TVET and Polytechnic Centers

November 2022

Indicative Return:

More than 25%

Investment Timeframe

Short Term (0–5 years)

Business Model Description

Establish or acquire and operate technical and vocational education and training (TVET) and polytechnic centers offering targeted skills required by specialized industries, especially for technicians and associate professionals and specialized sectors such as teleccomunication and services. The TVET and polytechnic centers operate both on the technical and managerial level and target especially rural areas. The skills set differ by industry, hence a need for tailor-made-courses to address specific demand by the industries.

Expected Impact

Prepare youths for the labour market and offer the skillset needed by industries.


Eastern, Central, Northern, Lake

Education > Education Infrastructure

Direct Impact SDGs:

Indirect Impact SDGs:


Development need: Significant progress has been made in expanding free primary education in Tanzania, raising primary and secondary enrolment rates and increasing investment in higher education. However, Tanzania’s Human Capital Index (HCI) remains well below the average of low and low middle income countries. Access to education is highly unequal, and a lack of qualified teachers undermines learning outcomes (1).

Policy priority: The government is committed to develop and maintain a skilled and competitive workforce through: increasing enrolment of age-appropriate children; construction of classrooms and teacher allocation to keep pace with the rapid increase and incorporate STI and digital learning and teaching (2,8,21)

Gender inequalities and marginalization issues: The ratio in primary and lower secondary schools for girls to boys is about 1:1, while in upper secondary and higher education it is 1:2. This shows a decreasing trend for the progression of girls from one level to the other. Although drop out affects both boys and girls, girls have a greater possibility for leaving school prematurely (3).

Investment opportunities introduction: Tanzania has one of the world’s fastest growing young people’s population. Of the estimated 60 million people, more than 50% are under 18 and over 70% are under 30. Tanzania requires means of educating these large numbers of young people, which offers engagement opportunities (6, 7).

Key bottlenecks introduction: Despite important gains in primary enrolment, learning outcomes remain broadly unchanged. The distribution of educational opportunities is highly unequal, and a lack of qualified teachers undermines education quality (5).

Education Infrastructure

Development need: Tanzania faces a serious gap between the skills the economy needs and the skills the education system delivers. To meet the Development Vision 2025, a significant effort is needed to provide Tanzania’s youthful population with the expertise and experience needed to drive development and achieve personal aspirations for secure and well‐paid jobs (3).

Policy priority:The government is committed to strengthening technical and vocational education and training (TVET) oriented towards the world of work and addressing the real needs of labour markets. (4, 10)

Gender inequalities and marginalization issues: Although TVET and general education increases male and female earnings significantly, the returns to TVET and general education are substantially higher for females. Women’s’ skills training and education hence helps to address gender earnings inequality (8).

Investment opportunities introduction: TVET opportunities exist in ICT, agriculture, automobile, aviation and technician level skills that reflect up to date industry demand for new heavy-duty equipment in the construction industry, technicians in oil and gas engineering, electrical hydropower engineering, mining engineering and advanced technology in architecture using modelling programs (9).

Key bottlenecks introduction: There is persistent disconnect between the market demands and the skills sets of many of the TVET graduates. 75% of TVET centers are concentrated in urban settings, leaving marginal training opportunities in the rural areas, where 80% of the population resides, often lacking the basic skills for supporting livelihoods (10, 11).

Market Size and Environment
Critical IOA Unit

1 million students projected to be enrolled in vocation training centers in 2025/26

The government spends an average of USD 51 million per year on technical and vocational education and training. The expenditure has grown by a CAGR of 35% in 2016-2021. Student’s enrolment in technical institutions in 2015/2016-2019/2020 grew from 78,912 to 320,143 (9, 15). Students enrolled in vocational training centres is projected at 1 million in 2025/26 (4).

Skills in short supply include transports and logistics, architecture, hospitality and tourism, ICT, energy and minerals, agribusiness. There is also demand for technicians and associate professionals, such as metallurgical technicians, metal production process controllers, chemical engineering technicians and chemical process plant controllers (9, 11).

Indicative Return

More than 25%

Investment Timeframe

Short Term (0–5 years)

An analysis of technical and managerial skills development programme for women entrepreneurs engaged in manufacturing and distributing cleaner cookstoves technology establishes that it takes at least two years for such projects to break even (13).

Ticket Size

USD 500,000 - USD 1 million

Market Risks & Scale Obstacles

Market – Highly Regulated

Market – High Level of Competition

Sustainable Development Need

800,000 young Tanzanians enter the labour market per year. 85% of the workforce is low-skilled and 12% is medium-skilled. Their employability is low because due to a mismatch with the skills required by industries (18, 21).

The education system in Tanzania has a number of gaps in responding to the demands of the market. Gaps exists in the ability to learn and adapt, ability to listen and communicate effectively and think creatively and solve problems independently. There is a big mismatch between the education offered and skills demanded in the labour market (16, 17,31).

Expected Development Outcome

TVET and polytechnic centers prepare young Tanzanians for a professional career. The delivery system is well placed to train a skilled and entrepreneurial workforce (17).

TVET courses are practical and provide opportunities for formal employment (11).

TVET and polytechnic centers equip students with requisite skills demanded in the labour market. In addition, graduates are able to communicate effectively, think creatively and solve problems independently (17,33).

Primary SDGs addressed

Secondary SDGs addressed

Directly impacted stakeholders

People: Youths entering the labour market benefit from an opportunity to obtain the required skillset.
Gender inequality and/or marginalization: Women enjoy higher earnings and increased employability in the formal and informal sector.

Indirectly impacted stakeholders

The general population benefits from higher levels of engaged youth and job opportunities in the private schools.
Gender inequality and/or marginalization: Women and poor communities are able to get affordable tools, machinery and equipments fabricated by TVET trained personell. They can use them to underake different economic activities such as bakery,carering, crop processing and drying, processing of dairy products etc

Planet: TVET institutions can provide technical skills on how local technologies can be re-oriented in line with global environmental standards trends (e.g., efficient cooking technologies). In this regard, TVET can play a crucial role in the transition to cleaner energy.

Corporates: Enterprises can benefit from the operations of TVET centers either through supply of goods and services e.g., spare parts, accessories and fixtures, or direct services such as cleaning, catering, security etc

Outcome Risks

A limited pool of qualified teaching staff with requisite skills in new and emerging technologies or specialized emerging sectors (e.g. telecommunications, digital services, financial services) may necessitate outsourcing, which may result in unaffordable service provision (10,33)

Competing priorities (with the other sectors of the economy and other Education sub-sectors) may result in low and/or irregular inflow of financial resources to TVET which is liable to threaten its contribution to economic development (10)

Potential change of policies by development partners and/or donor fatigue may threaten support to TVET (10)

Impact Risks

Weak placement services for trainees may limit the expected impact, and inadequate tracer studies may offer challenges in confirming the relevance of the offered trainings (17).

If the centers rely on traditional training delivery, rather than considering tailor-made courses, and do not adapt to the needs of the informal sector, the expected impact may be limited (17).

Impact Classification

B—Benefit Stakeholders


TVET and polytechnic centers provide the skillset needed by industries and prepare the workforce for productive professional engagements.


Youths entering the labour market and enterprises in various industries benefit from TVET and polytechnic centers.


While the model of TVET and polytechnic centers is proven, complementary services, data availability, and orientation towards informal sector requirements require consideration.

Impact Thesis

Prepare youths for the labour market and offer the skillset needed by industries.

Policy Environment

Technical And Vocational Education and Training Development Programme, 2013, 2018: The Government is aware of the role played by TVET in the provision of skills which is vital for an economy to grow and compete, particularly in an era of economic integration and rapid technological changes. The Government is committed to implement a TVET program that will support economic growth; alleviate poverty through wealth creation; and, facilitate the achievement of the Vision 2025 through supply of quality technical experts in both the public and private sectors (10)

National Employment Policy, 2008: Recognizes the need for human resources development opportunities for the acquisition of demand-driven skills and competencies for wage and self-employment system (22).

Education and Training Policy, 1995: Emphasizes the importance of apprenticeship training as an alternative cost-effective training system, urging employers to provide apprenticeship training opportunities for a larger proportion of the labour force (21).

National Small and Medium Enterprises (SME) Policy, 2003: Recognizes SMEs as a significant sector in employment creation, income generation, poverty reduction and as a base for industrial development (23).

Financial Environment

The World Bank has invested US$ 230 million in vocational education in 3 countries, Tanzania, Kenya and Ethiopia under the East Africa Skills for Transformation and Regional Integration (EASTRIP) programme. The investment aims at improving their training and research capabilities and delivery of quality TVET education (35).

Tanzania offers import duty and VAT exemption on deemed capital goods, including building materials, utility vehicles and equipment. The incentive applies for the TVET Centres particularly when bringing in building materials for building construction and rehabilitation, vehicles and technical equipment’s (28).

Other incentives: Skills Development Fund-Window 3: Vocational education and training: A special government fund for public and private TVET centers to support training for low skill workers through basic foundational and pre-employment certificate programs (36).

Regulatory Environment

Vocational Training Act, 1974: Establishes a dual training system based on a one to two years of institutional basic training followed by two to three years of apprenticeship training in industry (24).

Vocational Education and Training Act, 1994: Address the challenges arising from the introduction of market economy in Tanzania by the creation of a Vocational Education and Training Board, the Vocational Education and Training Authority (VETA) and the Vocational Education and Training (VET) Fund (25).

NACTE Act, 1997: Provides a legal framework to establish an efficient National Qualifications Framework that will ensure that products from technical institutions are of high quality and respond to changing needs of Tanzania as well as technological advancements in the world (26).

Public Private Act 2010: The legislation was enacted as an opportunity/potential key driver for more effective contribution of TVET to the socio-economic development of the country. The legislation allows private sector to provide TVET through PPP arrangements as well as in the expansion of TVET infrastructure (10, 34).

Rhino Technical Secondary School & VTC is located in Gonja Maore ward in the district of Same Kilimanjaro region of Tanzania. It is a vocational training institution whose curriculum is tailored towards giving students practical skills preparing them for employment. The institution was established in collaboration with private sector partners and foundations (14).

Private sector

Rhino Technical Secondary School & VTC, Tegeta Vocational Training Centre (TVTC), Art In Tanzania, ETA Kipawa- ICT Center, Arizona Vocational Training Centre,


Ministry of Education and Vocational Training, Vocational Education and Training Authority (VETA), Vocational Education and Training Board, National Council for Technical Education (NACTE), Morogoro Vocational Teachers Training College (MVTTC)..


United Nations Educational, Scientific and Cultural Organization (UNESCO), UNICEF, International Labour Organisation (ILO), United Nations Industrial Development Organization (UNIDO), World Bank Group (WBG), African Development Bank (AfDB).


Youth for Africa (YOA), Tanzania Youth Vision Association (TYVA), Karibu Tanzania Organization, Tanzania Social Support Foundation, Swisscontact Tanzania

Public-Private Partnership

Tuwapende Watoto Vocational Training Center

Sector & Subsector Sources

1) World Bank, Tanzania Economic Update, 2021 – Raising the Bar for Achieving Tanzania’s Development Vision
2) United Republic of Tanzania, National Skills Development Strategy 2016/17 – 2025/26
3) World Bank’s Systems Approach for Better Education Results (SABER). Workforce Development, Country Report, 2015
4) United Republic of Tanzania, Third National Five-Year Plan (FYDP 3), 2021
5) The World Bank, Tanzania Economic Update, 2021
6) UNICEF, Young People Engagement: A priority for Tanzania, 2018
7) The British Council, Tanzania’s Next Generation Youth Voices, 2016
8) Gender Differential Effects of Technical and Vocational Training: Empirical Evidence for Tanzania, 2019
9) National Council for Technical Education (NACTE), Mapping Skills Gap and Skills Needs for Technician Graduates in The Selected Economic Sectors for Industrial Growth In Tanzania,2020
10) United Republic of Tanzania, Ministry of Education and Vocational Training, technical and Vocational Education and Training Development Programme (TVETDP) 2013/2014-2017/2018)
11) Mulongo et al, Determinants for Positioning and Promoting TVET in Tanzania: Information for Developing a Marketing Strategy, 2016)

IOA Sources

12) National Council for Technical Education (NACTE), Mapping Skills Gap and Skills Needs for Technician Graduates in The Selected Economic Sectors for Industrial Growth in Tanzania, 2020
13) USAID/Winrock International, Evaluating the Return on Investment (ROI) for an “Empowered Entrepreneur Training” in Tanzania, 2017
14) Rhino Technical Secondary School & VTC,

15) United Republic of Tanzania, TVET Indicators Report, 2021
16) The University of Witwatersrand, Determinants for Positioning and Promoting TVET In Tanzania: Information for Developing a Marketing Strategy, 2016
17) Manyanga et al, Relevance of Technical and Vocational Education and Training (TVET) to market demands: Skills for Employability, 2010
18) ILO, State of Skills in Tanzania, 2019
19) Vincent Leyaro et al, Gender Differential Effects of Technical and Vocational Training: Empirical Evidence for Tanzania, 2019
20) SABER Country Report, Tanzania Workforce Development, 2015

21) The Education and Training Policy (ETP), 1995
22) The National Employment Policy (NEP), 2008
23) The National Small and Medium Enterprises (SME) Policy 2003
24) URT, The 1994 Vocational Education and Training Act
25) URT, The 1994 Vocational Education and Training Act
26) URT, The NACTE Act, 1997
27) African Development bank:
28) EAC Investment Guide, United Republic of Tanzania Standard Incentives for Investors
29) VETA/GIZ, Vocational Education and Training by Government in Tanzania, 2000
30) United Republic of Tanzania, Education Sector Development Plan, 2016/17-2020/
32) Tanzanian Food Security and Health
33) Tanzania Horticulture Association, Industry Position Paper, 2020
34) USAID/TAHA, Potential areas to invest in Horticulture in Tanzania
35) ITC Trademap (2018),
36) ITC Trademap (2018),