An agreement on additional funding for the Azerbaijan Employment Support Project (AESP) between the World Bank (WB) and the Government of Azerbaijan will be signed in the coming days.

Axar.az reports that this was shared by the World Bank.

Additional funding of $150 million was approved in July 2024 to expand the program.

The additional financing will continue supporting Azerbaijan’s Self-Employment Program (SEP) by expanding its outreach to new sectors such as manufacturing and services to promote diversification of economic activity and resilience against shocks. Furthermore, this financing will provide an opportunity to pilot an improved cash-based grants scheme, which will allow beneficiaries to utilize funds to expand their businesses.

The additional financing for AESP will also improve the capacity of the Azerbaijan Public Employment Agency to expand its range of services and programs for jobseekers. Through this new support the agency will implement additional active labor market measures, such as on-the-job-training, wage subsidies, an apprenticeship program, vocational training development, and certification fee reimbursement for selected occupations. These programs are expected to stimulate the employment of jobseekers, including women and other vulnerable populations, and increase their employment opportunities in manufacturing and services sectors.

To date, $87.8 million has been disbursed out of the total commitment of $100 million under the project. As of the end of November 2024, over 80,000 applications were submitted, of which more than 29,000 participants were selected. Over 27,000 people received business skills training, and about 19,000 participants received assets to start their own businesses.

The project started in 2020 and is implemented by Azerbaijan's Ministry of Labor and Social Protection of Population. The project implementation period has been extended until December 31, 2029.