The World Bank Eswatini Youth Employment Opportunities Project (P507360) @#&OPS~Doctype~OPS^blank@pidaprcoverpage#doctemplate Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 12-May-2025 | Report No: PIDIA01308 The World Bank Eswatini Youth Employment Opportunities Project (P507360) @#&OPS~Doctype~OPS^dynamics@pidaprbasicinformation#doctemplate BASIC INFORMATION A. Basic Project Data Project Beneficiary(ies) Region Operation ID Operation Name Eswatini Youth EASTERN AND SOUTHERN Eswatini P507360 Employment Opportunities AFRICA Project Financing Instrument Estimated Appraisal Date Estimated Approval Date Practice Area (Lead) Investment Project 10-Mar-2025 12-May-2025 Social Protection & Jobs Financing (IPF) Borrower(s) Implementing Agency Ministry of Agriculture, Kingdom of Eswatini Deputy Prime Minister's Office Proposed Development Objective(s) To increase income earning opportunities for targeted youth in the Kingdom of Eswatini Components Youth Income-Earning Opportunities Strengthening Social Protection Targeting and Delivery Systems Project Management, Monitoring, and Evaluation Contingent Emergency Response @#&OPS~Doctype~OPS^dynamics@pidprojectfinancing#doctemplate PROJECT FINANCING DATA (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? No SUMMARY Total Operation Cost 27.00 Total Financing 27.00 of which IBRD/IDA 27.00 Page 1 The World Bank Eswatini Youth Employment Opportunities Project (P507360) Financing Gap 0.00 DETAILS World Bank Group Financing International Development Association (IDA) 27.00 IDA Credit 27.00 @#&OPS~Doctype~OPS^dynamics@envsocriskdecision#doctemplate Environmental And Social Risk Classification Moderate Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context A. Project Strategic Context 1. The Kingdom of Eswatini, a Southern African country with a population of 1.2 million people, faces significant poverty, human capital development, and climate-related challenges. Despite an estimated growth rate of 4.6 percent in 2024, Eswatini's average annual growth over the past decade has averaged under 2 percent per year (including a 0.1 percent contraction in 2022). This indicates that the long-term growth trend remains volatile, constrained by structural factors such as vulnerability to climate shocks, overdependence on Southern Africa Customs Union (SACU) revenue, and structural constraints in the business environment, including weak competition, complex administrative procedures, and limited access to finance (especially for small and medium firms).1 The low growth drove unemployment from 23 percent in 2016 to 35 percent in 2023 (the highest rate in over a decade) and exacerbated poverty, with nearly 60 percent of the population living below the lower middle-income poverty line, with 90 percent of the poor residing in rural areas.2 Eswatini is also grappling with high inequality, as reflected in its Gini index of 54.6 percent - one of the highest globally. Despite achieving lower middle-income status, stark wealth disparities have constrained human development to levels typical of 1 World Bank 2024. ESWATINI Country Economic Memorandum: In search of the drivers of inclusive growth; International Finance Corporation. 2022. Creating Markets in Eswatini : Strengthening the Private Sector to Grow Export Markets and Create Jobs - Country Private Sector Diagnostic. Country Private Sector Diagnostic;. © Washington, DC. http://hdl.handle.net/10986/38335; Bank World, 2023. Eswatini - Country Partnership Framework for the Period FY24-28 (English), World Bank Group. United States of America. Retrieved from https://coilink.org/20.500.12592/t8nh2r on 25 Feb 2025. COI: 20.500.12592/t8nh2r. 2 World Bank Databank. Unemployment, total (percent of total labor force) (modeled ILO estimate) for Eswatini in 2023. Page 2 The World Bank Eswatini Youth Employment Opportunities Project (P507360) low-income countries, undermining future productivity and growth potential. This is reflected in its Human Capital Index of 0.48 and underscores significant barriers to Eswatini’s current and long-term development prospects. Additionally, the population is highly vulnerable to climate-change-related shocks and extreme weather events such as droughts, erratic rainfall and temperature patterns, and floods, which threaten livelihoods and worsen food and nutrition insecurity, particularly among the rural poor.3 These shocks often force affected populations, mainly women, to adopt negative coping strategies, such as selling productive assets and relying on food with low nutritional value, further entrenching poverty. 2. Incomplete structural transformation and low labor productivity limit Eswatini’s prospects of improving the quality of jobs. The structure of the economy continues to be dominated by a few sectors, reflecting incomplete structural transformation. The services sector, which employed 48 percent of the workforce in 1995, grew to 65 percent by 2021, contributing 53.5 percent to Gross Domestic Product (GDP). However, this shift toward services has not translated into significant gains for workers due to low productivity in the sector.4 The contribution of the industrial sector to GDP fell from 39 percent in 2000 to 32 percent in 2021 and is dominated by a few manufacturing niches, mainly textiles, food products, and the processing of sugar-based concentrates, which have lost momentum over time.5 These sectors have failed to grow sufficiently to absorb the expanding labor force or drive meaningful economic diversification. At the same time, agriculture remains a critical sector with untapped potential, particularly for youth employment and rural development. In addition, Eswatini is particularly vulnerable to regional shocks that affect the South African economy as it relies on South Africa for trade, remittances, and the Southern Africa Customs Union revenues. This overall lack of structural transformation has stifled innovation and restricted private sector growth. B. Sectoral and Institutional Context 3. Eswatini faces high youth unemployment driven by a rapidly growing young population that faces multiple constraints and limited job opportunities.6 Youth ages 18 to 35 make up 30.1 percent of the total population and about 48.4 percent of the labor force. However, close to half of youth (46.8 percent) are not participating in the labor market. Overall, youth unemployment remains high at 49 percent, while 27.8 percent of this population is employed primarily in informal, low-quality jobs that lack security, offer meager earnings, and provide limited opportunities for skills development or career advancement. According to the Integrated Labor Force Survey, trends are worsening, with labor force participation among the working-age population falling from 50.6 percent in 2016 to 45.9 percent in 2021. Additionally, about 190,000 youth are not in employment, education, or training (NEET), representing 53.5 percent of the youth population. Of those unemployed, more than half (52.4 percent) have experienced long-term unemployment, defined as being out of work for 12 or more consecutive months. In 2023, an estimated 10 percent of NEET youth had attained tertiary education, yet still struggled to secure employment, underscoring the severity of the skills gap. 4. Eswatini's youth labor market is driven by a critical shortage of formal sector jobs, with the economy struggling to absorb the rapidly growing workforce. Currently, 48.3 percent of Eswatini's workforce is employed in the formal sector, with the services sector accounting for most of the formal employment (58 percent), followed by industry (30 percent) and agriculture (12 percent).7 However, while 25,000 youth enter the labor market annually, only 1,000 formal jobs are created, which indicates that a key constraint to employment is the low quantity of jobs available in the labor market. As 3 Ranked as the 70th most vulnerable country to climate change and 147th in readiness to adapt. https://gain.nd.edu/our-work/country-index/rankings/ 4 World Bank 2024. ESWATINI Country Economic Memorandum: In search of the drivers of inclusive growth. 5 Employment in the industrial sector has also declined, dropping from 28 percent in 1995 to 23 percent in 2021. 6 The labor market statistics presented in this section are based on data from the 2023 Eswatini Labor Force Survey. 7 Of the remaining workers, 45.7 percent are in the informal sector, and 6 percent are engaged in household employment. Within the informal sector, the services sector accounts for the largest share of employment (59 percent), followed by industry (23 percent) and agriculture (18 percent). Page 3 The World Bank Eswatini Youth Employment Opportunities Project (P507360) such, a significant proportion of the population, especially youth, are in the informal sector (53.7 percent). Many young people also seek work opportunities in neighboring countries, particularly in the informal sector, reflecting both the lack of economic opportunities and the challenges in accessing employment-related information and support services. Demand-side constraints include low levels of investment, limited industrial diversification, an unfavorable policy environment with rigid labor laws that limit labor productivity and raise barriers to entry, and a small private sector.8 Additionally, restricted access to capital and other essential business resources continues to impede self-employment and entrepreneurial growth, thereby exacerbating labor market challenges. 5. This situation is further aggravated by supply-side barriers, as Eswatini’s youth often lack the relevant skills and experience needed to succeed in the labor market. Young Emaswati who are NEET face significant vulnerabilities due to low levels of education, and even those with higher education often graduate with critical deficiencies in cognitive, technical, socioemotional, and business skills. The persistently high NEET rates among youth are partly driven by skills mismatches, not only due to inadequate education but also because of gaps between the skills provided by education and training systems and those required by employers. This misalignment limits both their employability in wage employment and their capacity for entrepreneurship. Companies frequently report investing substantial resources in training new employees to develop skills that should have been acquired during their education. Furthermore, the absence of systematic labor demand and supply projections undermines the development of responsive skills-building programs. This fuels a mismatch between the skills gained through education and the demands of the labor market, leaving many young people unprepared for the limited job opportunities that are available. In addition, limited internship and apprenticeship opportunities exacerbate the situation because many youth lack the practical work experience required for both wage and self-employment. 6. The Government of Eswatini acknowledges the critical need to address the problem of youth unemployment. Key initiatives include (a) the Youth Enterprise Revolving Fund (YERF), which has provided in-kind loans to 1,025 young entrepreneurs;9 (b) the Eswatini Youth Empowerment Programme (EYEP), which has facilitated graduate placements, mentorship, and artisanal skills for over 600 interns; and (c) the Youth Empowerment Programme, which supported about 700 youth with Mindset Change Training, Technical and Vocational Education and Training (TVET) Startup Kits, and grants. While these programs make important contributions to economic inclusion for youth, their scale and accessibility to youth remain limited, leaving the most vulnerable youth—especially those in rural areas—underserved. Most programs are designed for skills training aimed at securing formal wage employment, opportunities that are often scarce or nonexistent. Additionally, these programs typically target individuals who have completed secondary education or focus explicitly on graduates. These projects also encounter significant hurdles, including inadequate funding, weak stakeholder coordination, misalignment with the labor market's evolving demands, absence of industry-tertiary linkages, inadequate training facilities, insufficient entrepreneurial training, and a lack of competency frameworks and occupational standards. These challenges collectively limit the impact of the country's skills development priorities. 7. Compounding these challenges is the limited capacity of key institutions to effectively design, implement, target, and coordinate these initiatives. For instance, existing socio-economic and pro-poor programs are characterized by inadequate and fragmented delivery systems, which hinder their ability to reach the most vulnerable populations, especially the youth. Consequently, only 20 percent of the extremely poor population access social benefits, while 41 percent of the non-poor receive some form of benefits, highlighting inefficiencies in targeting and delivery. These limitations constrain the impact of social assistance programs, which account for 1.2 percent of GDP but achieve only 8 International Finance Corporation. 2022. Creating Markets in Eswatini : Strengthening the Private Sector to Grow Export Markets and Create Jobs - Country Private Sector Diagnostic. Country Private Sector Diagnostic;. © Washington, DC. http://hdl.handle.net/10986/38335. 9 Youth Enterprise Revolving Fund ‘giving you a head to success’. Fund Issue 01 May – Jul 2024. https://www.yef.co.sz/wp-content/uploads/2021/11/01_YERF-News- YN-Issue-1Digital-1.pdf Page 4 The World Bank Eswatini Youth Employment Opportunities Project (P507360) modest reductions in the Gini index (2 percent), poverty rate (1.5 percent), and the poverty gap (3 percent). This reinforces the need to develop adaptive social protection delivery systems that ensure that the existing programs improve targeting, efficiency of allocated spending, as well as sustainability. 8. Despite its current challenges, several sectors hold the potential to drive youth employment at scale. In particular, the agricultural sector (along with related construction and digital services) has the potential to create decent jobs, boost domestic production, empower rural youth, contribute to economic growth, and reduce Eswatini’s heavy reliance on food imports.10 The Eswatini Drivers of Growth Study highlights that while agriculture currently contributes only 8.1 percent to GDP and 12.4 percent to employment, its labor-intensive nature and potential competitiveness make it a crucial source of income and jobs for rural communities, as well as an important potential avenue for increasing export revenue.11 Likewise, the Country Private Sector Diagnostic identifies agribusiness as a key driver of export-led private sector growth and investment, reinforcing the sector’s strategic importance.12 However, realizing this potential requires greater engagement of the youth, who currently lack the necessary knowledge and skills. Other factors need also be considered, including secure access to land and irrigation for productive agriculture. The majority of people engaged in agriculture participate primarily in subsistence, with limited value-addition and market integration.13,14 Furthermore, agriculture is not among the uniform trades offered in the TVET institutions, although skills needed in agricultural machinery operations and food processing have been identified.15 Sectors related to agriculture, particularly construction, also have the potential to support job creation in a wide range of related industries, including building services such as plumbing, electrical work, and carpentry, as well as downstream industries such as manufacturing, retail, and transportation.16 Strengthening the agricultural sector, along with related industries and services, can, therefore, have a multiplier effect on economic growth and job creation. 9. To address these systemic issues, this project will strengthen income-earning opportunities for youth, with a focus on comprehensive support for job creation and business development. Youth will be supported with a package of economic inclusion interventions that would improve productivity (including through skills training and access to finance), organization, and value chain integration needed to expand access to markets. The project will provide the support required to initiate or scale up income-generating opportunities in sectors with high demand for labor. The project will also improve skills training that is responsive to the needs of the private sector, including through competency-based assessments and certification of trainees. The project will be designed to be adaptable and replicable, with a focus on building partnerships and leveraging existing structures, ensuring that it can be scaled across regions or sectors in the future. This project will also focus on the development of a comprehensive digital Social Registry (SR) to enable the profiling, targeting, and tracking of beneficiaries, ensuring that programs effectively reach those most in need. Beyond improving the delivery of pro-poor initiatives, the registry would serve as a cornerstone for developing efficient, targeted, and outcome-oriented youth employment programs. Furthermore, the project’s sustainability will be ensured by its integrated approach, combining capacity-building, financial support, and market linkages to drive long-term success and impact. By enhancing institutional capacity, modernizing delivery systems, and aligning interventions with the needs of 10 The country imported over 72% of its cereal in 201910, a significant drain on the economy. FAO, European Union and CIRAD. 2022. Food Systems Profile - Eswatini. Catalyzing the sustainable and inclusive transformation of food systems. Rome, Brussels and Montpellier, France. https://doi.org/10.4060/cc0560en. 11 World Bank 2024. ESWATINI Country Economic Memorandum: In search of the drivers of inclusive growth; International Finance Corporation. 2022. Creating Markets in Eswatini. 12 Strengthening the Private Sector to Grow Export Markets and Create Jobs - Country Private Sector Diagnostic. Country Private Sector Diagnostic;. © Washington, DC. http://hdl.handle.net/10986/38335; 13 FAO, CTA and IFAD (2014). Youth and agriculture: key challenges and concrete solutions. Food and Agriculture Organization (FAO), Technical Centre for Agricultural and Rural Cooperation (CTA) and International Fund for Agricultural Development (IFAD), Rome, Italy. 14 https://blogs.worldbank.org/en/jobs/Cultivating-youth-led-agriculture-solutions. 15 The Ministry of Labour and Social Security (2022). Eswatini National Skills Audit Report 16 Kingdom of Eswatini: Construction Industry 2023/24 Performance Report. Construction Industry Council. https://www.cic.co.sz/aboutus/industryreports/ Page 5 The World Bank Eswatini Youth Employment Opportunities Project (P507360) vulnerable groups, the GoE can significantly improve youth employment outcomes and ultimately reduce poverty and vulnerability across the country. II. PROJECT DESCRIPTION A. Project Development Objective To increase income earning opportunities for targeted youth in the Kingdom of Eswatini. B. Results Chain and PDO Indicators 10. The PDO will be measured using three main PDO indicators (PDIs): PDI 1: Increased income earning opportunities among targeted youth: • Youth beneficiaries with increased earnings at least 6 months after receipt of project interventions (percentage, disaggregated by gender, people with disability). PDI 2: Increased access to employment opportunities among targeted youth: • Youth beneficiaries in wage or self-employment 6 months after receipt of project interventions (percentage, disaggregated by gender, people with disability). PDI 3: Increased capacity for targeting youth beneficiaries through the new social registry: • Youth profiled in the Social Registry (number, disaggregated by gender, people with disability). • Youth beneficiaries satisfied with project interventions (percentage, disaggregated by gender, people with disability). Component 1: Youth Income-Earning Opportunities (US$22 million) Subcomponent 1.1: Income-earning opportunities for youth in agriculture (US$17 million) (a) On Farm activities 11. This subcomponent aims to provide targeted youth with increased earning opportunities through self- employment in on-farm primary agricultural production and in off-farm agribusiness-related services. This subcomponent will target 30,000 youth (at least 50 percent of whom will be female). The subcomponent will finance: (a) customized agribusiness, technical, financial literacy, and soft skills training; (b) accreditation and certification of acquired skills; (c) asset grants for purchasing inputs; (d) linkages with off-takers; (e) business development services; (f) an MIS to manage the component activities; and (g) related operational capacity to implement this subcomponent. 12. For on-farm activities, this subcomponent will support the production and sale of selected commodities through training, asset grants, linkages with off-takers, marketers, and other business development support services. An initial positive list of commodities/sectors to be supported has been developed based on (a) their potential for high and quick returns based on market conditions; (b) short payback period; (c) strong demand in local and regional markets; (d) high potential for on-farm job creation along the value chain; (e) low barriers to entry for youth suitability; Page 6 The World Bank Eswatini Youth Employment Opportunities Project (P507360) and (f) agroecological classification and suitability to each region.17 The initial list of commodities, which will be subject to review based on evolving market conditions, include selected horticulture, food crops, and livestock, and will be subject to periodic review based on evolving market conditions. There will also be a negative list, excluding from project support those commodities that pose environmental or social hazards, create health risks, or otherwise contradict the objectives and purpose of the project. Both the positive and the negative list will be outlined in the POM.18 Selected youth will be supported to engage in the production of these commodities in groups where feasible for ease of implementation, efficiency, and scale. Focus will be placed on promoting climate-smart production technologies and practices to help build resilience against climate change. (b) Off Farm Activities 13. For the youth with less ability or interest to participate in on-farm production, this subcomponent will support agri-businesses that provide agricultural value-chain services. Beneficiaries will be supported with business training and start-up capital (in the form of grants and/or linkage to existing financial services providers) to set up businesses, including in the following areas: (i) input supply (e.g., fertilizer, seed, pesticide agro-dealers, nurseries, hatcheries, production of fingerlings, feed mills); (ii) production facilities (e.g., greenhouses, hydroponics, etc); (iii) postharvest facilities and equipment (e.g., dryers, sorters, packing facilities, etc ); (iv) aggregation/assembly facilities (warehouses, trading posts, logistics, weighing scales, crates for commodity packing, etc); and (v) small-scale processing (value-adding and agro-processing equipment and related skills, etc). The project will also support service delivery using digital tools that enhance access to real-time market price information for producers and off-takers (e.g. e-commerce), extension advisory services (e.g. e-extension), access to mechanization services (e.g. e-tractor), and modern digital technologies to improve efficiency in production, processing, and related services along the value chain. The list of all eligible off-farm services will be outlined in the POM and will be subject to review based on evolving market conditions. 14. Youth beneficiaries will be identified using a competitive selection process, following elaborate and extensive project sensitization campaigns. Once selected, youth beneficiaries will be organized into groups and provided with relevant training. The training package will encompass technical skills in agricultural production, business skills training (including business proposal development), soft skills training, financial literacy, and climate-resilient farming techniques. The curricula will be developed and accredited by the Directorate of Vocational and Industrial Training (DVIT), with an emphasis on modern production techniques to enhance yield and quality to ensure readiness to serve both local and regional markets. To augment the government's capacity to implement this, service providers will be procured to facilitate the provision of the package. 15. Beneficiaries who complete the training will be provided with grants and business development services . Once the training is completed, to be eligible for a grant, project beneficiaries will submit business proposals. Business proposals that fulfill the eligibility criteria will receive business grants in tranches according to their agreed milestones. Funds will be disbursed directly to selected input suppliers, who will avail the inputs as detailed in the respective beneficiary business proposals. Beneficiaries may choose to aggregate their grant allocation to support bulk purchasing of higher-value inputs as needed. Youth will also be linked to other financial service providers, including the relevant Government programs, to provide additional funding as needed. Business development services will be provided to the youth for up to 12 months. Beneficiaries will be linked to the private sector, which can support youth in aggregation 17 Sugar, agroforestry, and other commodities that are identified in ESwatini’s Country Private Sector Diagnostic have been excluded from on-farm activities due to long maturity periods. 18 The off-farm activities will not be limited to value chain identified among the on-farm commodities in Table 1 but could encompass a range of profitable services. Page 7 The World Bank Eswatini Youth Employment Opportunities Project (P507360) and value addition, as well as provide access to inputs, credit, and markets through Productive Alliances.19 Service providers with demonstrated experience and existing links with the private sector will be competitively selected to provide training and business development support to youth groups. Detailed procedures for end-to-end implementation process flow will be elaborated in the POM.20 Subcomponent 1.2: Employable Skills for Youth (US$5 million) 16. The objective of this subcomponent is to support on-the-job training to build skills and provide income- earning opportunities for youth in services related to agricultural value chains. Specifically, the sub-component will finance (a) on-the-job technical training and certification, (b) soft and business skills training, (c) tools and protective gear required for training, (d) small startup kits, and (f) business coaching. This subcomponent will focus on NEET youth, particularly in the urban and peri-urban areas. 17. This subcomponent will provide alternative opportunities for 10,000 youth who may be interested in employment opportunities related to services and community assets along the agricultural value chain . This includes the operation and maintenance of agricultural equipment, pack houses, as well as irrigation and water storage installations. The on-the-job training will be practical, tailored to the needs of vulnerable youth, and include soft and business skills training to build job readiness.21 Training will be made available through private sector firms, master craftsmen or short-term technical and vocational training institutions with ongoing complementary projects.22 The project will map out the existing firms, master craftsmen, and technical/vocational institutions that offer such opportunities and invite them to participate in the project through a call for proposals. Training needs will be identified through engagement with the sector skills councils that will provide the skills needs of private sector companies. The providers of the employer/company-based skills development opportunities will be provided a fee per youth trained. The skills certification will be done as part of the process of on-the-job training to enhance their employability. Youth who successfully complete their skills development opportunity through this approach will be provided an opportunity to either be retained by the companies that extend the on-the-job training programs to them or turn their business ideas into innovations and solutions. Youth will be supported to develop business plans, which will be assessed according to pre-defined criteria (including innovation, market access, and potential for job creation). Start-up kits and coaching of up to 12 months will then be provided to youth whose business proposal meets the selection criteria. Component 2: Strengthening Social Protection Targeting and Delivery Systems (US$2.5 million). 18. The objective of this component is to support the optimization of expenditures under this project and other social programs in Eswatini through the development of a dynamic and digital Eswatini Social Registry (Imbeleko). The SR will support the targeting of youth in this project through the identification of youth living below the poverty line in rural and urban areas. It will provide robust data on key household characteristics to facilitate targeting efficiency of social protection resources by identifying poor and vulnerable households that could be supported to improve livelihoods and resilience. This subcomponent will finance: (a) the development and implementation of a Management Information System (MIS) to host the SR with built-in quality control and interoperability mechanisms; (b) software applications; (c) technical assistance for the development of the SR; (d) nation-wide data collection of socio-economic 19 Producer alliances and cooperatives are common tools for improving the knowledge and skills of their members in a range of activities as well as improving access to information and linking producers to wider commercial networks 20 Development of the POM will benefit from other similar projects, such as for example, the Philippines Rural Development Project (PRDP), the Ghana Commercial Agriculture Project (GCAP), etc., which have similar interventions. 21 Trainings will last no more than 6 months. 22 A master craftsman is an experienced and highly skilled professional who mentors and trains apprentices, passing on advanced techniques, knowledge, and expertise in a specific sector through hands-on experience. Page 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) indicators; (e) data management and analysis; (f) a dynamic updates process for filling coverage gaps in the SR and updating registry information using local structures; (g) operational capacity (including requisite Information and Communication Technology (ICT) experts); and (h) system maintenance and support. The SR will collect high-quality data on key household characteristics to facilitate common assessment and eligibility determination for social protection programs. GoE has drafted the work plan, communications strategy, data collection tools, and operations manual needed to initiate the SR development through a pilot data collection exercise in Shiswelweni. Key data protection protocols will be put in place in line with the 2022 Data Protection Act. This subcomponent will build on this groundwork and incorporate lessons learned to refine operational processes, as well as update the roadmap, manuals, protocols, and infrastructure specifications. Household data will be collected through door-to-door surveys and on-demand approaches in phases across all four regions of the country. An outreach campaign will be undertaken to ensure that gaps in coverage (particularly for women and persons with disabilities) are identified through the SR. 19. As the data collection is finalized for each region, the SR will be used to target beneficiaries under Component 1 of this project. In Shiselweni, youth targeting for the first cycle will rely on SR data. Once fully operationalized, the SR will be used to support the targeting of youth for the subsequent cycles across all regions. The registry will also enable timely responses to economic or climate-related stocks such as droughts and floods. This will be done through geo- tagging households, which will allow authorities to quickly identify and assist affected populations during disasters, improving the efficiency of emergency response measures. Other government programs targeting poor and vulnerable households will be supported to adopt the same system to strengthen targeting and improve efficiency. Component 3: Project Management, Monitoring, and Evaluation (US$2.5 million). 20. This component will ensure that the activities supported through the project are coordinated and well- implemented by the MEPD. Implementation will be led by a small Project Coordination Unit (PCU) at MEPD. The component will finance (a) technical and implementation capacity as required (particularly financial management, procurement, gender, environment, and social safeguards within the PCU; (b) capacity-building activities, including training modules on technical and operational aspects required for the implementation of the project; (c) monitoring and evaluation activities for the project; (d) communications and outreach operational costs, including the development of an MIS and website for the project; and (e) project coordination. The Monitoring and Evaluation (M&E) system will be linked to reporting systems in the Ministry of Sports, Culture, and Youth Affairs (MoSCYA) to track overall youth outcomes. MoSCYA will also support information dissemination of the project activities to the youth organizations and networks nation-wide. Evaluation activities will focus on both short-term and long-term outcomes through various instruments, including tracer studies, process evaluations, and a rigorous Impact Evaluation to document the lessons and experiences of implementation of the project, adjustments to project design, and knowledge dissemination. Tracer studies will begin 6 months after receiving project intervention to capture short-term effects but will continue throughout and after the project to track long-term impacts. @#&OPS~Doctype~OPS^dynamics@pidaprlegalpolicy#doctemplate Page 9 The World Bank Eswatini Youth Employment Opportunities Project (P507360) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Area OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts E. Implementation Institutional and Implementation Arrangements 21. As a result of the project being of a multi-sectoral nature, overall project coordination will be established under MEPD to ensure seamless coordination among IAs. The MEPD shall ensure that all relevant institutions of government are contributing effectively to implementation, co-opting Ministries, Departments and Agencies as needed. MEPD will constitute the PCU, with staff seconded by MEPD to coordinate project management, fiduciary, environmental and social management, and M&E activities under this project. 22. EWADE, under the MoA, will be the implementing agency (IA) for Component 1, providing the necessary procurement, implementation support, and quality assurance required for this component. DPMO will be responsible for the implementation of Component 2, along with the associated procurement and quality assurance. EWADE and DPMO will each constitute sector teams from relevant departments and ministries consisting of seconded or hired government staff to support project implementation, including technical, fiduciary, and environmental and social management experts. Each IA will also be responsible for preparing Annual Work Plans and Budgets (AWPBs) as well as progress and fiduciary reports. Additionally, the POM will outline all the processes, procedures, roles, and responsibilities related to project management and implementation. Progress reports and Interim Financial reports will be consolidated by the MEPD Project Coordination Unit. 23. To ensure operational guidance of the project at the national implementation level and clear coordination across various ministries, a Project Steering Committee (PSC) will be established. It will be chaired by the Principal Secretary (P.S.) of MEPD and comprise high-level representatives from key ministries and organizations, including the Principal Secretaries for the Ministry of Finance (MoF), DPMO, MOA, MoSCYA, Ministry of Labor and Social Security, Ministry of Commerce, Industry and Trade, Ministry of Tinkhundla Administration, and other critical stakeholders. It will also include the CEO of EWADE, the Director of the Eswatini Agricultural Development Fund (EADF), and the Director of the Directorate for Vocational Industrial Training (DVIT). This committee will provide strategic guidance as well as technical and policy guidance in the implementation of the Project. @#&OPS~Doctype~OPS^dynamics@contactpoint#doctemplate Page 10 The World Bank Eswatini Youth Employment Opportunities Project (P507360) CONTACT POINT World Bank Kevin Sanya Heraniah Senior Social Protection Specialist Hardwick Tchale Lead Agriculture Economist Innocent Kibira Najjumba Mulindwa Senior Education Specialist Borrower/Client/Recipient Kingdom of Eswatini Vusie Dlamini Principal Secretary, Ministry of Finance ps_finance@gov.sz Implementing Agencies Ministry of Agriculture Sydney Simelane Principal Secretary ps@agriculture.gov.sz Deputy Prime Minister's Office Mcusi Shongwe Director, Social Welfare mcusis@yahoo.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects @#&OPS~Doctype~OPS^dynamics@approval#doctemplate APPROVAL Task Team Leader(s): Kevin Sanya Heraniah, Hardwick Tchale, Innocent Kibira Najjumba Mulindwa Page 11 The World Bank Eswatini Youth Employment Opportunities Project (P507360) Approved By Practice Manager/Manager: Suleiman Namara 27-Feb-2025 Country Director: Satu Kristiina Jyrintytar Kahkonen 15-Mar-2025 Page 12