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About the Challenge Fund for Youth Employment

Goal

The Fund aims to create a prosperous future for 230,000 young women and men in the Middle East, North Africa, Sahel & West Africa and Horn of Africa. This will be achieved by supporting youth employment initiatives in these regions. Initiatives will offer youth, particularly young women, opportunities for decent work that delivers better prospects for personal development, is productive, and offers a stable income, social protection and safe working conditions.

How does it work?

Private sector, civil society and knowledge institutions will be invited to submit proposals for initiatives to address specific challenges framed around creating scalable solutions for more and better jobs for youth. Solutions will be built around integrated approaches designed to bridge the mismatch between the demand for high quality jobs and the supply of skilled labour. They will be aligned with aspirations of young women and men in the regions.

Support

Technical support will be available for applicants throughout the process. The Fund Manager will organise physical and online information sessions for potential applicants. Interested parties are welcome to contact the Fund Manager to discuss ideas and seek guidance or support for concept note development. Once projects are selected for implementation, tailored technical support will also be made available to maximise delivery of results.

The Challenge Fund for Youth Employment (CFYE) is a 7-year programme funded by the Netherlands Ministry of Foreign Affairs. The Fund is managed by the Palladium Group, Randstad and VSO. 

How to apply?

Process of application

Twice a year the Fund will open a thematic call for concept notes whereby applicants are invited to submit their ideas for projects responding to a challenge in a specific country or region. The call for concept notes will be published on the website and through social media channels.

Once submitted, concept notes will be assessed by a panel of experts and youth representatives. Successful applicants will be invited to submit a full business case. This should describe the pathway to results, the budget and the financing strategy. On average, the contribution of the Challenge Fund will be one third of the total project budget.

Who can apply?

There are no restrictions to who can apply to the Fund. Ideas are invited from private sector organisations, civil society and knowledge institutions or from a consortium involving two or more partners. Regardless the status of the applicant, all concept notes and business cases will be assessed against the same criteria.

Since proposed initiatives should have a clear pathway to decent work for youth, both youth themselves and employers will be involved in the design of the project. All projects will need to report on their results and the financial contributions made by the Fund will be clearly linked to the achievement of those results.

In addition, the Fund is looking for sustainable and scalable initiatives implemented by partners who will be able to contribute on average two thirds of the total project budget.

News

Pathways to Employment: Paper 3

Pathways to Employment: Paper 3

Learning materials Various Countries
Agriculture remains one of the main sources of employment for youth across Africa and the Middle East, yet most young people remain concentrated in informal, low-productivity roles with limited stability or prospects for advancement. At the same time, Agribusinesses - described in this paper as enterprises engaged in agricultural production, aggregation, processing, and support services - hold potential to generate meaningful employment opportunities for youth. For CFYE, Agribusinesses represent a critical pathway for inclusive job creation, particularly in rural economies. By integrating young people into structured value chains as employees and entrepreneurs, these businesses can help shift youth from informal work into more stable and productive roles. However, Agribusinesses face persistent barriers on both the supply and demand sides of the labour market. On the supply side, young people often lack access to land, finance, technical skills, and reliable market linkages, which limits their ability to create or access better quality, more productive roles. Young women often face additional constraints, including restrictive social norms, unequal land rights, care responsibilities, mobility limitations, and reduced access to finance, training, and networks.On the demand side, Agribusinesses operate in volatile environments characterised by climate risks, thin profit margins, fragmented supply chains, and limited access to working capital. These factors constrain their ability to scale operations and invest in workforce development. Against this backdrop, the paper shows how Agribusinesses have potential to be powerful engines of youth employment when their commercial growth and workforce needs are supported together. Strengthening value chains, improving access to finance, investing in workforce skills, and enabling inclusive business practices will be essential for unlocking the full potential of Agribusinesses to generate sustainable and scalable employment opportunities for young people
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More Than Matching: How iCareer and CFYE Turned a Hiring Gap into a Growth Model

More Than Matching: How iCareer and CFYE Turned a Hiring Gap into a Growth Model

Case study Egypt Impact stories
In Egypt’s ever-evolving labour market, opportunity and uncertainty often move in tandem. The demand for talent is rapidly growing, yet significant barriers still prevent many young people from accessing the right pathways into employment. Employers, on the other hand, are under increasing pressure to identify, assess, and recruit talent more efficiently in a landscape where skill gaps and limited work experience remain persistent challenges. Founded in 2012, iCareer was created to bridge exactly this divide between education and employment by helping young people identify suitable career pathways, build relevant skills, and access job opportunities that match their aspirations. For CEO & Founder Akram Marwan, that vision has always been anchored in one North Star: ‘Impact at Scale’. As the company grew, however, scale became less about reach alone and more about what sat behind it: the systems, infrastructure, and employer-facing capabilities needed to support expansion in a more durable way.
Read More
Pathways to Employment: Paper 2

Pathways to Employment: Paper 2

Learning materials Various Countries
Labour markets across Africa and the Middle East are undergoing rapid transformation driven by digital technologies. However, sectors with the potential to scale rapidly, such as e-commerce, educational technology (EdTech), and IT services, often struggle to find talent. These digital sectors face a persistent mismatch between employer needs and the available talent pool. Addressing this challenge requires demand-driven approaches that not only equip young people with relevant skills but also ensure that training is directly connected to real job opportunities through structured pathways into employment. In this context, Platforms for Skills-Building have emerged as a promising model, providing technical and soft skills training, mentorship, and job matching services to prepare youth for two key job types: digitally enabled jobs (e.g. retail staff using point of sale systems) or digitally delivered jobs (e.g. online customer support)
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