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Financing VET
Introduction Collection of SDL
Management of the fund Disbursements
Curricula development, Examinations and Certification
The roles and responsibilities of the Vocational Education and Training Authority as stipulated in the 1994 Act include among other things ensuring adequate and stable financing of VET system. Section 20 of the Vocational Education and Training Act, establishes the VET Fund, out of which payments for financing the VET system in Tanzania are made. The Act identifies the resources of the Fund as being:
1. All assets previously owned by VETA’s predecessor, National Vocational Vocational Training Department. (NVTD) 2. Sums paid in as Skills and Development Levy (SDL) 3. Sums that may be paid in by the Government. 4. Grants/Donations by various donors from within or outside the country. 5. Internally generated income through training fees and training material recovery.
Skills and Development levy is the main source of the VET Fund. It contributes about 81%. Training fees and recovery of training materials contribute 11%, Grants and Donations 5% and other sources 3%.
2. Collection of SDL The Director General of VETA is responsible for ensuring that all levy due to the Authority is collected and properly accounted for. The Act imposes punitive measures for employers who may not comply. VETA depends on Skills and Development Levy (SDL) as its main source of income in financing vocational education and training. SDL is levied at 6% of payroll from employers with four or more employees every month. The levy is collected by Tanzania Revenue Authority (TRA) and VETA gets one third (1/3) of the 6% while two thirds (2/3) of the total SDL collected goes to the Government.
2. Management of the fund TOP The VET Fund is managed by the VET Board. The board ensures proper books of account are maintained. The Accounts relating to the Fund are audited annually by an authorized auditor dully registered under the Auditors and Accountants (Registration) Act, 1972. Such an auditor is appointed by the Board and approved by the Minister. However, the Public Finance Act No.6 of 2001 has made it mandatory that the accounts of any public institution are also to be audited by the Controller and Auditor General (CAG), or any other authorized auditor as shall be appointed by her/him. Consequently, the Accounts relating to the VET Fund are audited by the CAG
2. Disbursements Allocation of VET Fund is a highly strategic process that ensures policies and goals within the VET system are taken on board and financing of the same is through prioritization. The VET Board approved a Disbursement Policy that focuses on equitable allocation of VET Fund. The priority areas for VET financing were identified and disbursement proportions for each area were set as a guideline.
2. Financing VETA activities The activities of the Authority are fully met from the VET Fund. SDL has provided a steady and stable source of revenue for vocational education and training. It has accessed a source of financing for training that probably would not otherwise have been available. SDL has been successful in supporting institutional building. With sustained, reliable financial support VETA has developed into strong organization capable of responding widely and quickly to changes in labour market requirements.
Subsidizing training fees. TOP The government finances vocational training for underprivileged segments of society through the SDL. This is justified because, while the people concerned are unable to pay for the training, they are also at the same time the very people targeted in the fight against poverty and unemployment through training. Equity consideration also has it that there is need to take care of those in need of pre-employment training as they are mostly boys and girls out of school. The labour market absorbs annually some 700,000(The Labour Force Survey 2000 - MoLYD&S ) youth from school who have no skills. It is through subsidy that such youth can access vocational training.
Ensuring Equity in Vocational Education and training TOP SDL helps to ensure that disadvantaged regions and individuals or groups have the opportunity also to participate in training. Enterprises invest in regions where they can get profits. As a result training institutions are concentrated in Dar es Salaam, Arusha, Mwanza, Mbeya, Tanga, Dodoma and Moshi. Regions like Lindi, Mtwara, Rukwa, Ruvuma, Singida, and Kigoma are not attractive to investors. It is for this reason that VETA has constructed big and modern training centres in Mtwara and Kigoma through SDL.
Mtwara project with a total cost of Tshs 3
billion was started in February 1997 and the buildings w
ere
handed over to the Authority in May 1999. The project involved
construction of an administration block, workshops,
classrooms, laboratory, library, dormitories for males and females,
dinning hall, and staff houses. The centre was
inaugurated by His Excellency
Benjamin William Mkapa, the then President of the United Republic of
Tanzania in April 2002. Equipment and tools for the centre with a total
cost of Tshs 2.5 billion were provided as a grant by the Government of
Japan.
In implementing its policy of establishing a
model centre for each region, the Authority has completed construction
of Kigoma RVTSC u
sing
SDL. The project with a total cost of Tshs 3.33 billion was handed over
to the Authority in May 2005. Arrangements
are being finalized to start training programs at the centre. The centre
will provide vocational
training in tailoring, welding, refrigeration and air conditioning,
painting, panel beating, plumbing, boat engine mechanics, automobile
electricity, motor vehicle mechanics, computer skills, electrical
installation, carpentry and joinery, masonry. It is envisaged that the
centre will provide training for 400 and 780 trainees each year in long
courses and short courses respectively.
Tools and equipment TOP SDL is used in providing training tools and equipment for vocational training centres. As a result of rapid changes in technology the Authority is required to equip its centres with modern and up to date tools and equipment. However, training tools and equipment are expensive and without SDL the Authority can not afford.
Labour market survey VETA uses SDL in conducting labour market surveys in the country. Generally, there is an accelerating shift to a service economy worldwide. This shift necessitates changes in training programmes. Instead of concentrating on traditional skills, training providers should also consider the emerging skills in the labour market. Labour Market Surveys provide information on labour market requirements in the modern formal and Informal sector. Surveys is also conducted in the informal sector of the economy. Labour market information resulting from the surveys are used by Training Directorate in developing training Curriculum. The reports are also disseminated to the public.
Curricula development, examinations and certification. The Authority is responsible for curricula development. The curricula developed in collaboration with experts from the industry are financed by SDL. VETA is also responsible for conducting examinations and issuing certificates for Competence Based Education and Training (CBET), Trade Testing, National Business Examination (NABE) and Technician Certificate. Examinations and Certification are financed through SDL.
Support to other providers TOP VETA coordinates more than 860 vocational training centres in the country. Apart from financing labour market surveys, curricula development, examinations and certification in the vocational education and training system, the Authority provides direct support to these centres in capacity building, equipment and tools through SDL. For example, during the year 2005 VETA set aside Tshs 607.9m/= as direct support to other vocational training providers. As part of the capacity building, the Authority conducts training for instructors from other providers at its Morogoro Vocational Instructors Training College (MVITC). Basic equipment and tools are provided through SDL to ensure quality training delivery at the vocational training centres. TOP
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