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Table 6.7: TEVETA Income from 2003–2007 (MK) 2002/3
2003/4
2004/5
2005/6
2006/7
Levy from public sector
30,000
30,000
25,000
44,850
23,373
Levy from private sector
41,589
97,153
160,331
211,100
248,659
Other income*
25,039
22,230
19,771
14,234
12,421
Donor support
5,351
19,546
14,930
25,480
13,224
Total income
101,979
168,929
220,033
295,663
297,676
Source: TEVETA Secretariat. *Includes interest income, rental income, contributions from other partners, and miscellaneous.
It is encouraging that after substantial resistance in the early 2000s, levy income from the private sector is steadily increasing. Although still at a very low level, it is now much higher than the public expenditure for TCs. Institutional donor support to TEVETA was significant during its first years. A diversified range of donors now contributes mainly to earmarked programs. Box 6.1: More about the TEVET Levy Fund TEVETA’s income is derived in large parts from the TEVET levy. This levy is based on the TEVET Act of 1999 and was introduced in 2000/01. It is set at one percent of the gross emoluments of employers. Private and public employers are levied. Levy collection is done by TEVETA. Base data on companies are provided by the Registrar of Companies. Individual TEVETA inspectors (currently there are five) assess all companies and invoice them accordingly. The levy for each company is calculated on the previous year’s payroll. In 2007/8, approximately 550 companies were obliged to pay the levy. According to information from TEVETA, compliance is high. The TEVET secretariat reports problems with the government contribution (GOM’s contribution to the TEVET levy fund in its function as employer) since the contribution is transferred through the MOE budget. The contribution is paid in monthly installments.
TEVETA expenditure can be divided into:
ɶ ɶ ɶ
funding and subsidies for training activities, in particular subsidies for the regular TEVET programs, support to different private sector training programs, and funding of training courses for informal sector operators funding of TEVETA’s regulatory function of the TEVET system, including quality assurance (such as standard setting, curriculum development, and assessment), research, and monitoring funding of governance and administration, which covers staff costs for the TEVETA head office and the regional offices, costs related to the TEVETA Board, and the management of the levy fund.12
Table 6.8 shows that although increasing in absolute terms (see Appendix 6), the relative share of administration costs (TEVETA Secretariat and Regional Service Centers) of the expenditure is decreasing—from almost 60 percent in 2002/3 to 27.6 percent in 2006/7. In Africa, national training funds are sometimes blamed for their high administration costs, so this appears to be an encouraging trend.