Developing Skills for Tanzanian Youth Through Dynamic TVET A World Bank Policy Note for Tanzania – Mainland DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET A World Bank Policy Note for Tanzania – Mainland 1 September 1, 2023 1. This policy note was prepared by the World Bank Tanzania education team led by Xiaoyan Liang (Lead Education Specialist), including Eilleen Xu (Consultant), Innocent Mulindwa (Senior Education Specialist), Kaboko Nkahiga (Senior Education Spe- cialist), and Gemma Todd (Education Specialist), under the overall guidance of the Education Practice Manager, Safaa El Tayeb El-Kogali. Henry Kulaya and George Senyoni (Consultants) contributed to the background research and reports. Advice was also received from Lianqin Wang (Lead Education Specialist), Huma Ali Waheed (Senior Education Specialist), and Ruth Karimi Charo (Senior Education Specialist). The team is grateful for the guidance and support from the World Bank Tanzania Country Management led by Nathan Belete (Country Director), Preeti Arora (Operations Manager), and Aneesa Arur (Program Leader), as well as the administrative support provided by Caroline Kingu (AECE1), Celia Faias (HAEE1), and Yvonne Mwenewanda (AECE1). The note was formally consulted with the government TVET stakeholders on June 6, 2023.  Written comments were received from the Ministry of Education Science and Technology (MOEST), the National Council of Technical and Vocational Education and Training (NACTVET), Tanzania Education Authority (TEA) and Vocational Education and Training Authority (VETA) and incorporated in the final note as relevant. We would also like to extend our gratitude to Moshi J. Lukindo for their outstanding photography that have enriched the visual content of this policy note. We would also like to acknowledge Mkuki na Nyota Publishers for the beautiful design and printing of this policy note. TABLE OF CONTENTS EXECUTIVE SUMMARY 1 INTRODUCTION 7 ECONOMIC AND EMPLOYMENT STRUCTURE AND LABOR FORCE 9 ECONOMIC AND EMPLOYMENT STRUCTURE 9 LABOR FORCE PARTICIPATION AND CHARACTERISTICS 12 TANZANIA TVET AND SKILLS DEVELOPMENT SYSTEM 15 OVERVIEW OF STRUCTURE AND GOVERNANCE 15 ACCESS AND EQUITY IN TVET 18 QUALITY AND RELEVANCE OF TVET PROGRAMS 20 FINANCING OF TVET AND SKILLS DEVELOPMENT 29 SKILLS DEVELOPMENT FUND UNDER MOLE AND MOEST (TEA) 32 QUALITY ASSURANCE REGULATION 35 TVET MANAGEMENT INFORMATION SYSTEM 36 OPPORTUNITIES AND RECOMMENDATIONS 37 SUMMARY OF RECOMMENDATIONS TABLE 42 REFERENCES 44 1 EXECUTIVE SUMMARY Tanzania’s rapidly growing population, particularly 2021. Although there has been a slight shift toward its youth, faces challenges in entering the labor the service and manufacturing sectors in terms of market due to limited employable skills. In response, employment, the agriculture sector remains the since 2016, the government approved a ten-year largest employer, absorbing 61.8 percent of the labor National Skills Development Strategy (NSDS) and force in 2020. Formal wage employment in Tanzania started reforms in the technical and vocational has only marginally increased from 13.8 percent in education and training (TVET) sector, supported by 2014 to 14.0 percent in 2020/2021. The proportion various development partners. These reforms aim of highly skilled occupations in the workforce has to increase TVET enrollment, strengthen the skills declined during this period. Informal employment development systems, and align training programs remains significant, particularly in Dar es Salaam, with with the demands of the labor market. While progress an increasing trend in rural and other urban areas has been made, there is a need to take stock of and since 2014. These trends highlight the current low scale up successful reforms to generate significant level of formalization and industrialization in Tanzania. impact. At the same time, there are evolving global, national and local contexts that affect the landscape, Labor force participation and characteristics. priorities and impact of the skills development system Tanzania has a high labor force participation rate, in Tanzania. with rural areas showing the highest participation, particularly in own account farming. While the overall This policy note first reviews the demand-side factors labor force participation rates in Mainland Tanzania including Tanzania’s economic, employment, and have slightly decreased from 86.7 percent in 2014 labor force characteristics, then it critically analyzes to 83.3 percent in 2020/2021, the average level of the TVET and skills development system2. It draws education of the labor force has increased, with a from existing studies and available data to provide rise in the proportion of individuals with a university an overview of key sector issues and highlights the or secondary education. However, individuals with challenges that require attention as they relate to higher education face unemployment at higher rates. cultivating employable skills for all Tanzanian youth. The youth unemployment rate has also increased This policy note complements the World Bank Policy slightly. These trends highlight the mismatch or low Note on “Strengthening Basic Education System and level of coordination between formal education and Improving Learning Outcomes” and offers timely input the needs of the labor market. to the government’s ongoing effort to strengthen the TVET sector. TVET structure and governance. The Tanzania TVET system complements the general education Economic and employment structure. Agriculture, by providing TVET pathways for students and youth manufacturing, and services are the dominant who finish or drop out of the general education economic sectors in Tanzania, collectively contributing system. A TVET pathway can be pursued at the Folk 90.0 percent of the gross domestic product (GDP) in Development Colleges (FDCs), the Vocational Training 2. According to UNESCO, TVET comprises education, training and skills development relating to a wide range of occupational fields, pro- duction services and livelihoods. It empowers individuals, organizations, enterprises and communities and fosters employment, decent work and lifelong learning thereby promoting inclusive and sustainable economic growth and competitiveness, social equity and envi- ronmental sustainability. Throughout the policy note, the terms TVET and skills development system are used interchangeably and refer mainly to the myriad of institutions and programs organized to cultivate employable skills after the basic education stage. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 2 Centers (VTCs), or Technical Colleges (TCs). To Council for Technical and Vocational Education and further strengthen its TVET, Tanzania has developed Training (NACTVET) is mandated to accredit all public a national qualifications framework (NQF). Although and private TVET providers and provide quality the NQF is not yet fully operational, it aims to improve assurance. The government envisaged a National the articulation between general education and TVET Skills Development Council (NSDC) platform as part subsystems and bridge the gap between a TVET of the NSDS but has yet to come to consensus on education and labor market requirements. Governance the mandates and composition of such a body and of TVET and skills development is shared among reevaluate its relationship with existing TVET MDAs. several Ministries and regulatory agencies, including To date, there is not yet an apex-level coordination the Ministry of Education, Science and Technology mechanism for TVET policies and stewardship. (MOEST), the Prime Minister’s Office–Labour, Youth, Employment and Persons with Disability (PMO- Access and equity in TVET. Despite significant LYED), and other line Ministries such as Agriculture, expansion in the last decade, the TVET sector in Tourism, Finance, Health, and Transport that also Tanzania has very limited coverage, with a total operate their own training institutions. The National enrollment of half a million and gross enrollment DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 3 ratio (GER) of only 2.5 percent in 2020/2021. The Links between industry and TVET. The quality and expanding network of FDCs and VTCs, with flexible viability of a TVET system hinge on the scope and depth entry requirements and exits, plays a crucial role in of its industrial partnerships. Tanzania established the enrollment of out-of-school youth and dropouts several Sector Skills Councils (SSCs) as system-level from primary and lower secondary schools, as well links with the productive sector, but the SSCs seem as girls seeking alternative skills pathways after to be set at too high a level with mixed ownership by pregnancy and childbirth. TCs recruit students from the private sector and are not yet producing concrete lower secondary O-level graduates and provide two to benefits. At the same time, several decentralized and three years’ certificate or diploma programs in various more sustainable mechanisms of industry links at trades. The majority of TC students (67.0 percent) are the provider level is emerging and gaining traction. enrolled in three main programs: business, medicine Notable institution-based approaches include the and health sciences, and social science, leaving less installation of Industry Advisory Committees (IACs), than a third enrolled in STEM fields. The PMO-LYED updating of programs based on industrial standards, targets out of school youth and employee training. and carrying out regular graduate tracer studies in It operates several skills development programs each TVET institute, sometimes at the faculty and including apprenticeship, but the scale is also limited. program level. These practical measures directly The sector has also sought to improve access to impact the TVET programs to be demand driven. TVET with greater attention to equity; while the sector Efforts are also underway in NACTVET to update its has traditionally been male-dominated, efforts have accreditation requirements, develop industry-aligned been made to reduce gender disparity. occupational standards and model TVET curriculum to reorient TVET programs. It is important for the Quality and relevance of TVET programs. The quality TVET system to have mechanisms, at system as well of FDCs, VTCs and TCs could better prepare graduates as provider level, to reflect the ever-evolving labor for the labor market. Graduates of FDCs and VTCs market demand, through reforms in governance and tend to enter the labor market with a low-level skills quality assurance as well as financial incentives. certificate, and there are limited pathways for them to continue their formal education or training. Similarly, Qualifications and competencies of TVET trainers. there are concerns about the quality and relevance The TVET sector requires more qualified trainers, of some programs in TCs, such as engineering, skilled with industry experience as most trainers petrol, and gas programs, which have the lowest only possess academic qualifications. The number completion rates, below 50 percent. Tracer studies of TVET staff with skills certificates is quite low. have highlighted the strengths and weaknesses of Additionally, TVET academic staff have limited TVET programs in terms of labor market outcomes. access to continuous professional development These include disparities in employment rates across and industrial attachment opportunities. It is also sectors and institutions; weak connections between important to recruit more female trainers, to address TVET providers and industry, with most graduates gender disparity. The Gender Parity Index (GPI) is earning below 1 million T Sh per month; limited higher among vocational and education training (VET) access to professional training for TVET graduates; academic staff than technical and education training and low job satisfaction among TVET graduates. (TET) academic staff. However, there remains great potential for growth as TVET gains recognition as a viable alternative type of Financing of TVET and skills development. Sources education. Some studies reveal that employers tend of financing for TVET in Tanzania include government to prefer ordinary diploma and certificate holders who appropriations, student fees, and the national skills possess practical skills gained from TVET programs, levy. The government budget for TVET was increased as opposed to degree holders from universities. between 2016 to 2020, but it needs to be sustained. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 4 Government could further improve the efficiency Quality assurance regulation and TVET of public spending by adopting performance management information system. To enhance based funding formula such as capitation grant or quality assurance regulation in the TVET sector, competitive fund to promote priority programs. TVET the government established National Council for institutions generate their own income mainly from Technical and Vocational Education and Training student fees, but the funds generated are limited (NACTVET) by merging the regulatory roles of due to the government fee caps. Tanzania has the VETA and NACTE into one single regulatory body. highest skills development levy (SDL) in the world, While NACTVET is making commendable efforts with 4 percent of wage bill from every employer to update occupational standards in collaboration with more than four employees. While this indicates with lead industries, it needs to update its institution a strong commitment by the Tanzania employers and program accreditation standards to better align to skills development, there is a need to review with occupational standards and link with industry the transparent and effective use of SDL toward requirements. The composition of the subject skills development. The SDL is allocated to higher panels could be regularly reviewed to maximize education loans, Vocational Education and Training the participation of industries. The development of Authority (VETA), and PMO-LYED skills development the Skills Management Information System (SMIS) fund, but employers are not directly refunded for aims to address the lack of consolidated data to the training they provide. SDL funding is yet to be enable evidence-based discussions on TVET issues. channeled to NACTVET which has recently become However, full integration of the SMIS database into the single TVET regulatory body in Tanzania, or to any the main NACTVET database is pending. TVET providers other than VETA. Beyond the traditional accreditation and requiring Skills development funds under the PMO-LYED and compliance to minimum standards, it is important MOEST. The PMO-LYED operates a skills development for NACTVET to develop capacity and adopt fund scheme to finance youth skills development. This mechanisms to support the TVET providers to program, funded by the SDL, includes apprenticeships, deliver demand driven programs. NACTVET’s internships, recognition of prior learning (RPL), and new vision includes not only updating its standards, reskilling/upskilling. In 2016, with support from the but also modernizing its processes, as well as World Bank’s Education and Skills for Productive Jobs developing products and services targeting various (ESPJ), the Tanzania Education Authority (TEA) under TVET stakeholders. Globally promising approaches MOEST also established another skills development include developing a national TVET resource bank fund to expand skills development and support with digitized programs including hybrid and virtual the NSDS. The TEA tracer study showed that the labs, national skills certificate centers, organizing energy sector had the highest employment rate (92 skills competition, TVET research and publication, percent), followed by the agriculture and construction and various leadership, advocacy and other capacity sectors (87 percent). Graduates from the information building courses. and communications technologies (ICT) sector had the lowest employment rate (61 percent). The main The government is well-positioned to transform its challenge faced SDF graduates was obtaining loans TVET and skills development system to be more for business startups. inclusive, flexible, demand driven and aligned with the labor market. The sixth government led by President Samia Suluhu Hassan is introducing reforms in education and training with an aim to upgrade the skills of all Tanzanians. The government DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 5 firmly embraced 10-year free and compulsory basic Strengthening industry links and quality education which, if implemented well, will lay the assurance to ensure demand-driven relevant foundation for continuous education and training in TVET programs are implemented across TVET. For TVET, the government pledges to improve the board at the system level; at the same access, quality and relevance of all existing programs time institutionalizing strong internal quality as well as introducing new vocational streams at assurance for programs to reflect up to date secondary level. Challenges and opportunities are occupational standards, trainers to meet both both abound. academic and skills requirements, workshops and labs align with the industrial requirements The policy note provides timely analysis, within each and every TVET institution. perspectives, and broad brushed recommendations for the government to consider as it develops a Ensuring sustainable public financing and medium and long term TVET strategy. More detailed promoting performance-based financing recommendations are presented in the Summary of for TVET and skills development. If TVET Recommendations and Suggestions section of the is truly a priority, it’s financing needs to be note. Obviously more stakeholder consultation is consistently reflected in the government warranted especially for designing and implementing spending. Globally, countries tend to dedicate measures towards improving the governance and between 10-15% of public education spending financing of TVET. At the same time, sustained to TVET. Government could consider adopting capacity building is needed for TVET policy makers unit cost-based capitation grants for public and providers to create a conducive environment for TVET programs, at the same time promoting enhanced institutional autonomy and accountability. performance-based financing to encourage excellence and implementation of national Strengthening the national TVET system priority programs. The Centers of Excellence stewardship and policy coherence by (COE) and Flagship Institutes that promote improving coordination of various MDAs institutional autonomy and industry links are through a working level inter-ministerial promising approaches that are currently being steering committee with clear roles and piloted and can be scaled up. responsibilities. At the same time, it is important to fully staff and strengthen the Reviewing the allocation, transparent use, technical capacity of the lead MDAs of MoEST and the impact of the SDL, which is high in and NACTVET in executing its mandates. Tanzania and could be improved to better benefit the TVET sector and employer-based Improving inclusive access and providing training. The recommendations will guide the equity-based and industry relevant programs operational modalities including functionality that target poor, rural, and vulnerable segments of sub-funds of the SDL or other funds set up of the population. Successful country systems in different sectors. tend to have between 25% to 50% of upper secondary and tertiary enrollment in TVET. Reviewing the national tertiary fee structure Successful pilots implemented in the last to potentially lift the fee caps for higher phase of NSDS can be scaled up, including education and technical education programs the skills development funds, the bursary to relieve the public finance pressure and schemes for the vulnerable youth, and fee create a more conducive environment for waiver for pregnant girls and young mothers private provision. Coupled with this is the need pursuing skills development . At the same time, to strengthen the autonomy and accountability innovative programs leveraging the latest ICT of public providers. can be piloted to broaden the access of TVET. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 6 DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 7 INTRODUCTION Tanzania has the fourth largest population in Sub-Saharan Africa, with 62 million inhabitants as of 2022. The population is growing at a rate of 3.2 percent and projected to reach 78 million in 2030. It is a young nation with 19.6 percent of the population ages 15–24 and a population with a median age of 18. Every year over 800,000 young people enter the labor market with low academic qualifications. A significant proportion of them have dropped out of the formal education system at primary or O-level secondary education. These youth have low academic qualifications and few employable skills, and hence they face a difficult transition to the labor market. The government recognizes the importance of education and skills for economic and social development and is keen to tap the strengths of the youth population bulge. One approach has been to embark on reforms in the technical and vocational education and training (TVET) sector as an integral part of the national Five-Year Education Sector Plan (2016/2017 to 2021/2022) and the National Skills Development Strategy (NSDS) (2016/2017 to 2025/2026). These reforms have been designed in consultation with stakeholders and prevailing best international practices to produce more TVET graduates with skills to meet the demands of the labor market. Development partners have been supporting the implementation of the NSDS. For example, the World Bank, through two ongoing programs, Education and Skills for Productive Jobs (ESPJ) and East Africa Skills for Transformation and Regional Integration Project (EASTRIP), have been providing technical and financial assistance to strengthen Tanzania’s TVET system and to expand TVET coverage, especially in priority sectors defined by the national Five-Year Education Sector Plan and the NSDS. The sectors include agriculture, tourism and hospitality, energy, transport and logistics, construction, and information and communications technology (ICT). Over the last five years, TVET in Tanzania has expanded significantly with annual enrollment growing at more than 10 percent per year. In 2022, there were 530,000 students enrolled in the country’s 1,324 public and private TVET institutions, including 440 technical institutions, 830 vocational institutions and centers, and 54 folk development colleges (FDCs), enabling students to pursue formal certificates, diplomas, degree programs, and short-term demand-driven programs (NACTVET 2023). Though still small relative to the population, the size of the TVET skills sector is almost three times that of the higher education sector in Tanzania. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 8 There have also been commendable efforts to strengthen the TVET system. Reforms have been carried out or recently incubated in Tanzania with varied success, such as the Skills Development Levy (SDL), with significant contribution from employers to serve as an integral part of Tanzania’s skills financing, streamlining quality assurance, establishing skill sector councils in priority sectors, developing national qualifications framework and occupational standards, strengthening links with private sector, implementing a Skills Management Information System (SMIS), and establishing a Skills Development Fund (SDF) managed by Tanzania Education Authority (TEA) under the Ministry of Education, Science and Technology (MoEST). Tanzania levies 4 percent of wage bill from employers with four or more employees, the highest in the world according to an International Labour Organization (ILO) study. However, these reforms are largely at the system level and have yet to be taken to scale at the operational levels to generate significant impact at the beneficiary level. The policy note aims to review the progress to date, analyze the ongoing challenges at system- and service-delivery levels, as well as to offer recommendations on the way forward. It examines evidence from both the demand side of the labor market and the supply side of the skills system, and it benchmarks Tanzania with examples of relevant fellow East African countries as well as others from around the world. The note complements the “Improving Basic Education Learning Outcomes” Policy Note (World Bank 2023), which discusses the challenges faced in foundational learning in Tanzania. Basic numeracy, literacy, and socioemotional skills are the fundamental skills that students acquire during their basic education. These skills form the foundation upon which further education or vocational training can build. There is a wealth of evidence that demonstrates the critical importance of foundational skills in achieving academic success and lifelong learning. According to UNESCO (2022), strong foundational skills in reading, writing, and mathematics are essential for students to access higher-level learning opportunities and participate effectively in modern societies. The note provides a foundation for the ongoing dialogue between the Government and the World Bank on the upcoming pipeline program, the Education and Jobs for Productive Jobs II, which focuses on skills development. The note seeks to have a broad, positive impact on all stakeholders within the TVET sector, by serving as a common reference point. Recommendations are provided to facilitate collective engagement and foster a shared understanding among various actors, including TVET providers, industries, and development partners. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 9 ECONOMIC AND EMPLOYMENT STRUCTURE AND LABOR FORCE ECONOMIC AND EMPLOYMENT STRUCTURE Agriculture, manufacturing, and services3 are the the total labor force, while manufacturing includes three major economic sectors in Tanzania, and they only 8 percent. From 2014 to 2020, there was a collectively contributed 90 percent of GDP in 2021. slight decrease in agriculture employment, from More specifically, agriculture makes up 26 percent; 67 percent to 62 percent; an increase in service manufacturing constitutes 29 percent; and services, sector employment, from 27 percent to 31 percent; which includes tourism, contributes 34 percent of and a slight increase in manufacturing employment, GDP (Statista 2023; World Bank 2023). from 7 percent to 8 percent. Women’s employment increased in manufacturing, from 3 percent in 2014 Over time, while there has been a slight shift in to 4 percent in 2020/2021, and in services, from 27 employment toward service and manufacturing percent in 2014 to 35 percent in 2020/2021, while sectors, agriculture remains the most significant their agricultural activities declined from 67 percent sector, employing 62 percent of the total labor in 2014 to 61 percent in 2020/2021. force as of 2020 (figure 1). The service sector, which includes tourism, represents 30 percent of 3. Agriculture includes agriculture, forestry and fishery. The service sector also includes tourism in addition to government, insurance, education, banking, retail, and social services. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 10 Majority of the workers in agriculture, tourism and relevant to their activities. There is a critical need for fisheries are unskilled and have not gone through colleges around the community to focus on providing the formal education system. They include peasants, skills and reskilling the community through short tour drivers, fishermen etc., they don’t have skills courses related to the community activities. Figure 1: Employment by industry, 2014 and 2020/2021 Source: NBS 2014 and 2022. Note: Data include workers ages 15 and older. Formal wage employment has witnessed a minimal workers or self-employed category has significantly increase of 0.2 percentage points from 13.8 percent increased from 47.0 percent in 2014 to 54.2 percent in 2014 to 14.0 percent in 2020/2021. Own account in 2020/2021 (see figure 2). Figure 2: Percent of total employment by status, 2014 and 2020/2021 Source: NBS 2022. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 11 The share of employment for more highly skilled to 14.5 percent. The decline in the share of skilled occupations has declined from 2014 to 2020/2021. workers in agriculture and fishery occupations, as Skilled agriculture and fishery workers decreased from well as technicians and associate professionals, is 66.3 percent in 2014 to 58.9 percent in 2020/2021 alarming. It could mean that the quality of jobs may (see figure 3). Employment of technicians and be declining, there is a shortage of skills in these associate professionals declined from 2.2 percent in occupations, or a combination of both. If this trend is 2014 to 0.6 percent in 2020/2021. On the other hand, not addressed, these sectors will experience decline over the same period of time, the share of workers in in productivity and competitiveness. elementary occupations increased from 10.9 percent Figure 3: Percent of total employment by occupation, 2014 and 2020/2021 Source: NBS 2022. Total employment in the informal sector remains increased, from 8 percent in 2014 to 19 percent in high, especially in Dar es Salaam. Informal 2020/2021. The increase in employment can also be employment has been increasing in rural and some seen in some urban areas where the informal share urban areas since 2014, with the exception of Dar es of employment increased from 40 percent in 2014 to Salaam. In rural Tanzania, informal sector employment 53 percent in 2020/2021. Dar es Salaam, however, increased from 22 percent in 2014 to 29 percent in experienced a significant decrease in informal 2020/2021, especially in male employment, which employment from 73 percent in 2014 to 68 percent shifted from 10 percent in 2014 to 20 percent in in 2020/2021. 2020/2021 (see figure 4). Female employment also DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 12 Figure 4: Percent of total employment in the informal sector, 2014 and 2020/2021 Source: NBS 2022. Note: Data include workers ages 15 and older. LABOR FORCE PARTICIPATION AND CHARACTERISTICS Labor force participation is high in Tanzania (83.3 Dar es Salaam maintained its LPR at 76.2 percent percent) and relatively stable over the last few in 2014 and 76.4 percent in 2020/2021, labor force years. Rural labor force participation is the highest participation in some urban areas declined from 84.4 at 85.1 percent and includes own account farming. percent in 2014 to 80.4 percent in 2020/2021. There However, labor participation rates (LPR) for mainland has also been a slight decline in rural areas, from 89.8 Tanzania have decreased from 86.7 percent in 2014 percent in 2014 to 85.1 percent in 2020/2021. to 83.3 percent in 2020/2021 (see figure 5). While Figure 5: Labor participation rate, 2014 and 2020/2021 Source: NBS 2022. Note: Data include workers ages 15 and older. Tanzania labor force’s average level of education from 13 percent to 15 percent. However, over the same increased slightly from 2014 to 2020/2021. The period of time, while the proportion of the labor force proportion of labor force with a university education with only primary education or who never attended increased from 1 percent in 2014 to 2 percent in school declined, there were also fewer in the labor 2020/2021. There was also an increase in workers force with tertiary / nonuniversity and vocational who had a secondary level of education, climbing training education levels (figure 6). DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 13 Figure 6: Percent of labor force, by level of education and area, 2014 and 2020/2021 Source: NBS 2022. Note: Data include workers ages 15 and older. The data show a concerning trend of a negative job seekers and employer demands contribute to correlation between the level of education and the high rates of unemployment among educated employment (figure 7). Individuals with higher individuals (OECD 2021). These issues underscore education are more likely to face unemployment. The the need for policy makers to focus on improving the data reveal that the unemployment rate for individuals labor market outcomes for individuals with higher who never attended school decreased from 10.0 levels of education. This could include initiatives percent in 2014 to 6.1 percent in 2020/2021. Similarly, to improve the education and TVET systems to those who completed primary education saw a decline deliver higher quality education and relevant skills, in unemployment rates from 9.9 percent in 2014 such as training programs, apprenticeships, and to 8.7 percent in 2020/2021. However, individuals targeted career guidance to better match the skills of who completed secondary education have a higher educated individuals with available job opportunities. unemployment rate than those who never attended The TVET sector has also started addressing this school or just completed primary education. issue by developing Occupational Standards with the involvement of the industries and international The findings, which are consistent with other experts from countries with best practices to make research, suggests that a lack of suitable job sure that the produced workforce meets both local opportunities and a mismatch between the skills of and international labour market demands. Figure 7: Unemployment rates by level of education, 2014 and 2020/2021 Source: NBS 2022. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 14 The youth unemployment rate increased slightly been a decline in youth unemployment, from 42.4 from 13.7 percent in 2014 to 14.7 percent in percent in 2014 to 35.1 percent in 2020/2021 (see 2020/2021. Rural areas have experienced an figure 8). Other urban areas have also witnessed increase in unemployment of youth ages 15–24, from a slight decline in youth unemployment from 17.0 8.9 percent in 2014 to 12.3 percent in 2020/2021. percent in 2014 to 16.8 percent in 2020/2021. However, in cities such as Dar es Salaam, there has Figure 8: Youth unemployment rates, 2014 and 2020/2021 Source: NBS 2022. Note: Data are for unemployment rates of youth ages 15–24. The trends of employment and labor force illustrate a increased overall, the share of employment in more low level of coordination between formal education highly skilled occupations has declined. Overall, the and the needs of the labor market in Tanzania. The trends in employment and the labor force suggest that agriculture sector continues to employ the majority there is a need for a more coordinated and targeted of those in the labor force, and employment in the approach within the TVET system. Government and informal sector increased from 2014 to 2020/2021, stakeholders can work together to leverage the while the proportion of the labor force with tertiary / potential of the TVET system to promote economic nonuniversity and TVET training has declined. During growth, create formal employment opportunities, and the same time period, youth unemployment increased enhance Tanzania’s competitiveness in response to slightly. While the education levels of workers have evolving labor market dynamics. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 15 TANZANIA TVET AND SKILLS DEVELOPMENT SYSTEM OVERVIEW OF STRUCTURE AND GOVERNANCE The TVET and skills development system in Tanzania has also developed a national qualifications Tanzania complements the general education and framework (NQF) . The framework that covers provides formal, nonformal, and informal training to the entire education system from Basic Education youth as well as adults who are outside of the general Awards National Vocational Awards, National education system. TVET is provided through the folk Technical Awards, University Awards, Professional development colleges (FDCs), vocational training Awards as well as Recognition of Prior Learning centers (VTCs), and technical colleges (TCs). After the (RPL) and nonformal education obtained from other seven years of primary education, students can enroll training providers. This NQF, when fully operational, in either O-level secondary education or vocational will provide flexibility by allowing graduates to move training in FDCs and VTCs. After O-level secondary to other education system across the framework education, students can proceed to A-level secondary, vertically as well as horizontally (figure 9). teacher education, vocational training in VTCs or TCs. Those at the advanced level can opt for universities or TCs. FDCs are technically open to anyone who can read and write to acquire skills (figure 9). DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 16 Figure 9: Education/TVET structure DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 17 Governance of TVET and skills development is The Prime Minister’s Office–Labour, Youth, shared among several ministries and regulatory Employment and Persons with Disability (PMO- agencies. The Ministry of Education, Science and LYED) is responsible for labor market policies, Technology (MOEST) is the lead ministry for TVET, and employment services, and labor market analysis. Its the TVET Training Division of MOEST is responsible priorities are to promote job creation and employment, for developing TVET policies, guidelines and especially for small businesses and entrepreneurs, standards. This division oversees the management and to facilitate employment especially youth, women of TVET institutions, including specialized technical and people living with disabilities. It is responsible secondary schools, several TCs and FDCs, which for development of skills through apprenticeships, focus on primary school dropouts and out-of-school internships, recognition of prior learning (RPL), and youth. Other line ministries such as agriculture, reskilling/upskilling based on the demand from the finance, health, labor and youth, and tourism also sectors. The PMO-LYED implements its own work- manage their own training institutes. based skills development programs in areas such as internships for graduates, formal apprenticeships, RPL The Vocational Education and Training Authority through informal apprenticeships, skills upgrades, (VETA), established by a 1994 Act,4 is responsible and other modular or short-term programs. The PMO- for provision of vocational education and training LYED has a major skills development fund which has (VET) at post primary and post lower secondary appropriation from the Skills Development Levy (SDL) levels. Formerly, VETA was both a regulatory agency contributed by the employers. This Ministry is also and a major training provider, until 2022, when its responsible for skills forecasting and labour market regulatory mandate was shifted to the National information needed by training providers in order Council for Technical and Vocational Education and to enable them to provide relevant skills needed by Training (NACTVET). VETA has now remained with the labour market. one function as a provider of vocational education and training and currently it owns 45 vocational The abovementioned institutions are crucial training centres (VTCs). stakeholders in influencing and implementing reforms to the TVET and skills development system The National Council for Technical and Vocational in Tanzania. The strength of the system depends Education and Training (NACTVET) is the national on how well these institutions can coordinate their regulatory body of TVET. It was previously known as efforts to deliver on their mandates to support the NACTE, which was first established by a 1997 Act.5 TVET system. The National Skills Development NACTE was responsible for technical education Strategy (NSDS) has envisaged a high-level National and training (TET) at postsecondary, non-tertiary Skills Council (NSC) that would provide stewardship level, which comprises courses for technicians and and cohesion. Currently there is no overarching professionals. NACTE became NACTVET when coordination mechanism that brings together these it absorbed the regulatory function of vocational entities, NACTVET can be used to coordinate the education and training in 2021. NACTVET and its zonal duties of Skills Councils using its Subject Boards offices register and accredit all public and private Committees up until when the National Skills Council training centers at different levels, but NACTVET is is well established. not a training provider. 4. The Vocational Education and Training Act (1994) aims to improve TVET provision and management, and it has established the Vocation- al Education and Training Authority (VETA). 5. The National Council for Technical Education (1997) has established the National Council for Technical Education (NACTE), which over- sees technical education at tertiary / nonuniversity institutions. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 18 ACCESS AND EQUITY IN TVET The TVET sector experienced significant expansion 800 public and private VTCs have enrolled 68.8 during the last decade, but the overall TVET coverage percent of the total TVET students, while the remains very limited with a gross enrollment ratio TET programs have enrolled 28.5 percent of the (GER) of only 2.5 percent in 2020/2021. While students, and FDCs only 2.7 percent of students. there has been an increase in TVET GER, more could However, the coverage of TVET in proportion be done to improve access. A total of 553,200 to the growing youth population remains low, students are enrolled in TVET programs in especially in secondary TVET enrollment ratios Tanzania, including VTCs, TETs, and FDCs. The and in comparison, to several other countries leading providers are the VTCs under VETA whose (figure 10). Figure 10: Secondary TVET enrollment ratio Source: World Bank Gender Data 2023. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 19 More than two-thirds of TET students (67.0 The TVET sector tends to be male-dominated but is percent) enrolled in the following three programs making good progress in reducing gender disparity. in 2021/2022: business (24.3 percent), medicine and Due to strong efforts by the government, the Gender health sciences (23.5 percent), and social science Parity Index (GPI) showed TVET improved from 0.49 (19.0 percent). In the same year, the least selected in 2017/2018 to 0.69 in 2020/2021 for VET. GPI programs were humanities and arts (0.1 percent), revealed less steady improvement in TET programs, mining and earth sciences (0.2 percent), physical which increased from 0.86 in 2017/2018 to a high of sciences and mathematics (0.4 percent), tourism and 0.98 in 2019/2020 and then dropped slightly to 0.95 hospitality (0.7 percent), and environmental science in 2021/2022. Over the same period, GPI improved and forestry (1.0 percent). from 0.54 to 0.73 in FDCs (figure 11). Figure 11: Enrollment in TVET programs, by gender, 2020–2021 Source: MOEST 2021a. FDCs enroll out-of-school youth and dropouts from providing day care centers and waiving fees for poor primary and lower secondary schools, including youth, to encourage youth to receive skills training girls seeking alternative skills pathways after that will help improve their economic opportunities. pregnancy and childbirth. The government with As a result, enrollment nearly double from 7,079 in support from the ESPJ program has expanded the 2017/2018 to 16,457 in 2021/2022 (see figure 12). FDC network, devising innovative measures, such as Figure 12: Number of students enrolled in FDC, by gender, 2017–2022 Source: MOEST 2022a. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 20 QUALITY AND RELEVANCE OF TVET PROGRAMS Completion Rates and Graduate Employment Rates Completion rates help evaluate the quality and Other programs have seen a decline. Completion relevance of TVET programs, but engineering and rates in agriculture programs have dropped slightly, petrol and gas programs have the lowest completion moving from 88 percent in 2018 to 83 percent in 2020. rates of below 50 percent (figure 13). Completion Engineering program completion rates have dropped rates from 2018 and 2020 have been found to vary even more significantly, from 76 percent in 2018 to across programs. Program completion rates for 46 percent in 2020. Completion rates in petrol and some sectors have improved significantly, such as gas programs dropped from 79 percent in 2018 to 46 for tourism and hospitality, which has risen from 59 percent in 2020. The decline in the completion rates percent in 2018 to 81 percent in 2020. Over the same for petrol and gas and engineering programs is most period of time, there has also been improvement concerning since the government has been heavily in information and communication programs; investing in these sectors. completion rates rose from 67 percent to 72 percent. Figure 13: Completion rate in VET programs, 2018–2019 Source: MOEST 2021b. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 21 Tracer studies provide useful information of graduates from Arusha Technical College about the strengths and weaknesses of TVET (ATC), National Institute of Technology (NIT), programs as they relate to labor market and Dar es Salaam Institute of Technology (DIT). outcomes. While studies carried out by VETA in However, while these three Tanzania institutions 2018 indicate that 67 percent of the graduates achieved a graduate employment rate of are employed within one year of graduation, more than 60 percent, others such as the DIT studies commissioned under the World Bank’s Mwanza only achieved 20 percent. Moreover, East Africa Skills for Transformation Project the employment rates of the abovementioned (EASTRIP) reveal a more complicated set of institutions include own account self-employed findings, notably the disparity in employment businesses, and it would be useful to conduct an rates across various sectors and institutions. assessment on these businesses to explore the With the support of the World Bank’s EASTRIP strengths and challenges faced by graduates, program, the regional flagship TVET institutes as these businesses transition to mid-level (RFTIs) regularly monitor the employment rate employers/sizeable ventures that employ other of their graduates, and their 2022 data show workers (figure 14). significant improvement in the work placement Figure 14: Graduate employment rate in EASTRIP RFTIs within six months of graduation Source: EASTRIP Results Framework 2022. Note: RFTIs: Regional Flagship Technical Vocation Education and Training (TVET) Institutes. Tracer studies indicate weak links between Mwanza revealed that 81 percent found employment providers of TVET education and industry jobs. through relatives, friends or/and colleagues. For When relatives, friends or/and colleagues are the ATC Kikuletwa, among the 227 graduates who main source for graduates to find jobs, this may responded to the study, many cited two primary reflect a mismatch between the TVET providers’ skills sources of information as the means to finding training and industry needs. The tracer study from DIT employment: relatives, friends or/and colleagues (41 DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 22 percent); and the internet (33 percent). Referrals/ not have funds to support them in further trainings, school endorsements (5 percent) were the least used and an additional 9 percent said training was not a source of information among the ATC graduates in priority. In the DIT Dar es Salaam tracer study, 63 their search for employment, while 8 percent used percent of respondents said they did not participate industrial links to secure employment. Among NIT in further training after graduation, with 68 percent graduates, 63 percent preferred relatives and friends indicating the reason was due to a lack of funds to as the sources of employment information, while 14 pay, 10 percent mentioning they did not find training a percent relied on newspapers, television and radio. priority, and 10 percent stating they found no relevant Also, 11 percent used government websites and other training course available. Thirty-seven percent education platforms, while 8 percent reported using attended further training, while 56 percent attended industry links during training and 3 percent relied on professional short courses, and 44 percent enrolled social media. The DIT Dar es Salaam tracer study in bachelor’s degree programs. reveals that 43 percent of respondents mentioned that they secured employment through friends, relatives There is low job satisfaction among graduates of or colleagues, 24 percent searched government or TVET programs. The DIT Mwanza tracer study found company websites, 12 percent used industry links, that 48 percent of graduates were not satisfied with and 10 percent relied on social media networks. their jobs, 43 percent reported they were somewhat satisfied, and only 9 percent were satisfied with their Salaries reported in tracer studies provide another current employment / self-employment. Among NIT measure to evaluate TVET programs. The NIT tracer graduates only 33 percent were satisfied, while 67 study found that 87 percent of graduates were paid were dissatisfied with their current employment. below 1 million T Sh regardless of the employer, Among respondents of a DIT Dar es Salaam tracer and only 13 percent of graduates received a salary study, less than 1 percent mentioned that they ranging between 1–2 million T Sh per month. DIT were somewhat satisfied, and 99 percent skipped Mwanza reported that 100 percent of respondents the question: “Are you satisfied with your present earned below 1 million T Sh per month. In contrast, employment/self-employment?” the DIT Dar es Salaam tracer study had a wider range of salaries: 55 percent of respondents earned below Employers prefer ordinary diploma and certificate 1 million T Sh per month, 38 percent earned between holders, indicating their preference for practical 1–2 million T Sh per month, 2 percent earned between skills gained from TVET programs. The tracer study 2–3 million per month, and 4 percent earned more from ATC Kikuletwa found that 45 percent of the than 3 million T Sh. employers who responded to the study preferred hiring ordinary diploma graduates, followed by Tracer studies show limited access to professional 23 percent who favored certificate holders, and training for TVET graduates. Tracer studies indicate 13 percent who preferred those with bachelor’s that after graduating, there is little continuous degrees. Results from DIT Mwanza revealed that 62 training among graduates. For example, 80 percent percent preferred hiring workers with certificates of graduates from DIT Mwanza did not participate and ordinary diplomas while only 1 percent preferred in further training while only 20 percent said they bachelor’s degrees or above. Given this employer were involved with further trainings after graduation. preference, there is great opportunity and potential Sixty-seven percent of graduates from ATC Kikuletwa for TVET programs to provide a more robust, skills- did not participate in further trainings, while 88 driven education to meet industry needs. percent of NIT graduates reported that they did DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 23 Industry, Government, and TVET Provider Links A demand-driven TVET system is one that regularly government adopted a flagship TVET model, which adapts programs to the evolving needs of the labor is based on a five-year performance contract signed market and industrial requirements for skilled labor. with competitively selected TVET colleges. This TVET Recognizing the role of the government in economic model is designed to pilot institution-based reform and education planning, many countries have that will strengthen long-term capacity for market- adopted a “triple helix” model of TVET governance, oriented training. With holistic interventions such as which refers to a set of interactions between industry, incorporating industry into college governance and government, and academia (TVET providers) management, undertaking labor market feasibility (Etzkowitz and Leydesdorff 1995). studies and graduate employment tracer studies, partnering with global leaders of TVET colleges The Tanzania NSDS previously called for the to renovate curriculum and staff capacity, and establishment of a National Skills Development building state-of-the-art training facilities through Council (NSDC) and Sector Skills Councils Strategic Investment Plans (SIPs), this model of TVET (SSCs). However, due to the concerns of financial development is already generating a high level of sustainability and lack of consensus on its core ownership and optimism. It is also cultivating a culture mandates and composition, the NSDC has not been of change for TVET programs. Enrollment in the four established. However, with support from ESPJ, the flagship TVETs has more than doubled since the government has provided initial funding to establish beginning of the model program. Sector Skills Councils (SSCs) for each of the priority sectors. The SSCs will be chaired by the private sector A notable approach to implementing the model has and include a majority of its own members. They will been the installation of Industry Advisory Committee function as intermediaries between the industry and (IAC) directly at each TVET institute, or even at the TVET providers, as well as between providers and the faculty or program level. More than 50 percent of government and regulatory units. Key expectations of IACs members come from leading industries. IACs SSCs are: (a) labor market intelligence to facilitate a play an active role in renewing training programs and clearer understanding of the skill needs for the sectors linking management, faculty, and students directly each SSC serves; (b) practical guidance to employers with employers. This model is being replicated in on training policy and practice to enable development Tanzania in the higher education sector with support of coherent view on policy developments; (c) from the new International Development Association development of standards based on qualifications, (IDA)-financed Higher Education for Economic competence-based training programs and tailored Transformation (HEET) which supports 19 public training provision to meet respective sector needs; universities and institutes to reorient its programs and and (d) capacity development to respond to sector strengthen capacity through a five-year University demands and on-the-job training needs. However, Strategic Investment Plan (USIP). Further, other TVET questions remain regarding the sustainability of the systems supported by EASTRIP including Kenya and SSCs after the initial ESPJ funding and the strength of Ethiopia are also scaling up the approach nationwide. private sector ownership of SSCs. Figure 15 illustrates a female trainee as aircraft maintenance engineer in NIT and a solar powered In Tanzania, a decentralized and more sustainable handicap trolley designed by ATC. model of industry links at the provider level is emerging. With support from the EASTRIP project, the DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 24 Figure 15: EASTRIP flight engineer and handicap trolly designed by ATC Source: EASTRIP Monthly Bulletin (left) and photo by author (right). This model approach reorients the TVET sector school and enterprise; enrollment and employment; to be demand driven at the program and provider and teachers and industry technicians. A global level. The integration between school and industry leader in this approach is the Singapore Institute of can happen at multiple fronts: work and study; Technical Education (box 1). knowledge and practice; industry and education; Box 1: How Singapore Transformed the TVET The Singapore Institute of Technical Education (ITE) is an esteemed postsecondary education institution and statutory board that operates under the Ministry of Education. In addition to offering vocational education to secondary school graduates, ITE provides apprenticeship programs for skilled trades and grants diplomas in vocational education to proficient technicians and workers in support roles across various professions. These professions include accounting, architecture, business administration, engineering, and nursing. Strategically, ITE has moved away from the term “vocational” to encompass and consolidate vocational, technical, and adult education services within a single ITE system, spread across three campus colleges. Its primary focus is to deliver technical education to students who have completed 10 years of basic education and fall within the bottom 25 percent of academic rankings. ITE places great emphasis on collaboration between industry and the government, ensuring its curriculum remains responsive to evolving needs. Over the course of two decades, it has developed into a world-leading institution for TVET. Notably, ITE was honored with the inaugural IBM Innovations Award in Transforming Government (2007) administered by the Ash Institute for Democratic Governance and Innovation at Harvard’s Kennedy School of Government. This further acknowledged ITE’s exceptional contributions and achievements. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 25 Qualifications and Competencies of TVET Trainers There is room to recruit more TVET trainers, Gender disparity is higher among VET than TET particularly female trainers. According to the TVET academic staff. The GPI among VET academic Indicator Report (MOEST 2021b), the prevailing staff is 0.23, while for TET it is 0.68. The TET student/trainer ratio in VET is 1:25 while in TET it is female academic staff constitutes 40 percent of total 1:10. These ratios are higher than the national standard staffing, with 18 percent having bachelor’s degree of 1:16 for VET and 1:8 for TET, and the government and 9 percent having master’s degree. VET’s female has sought to increase academic staff. The number academic staff constitutes 18 percent of total staffing, of academic staff under TET programs rose from with 1 percent having master’s degree, 3 percent 8,825 in 2018/2019 to 11,704 in 2021/2022, but the bachelor’s having degree, and 6 percent having GPI for academic trainers dropped significantly from ordinary diplomas. The gender disparity of academic 1.65 in 2019 to 0.36 in 2022. While male academic staff in the VET system persists, and the government staff has almost tripled from 3,320 in 2019 to 8,566 in could recruit more women to reach gender parity 2022, female academic staff has decline from 5,505 on staff. More female staff would help motivate and in 2019 to 3,138 in 2020. Academic staff in business, encourage female trainees to perform better during tourism and planning (BTP) programs has increased and after their studies. from 4,120 in 2019 to 5,818 in 2022 as well as health and allied sciences (HAS) programs which rose from 2,277 in 2019 to 3,610 in 2022 (see figure 16). Figure 16: Number of TET academic staff, by gender, 2019–2022 Source: MOEST 2019, 2020 and 2021a. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 26 There is a need to upgrade the academic PhDs make up only 0.3 percent of total staffing. There qualifications of staff, for both TETs and VETs. also needs to be gender parity in TVET academic More than half of TET academic staff hold bachelor’s staffing. Among the TVET staff, which totaled 761 in and master’s degrees, while a vast majority of VET 2021, 81.4 percent were men while only 18.6 percent academic staff only have ordinary diplomas and were women. technician certificates (see figures 17 and 18). TET academic staff have the following distribution of However, there is still a challenge of funds and academic qualifications: PhD (5.8 percent), master’s schemes to support upkeep of certifications especially degree (23.0 percent), postgraduate diploma (1.1 in professions which require industry attachments. percent), bachelor’s degree (41.8 percent), higher Some professions do not have skills certificates. diploma (0.3 percent), advance diploma (4.7 percent), The Government through its training institutions is and ordinary diploma (18.0 percent). The proportion making efforts to ensure that TVET staff in disciplines of TET staff with skills certificates is very low: full such as Engineering, Architects, Quantity Surveyors, technicians certificate (1.1 percent) and technician Aviation, Accounting, Procurement and others are certificate (4.1 percent). Thirty-five percent of VET staff skilled and certified. The Government is paying for have ordinary diplomas, 31.9 percent have technician TVET staff to undertake training for certifications, certificates, 18.1 percent have bachelor’s degrees, and attendance to professional workshops/conferences 6.0 percent have master’s. VET academic staff with and certification fees. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 27 Figure 17: Number of TET academic staff, by level of education and gender, 2021 Source: MOEST 2021b. Figure 18: Number of VET academic staff, by level of education and gender, 2021 Source: MOEST 2021b. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 28 TVET academic staff have limited access to in-service in 2018/2019 to 79 percent in 2019/2020. There is a training or industrial attachment opportunities. decline of academic staff from diploma / FDCs / VTCs Continuous professional development for academic who attended in-service training from 57 percent in staff is important not only to help improve skills and 2018/2019 to 38 percent in 2019/2020. On the other knowledge of staff but also to benefit trainees. There hand, there is an increase in share of academic staff is a mixed trend on the number of staff who attend with certificates who attend in-service training from in-service training annually. During 2017/2018 only 22 percent in 2018/2019 to 59 percent in 2019/2020. 230 TET staff attended in-service training compared The situation is very alarming for degree/masters- with 811 in 2019/2020. The number of VET academic level academic staff with only 3 percent attending in- staff who attended in-service training increased from service training in 2019/2020 compared with the 20 161 in 2018/2019 to 167 in 2019/2020. Male academic percent of degree/masters-level staff who previously staff contribute the majority share with 78 percent attended in 2018/2019 (see figures 19 and 20). Figure 19: Number of TET academic staff who attended in service training, 2016–2020 Source: MOEST 2021b Figure 20: Number of VET academic staff who attended in service training, 2018–2020 Source: MOEST 2021b. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 29 FINANCING OF TVET AND SKILLS DEVELOPMENT Financing of TVET and skills development in The proportion of government budget allocated Tanzania comes from the following main sources: to TVET has increased from 2016 to 2020, but it (a) the budget allocated by MOEST and other sector needs to be sustained and consistent. While the ministries, with recurrent expenditures including total government budgetary allocation to MOEST salaries and operational costs, as well as development has remained steady at around 1.4 billion T Sh for expenditures mostly contributed by development the last five years, allocation to the TVET subsector partners; (b) income generated by training providers; has increased from 60.4 billion T Sh (4 percent of and (c) a SDL paid by employers channeled through MOEST budget allocation) in 2016/2017 to 203.4 VETA and the PMO-LYED for skills development, and billion T Sh (15 percent of MOEST budget allocation) higher education student loans (which benefit only in 2020/2021 (MOEST 2021b). In nominal terms, the higher education students, not TVET students). It increase of more than 140 billion T Sh translates into is high time now to make sure that SDL is directed a 236.8 percentage increase in a period of five years to support middle level skills from short courses, (see figure 21). This level of government spending on certificates and diploma because they constitute TVET is high, especially compared with Kenya which the majority workforce required by the industry in devotes about 5 percent of government spending Tanzania. It is also required to finance vocational on TVET (see figure 22). However, half of the total education regulatory roles shifted to NACTVET from TVET spending in Tanzania is from development VETA, which was formerly financed by SDL when it assistance. It is not clear whether the government was under VETA ambit. will sustain such level of financing for TVET. Yet the Government’s commitment is required to apportion its own source of revenue in particular SDL towards TVET. Figure 21: Tanzania TVET actual spending, 2016–2021 Source: MOEST 2021b. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 30 Figure 22: Kenya TVET spending Source: Kenya MOE 2022. TVET in Tanzania receives financial support from 23), indicating a 153 percent increase in the nominal development partners. TVET Indicator Report (2021) development budget as well as reflecting high indicates that total funds from external sources government commitment to develop TVET. The World allocated to TVET increased from 40.4 billion T Sh in Bank provides TVET financing through the ESPJ and 2016/2017 to 102.5 billion T Sh in 2020/2021 (figure the EASTRIP programs. Figure 23: Development partners’ contribution to TVET budget (actual amount), 2016–2021 Source: MOEST 2021b. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 31 TVET institutions are engaged in income Training (TVET) Institutes (RFTIs) receive funding to generation, but funds are limited and mostly come develop short-term demand-driven programs and from student fees. While TVET providers can charge other income generation activities. There has been student fees, the fees are set by NACTVET and a sharp increase in the funds generated, especially range from 1 to 3 million T Sh (US$400 – US$1,200) in ATC and the NIT. However, generating income annually for a three-year ordinary diploma (NACTVET beyond the student fees is not yet a common practice Guidebook). The fee structure for technical colleges and needs to be encouraged and regulated by the has stagnated for a considerable number of years government. More autonomy can also be given to despite increasingly high cost of TVET programs, providers to set their own fee structure within certain especially in engineering and technology. EASTRIP parameters (table 1). Regional Flagship Technical Vocation Education and Table 1: Income generation in EASTRIP RFTIs Institution 2018 ($ million) 2022 ($ million) ATC 0.028 1.200 DIT Dar 0.250 0.300 DIT Mwanza 0.000 0.066 NIT 0.000 2.500 Source: EASTRIP Progress Report 2022. The SDL of 4 percent wage bill in Tanzania is the Higher Education Students’ Loan Board. One-third highest in the world and shows the commitments of the SDL provides need-based loans for students from government and private sectors on skills to pursue higher and technical education. However, development. The ILO has studied the SDL in these loans are only for university and technical 100 countries including eight Southern African college students enrolled in degree and above Development Community (SADC) countries: programs, not for vocational education students in Botswana, Malawi, Mauritius, Namibia, South Africa, certificate and diploma programs. Another one-third United Republic of Tanzania, Zambia and Zimbabwe. of the SDL is channeled to VETA to finance training It has found that SDLs range from 0.5 percent to 4 provision. VETA receives 860,000 T Sh per student percent of payroll, averaging 1.0 percent. Tanzania’s from SDL for meals and training materials. SDL SDL is the highest in the region (at that time of the ILO funds represents 87.0 percent of VETA’s income study, the SDL in Tanzania was 4.5 percent) (ILO 2021). and is a large part of the budget of public VTCs. The Vocational Education Training Act of 2001 Cap The final one-third of the SDL is provided to the 82 Section 14 mandates Tanzanian employers (with PMO-LYED for its skills development programs. more than 4 employees) to contribute 4 percent of the wage bill toward the nation’s skills development. While SDL was intended for enhancing skills and most skills required in the industry to boost employment The SDL in Tanzania is channeled to HESLB, VETA, and economic activities are TVET skills, yet students and the PMO-LYED for skills development, roughly pursuing TVET programmes at the level of certificate in equal shares. The SDL is one of the main sources and diploma are not beneficiaries of loan despite of financing for higher education loans, through the the fact that SDL is contributing to students loan for DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 32 graduates. If the Government continues to disburse The Tanzania SDL does not refund employers for a portion of SDL to HESLB, then , there is a need for training directly provided. Among all of the eight TVET certificates and diploma students to benefit SADC countries, Botswana and Mauritius provide from loans. their levy-paying employers with the highest direct return on their levy contribution, returning between Since NACTVET is now regulating the entire TVET 33.0 percent and 38.0 percent of the levy received Sector (technical and vocational education and to employers in the form of training reimbursement training), there is a critical need for NACTVET to (ILO 2021). be considered for SDL in order to enhance their regulatory capacity for quality provision of TVET in the Country. SKILLS DEVELOPMENT FUND UNDER PMO–LYED AND MOEST (TEA) The PMO-LYED operates a skills development too complex. Workers also indicated that the RPL fund scheme aimed at financing youth skills program was insufficient to meet their needs, was not development. This program, funded by the SDL, aligned with their occupational standards, or required encompasses apprenticeships, internships, RPL, and a minimum age requirement that was too high. The reskilling/upskilling. Over 118,415 youth have already study also showed that workers had poor knowledge benefited from this program, which operates under of the benefits of VETA centers and RPL certificates a public-private partnership (PPP) arrangement. As (Mbunda, Lello and Tesha 2020). of 2023, more than 90 training centers are involved, with over 58 centers being privately owned. As part In 2016, to expand the scope of skills development of the program’s implementation, national guidelines and support the implementation of the National for apprenticeship, internship, and RPL have been Skills Development Strategy (NSDS), the developed and are currently in use. Furthermore, over Government through MoEST established a new 681 vocational teachers from both private and public Skills Development Fund (SDF) and provided a training centers have been trained to conduct RPL. mandate to Tanzania Education Authority (TEA) to The government, through the SKILL-UP Programme,6 manage the SDF . Among all Government agencies, has formalized skills of 19,759 youth (2,997 female TEA was chosen basing on its Education Fund Act and 16,762 male ) in 10 occupations (MOEST 2022). No.8 of 2001, which provides a mandate to TEA The 10 occupations are welding and metal fabrication; to mobilize resources from various financiers and electrical installation; auto body repair; motor vehicle deploy to strategic projects. The TEA has extensive mechanics; masonry and brick laying; pipe fittings; experience and the mandate to mobilize resources carpentry and joinery; design, sewing and cloth from a variety of sources including the private sector technology; food production; and food, beverage that are utilized to fund development and expansion services and sales. However, a study has identified of educational institutions at all levels. Moreover, TEA barriers in RPL programs, especially among informal has long experience in managing education and skills construction workers. These barriers include workers’ development projects; while TEA’s Board has a wider perceiving the RPL programs as a waste of time or participation and representation of stakeholders from 6. The SKILL-UP Programme is a joint effort of the ILO and the Government of Norway. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 33 various public and private sectors including financial TEA SDF facilitated financing of: (i) capacity building of institutions. training providers through infrastructure development (minor rehabilitation/ construction), purchase of The TEA SDF, supported by the World Bank’s teaching and learning facilities, program curriculum ESPJ program, aims to enhance the development review and certification, enhancing linkage with of a skilled workforce by increasing the number of industry, and short course professional development individuals trained in relevant skills for entering the for trainers; and (ii) facilitate beneficiaries to access labor force. It is responsible for raising and managing skills development training through payment of costs education funds. The TEA SDF has four financing for fees, meals, accommodation, and transport. windows: (a) university level, (b) technical education and training, (c) vocational education and training, TEA has carried out a tracer study to determine and (d) alternative training (informal). These financing employability of graduates at least one year after windows cater to different skill levels and support receiving skills development training. Sample training in key economic sectors, with a focus on the graduates of three cohorts were taken for FY private sector and cost-sharing between firms and 2019/2020, FY 2020/2021 and FY 2021/2022. training providers. Three additional windows were Among the 4,050 graduates who were sampled, added at mid-term review including e) Internship 3,871 graduates were reached via mobile phones, program, f) Innovative Training and E-Learning, and g) representing a response rate of 96 percent. The result Bursary Scheme for Vulnerable Groups. Between the of the tracer study revealed that 80 percent of the financial years 2018/2019 and 2022/2023, the TEA graduates were employed (64 percent self-employed SDF facilitated the training of 48,794 (26,501 males and 16 percent employed) in the six priority sectors. and 22,293 females) Tanzanians who successfully In addition, the GPI for the tracer study sample was completed various training programs across the almost equal, with 51 percent female and 49 percent country. Among these beneficiaries, 474 were male. people with disabilities and 600 youth from Tanzania Zanzibar. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 34 The energy sector had the highest employment rate SDF graduates reported difficulties in securing (92 percent) followed by a tie between agriculture loans for business startups. The TEA tracer study and construction sectors (87 percent). The graduates found that 65 percent of graduates reported having from the ICT sector had the lowest employment rate difficulties in securing loans for business startups, (61 percent). However, the majority of the graduates among whom 18 percent reported having low access were self-employed. Among those employed, nearly to soft loans and working tools and another 14 percent 66 percent of the respondents were in the temporary reported difficulty securing permanent employment. contract category and only 25 percent of the respondents held a permanent contract (see table 2). Table 2: Employment status within sectors Continuing with Self- % Employed + Sector Employed Unemployed Total studies employed self-employed Agriculture and 92 317 1,567 225 2,201 87% agribusiness Construction 5 10 119 15 149 87% Energy 13 68 155 7 243 92% ICT 71 49 134 48 302 61% Tourism and 13 116 327 172 628 71% hospitality Transport and logistics 24 64 206 54 348 78% Grand total 218 624 2,508 521 3,871 81% Source: TEA 2022. Having two Ministries implementing parallel Having two parallel funds also poses challenges skills development funds in Tanzania has some in terms of coordination, resource allocation, and advantages. It allows for a broader coverage of skills potential overlap. It is crucial to establish clearer development initiatives, ensuring that a diverse range boundaries and avoid duplication of efforts between of individuals can access training opportunities. The the two funds. This can be achieved through PMO–LYED’s skills development fund focuses on effective communication and collaboration between youth skills development, enterprise-based training, the PMO–LYED and MoEST to ensure that the skills and is implemented through a PPP arrangement, development funding sources complement each while the TEA Skills Development Fund (SDF) targets other, utilize resources efficiently, and minimize to: (i) build capacity of formal public and private TVET redundancy. By establishing well-defined roles and institutions and informal training providers to provide objectives for each source of fund, Tanzania can quality skills training relevant to the job market; create a more streamlined and effective system for and (ii) facilitate youth to access skills development skills development, ultimately benefiting a broader opportunities. This dual approach caters to the needs range of individuals and supporting the nation’s of different beneficiaries, providing specialized socio-economic growth. support for youth and a more comprehensive approach for individuals across all skill levels. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 35 QUALITY ASSURANCE REGULATION To strengthen quality assurance, the government to improve the quality of accreditation standards to created NACTVET, which merged the regulatory both Technical and Vocational training Providers. functions of VETA and NACTE into one single This will enable the TVET regulator to develop regulatory body for TVET. NACTVET holds much and revise accreditation standards. NACTVET has promise to regulate the sector more efficiently, though developed some tools for registration of VET Centres it has yet to fully integrate the previous mandates and but guidelines on how to improve the accreditation structures of NACTE and VETA and to modernize the processes to VET Centres is also crucial. To date, it consolidated operational procedures. has accredited more than half of all TVET providers and already validated/approved more than 1,000 Program accreditation standards could be curricula for training programs, including 135 strengthened to reflect occupational standards skills development programs. While accreditation and to include specific industry link requirements standards require curriculum development process at the provider and program level. NACTVET has to consult with internal and external stakeholders, the authority to provide accreditation to institutions they do not clearly identify stakeholders. Thus, and programs, but the requirements could be more revised accreditation standard should consider rigorous. NACTVET still employs the NACTE academic more collaboration with the Industry. In the current quality standards of June 2010 for accreditation of accreditation standard industry is mentioned only in TVET programs and institutions. Following the shift of a note cited below, as one of the entities that MAY be VET regulatory roles, this will require more resources consulted (see box 2). Box 2: Accreditation standards of NACTVET NACTE would expect course approval to be subsumed within the program approval process. External stakeholders may include academic staff from other institutions delivering similar program, Industry Training Organisations, local or national industry advisory groups (program committees) and professional bodies. Approval processes must allow sufficient opportunity for external inputs to be considered and appropriate changes made. Source: NACTE Academic Quality Standards 2010. Commendable efforts are being made by the development of training programs and syllabi. NACTVET to update occupational standards. NACTVET has further adopted a standard capacity NACTVET is updating occupational standards for development package for trainers and managers 26 occupations in close collaboration with lead of VTCs and FDCs, including training in TVET industries. It is also developing program delivery management, marketing and branding, program standards and integrating the occupational standards development, cross-cutting areas of environmental with educational specifications of courses, credits, and social safeguards, green TVET, gender, and ICT. staffing and equipment requirements to guide DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 36 TVET MANAGEMENT INFORMATION SYSTEM Skills Management Information System (SMIS) was The SMIS database has yet to be fully integrated developed to address the long-standing absence of into the main NACTVET database. SMIS collects a consolidated data system, which had constrained ESPJ data, and upon integration with NACTVET, the evidence and data-driven dialogue on issues it will merge with data collected from projects affecting the TVET subsector. With support from outside of ESPJ. The NACTVET database, previously ESPJ, the SMIS is operational, hosting data from the accommodated at the former NACTE office, had been key subsector players, including VETA, Tanzania limited because it collected more data on TETs than Commission for Universities (TCU), TEA, and VETs. The calls for integration into a single NACTVET NACTVET. Regular updates are expected annually database will enable the government to have the through a submission of administrative data from most up-to-date TVET information to enable easy respective regulatory agencies. To date, a total of data retrieval, processing and use. 1,725 TVET programs have registered with SMIS through data submissions from training providers. The first Tanzania TVET Indicator Report was published in 2021. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 37 OPPORTUNITIES AND RECOMMENDATIONS This section provides recommendations for considering the adoption of unit-cost-based capitation improving the TVET system as the government grants and the development of performance-based seeks to equip more Tanzanian youth and adults pay; (e) reviewing the allocations, transparent use and with relevant knowledge and skills to flourish in the impact of the SDL; (f) reviewing and consolidating the labor market. While the TVET system faces the two skills development funds into one single challenges from outside the education sector, such national skills development fund; and (g) reviewing as stagnant job creation, the global pandemic, and the fee structure for higher education and technical climate change, the government is well-positioned education programs. This section examines each of to make progress in improving its TVET system and these policy recommendations. reorienting it to be more demand driven and aligned with the labor market. Strengthening system stewardship and governance by improving coordination. The government could The government could emphasize the relevance and improve the coherence and impact of TVET initiatives, quality of programs by considering the following: by providing updates on the implementation of the (a) strengthening the TVET system stewardship and NSDS and by making amendments to TVET or skills governance by improving coordination; (b) increasing development acts. While the MOEST has mandates access and providing equity-based programs that over preemployment TVET, the PMO-LYED has target vulnerable groups; (c) strengthening industry mandates over work-based skills development. links and quality at the system level; (d) ensuring With both ministries making contributions toward sustainable financing and promoting performance the NSDS, there are overlapping skills development and relevance for TVET and skills development, by funds, internships, and apprenticeship programs that DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 38 are being rolled out. NSDS plans to enact a National Strengthening industry linkages and quality Skills Development Council (NSDC) as an umbrella assurance at the system level. While streamlining the body for the skills development sector to consolidate regulatory bodies into one single entity, NACTVET, these joint ministerial efforts, but progress has stalled is a positive step, there remain questions regarding for fear of creating another high-level body without reviewing of the accreditation standards, and producing efficient results or adequately reforming operational processes can be enhanced to promote the use of SDL. Since TVET provision is spread relevance and excellence in TVET by considering the across multiple ministries and agencies, it is all the following: more critical to have an interagency coordination mechanism and overall sector monitoring mechanism Fully integrating the functions previously to help improve TVET coverage. Going forward, exercised by VETA through change the government will need to improve the overall management and capacity building, including coordination of the skills and TVET sector. Even if renewing its strategic vision and plan; the NSDC is not enacted, an inter-ministerial working updating registration tools for VTCs’ program group mechanism needs to be created as a practical development manuals, and field attachment approach to better coordination within the TVET guidelines; improving skills testing centers system. With regard to the skills development fund (zonal offices, EASTRIP flagships, and other and programs, there is a need to clearly define the partners); and modernizing management boundary between TVET and skills development, information system. Tanzania could further with the former continuing to be led by MOEST and develop implementation guidelines on industry the latter, including the SDF, managed by the PMO- links and incorporate those as part of the LYED, with financing from the SDL. accreditation standards for all providers public and private by NACTVET. It is also important for Increasing access and providing equity-based NACTVET to support quality assurance for the programs that target vulnerable groups. The FDCs which is not yet part of NACTVET. Tanzania TVET sector has huge potential to expand as more and more students are graduating from Fully integrating the functions previously the basic education sector. The government is exercised by VETA through change improving access to TVET and tertiary programs management and capacity building, including by expanding the network of FDCs, VTCs, TCs, and renewing its strategic vision and plan; updating universities, but it could do more to move the TVET registration tools for VTCs to each of the trade system beyond the first phase of the NSDS, which rather than general registration tools for all the focused on expanding the coverage of TVET and trades, program development manuals, and field skills development programs. To further support attachment guidelines; improving skills testing TVET students and ensure equity including gender centers (zonal offices, EASTRIP flagships, and issues, government could consider target tuition other partners); and modernizing management waivers or bursary schemes for strategic programs information system. Tanzania could further (teacher training, agriculture training) or for special develop implementation guidelines on industry vulnerable groups, including girls and students with links and incorporate those as part of the special needs. The government could also promote accreditation standards for all providers public advocacy and outreach programs for female students and private by NACTVET. It is also important for and provide scholarships and other equity-based NACTVET to support quality assurance for the demand-side programs. FDCs as directed by the Ministry of Education, Science and Technology. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 39 Developing up-to-date industry-aligned NQF is flexible which provide opportunities for standards, rather than only focusing on graduates from FDCs and VTCs to go to TCs, but academic standards. It is critical to develop it needs further improvement due to ongoing training standards including occupational changes in the education policy 2014 Version standards and program delivery and 2023. Furthermore, the Tanzania NQF could assessment standards as well as to pay have been harmonized with the East Africa attention to developing technical procedures regional qualifications framework, developed and standards for each of the industrial sectors. by the IUCEA with support from EASTRIP. This may need better coordination between NACTVET and Tanzania Bureau of Standards Improving the quality of the data system (TBS) and industries. For some projects that the and TVET resource bank. Further work to government has prioritized, such as oil, gas and strengthen SMIS is needed, including the vehicle transmission, there is a need to develop consolidation of databases from all TVET national technical standards and education providers and monitoring of their quality and standards by incorporating international relevance. It is also important to develop a practices. The newly merged regulatory body TVET teaching and learning resource bank, NACTVET could play an important role to set up with teaching and learning video and audio, model training standards for select industries to and other materials that can be accessed at the guide program development for all providers. learner’s convenience. Strengthening TVET trainers’ competencies. Ensuring internal quality assurance within In addition to increasing the number of TVET each TVET institute to create demand-driven trainers, Tanzania should develop TVET programs. Good practices can be found in the trainer competency framework and career World Bank-financed EASTRIP program which ladder, including industry experience and supports institutional autonomy and industry regular industry attachment as part of trainer links directly at provider level. The NACTVET continuous professional development. The could require all TVET providers to provide government could encourage and reward skills explicit industry-linked mechanisms, by scaling certificates for trainers (dual qualifications) and up successful approaches of Industrial Advisory allow TVET institutes to recruit trainers directly Committees, situational analysis, and graduate from industry. tracer studies for every TVET provider. NACTVET could develop and establish a professional Linking standards with National Qualifications development mechanism, or Systematic Training Framework (NQF). The NQF has not yet been and Evaluation Progressing System (STEP), for formally operationalized, thus the timing is TVET faculty and management, which can be right for the newly developed occupational applied to all of the institutions. It is also of great and program standards to be aligned with the importance that NACTVET develop periodic NQF. There are still significant barriers such program assessment tools and mechanisms as misperceptions about RPL and transitioning to make sure that the programs are relevant, from FDCs and VTCs to TCs that providers and graduates are obtaining skills that lead to have not yet addressed. However, approved employment. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 40 Ensuring sustainable public financing and promote national priority and strategic programs promoting performance and relevance for TVET and such as teacher training and agriculture for skills development. On average, countries allocate example. The government could also consider 10 percent to 15 percent of education expenditure other financing models such as the Centers of on TVET with variations depending on their policy Excellence (COE) and Flagship Institutes that goals. In addition, countries tend to enroll 25 percent promote institutional autonomy and industry to 50 percent of secondary and tertiary students in links. Institutions could apply and receive the TVET sector. The TVET education expenditure funding from the government based on sound in Tanzania is between 2 percent and 9 percent and proposals and mutually agreed performance TVET coverage remains limited with a GER of below indicators. With the expanding number of 3 percent. Tanzania can improve the TVET coverage TVET providers, the government could explore and dedicate a higher proportion of government mechanisms to leverage maximum results spending to this sector by considering the following: with limited public resources. Linking funding with performance and introducing competition Adopting unit cost-based capitation grants between providers can help solicit the best for public TVET providers and developing quality and most relevant training programs in performance-based pay. Public TVET relation to government priorities and weed out providers including FDC, VTCs, and TCs poor quality TVET programs. receive government funding for staff salaries, operational costs, and development budget Reviewing the allocation, transparent use, and based on historical trends and ad hoc requests. impact of SDL resources. The SDL is high in Tanzania Tanzania TVET could emulate the capitation and could be reviewed to benefit more the TVET grant scheme used for primary and secondary sector and employer-based training. Employers education but use unit cost-based capitation are concerned that SDL disproportionately benefits grant to incentivize public providers to innovate higher education over the TVET sector and that the on ways to increase enrollment and improve the appropriation to the higher education student loans relevance of the programs. The development of will even further increase at the expense of TVET. guidelines for unit costs could vary by program SDL funds channeled to the PMO-LYED benefit and region and include the use of block grants public and institutional providers more than private that are tied to enrollment and per student and enterprises. SDLs can be made more efficient expenditure standards. to support more employer-based training such as apprenticeships and interns. There is potential for Considering other performance-based SDLs in Tanzania to directly rebate the employers financing. Several African countries, including who provide on-the-job and other training, which is Uganda, Mozambique, and South Africa, have how countries such as Mauritius and Botswana use used their skills development funds to adopt SDLs. More attention could be paid to ensure that competition-based funding to promote TVET student loans and skills development funds target excellence. In Tanzania SDF implemented by the most vulnerable youth and other disadvantage TEA also requires competition, and supports populations. A thorough review of the uses and Training institutions, as primary beneficiaries, impact of SDL could be carried out and the results to build their capacity to provide quality TVET could be disseminated to inform future SDL policy to secondary beneficiaries (individuals). Other making. countries have set aside special funding to DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 41 Reviewing and consolidating the two SDFs into TVET. It is recommended to establish a government one single NSDF to support demand-driven and student fee policy that allows TVET providers to national priority programs, especially for vulnerable revise fees based on the prevailing conditions and out-of-school youth. A single NSDF can continue affordability. This could be done by creating a more to be funded by SDL but include contributions conducive policy and financial environment for from development partners. This would help create private providers. The private provision of TVET at a much-needed balance between investment in both the TET and VET levels in Tanzania is significant. training and greater participation in the labor market. As of 2022/2023, the proportion of private providers The NSDF would enable graduates to secure direct in TET has reached 61.2 percent, compared to 38.8 employment or self-employment by providing them percent for government institutions. In VET, private access to capital, soft loans, availability of start-up providers account for 42.3 percent, while FBOs equipment and tools, as well as access to markets (Faith-Based Organizations) contribute 31.4 percent, for their products. A NSDF could provide more in contrast to central government at 8.4 percent opportunities for apprenticeships and internships and local government at 1.3 percent (AESPR 2022). through strategic partnerships/links with prospective These figures demonstrate the crucial role that employers within the six key skills sectors. The NSDF private providers play in delivering TVET services to could even target providers to develop innovative the public. Both the TVETDP (2013/14 to 2017/2018) programs and strengthen their core capacity in the and NSDS II (2016/2017 to 2025/2026) acknowledge long term.  the contribution of the private sector in TVET delivery. However, the proportion of the SDL and Reviewing the fee structure to potentially lift the fee SDF benefiting private providers is relatively low. caps for higher education and technical education. Furthermore, the higher education loans scheme The current low caps not only limit the growth of the does not cover private providers students studying public sector but also hinder the expansion of private in TVET. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 42 SUMMARY RECOMMENDATIONS AND SUGGESTIONS Domains Current Situation Recommendations and Suggestions • Consider creating an inter-ministerial working group as a flexible mecha- nism for skills coordination. • Consider bringing all public TVET institutions under the umbrella of Fragmented MOEST. governance and • Clearly define the boundary between formal TVET and informal and em- lack of coordination Governance ployer skills development subsystems, with the former continuing to be and weak linkage led by MOEST and the latter to be managed by the PMO-LYED. with the private • Strengthen NACTVET as a single regulatory body for public and pri- sector vate TVET providers; strengthen system linkage with private sector by increasing the representation of private sector; and fund the new roles of regulating Vocational education and training performed by NACTVET. • Set targets of 25–50 percent of secondary and tertiary enrollment in TVET. Extreme low cover- • Continue to encourage private provision and expand the public network age of TVET of FDC, VTC, and TC in close collaboration with the productive sector. • Operationalize the qualifications framework to improve the vertical and horizontal articulation of academic and TVET programs. Limited demand-side Access and schemes of loans, • Target tuition waivers or bursary schemes for strategic programs (teacher equity scholarships, and training, agriculture training) or for special vulnerable groups, including stipends to support girls and students with disabilities. students, especially those of poor back- grounds • Promote advocacy and outreach programs for female students. Gender equity • Increase the recruitment of female staff in TVET institutions. issues in TVET • Provide scholarships and other equity-based demand-side programs. • Directly adopt industry certified training programs, especially in ICT, Out-of-date training automotive, aviation, and welding, which has many industry-certified programs, not programs. responding to • Work with industry to develop customized training for current and future labour market, lack employees. of core capacity for • Develop occupational and program standards at the system level to developing Quality and guide TVET providers to develop relevant programs, iincorporate demand driven Relevance occupational standards and labour market studies as part of curriculum TVET program; development and approval process . • Leverage digital resources, including virtual reality/augmented reality (VR/AR) training labs. • Partner with global lead institutions and share curriculum through joint programs. DEVELOPING SKILLS FOR TANZANIAN YOUTH THROUGH DYNAMIC TVET 43 Domains Current Situation Recommendations and Suggestions • Develop TVET trainer competency framework and career ladder, in- cluding industry experience and regular industry attachment as part of Teachers/trainers trainer continuous professional development. often lacking in • Allow TVET institutes to recruit trainers directly from industry. industrial and prac- • Encourage and reward skills certificates for trainers (dual qualifications). tical competencies • Ensure continuous professional development for TVET trainers. • Provide TVET teachers with regular industrial exposure to be up-to-date with work-based skills to be able to train real workplace skills. Quality and Relevance Qualifications • Focus on TVET qualifications and create vertical pathways so that stu- framework and dents can proceed to postsecondary TVET institutes (e.g., 3+2 program pathways not fully in China). functional; TVET • Consider bilateral articulation agreements and horizontal pathway be- students still sub- tween academic and TVET programs. ject to academic • Promote recognition of prior learning. exams; skills cer- • Develop skills testing based on competency standards and link with tificate system not TVET qualifications (e.g., Kenya approved twenty national polytechnics fully operational and other institutions as skills testing centers). • Modernize digitized quality assurance management system. Tendency toward • Strengthen governance with industry advisory committees. process-orientat- • Accredit institutions and broadband programs only; improve the efficien- Quality ed, overregulated cy of accreditation services. Assurance quality assurance • Develop periodic program assessment tools and mechanisms. agencies • Provide capacity building, benchmarking, ranking, and R&D services in TVET. Low level of public financing in formal • Target 10–15 percent of education expenditure to TVET per policy goals. TVET: 2–9 percent of education ex- penditure on TVET SDL level too high • Review the SDL and ensure SDL financing of TVET sectors. and not sufficient- • Improve the transparency of SDL uses and effectiveness. ly benefiting the • Review the two skills development funds and consolidate into one single TVET sector national skills development fund. Public funds • Develop guidelines for unit costs which vary by program and region. allocation historical • Use block grants tied with enrollment and per student expenditure stan- and input-based, dards. reinforcing a sup- • Bring teacher wages into block grants. ply-driven model Limited quality Financing improvement and • Encourage performance and competition-based funding to promote TVET excellence TVET excellence (e.g., use of skills development funds by Uganda, Mo- grants as well as zambique, Tanzania, and South Africa). limited funding for • Promote national priority and strategic programs (e.g., teacher training government strate- and agriculture). gic programs Public funding • Integrate and energize the training market by providing grants, vouchers, mainly going to or scholarships that are available on an equal basis to both public and public institutions private providers. 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