenges particularly affect women-led enterprises and northern regions of the country.

The TVET system and labour market intermediation mechanisms are not yet sufficiently aligned with enterprise needs. At the same time, coordination between employment promotion actors and the territorial implementation of employment policies remain limited. In response to these challenges, the Government of Benin has adopted several strategic frameworks, including the National Development Plan 2018-2025, the national SME promotion strategy, the national employment policy and the "Benin Alafia 2060" vision. In parallel, Benin plans to establish a Labour Market Information System (LMIS) to strengthen labour market analysis, coordination and employment governance.

The Federal Republic of Germany supports Benin in addressing these challenges through the project "Employment-oriented promotion of the competitiveness of micro, small and medium-sized enterprises" (ProPME 2).

The project aims to improve the competitiveness of MSMEs in selected sectors and regions in Benin with an impact on employment. It builds on the successful approaches developed under the previous ProPME phase and contributes to strengthening MSMEs operating in the food processing industry, renewable energies, crafts and services sectors, as well as to improving employment promotion and labour market intermediation systems.

The module is structured around three main outputs: Output 1 aims to strengthen the capacities and competitiveness of growth-oriented MSMEs through targeted support, coaching and training measures. Through improved business models, business management and productivity, MSMEs are expected to increase their competitiveness, create new jobs and improve working conditions. Output 2 aims to strengthen cooperation mechanisms between public and private sector actors involved in enterprise and employment promotion. Through improved public-private dialogue, institutional strengthening and coordination mechanisms, framework conditions for MSMEs are expected to improve, thereby reducing investment barriers and strengthening enterprise competitiveness. Output 3 aims to improve the conditions for the placement of qualified workers in MSMEs. This includes strengthening employment governance structures, improving labour market information systems, strengthening labour market intermediation mechanisms and improving the matching between labour supply and demand.

The target group of the module primarily comprises growth-oriented MSMEs in selected sectors and value chains with high employment potential in the regions of Atlantique, Littoral, Ouémé, Mono, Atacora, Borgou and selected municipalities in Donga. Particular attention is given to women-led enterprises, young labour market entrants and graduates of vocational qualification measures.

The contractor will support the implementation of Output 3 of the project. The services covered under this assignment focus on strengthening employment governance and labour market intermediation systems at macro, meso and local level.

The contractor contributes to the achievement of the module indicator 2 and 3, as well as to the achievement of output indicator 3.2. The contractor is responsible for achieving the output indicator 3.1. Module objective indicator(s) 2: Number of employed persons in selected regions and sectors that have indicated that they benefited from improved working conditions in one of four categories. Module objective indicator(s) 3: Number of newly hired employees in MSMEs in selected regions and sectors. Output indicator 3.1: Number of employees in local and national institutions and committees for employment promotion who use data from the occupational and labour market information system Output indicator 3.2: Number of priority measures implemented under the new national employment policy to improve the placement of skilled workers in micro, small, and medium-sized enterprises (MSMEs).

The activities of the contractor are structured around two main work packages:

Work package 1: In this work package, the contractor will support the achievement of Output 3 by producing occupational and labour market profiles and regionally tailored labour market factsheets linked to sectors with strong employment potential in the regions of Atacora and Atlantique. The contractor will conduct desk research and field surveys, analyse labour market supply and demand, identify promising occupations and skills gaps, and produce labour market information resources for employment promotion actors and jobseekers. In addition, the contractor will support the establishment of career guidance spaces within AnpE branch offices and develop methodological tools for labour market profiling.

Work package 2: Under this work package, the contractor will strengthen the capacities of institutional actors involved in employment governance and labour market intermediation, including DPE, AnpE, CLIDE, ULPE and other relevant stakeholders. Activities include institutional capacity assessments, development of capacity-building plans, training workshops on employment promotion approaches, dissemination workshops on labour market information tools, and training sessions on employment governance and coordination mechanisms.