This pre-feasibility study explores the potential for an impact bond to be developed and implemented in Kyrgyzstan in the employability and professional and vocational skills development arena, with a particular focus on youth, women and disadvantaged populations.

Through implementation of the medium-term National Sustainable Development Strategy (2021 - 2026), the Kyrgyz Republic envisages a highly educated nation equipped for technological innovation. It wants a growth trajectory that is less dependent on migrant remittances, natural resources, and a large informal economy. Yet such innovation requires a skilled workforce. A significant share of the youth and adults in the Kyrgyz Republic remain low-skilled and skills do not meet the needs of the 21st century. The COVID-19 pandemic and its negative impact on schooling and vocational training are likely to have further exacerbated skills deficits. The return of migrants to Kyrgyzstan due to the pandemic are placing additional pressures on an already struggling domestic labour market.