Skills Development

Employment, private sector development and trade are powerful and interdependent drivers for inclusive economic development and poverty reduction. Small and medium-sized enterprises generate over half of all jobs globally and play an important role in low-income countries. Employment is the main source of income for people living in poverty. Trade is an engine for growth and can lead to more and better jobs. Businesses also provide markets and people with essential goods and services. Inclusive, equal education and lifelong learning decreases poverty and secures individuals’ income generating possibilities. However, several factors constrain people living in poverty from accessing markets, participating in the labour market and benefiting from trade and growth. Sida contributes to inclusive economic development and education where people living in poverty can participate and benefit on equal terms. In total, Sida’s interventions in this area amounted to SEK 4.2 billion in 2025, constituting nearly 19 per cent of Sida’s total disbursements.

The main purpose of the evaluation was to promote learning and inform the continued development of future capacity development programmes (ITP), as well as a general approach to capacity development as a method for supporting effective and inclusive institutions. The objective was to assess the relevance and effectiveness of five ITPs, to identify what works well and less well. Conclusions: The evaluation concludes that ITP design and methods were generally relevant. All the five ITPs promoted locally driven change, most promoted systemic solutions and a long-term approach, and a majority were adaptive. Less attention was paid to understanding local power relations. Intended outputs were achieved to a great extent although the results of change initiatives were mixed. The most prominent outcome was the forging local partnerships. Key enabling factors included local adaptation, participant engagement, and multi-stakeholder involvement. The key barriers were Covid-19, funding constraints, and lack of leadership buy-in. Recommendations: The evaluation recommends that ITPs should focus more on organisations, target decision-makers, promote more regional exchange, have longer programme rounds, and that measures should be taken to ensure that change initiatives are completed and learning is passed on. It also recommends to invest in alumni networks, build synergies with other projects, and improve M&E systems.