Skills Development Fund established through financing agreement between The Government of Rwanda and the World Bank.

The Skills Development Fund (SDF) in Rwanda, is designed to address critical skills gaps in the labour market by rapidly increasing the supply of market-relevant skills. Its main objective is to equip unemployed youth, graduates, employees, and owners of small enterprises with practical and technical skills that match the needs of priority economic sectors, including manufacturing, construction, ICT, energy, agriculture, and hospitality. By doing so, the SDF aims to enhance employability, support private sector growth, and promote inclusive economic development.

Implemented by the Rwanda TVET Board (RTB) under the Priority Skills for Growth and Youth Employment (PSGYE) program, the SDF operates as a challenge fund that provides matching grants to eligible training institutions and enterprises. It promotes innovative, short-term training solutions, encourages partnerships between businesses and training providers, and focuses on improving the efficiency and relevance of skills development efforts. The SDF aligns with national strategies to boost employment and productivity through demand-driven, high-impact skills training.