CHAPTER 4 - PRIVATE SECTOR VET PROVISION

4.1 Introduction
4.2 Tanzania
4.3 Zimbabwe: Registered PSTIs
4.4 Zimbabwe: Non-Registered PSTIs

4.1 Introduction

The existence of a vibrant, relatively large private sector providing training services to both individual and corporate clients is a central plank of demand-driven training strategies. According to the World Bank, "private schools flourish when labour markets reward private spending on training and when schools (i.e. training centres) are free to operate with minimal regulation. Good private schools increase the exposure of public institutions to competitive forces, providing a stimulus for improved efficiency and quality" (World Bank, 1991, p. 42). Thus, a critical mass of efficient private sector training institutions (PSTIs) providing skills training for a wide range of occupations and jobs is essential if a demand-driven training system is to be successfully established.

Private sector VET provision occupies an important place in the overall vocational training system in both Tanzania and Zimbabwe. The predominant objective of most not-for-profit private sector training institutions (PSTIs) is to assist rural and, to a lesser extent, urban youth acquire artisanal skills that will enable them to become productively self-employed. For-profit PSTIs, on the other hand, are owned and operated by entrepreneurs on a strictly commercial basis and are heavily concentrated in the capital cities (Dar Es Salaam and Harare) and the other major urban centres. Since the advent of full scale liberalisation in the early 1990s, the role of PSTIs in both countries has expanded considerably as governments have actively encouraged private sector involvement in both the education and training sectors.

Despite the importance of PSTIs in Tanzania and Zimbabwe, no systematic research has been undertaken that describes the critical features of private sector training provision. The purpose of this chapter is to present and discuss the results of surveys of PSTIs in each country.

The main objective of each country survey was to obtain the following information:

· the size and characteristics of the training clienteles served by these training institutions
· the key characteristics of PSTIs, most notably date of establishment, facilities and staffing
· courses offered including qualifications, tuition fees, and patterns of attendance
· key performance indicators (in particular drop-out and examination pass rates)
· enrolment trends during the 1990s
· the impact of government regulations and other policies.

4.2 Tanzania

4.2.1 PSTI provision: an overview

Private sector providers have consistently accounted for over 90 per cent of total VET enrolments in Tanzania throughout the 1980s and 1990s (see table 4.1). According to VETA records, in 1995, there were 177 not-for-profit training centres (of which 158 were run by churches) and 153 for-profit centres enrolling 14,600 and 16,440 students respectively.

Table 4.1: Estimated enrolment of students in vocational training 1995, full and part-time.

Provider	No. of students	Percentage
VETA	3,500*	8
Government	1,840	4
Church trade schools	14,600	31
Company	10,309	22
Private	16,440	35
TOTAL	46,689	100

* Including new centres to be opened at Iringa and Mbeya in 1997
Source: VETA, Strategic Action Plan

4.2.2 Survey Design and Methodology

By law, PSTIs must fulfil certain minimum standards with respect to facilities, staffing and funding before they are allowed to sell their training services to the public. NVTD and now VETA are responsible for this registration process. There are two types of registration. Registered PSTIs have complied with all the requirements laid down by VETA. Preliminary registered centres have either applied for registration but have not yet been inspected by VETA personnel or, in a few cases, have been inspected but have failed to satisfy fully all of the minimum registration requirements.

The sample: The survey comprised of a stratified sample of 86 PSTIs located in three of the country's most economically important regions, namely Arusha, Kilimanjaro and Dar Es Salaam. The original intention was that 25 centres would be sampled in each region and that these would be equally divided between registered, preliminary registered and non-registered PSTIs. However, a major problem in obtaining representative samples of each type of PSTI in each region is that no accurate, up to date information exists on the total population of operational private training centres. VETA relies on the 18 NVTCs to register and inspect PSTIs, but lack of staff and other resources has meant that the NVTCs have been unable to perform these functions properly. Certainly, little is known about the number of non-registered PSTIs that are operating illegally.

It was necessary therefore to first ascertain as accurately as possible the total population of registered, preliminary registered and non-registered in each of the survey regions and then take samples from these. In order to make up the survey target of 25 per region, it was originally decided to select randomly roughly equal numbers of the three kinds of PSTI. In practice, this did not work out quite as planned mainly because of the scanty information about the existence and precise location of all PSTIs (in particular in Dar Es Salaam and Arusha), but also because it was later decided to expand the sample to 35 in Dar Es Salaam.

Details of the sample profiles are presented in Table 4.2 In Kilimanjaro Region, only five registered and six non-registered PSTIs were found altogether so they were all included in the survey. The remainder of the surveyed centres comprised of preliminary registered centres which was twice the number indicated in the records kept by VETA at its head office in Dar Es Salaam. In Arusha Region, all nine of the registered PSTIs were included in the survey but, out of the nine centres recorded by VETA as having preliminary registration, only three could be located. Thus, all 14 non-registered PSTIs that were tracked down in Arusha and environs were interviewed. Given the high concentration of PSTIs in Dar Es Salaam, it was decided to randomly select half of the registered centres. Surprisingly, only five non-registered PSTIs were located in Dar Es Salaam and these were all were included in the survey. The remaining 14 PSTIs were randomly selected from the list of preliminary registered centres.

Table 4.2: The PSTI sample frame in Tanzania

Region	Registered			Preliminary registered			Non-registered	Total
	Veta records	Sample size	per cent	Veta records	Sample size	per cent	Sample size	Veta records	Sample size
Kilimanjaro	7	5	71.4	7	14	200.0	6	14	25
Arusha	9	9	100.0	9	3	33.3	14	18	26
Dar Es Salaam	30	15	50.0	23	14	61.0	6	53	35
Total	46	29	63.0	39	31	79.5	26	85	86

Given these difficulties in the sampling process, it is clear that the sample as a whole may not be representative of the total population of PSTIs across the three regions. Thus, in order to avoid this problem of sample selection bias, the presentation and discussion of the survey results will, wherever possible, be disaggregated into each of the three main types of PSTIs.

In total, 57 per cent of the sample PSTIs are for-profit although, this percentage varies significantly across the three regions (Dar 77 per cent, Arusha 62 per cent, and only 24 per cent in Kilimanjaro). The remaining 47 per cent of the survey centres are not-for-profit. All the survey PSTIs in Dar Es Salaam Region were located in or near a major urban area, 80 per cent in Arusha Region, and 60 per cent in Kilimanjaro.

Data Collection: The interviews with PSTI principals and directors were kept deliberately informal and open-ended as possible in order to create an atmosphere that was conducive to a frank, in-depth discussion about both individual PSTIs and private sector training provision in general. However, during the course of the interview all respondents were asked to provide both qualitative and quantitative information concerning key aspects of their centre's activities. Requests to be shown around each centre were nearly always granted. While note-taking during the interview was kept to a minimum, all the information that was collected was systematically recorded using a common questionnaire format as soon after the interview as possible. SPSS computer software was used to analyse the survey data. In addition, semi-structured interviews were also conducted with VETA personnel at head office and at the three vocational training centres located in the survey regions (namely Moshi NVTC, Arusha VTC and Chang'ombe NVTC in Dar Es Salaam) who are responsible for the registration and inspection of PSTIs.

4.2.3 The Evolution of PSTIs

Figure 4.1 shows the distribution of survey PSTIs by region according to their date of establishment. Broadly speaking, three distinct periods can be identified.

Figure 4.1: Date of establishment of survey PSTIs (percentages)

(a) The pre-adjustment period. Only 14 (16.3 per cent) of the survey PSTIs were established before the advent of economic liberalisation in 1986. Only four of the for-profit PSTIs were in operation prior to this date with just one centre in Dar Es Salaam. This paucity of private sector training provision was largely the consequence of the CCM government's socialist development strategy which it had pursued since the Arusha Declaration in 1968 which, inter alia, strongly discouraged private sector involvement in the education and training sectors. The early emergence of a relatively sizeable group of not-for-profit PSTIs, particularly in the Kilimanjaro Region was the result of the strong moral commitment of the Lutheran and Catholic Churches to augment government efforts to provide skills training for primary school leavers, mainly for self-employment.

(b) The early-adjustment period. During the first five years or so of the Economic Reform Programme, there was a marked increase in the number of PSTIs that were established, particularly among the for-profit group in Dar Es Salaam.

(c) The period of rapid economic liberalisation. The number of for-profit PSTIs established between 1991 and 1995 increased dramatically. Over two-thirds of the 49 for-profit centres surveyed were established during this period (although there was relatively little growth in the predominantly rural albeit relatively affluent, Kilimanjaro Region). Since 1992, the government has actively promoted the development of the private sector throughout the economy including post-primary education and training provision.

The levelling-off in the growth of church and other NGO training centres during the 1990s can be largely explained by the rapid growth of private secondary schools. Given the very strong preference of most parents and children for academic qualifications, PSTIs offering traditional artisans trades have been poorly placed to compete with these private secondary schools.

4.2.4 Clients and Courses

During 1996, almost 5000 individuals enrolled on training courses offered by the 79 survey PSTIs where enrolment data was made available. Figure 4.2 shows the size distribution of enrolments among these PSTIs. What is most striking is that the large majority of centres had only very small enrolments; nearly two-thirds had fewer than 50 students in 1996 and only 14 PSTIs (16.3 per cent) enrolled more than 100 students. These relatively large centres are located in the Arusha and Dar Es Salaam Regions. Given their illegal status, it is not surprising to find that non-registered PSTIs tended to have smaller enrolments than registered PSTIs. In the Arusha Region, for example, only one-third of registered PSTIs had fewer than 50 students in 1996 compared with 93 per cent among the non-registered centres that were surveyed.

Figure 4.2: Total enrolments at survey PSTIs, 1996

Two-thirds of the training offered by the survey PSTIs in Tanzania during 1996 was in the traditional manual trades (see Table 4.3). Tailoring was by the most important course, accounting for almost one-third of total enrolments followed by electrical installation (13.2 per cent), auto-mechanics (8.9 per cent), carpentry (5.5 per cent) and masonry (3.1 per cent). Three quarters of these courses required full-time attendance for at least two years and less than 5 per cent were less than one year in duration (see Figure 4.3). In overall terms, the not-for-profit centres were responsible for 55 per cent of training in the manual trades. However, it is noticeable that the for-profit training centres accounted for more than 10 per cent of enrolments in only three trades - electrical installation (87 per cent), motor mechanics (58 per cent), and tailoring (39 per cent). It would appear, therefore, that the remaining trades (including carpentry, masonry, plumbing, and welding) were not commercially viable.

Computing and secretarial courses comprised most of the remaining one-third of enrolments at the survey PSTIs. The for-profit training centres provided 69 per cent of the computing training, and 72 per cent and 100 per cent of secretarial and hotel management enrolments respectively. Over 95 per cent of computer courses were less than six months in duration and most students attended on a part-time basis whereas secretarial courses took at least one year to complete.

Table 4.3: Enrolments by main subject area at survey PSTIs, 1996

Subject		per cent centres offering			per cent total enrolments	of which
		NFP	FP	All		NFP	FP
Technical
	Blacksmithing	3	0	1	0.2	100	0
	Carpentry	46	2	21	5.5	99	1
	Cookery	3	0	1	0.6	100	0
	Electrical installation	14	16	15	13.2	13	87
	Electronics	0	2	1	0.2	0	100
	Masonry	24	0	10	3.1	100	0
	Motor mechanics	19	18	19	8.9	42	58
	Plumbing	3	0	1	0.05	100	0
	Shoemaking	3	0	1	0.2	100	0
	Tailoring	78	18	44	32.7	61	39
	Welding	8	4	6	0.1	72	28
Commercial
	Computing	3	35	21	15.1	31	69
	Hotel management	0	6	3	3.4	0	100
	Secretarial	11	12	11	15.8	28	72

Note: NFP = not-for-profit; FP = for-profit

The marked division in the type of training provided by the not-for-profit and for-profit PSTIs is the consequence of both supply and demand side factors. During the 1970s and 1980s, not-for-profit PSTIs received financial and material assistance from external donors that enabled them to build and equip the classrooms and workshops needed to provide training in the manual trades to a mainly rural clientele. Without this support, for-profit PSTIs have been unable to meet the relatively high investment costs that are required. However, on the demand side, for-profit PSTIs have been quick to respond to the new areas of training opportunity mainly in computing and secretarial courses that have emerged in the major towns and cities with the progressive liberalisation and modernisation of the economy. But even here, the range of management and commercial courses offered is very limited especially when compared to training provision in Zimbabwe (see below) where per capita incomes are considerably higher and with much larger and more sophisticated industrial and service sectors.

Female students accounted for 59.6 per cent and 65.1 per cent of total enrolments in 1996 at the not-for-profit and for-profit PSTIs respectively. Training in the manual trades continues to be dominated by males with females being concentrated in tailoring, secretarial and, interestingly, computing. The high proportion of female trainees at PSTIs is in marked contrast to government technical colleges and vocational training centres (see chapter 2).

Figure 4.3: Duration of technical and commercial courses offered by PSTIs, 1996 (per cent distribution)

Student clienteles can be sub-divided into two main groups. (i) Individuals who have not done well enough in their primary school leaving examinations to be eligible for either government or private secondary schools and who opt therefore to do training in the traditional manual trades mainly at not-for-profit centres. (ii) Secondary school leavers who are unable to gain entry into the government tertiary education and training institutions as well as those who are already in employment. Both of these groups opt for mainly computing, secretarial and management courses that are offered by the not-for-profit PSTIs.

4.2.5 Certification and Accreditation

Figure 4.4 summarises the type of certification offered by the survey PSTIs in 1996. At most of the church and other NGO training centres, students take the government trade test Level III at the end of two-three year courses. Among the for-profit PSTIs, on the other hand, only slightly more than one-third of the centres offer recognised qualifications. This is largely because these centres provide the bulk of the computing and secretarial training and, for most of these courses, the centres only awarded their own certificates of attendance and/or proficiency.

Figure 4.4: Course certification among survey PSTIs

Another noticeable feature is the almost total absence of foreign qualifications which is in marked contrast with the situation in Zimbabwe where there is an overwhelming reliance on British and South African qualifications. In large part, this is due to the preponderance of artisan training at PSTIs in Tanzania, but the relatively high cost of studying for foreign qualifications is also likely to be a major factor in a low income country such as Tanzania where only a tiny proportion of the population can afford such training.

4.2.6 Enrolment Growth

Table 4.4 presents average annual rates of enrolment growth at the survey PSTIs between 1990 and 1996. In overall terms, enrolments at the for-profit training centres grew far more rapidly than at the not-for-profit PSTIs where the numbers of students stagnated. The growth in female enrolments at the for-profit PSTIs in Dar Es Salaam was particularly fast although in the other two regions female enrolments actually fell (Kilimanjaro) or barely grew at all (Arusha).

Table 4.4: Average annual rates of enrolment growth among the survey PSTIs between 1990 and 1996

Region	Kilimanjaro		Arusha		DSM		Total
Type of PSTI	M	F	M	F	M	F	M	F
For-profit	15.5	-3.7	9.8	0.3	19.5	36.3	16.8	12.7
Not-for-profit	1.9	6.0	-5.1	3.8	10.3	-2.7	0.0	2.3

Time series data on enrolments for specific types of courses were not generally available, but it is clear that major areas of enrolment growth were in computing and, to a lesser extent, secretarial. The demand for training in the traditional artisan trades generally declined. At 40 per cent of the not-for-profit PSTIs, enrolments fell during this period and at another 24 per cent enrolment growth rates averaged less than 5 per cent per annum. It should be pointed out, however, that almost 30 per cent of the for-profit PSTIs also had declining enrolments during this period.

4.2.7 Facilities and Staffing

Premises: Regardless of type, region or registration status, most of the survey PSTIs have only one or two classrooms (see Table 4.5). Only seven centres (five not-for-profit and two for-profit) out of the entire sample of 86 PSTIs operated out of more than five classrooms. All but two of these larger centres were in Dar Es Salaam. Given the concentration of artisan training at the not-for-profit centres, the average number of workshops at these centres was double than at the for-profit PSTIs (1.9 compared to 0.8). Not surprisingly, non-registered PSTIs were generally smaller than registered PSTIs - 48 per cent were one-roomed compared to only 31 per cent among the registered group.

Table 4.5: Percentage distribution of classrooms by type, region and registration status of PSTIs.

		1-2	3-5	5>	Average
Region
	Kilimanjaro	60.0	36.0	4.0	2.7
	Arusha	73.1	23.1	3.9	2.1
	Dar Es Salaam	73.5	11.8	14.7	2.7
Registration
	Registered	58.6	24.1	17.2	2.1
	Preliminary	71.0	22.6	6.4	2.4
	Non-registered	80.0	20.0	0.0	2.0
Type
	For-profit	77.1	18.8	4.2	2.1
	Not-for-profit	59.4	27.0	13.5	2.9

Almost all of the not-for-profit centres were owned by the organisations that ran them whereas nearly three-quarters of the for-profit PSTIs were in rented premises. A quick visual assessment was made of the general condition of the buildings and facilities at each PSTI visited. Over 70 per cent were rated as being adequate or better. However, the quality of facilities for the manual trades was sub-standard in well over a half of the for-profit PSTIs.

Being longer established, not-for-profit PSTIs tend to have older buildings and equipment and, with declining support from external donors, are finding it increasingly difficult to replace old and outdated equipment. Since for-profit PSTIs are mainly reliant on rented premises, they obviously try to find the best properties that are available. In Arusha, a large number of the survey PSTIs are housed at the International Conference Centre which is well constructed and has good facilities.

Owners and Principals: Almost all owners of for-profit PSTIs in Tanzania directly manage their businesses on a day-to-day basis. Not-for-profit PSTIs generally have principals or directors who manage the centre on behalf of the church or NGO which has overall responsibility for the centre. Most are males (75.0 per cent) and African (94 per cent). There were, however, four for-profit PSTIs that were owned and managed by women. The five for-profit centres that were owned by non-Africans were all in Arusha (2) and Dar Es Salaam (3). A large number of centres had relatively young managers - 45 per cent were aged 40 or under.

While just over half of the principals of the survey PSTIs had received higher education, 21 per cent had no more than primary schooling and another 22.9 per cent had gone no further than Form IV. Only one-third had technical and/or professional qualifications that related directly to the type(s) of training provided by the centres they managed.

Instructors: A total of 403 instructors were employed at the 86 survey PSTIs in 1996, of whom 31 per cent were women. Most instructors were employed on a full time basis. There were only 19 PSTIs (22.1 per cent of those surveyed) where part-timers comprised more than half of the total number of instructors employed. This is in marked contrast to the staffing situation at PSTIs in other countries (for example, Zimbabwe) where there is a much greater reliance on part-time instructors and is largely due to the preponderance of longer term (i.e. 2-3 year) technical courses in Tanzania coupled with the relatively high representation of not-for-profit centres.

Only a small minority of instructors had received higher education and almost one-quarter had no more than primary education. Almost all technical trade instructors have at least a government trade test III, but only 79 have a technician qualification. One third had more than 10 years of experience and another 36 per cent had between 5-10 years of experience.

Survey respondents were requested to provide information on the minimum and maximum salaries paid to instructors at their centres. It can be observed in Table 4.6 that median minimum and maximum salaries ranged from T.Sh. 28-50,000 per month and T.Sh. 39-80,000 per month respectively. This compares with a per capita income of approximately T.Sh. 7,000 per month in 1996. For-profit survey PSTIs generally paid higher salaries than not-for-profit centres which largely reflects the greater demand and marketability for the courses that they offer (i.e. commercial subject areas) and the higher fees that these courses command.

Table 4.6: Median minimum and maximum salaries among survey PSTIs, 1996 (T.Sh. '000/month)

Salary	Type of PSTI	Lower quartile	Median	Upper quartile
Minimum	Not-for-profit	20	28	36
	For-profit	25	38	50
Maximum	Not-for-profit	39	39	50
	For-profit	40	50	70

Note: Figures have been rounded to the nearest thousand.

4.2.8 Finance

Course Fees: Table 4.7 shows median annual fees charged by the survey PSTIs in Tanzania for the main courses offered in 1996. Fees at the for-profit centres were generally higher than at the not-for-profit PSTIs (with electrical installation being the main exception). The main reasons for this fee differential are that not-for-profit centres have relied much more heavily on external donations and have not had to generate profits. It is interesting to note that, among both groups of centres, median fees were lowest in Dar Es Salaam and highest in Arusha Region.

Table 4.7: Median fees for selected courses charged by survey PSTIs by region, 1996 (T.Sh. '000 per annum)

Course	Not-for-profit			For-profit
	Kilimanjaro	Arusha	DSM	Kilimanjaro	Arusha	DSM
Carpentry	45.0	60.0	-	-	-	-
Computing	-	30.0	-	-	125.0	50.0
Secretarial	35.0	40.0	20.3	195.0	54.5	50.0
Tailoring	30.0	40.0	30.2	-	48.0	36.0
Electrical installation	60.0	80.0	40.0	55.0	-	33.0
Masonry	45.0	80.0	-	-	-	-
Motor vehicle mechanics	50.0	80.0	40.0	100.0	45.0	54.0

The Human Resources Development Survey of 1993/94 estimated annual households per capita expenditures to be T.Sh. 266,000 in Dar Es Salaam, T.Sh. 143,000 in other urban areas and T.Sh. 82,000 in rural areas. Time series data on course fees were only collected for 1990. In that year, median fees at not-for-profit and for-profit PSTIs ranged from T.Sh 10-20,000 and T.Sh. 20-40,000 respectively. By 1993/94, it is likely that overall fee levels increased by at least 100 per cent for the not-for-profit centres and 50 per cent among the for-profit group. Assuming this to be the case, the cheapest courses at the not-for-profit PSTIs amounted to approximately 7.5 per cent of average per capita expenditure in Dar Es Salaam and 22.5 per cent in rural areas. The corresponding figures for the most expensive courses at for-profit centres are 15 per cent and 45 per cent respectively. The HRD Survey estimated that household expenditure on education and training was only 1-2 per cent of total expenditure. Thus, it is clear that both not-for-profit and for-profit training courses are relatively very costly and are only affordable among the better-off households.

Access to these courses is likely to have worsened still further since the early 1990s mainly because churches and NGOs have been forced to increase their fees significantly in order to make good the loss of income from external donors. Between 1990 and 1996, the median fees for courses at not-for-profit centres increased by 200-300 per cent compared to only 75-100 per cent among the for-profit centres. There has occurred, therefore, a considerable convergence in the fees charged by the two groups of PSTIs since 1990. Data on individual and household expenditure for 1996 are not available, but it is unlikely that household expenditures increased by similar orders of magnitude. The cost of living index rose by 406 per cent during this seven year period and it is very unlikely that real incomes increased appreciably for the large majority of households. In short, therefore, the affordability of private sector training courses probably declined appreciably. This is the key factor accounting for the decline or stagnation in enrolments for the traditional artisan courses offered by many churches and NGOs.

Average annual household expenditure per student enrolled at a private secondary schools was reported by the HRD Survey to be T.Sh. 53,904 in Dar Es Salaam in 1993/94, T.Sh. 53140 in other urban areas and T.Sh. 46,872 in rural Tanzania. It would appear, therefore, that even the most expensive courses offered by the not-for-profit centres (especially electrical installation and motor vehicle mechanics) were reasonably price-competitive compared to the total costs of private secondary school education. Courses such as carpentry, masonry and tailoring were considerably cheaper, but were still unable to attract students and enrolments have suffered as a result.

Sources of Income: Survey respondents were requested to estimate the shares of the total income derived from fees, donations, and own production in 1990 and 1996. The mean value of these different shares for each year are presented in Table 4.8. During this seven-year period, the mean share value of donor contributions fell from 31 to 20 per cent among the not-for-profit survey PSTIs. Their response has been to increase fees. In 1996, 70 per cent of for-profit and nearly 50 per cent of not-for-profit survey PSTIs were entirely dependent on fee income. In 1990, the corresponding figures were 73 per cent and 31 per cent respectively. Interestingly, the relative importance of income generated from the production activities of church and NGO training centres appears to have fallen from what was already a relatively low level of only 9.4 per cent of total income in 1990. By 1996, the mean share value of income generated from these activities was only 6.5 per cent. Only two not-for-profit centres managed to raise more than half of their income from their own production activities in 1996. Given the social and economic objectives of church and NGO training centres, most would have preferred to make up the shortfalls in funding caused by declining donor support by increasing their own income generation activities. Their failure to do so may well be due to the difficulties of sustaining and promoting income generating activities in the context of depressed rural incomes.

Table 4.8: Changes in source of income among survey PSTIs between 1990 and 1996

Source of income	Not-for-profit		For-profit
	1990	1996	1990	1996
Fees	59.4	73.1	74.6	83.0
Donors	31.1	20.4	6.1	0.9
Own production	9.4	6.5	19.3	16.0

4.2.9 Drop-out and Examination Pass Rates

Repetition, drop-out and examination pass rates are the most common indicators used to assess the quality and internal efficiency of education and training institutions. Table 4.9 summarises the drop-out, examination and (successful) completion rates for the eight main courses offered by the survey PSTIs and which were trade tested. Computing courses are not included because most were short term and were not formally certified.

Table 4.9: Drop-out, pass and completion rates for main courses offered by survey PSTIs, 1996

	Drop-out rate			Pass rate			Completion rate
	FP	NFP	All	FP	NFP	All	FP	NFP	All
Electrical installation	21	27	22	73	23	62	57	17
Carpentry	-	45	45	-	59	59	-	33
Masonry	-	34	34	-	39	39	-	32
Motor mechanics	8	31	20	72	42	58	66	29
Secretarial	30	14	23	66	76	71	47	65
Tailoring	18	14	35	77	42	52	64	25
Welding	-	52	52	-	27	27	-	13
Overall	20	36	31	72	46	56	58	29

Note: NFP = not-for-profit; FP = for-profit

Drop-out rates were particularly high for all the courses offered by the not-for-profit centres, with the notable exception of secretarial. Between 40-50 per cent of students failed to finish carpentry, masonry and welding courses. There are two main reasons for these high drop-out rates. First, the courses offered by churches and other NGOs are typically at least two years in duration. Once students have acquired basic skills in their chosen trades, many see little point continuing to the end of their courses and acquiring a trade test certificate since nearly all of them are destined to become self-employed or will look for some kind of wage employment in the informal sector where trade tests are not valued to any great extent. This is particularly the case among the rural-based church and NGO training centres which, among the survey PSTIs, are heavily concentrated in the Kilimanjaro Region. Secondly, the inability to pay for this training is a major factor. Generally speaking, only better-off parents are able to send their children to private academic secondary schools. Lower status technical training centres, on the other hand, tend to attract students from poorer families who have failed to pass the primary school leaving examination and are therefore unable to make the transition to secondary education. Many parents find it difficult to keep up with the payment of fees for the entire duration of courses and are obliged to withdraw their children.

Drop-outs at the for-profit PSTIs were generally lower mainly because (i) they did not offer courses such as masonry and welding for which there was clearly limited demand and which, therefore, were not commercially viable; and (ii) they were located in urban areas where household incomes tend to be higher and where opportunities for formal sector employment are the greatest.

Pass rates among students taking trade test III examinations were also very low at the not-for-profit survey PSTIs, both in absolute terms and in relation to the performance among students at the for-profit centres. While secretarial courses are an interesting exception, the overall pass rate for students at the not-for-profit centres was only 46 per cent compared with 72 per cent at the for-profit PSTIs. Just why there is such a large difference in examination pass rates is not altogether clear, but the relatively high proportion of rural students at church and NGO centres with probably lower academic attainment levels at primary school could be a key factor. In addition, the administration of the trade tests themselves is also likely to be an important part of the explanation.

Numerous survey respondents, mainly from not-for-profit centres, stated that trade test practical and theory examination papers are sent to centres well in advance (sometimes up to an week) of the actual examination date and that students at many for-profit centres are not only shown the papers, but are actively assisted in preparing answers.

High drop-out coupled with poor examination pass rates means that, for most of the courses offered at the not-for-profit PSTIs, fewer than one in three of their students successfully completed their courses in 1995. Among the for-profit centres, completion rates were much higher. Whereas only 29 per cent of students successfully completed their courses among the not-for-profit PSTIs that were surveyed, this figure was 58 per cent (i.e. exactly double) at the for-profit centres. With such low completion rates, many not-for-profit centres are faced with a major crisis which seriously threatens their continued existence as training organisations.

4.2.10 Government Policy and Practice

At the regional level, responsibility for the registration and inspection of PSTIs is delegated by VETA Head Office to national vocational training centres. At the time of the survey, half of the non-registered (13 out of 26) and one-quarter of the preliminary registered PSTIs (8 out of 31) had been operating for more than six years. Post-registration inspections are also very rarely made with an average of 0.5 visits during the last five years being reported by registered and preliminary PSTIs. Serious shortages of suitably qualified and experienced staff coupled with a chronic lack of funding for subsistence and travel have been the main reasons why VETA has been largely unable to undertake satisfactorily its registration and inspection functions. However, with VETA training centres being expected to generate their own income from student fees, they are increasingly competing with PSTIs in their immediate localities which, in turn may adversely affect their commitment to promote the development of PSTIs.

Table 4.10 shows that most survey respondents have serious reservations about the support they had received from VETA and other government institutions. These negative perceptions appear to be most acute in Dar Es Salaam where nearly one-third of respondents rated government agencies as being 'very unsupportive'. Not-for-profit and for-profit PSTIs were equally critical, but a significantly higher proportion of non-registered PSTIs stated that the government was 'very unsupportive' which may be a reflection of their impatience and frustration at having to wait so long to become legally registered.

Table 4.10: Perceptions of government support among survey PSTIs, 1996 (percentages)

		Very unsupportive	Unsupportive	Indifferent	Supportive	Very supportive
Region
	Kilimanjaro	8.7	73.9	4.3	8.7	4.3
	Arusha	16.0	72.0	8.0	4.0	0.0
	Dar Es Salaam	30.3	54.5	6.1	9.1	0.0
Type of centre
	For-profit	21.7	60.9	10.9	6.5	0.0
	Non-for-profit	17.1	71.4	0.0	8.6	2.9
Registration status
	Registered	17.9	71.4	7.1	3.6	0.0
	Preliminary registered	16.1	64.5	0.0	16.1	3.2
	Unregistered	27.3	59.1	13.6	0.0	0.0

Survey respondents were also asked the following open-ended question: How could VETA and other government agencies be more supportive? Table 4.11 shows that three main areas were identified, namely better inspection and management of trade tests and access to the training levy funds that have been collected from employers since 1995 and which, for the foreseeable future, are to be exclusively used to support VETA. Given their precarious financial situation coupled with their concerns about the poor management of the trade test system, it is perhaps not surprising to find that relatively more not-for-profit PSTIs stated that levy funds should be used to support their training activities and that urgent steps need to be taken to improve trade testing.

Table 4.11: Perception among PSTI respondents of main areas of improvements by VETA and other government agencies (percentages)

		Trade Tests	Inspections	Use of training levy
Region
	Kilimanjaro	48	44	48
	Arusha	50	31	65
	Dar Es Salaam	49	20	40
Type of centre
	For-profit	45	41	43
	Non-for-profit	54	43	59
Registration status
	Registered	55	48	69
	Preliminary registered	51	54	42
	Unregistered	40	20	40

Furthermore, a significantly higher proportion of registered PSTIs (69 per cent compared to only 40 per cent among preliminary and non-registered centres) also would like to be able to access training levy funds.

4.3 Zimbabwe: Registered PSTIs

4.3.1 Survey Design and Methodology

Two surveys of registered and unregistered PSTIs were undertaken in Harare in early 1997. This section summarises the main findings of the survey of registered training centres. A random sample of 25 registered PSTIs was selected (out of a total of 110 in Harare) and interviews conducted with proprietors and/or principals.

4.3.2 The Evolution of Registered PSTIs

Pre-Adjustment: In common with most other countries in sub-Saharan Africa, PSTIs in Zimbabwe had to contend with a very disabling policy environment prior to economic liberalisation in 1990. Strict registration requirements were imposed and government discouraged PSTIs from offering national vocational qualifications. Not surprisingly, therefore, private sector training provision remained fairly limited. Six of the survey PSTIs were established before 1980 and another eight between 1980 and 1989. Those registered prior to Independence were predominantly owned and managed by not-for-profit (mainly church) organisations.

There are three main reasons for the slow growth of PSTIs during the 1980s. First, academic qualifications, and in particular 'O' levels and Cambridge Certificate largely determined access to 'good' jobs in the formal sector. Thus, acquiring these qualifications was the main priority for most young people during this period. Secondly, the Mugabe government was formally committed to Marxism-Leninism and was, therefore, ideologically opposed to private sector training provision which was regarded as exploitative, (particularly of low income Africans) and, with the rapid expansion of student enrolments at public sector training institutions, was seen as increasingly unnecessary (see Box 2).

Figure 4.5: Date of establishment among survey PSTIs

And thirdly, the general unavailability of foreign exchange severely limited the scope for individuals to pursue VET courses leading to foreign qualifications. Not only was FOREX not readily available to pay for student registration and examination fees with foreign institutes and other examination bodies, but the shortage of foreign exchange meant that imports of new production technologies, particular information technology remained very limited. Consequently, there was little demand for the skills training and related qualifications associated with these new technologies. Throughout this period, correspondence colleges (in particular Rapid Results and the Central African Correspondence College) were the preferred choice of the large majority of Africans who wanted to obtain vocational qualifications through their own initiatives.

BOX 2. The Disabling Policy Environment For most of the post-Independence period, government policies and actions towards PSTIs have been openly adversarial and competitive. Politicians and senior policy makers at the Ministry of Labour (which, up until the creation of the MOHE in 1988, had overall responsibility for registration and inspection of PSTIs) and subsequently, the MOHE stated (both publicly and privately) that they could see no role for PSTIs and actively discouraged them. This included very stringent registration requirements which suited existing providers but clearly posed serious obstacles for potential new entrants,1 discouraging PSTIs from offering national vocational qualifications, only allowing PSTIs to offer new courses where they could make a convincing case that such provision was justified, and arguing that PSTIs should be forced to offer either academic or vocational training, but not both2. The MOHE also established its own distance education college (funded largely with donor funds) in an attempt to force the correspondence colleges out of business.3 1. Only around one in ten applications for PSTI registration were approved in the mid-late 1980s. 2. Other more direct attempts were made by the government against private sector trainers. For example, soon after Independence, a senior official at the Ministry of Labour tried to get the African instructors at one of the largest PSTIs to leave and become civil servants. 3. The Zimbabwe Institute of Distance of Education (ZIDE) was established in order to produce learning materials for mainly academic courses. It failed, however, to make any major inroads on the markets of the major distance education colleges.

The range of courses available was also limited and was dominated by secretarial courses based on traditional office skills and the Chartered Institute of Secretaries (CIS) professional accountancy qualification. Government policy was to replace foreign with local qualifications. City and Guilds of the London Institute, the most important.

Economic liberalisation since 1990: The progressive liberalisation of the economy and government VET policies since 1990 has had a profound impact on the extent and type of private sector VET provision. In particular, the government increasingly recognises that public training institutions can only satisfy a small fraction of the rapidly growing demand for VET. Consequently, for both ideological and pragmatic reasons, VET policy has shifted in favour of private sector VET provision although there is still a long way to go before a fully enabling policy environment has been created.

The number of for-profit PSTIs has mushroomed since the early 1990s. 11 out of the 25 survey PSTIs (44 per cent) were established in the space of just seven years. Barriers to entry are not particularly high and many centres have been established by former public servants, including a significant proportion of women. Prior to 1990, only three out of the 11 for-profit PSTIs were African owned and managed. However, all but three of the 10 for-profit PSTIs that have been established during the 1990s have been set-up by African entrepreneurs.

Interestingly, not-for-profit PSTIs have fared generally less well than for-profit training centres largely because of significant reductions in the levels of financial support from donors. In order to survive, many of these NGOs have been forced to commercialise all or at least some of their training activities. This has meant that they are increasingly catering for students who are in relatively well paid jobs or come from more privileged socio-economic backgrounds rather than the poor and other disadvantaged groups in both rural and urban areas that they were originally intended to help.

Figure 4.6: Size distribution of survey PSTIs

4.3.3 Clients and Courses

The scale of private sector training provision in Harare is impressive Between them, the 25 survey PSTIs sold a wide variety of training services to nearly 35,000 individuals in 1996. The largest centre had over 11,000 enrolments while the smallest had only 26. The median enrolment was 500 (see figure 4.6). Grossing up this figure to include the other registered as well as unregistered PSTIs in the country, it is likely that nearly 180,000 individuals, which is five per cent of the economically active population, undertook some form of private sector training during 1996.

Table 4.12: Enrolments by main subject area at the survey PSTIs, 1996

Subject area	Number of centres		Total enrolments
	Specialista	Others	Number	% Total
Academic	0	8	4814	14.3
Secretarial	4	12
Commercial	1	12	12906	38.3
Computing	8	11	11871	35.2
Clothing	1	4	1459	4.3
Technical	1	4b	1570	4.7
Other	0	3c	1082	3.2
Total	15	-	33702	100.0

^a more than 75 per cent of enrolments
^b computer servicing
^c mainly 'English as a second language'

Table 4.12 shows that commercial, secretarial and computing training courses accounted for nearly three-quarters of all enrolments at the survey PSTIs whereas technical training in trades (such as motor mechanics, masonry and electrical installation) comprised barely five per cent. A very wide range of commercial courses are available including accounting, marketing, bookkeeping, general credit and supervisory management, salesmanship, purchasing and supplies, banking, and hotel and tourism management. This enrolment pattern is the outcome of both supply and demand side factors. The informal sector is relatively small in Harare and the demand for artisans by employers in the formal sector has declined since the start of adjustment. On the supply side, the high capital and running costs of providing technical training that satisfies government registration requirements deters most training entrepreneurs.

There are three main client groups for these courses. The first comprises individuals who are already in wage employment in the formal sector who are seeking to obtain relevant professional and other vocational qualifications in order to advance their careers and thus improve their incomes. About two thirds of all enrolments on commercial and computing courses come from this client group. Since most are in full-time employment, almost all attend evening classes after work. The second group are school leavers who are either re-sitting secondary school leaving qualifications or are full time students on secretarial, commercial, clothing and technical courses. And the third group are trainees directly sponsored by employers as part of in-house staff development activities. In total, almost 60 per cent of all PSTI students were women which is marked contrast to government post-secondary VET centres where only 30.0 per cent of students were female in 1996.

Figure 4.7: Evening class students as a percentage of total enrolments among survey PSTIs

4.3.4 Enrolment Growth

Enrolments at for-profit PSTIs have grown extremely fast since 1990. The average annual rates of enrolment growth was 12.4 per cent between 1990 and 1996. Enrolment growth among not for-profit PSTIs has been equally impressive.

This high growth in the demand for the courses offered by PSTIs has been fuelled by a number of factors. Undoubtedly, the de facto change in government policy towards private sector training provision has been of decisive importance. This has allowed PSTIs to respond to the enormous excess demand for VET that cannot be met by government training centres. Furthermore, publicly-funded centres continue to offer mainly traditional artisan/technical courses whereas it is management, computing, secretarial and other commercial skills that are in greatest demand by both employers and individuals. Not only have public sector training institutions been generally slow to match their course offerings with changes in the patterns of demand, but there is a widespread perception that the quality of training has fallen at most centres during the 1990s. Many employers believe that additional training for employees relying, where necessary, on overseas qualifications can compensate for the increasingly serious shortcomings (both in terms of relevance and quality) of public sector provision.

Given that employment opportunities in the formal sector have fallen, it is clear that the growth in demand for VET is to a considerable extent the consequence of an on-going process of qualification escalation. Economic liberalisation has also had a dramatic impact on the type of qualifications that are available. Prior to adjustment, chronic shortages of foreign exchange meant that it was very difficult for individuals to study for foreign qualifications and they were forced therefore to rely on a very limited range of national courses. Now that foreign exchange is freely available, the number of foreign training courses, mainly in commercial and computing subject areas has grown enormously. For example, the largest PSTI in Harare offered only four commercial courses in 1990, but by 1996 this had increased to 24 and the number of students taking these courses tripled. Both employers and individuals have a strong preference for overseas qualifications because they are generally regarded as being of higher quality with globally-applied standards and, for individuals, they provide a competitive edge in increasingly tight labour markets both nationally and internationally. While UK professional institutes and examination boards predominate, with the ending of apartheid and the normalisation of political and economic relations with South Africa, there has been a marked increase in the presence of South African qualification awarding bodies.

Accreditation by both local and foreign examination bodies is generally non-existent or very lax which means that it is relatively easy for PSTIs to offer these courses. This in marked contrast to national examinations where fairly strict standards are applied before accreditation is granted. Up until the early 1990s, the government actively discouraged PSTIs from offering national qualifications. Since then, however, the policy has been reversed and PSTIs seeking registration are now formally required to offer national courses. Government attempts, therefore, to localise professional and vocational courses have intensified precisely at the same time as training markets have become increasingly dominated by foreign courses and qualifications. This is part of a wider global phenomenon where trade in education and training services is growing extremely fast and truly international education and training markets are rapidly emerging.

The increasing costs of studying overseas is also another important factor that has contributed to the growth of PSTI enrolments. Very large devaluations coupled with increasingly stringent immigration controls has resulted in large numbers of individuals who would have in the past gone overseas for training, being obliged to seek this training in-country. Local PSTIs offering internationally recognised qualifications represent, therefore, a second best alternative to overseas training.

While PSTI enrolments in commercial, computing and secretarial courses have expanded rapidly, those for academic, clothing technology and other technical subjects have, in overall terms, stagnated. Declining real incomes among lower income target groups and saturated markets in some areas are the principal causes. Traditionally, on the job training has been the dominant mode of skill acquisition in the small and microenterprise sector.

4.3.5 Facilities and Staffing

To be commercially viable, PSTIs in Harare have to be located in or very near the city centre. Given the chronic shortage of affordable office space to rent, finding suitable premises is invariably the biggest challenge for PSTI entrepreneurs. Rents typically account for 25-30 per cent of total recurrent costs. While the majority of surveyed centres (16 out of 25) had more than six classrooms, with large numbers of students, over-crowding is the norm. Most 'classrooms' are very small and cramped.

Apart from a blackboard, no other equipment is normally used to teach commercial courses. Only a handful of centres have more advanced teaching equipment (such as videos and overhead projectors).

Only a small minority (5-6) of the surveyed centres employed experienced and well qualified full-time instructors. In order to attract and retain these instructors, they had to pay relatively high salaries which, in turn, meant that their tuition fees were also higher. There was a very a very heavy reliance on part-time instructors. Excluding principals, part-timers make up over half of the teaching staff at over three-quarters of the survey centres. The preponderance of part-time instructors is largely due to the importance of the evening class market and the desire of proprietors to minimise costs.

Figure 4.8: Reliance of part-time instructors among the survey PSTIs, early 1997

4.3.6 Affordability, Sources of Income and Profitability

The tuition fees for the main courses offered by the survey PSTIs are presented in Table 4.13. Except for computer short courses, these fees are charged on a monthly basis. It can be observed that the overall level of fees for commercial, computing and secretarial courses are significantly higher than for academic, clothing technology and technical courses. The core clientele for the first group of courses are individuals who are already in relatively well paid jobs and school leavers from middle class family backgrounds. Furthermore, the demand for these courses has grown very rapidly during the 1990s. By contrast, clothing technology and technical training are targeted at individuals from low income groups residing mainly in the high density areas who want to acquire vocational skills in order to become self-employed. Given the relatively low fees charged at most government schools, it has proved difficult for PSTIs to charge significantly higher fees for 'O' and 'A' level courses. For this reason, academic courses are being phased out at most PSTIs.

Another noticeable feature is the wide range of fees charged for the same or similar courses by the survey PSTIs. As noted earlier, there are large differences in the quality and hence the costs of training provided. Almost all PSTIs rely on a cost plus formulae in setting course fees. Consequently, these differences in costs per student are directly reflected in course fees. However, ability to pay is another important factor that influences the size of the margin that is generated from each student. Two other factors are worth mentioning. First, the high prestige of a few colleges (in particular Centre X) is an important factor that serves to differentiate still further the training that is being offered both among prospective students and employers. And secondly, relevant market information is not readily available. Most PSTIs are, in fact, quite secretive about their fees, pass rates and other relevant information concerning the quality and efficacy of the training provided. Because it so difficult for prospective students to assess in a reasonably objective manner identical courses that are often being offered by a number of PSTIs, it is likely that price/fee differentials are considerably higher than they would otherwise be had this information been freely available in the first place (see Box 3).

The tuition fees charged by most of the survey PSTIs, in particular for commercial, computing and secretarial courses, are well beyond the reach of the poor. Median tuition fees for most of these courses are at least equivalent to the minimum wage of Z$480 per month in 1996. In addition to tuition costs, registration and examination fees also have to be paid. These additional outlays frequently amount to a very sizeable proportion of the total training costs. The CIMA accountancy qualification is a good example. Even assuming that the student is able to complete the full course in the minimum period of four years (which given very low pass rates is very unlikely), total training costs are likely to be in the region of Z$40,000.⁴ Sub-professional foreign qualifications (such as ACP, IAC, ICM, and LCCI) are less costly, (ranging from around Z$5000 to Z$15,000 per course). While local qualifications tend to lack prestige, initial and annual registration and examination fees are generally 3-4 times less than for equivalent foreign courses. As the Zimbabwean dollar has depreciated during the 1990s, the costs of acquiring foreign qualifications has increased very rapidly. To reiterate, therefore, the bulk of the training services offered by registered PSTIs, at least in Harare, are purchased mainly by the better off sections of the community who are employed in predominantly white collar jobs.

⁴. This includes the cost of the stipulated textbook per course. For most courses these are imported and are usually in the price range Z$300-500 per book.

Table 4.13: Tuition fees for selected courses at PSTIs in and outside Harare, 1996 (Z$/month)

Full Course		Number Centres	Harare+			Number Centres	Outside Harare
			Minimum	Median	Maximum		Minimum	Median	Maximum
COMMERCIAL
Foundation (ACCA)		3	420	580	690	0	-	-	-
Part A (CIS)		5	240	420	585	1	355	-	-
Marketing diploma		7	280	400	616	1	225	-	-
Accounting technician certificate (ZATT)		3	355	375	422	2	180	-	3320
Marketing diploma (IMM)		4	355	470	633	0	-	-	-
Business studies diploma (FBS)		3	253	355	654	1	140	-	-
Executive secretarial (Pitman)		14	125	537	1790	7	160	308	485
ACADEMIC
'O' levels
	1	4	90	105	120	2	70	-	80
	5	5	120	160	350	4	100	162	200
'A' levels
	1	3	100	115	210	2	80	-	95
	3	4	145	152	686	4	135	175	210
CLOTHING
Registered		6	85	140	267	1	80	-	-
Non-registered		3	100	110	150	10	53	81	180
MOTOR MECHANICS
Registered		1	174	-	-	4	80	147	300
Non-registered		1	167	-	-	0	-	-	-
COMPUTING
Computer programming certificate (ACP)		4	280	450	500	2	400	436	472
Computer studies certificate (HEXCO)		4	540	580	583	-	-	-	-
Computer studies diploma (HEXCO)		3	500	583	583	-	-	-	-
Computer studies certificate (IDPM)		2	383	-	550	-	-	-	-
Word processing introduction (own) per course:
	Registered	12	200	370	500	5	115	300	450
	Non-registered	13	100	390	600	1	100	-	-

⁺ excludes Chitungwiza

BOX 3: Tuition fees and examination performance: the LCCI full diploma in marketing. The LCCI's full diploma in marketing is one of the most popular commercial courses in Zimbabwe. Figure 4.9 is a scatter diagram of the tuition fees charged by the 10 PSTIs in Harare that offered this course in 1996 and the examination pass rates of students at each of these centres. If markets are functioning well, one would expect to see a fairly close positive relationship between these two variables since relatively higher performing PSTIs are likely to have higher costs (in order to deliver better quality training) as well as being able to charge higher prices because prospective students will be attracted to them. However, it can be observed that no relationship of this kind exists among the PSTIs offering the LCCI marketing diploma.5 If anything, the relationship could even be negative with the some of PSTIs with the highest fees having among the lowest pass rates.6 This is symptomatic of the lack of relevant market information that is readily available to prospective students. The larger, longer established PSTIs may, therefore, be attracting more students not because they provide better quality training but simply because of their overall reputation and status value coupled with their ability to advertise heavily. 5. Another possible relationship is that fees at larger PSTIs could be lower because of economies of scale and lower unit costs per student but again there is no discernible relationship between enrolments and fees among the 10 PSTIs offering the LCCI marketing diploma. 6. The correlation coefficient is negative (-0.7) but it is not statistically significant. Figure 4.9: Relationship between fees charged and pass rates at PSTIs offering the LCCI marketing diploma

The relatively high direct costs of studying at PSTIs (tuition and examination fees, textbooks, travel) means that this form of training provision is only affordable by the better off and, in particular, among individuals who already have 'good jobs' in the formal sector. Median tuition fees for most of the courses offered by the survey PSTIs were at least equivalent to the minimum wage of $480 per month in 1996. While the fees charged by the NGO training centres are usually lower than for equivalent courses offered by for-profit PSTIs, they are still beyond the financial reach of individuals from the poorest households. Since the early 1990s, not-for-profit centres have had to rely increasingly on tuition fees as support from donors has declined. Consequently, fee increases among NGO centres have generally been much higher than at for-profit PSTIs and there has occurred a considerable convergence of fees charged between the two types of private sector providers. At the same time, real incomes have fallen quite considerably among large sections of the population so that, if anything, courses offered by PSTIs have become even less affordable for the poor.

Given the social and economic objectives of church and other NGO training centres, most would prefer to make up shortfalls in funding caused by declining donor support by increasing income earned from their own production activities. But, they have generally not been successful in doing so.

Detailed information was not requested on turnover, costs and profits. However, rough estimates have been derived on the basis of the information that was requested on enrolments, course fees and total average monthly operating costs. Nearly half of the survey had operating profit margins of over 50 per cent in 1996. The least profitable centres are generally those that have been recently established as well a group of 2-3 centres that have failed to flourish in increasingly competitive markets for training services.

Figure 4.10: Profit margins and profit per student among survey PSTIs, 1996

Note: Profit margin is operating profit expressed as a percentage of total recurrent costs

4.3.7 Drop-Out and Examination Pass Rates

Only fairly limited data could be collected on the 'internal efficiency' of the survey PSTIs. However, drop-out rates appear to be 10-25 per cent for most courses which, given the relatively high training costs involved, are surprisingly low. While pass rates for individual examinations sat by students in 1996 were generally over 50 per cent, typically fewer than three percent of all students registered with the main local and foreign professional institutes successfully completed all the professional examinations in 1996. One of the main reasons for these low completion rates is that very large proportions of students (usually at least half) are studying on their own and have to rely on learning materials produced by correspondence colleges. But senior officials of the local accountancy and computing associations also indicated that between one-third to one-half of the instruction offered by PSTIs in Harare was, in their opinion, of a sub-standard quality.

4.3.8 Registration and Inspection

While there has been a distinct improvement in the policy environment for PSTIs, there are still serious weaknesses. For new entrants, the registration process is very slow, typically taking 6-12 months. On the other hand, many established PSTIs complain that registration standards have fallen to unacceptably low levels, and that the standard of training at some new PSTIs is unacceptably low. MOHE inspections are very rare and only under exceptional circumstances are centres de-registered. In a number of key respects, therefore, MOHE policy and practice have become too permissive.

The MOHE is seriously under-resourced to be able to register and inspect PSTIs in an efficient and effective manner. Only three officers were employed in 1997 to cover all secretarial, computing and commercial private sector training provision.

Policy transparency and credibility are also major issues. No policy document or statement has ever been produced that clearly outlines the new government's policy stance on PSTIs. It is obviously important that the government's new approach to private sector provision is seen as credible and 'locked-in'. Many PSTI proprietors and principals remain suspicious of the MOHE and government policy.

4.4 Zimbabwe: Non-Registered PSTIs

4.4.1. Survey design and methodology

In order to ascertain the extent and basic characteristics of non-registered PSTIs in Harare Province, systematic physical searches were undertaken during February 1997 in the following areas: (i) the city centre; (ii) three high density suburbs (Highfields, Mufakose, and Tafara); and (iii) Chitungwiza, which is a dormitory city for Harare and a separate district in the Province. Three research assistants visited all office and other buildings in central Harare. In the HDAs and Chitungwiza, they began their searches in shopping centres and then these were extended into the surrounding residential areas. In addition, all advertisements in the Herald, the national newspaper, selling 'tuition' services in the Harare area were scrutinised over a four month period (October and November 1996 and January and February 1997). All adverts where it seemed likely that the centre was not registered were followed up.

Given the illegal status of non-registered PSTIs, each research assistant (all three of whom were university students) either posed as a prospective student or as the sponsor of a prospective student. Once a centre had been located, they attempted to gather as much information about its activities as possible and, in particular, the type of training provided, tuition fees, facilities (number of classrooms, equipment, etc.), and staffing. However, only around a half of the centres visited allowed the prospective clients to inspect classrooms and other facilities.

4.4.2 The City Centre

A total of 37 non-registered PSTIs were discovered in the city centre. In early 1997, there were approximately 95 registered independent PSTIs in Harare. It would appear, therefore, that illegal centres comprise a sizeable segment of the total private sector training market.

Apart from three centres, the MOHE did not know of the existence of any of these PSTIs. Officials argue that with only eight inspectors for the entire country coupled with seriously inadequate travel and subsistence budgets, they are simply not in a position to police effectively PSTIs. Furthermore, the penalties for operating an unregistered centre were until recently very low (only Z$ 1000 in 1996) and have not, therefore, acted as any kind of deterrence.

Table 4.16 summarises the main characteristics of the non-registered PSTIs that were found. Two main types of training are provided-computing and clothing.

Computing: PSTIs specialising in computer training predominated, with 23 (62 per cent) offering training in this area. With just two exceptions, only short courses covering the most common software programmes were available. In common with the registered PSTIs, these courses were 8-20 hours in duration, normally undertaken in 1-2 hour sessions on consecutive days. Students were generally not examined and only received a certificate of attendance.

Table 4.14: Summary characteristics of non-registered PSTIs in Harare central business district, early 1997

Type of training	Number found	% one classroom only	Average number of computers/sewing machines	Students observed	% poor condition
Computing	23	76.5	5	1-12	30.8
Clothing	9	100.0	4	6-30	33.3
Hotel, tourism & catering	3	na	0	na	na
Commercial	2	100.0	0	na	0.0
Motor mechanics	1	0.0	-	70+	100.00

The scale of operations appeared to be generally quite limited. All premises are rented. Thirteen out of 17 (76.5 per cent) that could be properly inspected had only one, usually small teaching room. Four were in poor or very poor condition. Ten had three computers or less that are used for training purposes. Centres were visited during the day time. At eight centres, just one instructor was observed with only 2-3 students receiving instruction.

As noted earlier, the profit margins on short computer courses can be very high and, undoubtedly, it has been the prospect of earning such high returns that has attracted so many non-registered computing PSTIs into the market. However, most of these centres have not attracted large numbers of students mainly because of their small size and invisibility. In particular, it is difficult for them to market themselves widely because of high advertising costs coupled with restrictions imposed by the government-owned media on the placement of advertisements by non-registered PSTIs. In such circumstances, one would normally expect serious price-cutting to occur. Surprisingly, however, the course fees charged by the majority of these centres are in the same price range as registered PSTIs. Only the lower quartile fee is significantly lower (see table 4.13). While costs for both groups are likely to be quite similar (office rents in the city centre, instructor salaries, and cost of computers), with such high margins, there should still be considerable scope for non-registered centres to sell cheaper courses.

Clothing: The next largest group of non-registered PSTIs in the city centre are those providing training in dressmaking, knitting, and tailoring. A total of nine centres were found. They share a number of the same characteristics as the computing centres. They are all one-roomed, have 1-2 instructors, and the training is non-certified. However, unlike the backroom computer PSTIs, courses are longer in duration (6-12 months), students (who are overwhelmingly female) attend daily for at least 4-5 hours, and class sizes are considerably larger. The minimum and maximum numbers of students observed were 6 and 30 respectively, with a median class size of 14. On average, two students shared a sewing or knitting machine. The conditions at three (one-third) of the centres were poor with serious overcrowding.

Monthly tuition fees for the standard dressmaking and tailoring courses were Z$ 100-150, considerably cheaper than at registered centres. Knitting courses, however, cost twice as much.

Other training: Apart from computing and garment making courses, non-registered vocational training centres were operating in the following areas: hotel, tourism and catering (3 centres), commercial (2 centres), and motor mechanics (1 centre). The almost complete absence of commercial training provision is in striking contrast to its pre-eminent position among the registered PSTIs in Harare. This may be largely due to the nature of the clientele for commercial courses who are mainly better paid and educated individuals who expect reasonably high standards of training at properly accredited PSTIs.

BOX 4: Non-registered motor mechanics training This centre was originally established in the mid-1960s as a charitable organisation by an African mechanic. It had premises in the industrial area and it was registered with the MOHE. However, the Centre was forced to relocate in 1985. New premises were eventually found in the city centre but, in view of its fairly high operating costs, the centre is now run for profit. The facilities are seriously inadequate. The centre consists of one office and three tiny classrooms. There is no workshop nor any even an open area which can be used for demonstrations and student practicals. There are only very basic tools and other equipment with the result that the instruction is heavily theoretical. Given these poor facilities and equipment, the MOHE have refused to re-register the centre. A one year 'pre-apprenticeship' course in motor vehicle mechanics is offered. There is a continuous intake with students attending for one hour per day, five days a week. With three full time instructors and a maximum seating capacity of around 70 places, maximum daily enrolment could be 740 students. Total student enrolment in 1996 was, in fact, 350 with 10 per cent drop out. The centre has its own end of year theoretical and practical examinations. Pass rates are 60-65 per cent. Monthly tuition fees average Z$167, fractionally less than its sole competitor (Centre K). With annual operating costs of around Z$300,000 and total income of Z$690,000, profits were approximately Z$390,000, yielding a very healthy profit margin of 130 per cent.

However, with regard to training in the main manual trades, the pattern of provision between the registered and non-registered PSTIs is very similar. In early 1997, there was only one 'for profit' PSTI in each group offering this type of training in Harare Province. And, in common with the registered PSTI, the quality of training offered at the non-registered centre (which also specialises in motor vehicle mechanics) is basic and relies on out-dated technologies (see Box 4). The expense of meeting workshop and equipment requirements stipulated by MOHE coupled with relatively limited demand for formal training (in particular for self employment) jointly explain the very limited private sector provision in the technical trades.

4.4.3 Highfield, Mufakose and Tafara

Three out of a total of 17 high density areas in Harare were surveyed. The HDAs (formerly known as 'locations' and 'townships' prior to Independence) are where the majority of the African working class reside and where most informal sector activities are located. One might expect, therefore, that a significant amount of non-registered training to have emerged in these areas.

Highfield, Mufakose and Tafara are fairly representative HDAs in terms of both population size and household characteristics. Highfield is the oldest and largest HDA, located contiguous with the main industrial area in the south west of city. Tafara, on the other hand, is considerably smaller and was only developed during the 1960s. Between them, these three HDAs had a resident population of 193,200 at the time of the 1992 population census. This is likely to have increased to around 225,000 by 1997. The distance between the three HDAs and the city centre is 5-10 miles.

In stark contrast to the large number of registered PSTIs in the city centre, only two registered PSTIs (both located in Highfield) were located in the three HDAs. One of these centres, a well established, church-based NGO, has been struggling to break even and enrolment growth at the only 'for-profit' registered PSTI has been less than 5 per cent per annum during the 1990s. Both have found it very hard to compete with the city centre PSTIs. Unless training courses are heavily subsidised, the bulk of the economically active population who remain in the HDAs during the day, namely the unemployed, informal sector workers and 'housewives', cannot afford to pay the tuition fees at registered PSTIs. The NGO training centre, in particular, is caught in the dilemma of being unable to cater either to the training needs of the poor or attract those able to afford the training that they can offer.

Table 4.15: Summary characteristics of non-registered (clothing) PSTIs in Highfield, Mukakose and Tafara

Area	Number	Type		Location
		For profit	NGO	Church	Commercial/Backyard	House
Highfield	8	6	2	2	3	2
Mukakose	13	12	1	1	2	10
Tafara	9	7	2	2	0	7
Total	30	25	5	5	5	19
Chitungwiza	12	8	4	4	3	5

Table 4.15 summarises the numbers and other characteristics of the non-registered PSTIs that were found. What is particularly striking is that clothing was virtually the only kind of training that is available in these three HDAs. Foundation College, a registered PSTI in Tafara, had up until the end of 1996 offered training in carpentry and motor mechanics but had decided to discontinue this training and concentrate on academic courses instead.

There are three types of providers offering training in dressmaking and knitting:

(i) Churches. Three church-based training centres account for over 80 per cent of enrolments in Mufakose and Tafara. The Church of the Assemblies of God (Zaoga) is particularly prominent. Tuition fees are low - less than Z$100 per month for up to 30 hours of instruction a week;

(ii) For profit training centres in commercial premises. (3 in Highfield and 2 in Mufakose). Four of these centres were located in poorly constructed buildings in the 'backyards' of shops and other commercial properties and enrolled 8-20 students. The remaining centre, Chivimbiso enrolled upwards of 400 students in daytime and evening classes in two, sparsely furnished and equipped rooms at a dilapidated church in Highfield. The tuition fees at the 'for profit' centres were also low.

(iii) House-based. In Tafara and Mufakose, most clothing training is undertaken in private houses. In Highfield, on the other hand, training is offered in only two houses. This may be because Highfield has more proper training centres. The sole (female) instructor is usually an experienced dressmaker or knitter who works from home and offers full time on the job training for normally 1-2 student for 3-6 months periods. In effect, therefore, this is a form of apprenticeship although monthly tuition fees are high (Z$250-300/month) compared with those charged by the more formal, non-registered PSTIs. About half the houses identified had a sign at their front gate advertising their training activities. The other trainers are almost completely invisible and recruit trainees solely by word of mouth. Two women visited only provide training at the student's house and, at another, the student brings her own knitting machine.

4.4.4 Chitungwiza

Chitungwiza is situated 20 kilometres south of Harare. According to the 1992 Population Census, the city had 275,000 residents which is slightly less than 20 per cent of the total population of Harare Province. Unofficially, Chitungwiza's population had reached half a million by 1997. The city has grown extremely rapidly since independence and serves as a dormitory town for workers who commute daily to the industrial and commercial areas of Harare. Chitungwiza occupies a relatively larger area and houses are generally much spacious than those typically found in the HDAs.

It can be observed in Table 4.16 that the pattern of private sector training provision in Chitungwiza is very similar to that found in the HDAs. Thus, among the 12 non-registered training establishments (with a total enrolment of around 550 students) that were located, dressmaking and/or knitting are offered at 10 of them (5 non-profit NGOs, 2 shop-based, and 3 house-based). Computing training is also available but on a very small scale at two houses.

Table 4.16: Summary details of non-registered PSTIs located in Chitungwiza, 1996

Name	Course	Classrooms	Instructors	Students observed	Fees/m	Duration (months)
Churches/NGOs
1. St Theresa	Dressmaking	1	1	60	92-108	6-12
2. St Alois	Dressmaking	1	1	30	50	6
3. Chiysap	Various	na	9	88a	10	1-12
4. Zaoga	Dressmaking	na	na	100	na	6-12
Private - Commercial
5. unknown	Dressmaking	1	1	120	55	12-20
6. Jesand	Dress/knitting	1	1	5	250	3
7. Modern School of Design, Cutting & Dressmaking	Dressmaking	1	2	17	55	6
House-based
8. -	Dressmaking	2	1	60	53	6
9. -	Computing	1	1	3	300	1
10. LTS Computers	Computing	1	1	2	200	1
11. -	Knitting	1	1	2	200	3
12. -b	Dressmaking	1	1	1	50	na

^a Total enrolment
^b Training done at student's home

The Chitungwiza Integrated Youth Survival Alternative Project (CHIYSAP) is however an interesting example of an innovative approach to vocational training geared to self employment (see Box 5). This kind of community-based training is noticeably absent in the three survey HDAs.

BOX 5: The Chitungwiza Integrated Youth Survival Alternative Project CHIYSAP was established in 1992 in order to bring together unemployed youth and equip them with practical skills which could be used to start self-help income generating projects. Training linked to production units is now offered to over 85 individuals in motor mechanics, brushmaking, dressmaking, carpentry, soap-making, hairdressing, secretarial, and arts and drama. Initially, trainees were informally attached (and at no cost) to established enterprises in the Chitungwiza area and then imparted the skills they had acquired to new groups of trainees. CHIYSAP now has a total membership of 2500 but only 250 are actively involved in training and production activities. Members pay a registration fee of Z$10 and monthly subscriptions of Z$2. CHIYSAP also provides small loans to its members who are expected to operate on a profit basis whilst maintaining a bank balance equivalent to the initial cash injection.