xlii
Executive Summary
TEVET is funded by multiple sources, including household contributions and investment from the business sector. TEVET in Malawi, including the public TEVET system, is funded by multiple sources. Although again, a comprehensive picture of all contributions is not readily available, it can be assumed that public expenditure is one, but most likely not the most important funding source. Figure 9 depicts the major flow of funds and summarizes the different sources by the type of training they are funding.
Figure 9: Flows of Funds to TEVET
Overall public expenditure for TEVET, including examination systems, amounted to MK760 million in 2007/08, of which MK250 million were allocated through MOEST in support of general TEVET. This represents a recurrent public expenditure per student of 141 percent of GDP per capita, a relatively high value compared to other African countries. The average public allocation per TC student is MK35,100, but this varies a lot across the different TCs and is not related to enrollment or other performance indicators. The TEVET Fund administered by TEVETA has been successful in increasingly mobilizing private sector resources for TEVET. Levy income from private companies in 2007 contributed 84 percent of the entire TEVET Fund. Direct TEVETA subsidies for training programs, including training for companies and the informal sector, has grown to 36 percent of the annual fund expenditure. Administration cost as a share of TEVETA’s budget has fallen substantially in recent years; however, it still represents a relatively high 38 percent.