Case study B: Private for Profit Training Providers

A proper study of private sector training providers (PTPs) was conducted in Zimbabwe in 1997, even though it should be noted that most of the training providers studied were involved in academic, secretarial, commercial and computer training42

. It surveyed 25 randomly selected PTPs (one third of the total number of PTPs registered with MoHET) in the city centre and high-density areas in and around Harare. In addition it collected information on 30 non-registered private training providers in the same areas.

8.7.1 Background

While during the 1980s only a few PTPs were set up, their number grew rapidly dur- ing the 1990s. By and large, greatly stimulated by the increased availability of foreign ex- change that allowed for the importation of computers, these new PTPs provide some form of business skills training. Also, with the disappearance of the socialist leanings of the government, which were still common in the 1980s, there has been a greater recogni- tion for the role of the private sector in the provision of training.

At the same time the importance of technical training among these PTPs is limited and probably shrinking. Among the 25 surveyed there was only one specialized in techni- cal training.

8.7.2 Some characteristics

The PTPs surveyed include two NGOs while the rest are Commercial Training Pro- viders (CTPs). The latter were usually started by one or a few entrepreneurs. Typically the background of the managing directors and principals of the PTPs is that they have been working as a middle level civil servant, while also part-time teaching at a PTP, left the pub- lic sector in the mid-1980s and started a PTP. They have generally at least some tertiary ed-

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ucation and half of them have studied for some time abroad. Interestingly, one third of the CTPs are owned or managed by women.

The PTP training is usually conducted in rented premises, remarkably often in or near the centre. The classrooms tend to be small making over-crowding common. The equipment is invariably basic and outdated, with the possible exception of some of the computers.

PTPs predominantly work with part-time instructors (the largest PTP in Harare has no permanent teaching staff and 350 (!) part-timers). Except for the larger and ‘elitist’ PTP, the salaries are modest and many of the instructors are not well motivated.

8.7.3 Trainees and training delivery

The total enrolment in the 25 surveyed PTPs is estimated at 34,000 of which only 9% concerns more technical training (e.g. ‘technical courses’, such as motor mechanics, and tailoring).

Table 20: Importance of technical courses for PTPs

Subject area Percentage of_enrolment

Academic 14%

Sec. & commercial 38%

Computer 35%

‘Technical’ 5%

Tailoring 4%

Other 3%

Source: Basedll 1997.

The non-technical training is directed mainly at those from the middle (and higher) classes who are already working, so that the training is given for a few hours in the afternoon, the evening or during the weekends. The more technical training for self-employment is meant for the poorer strata and especially school-leavers. It therefore concerns courses of larger duration (often six months and longer) and takes place during four or more hours per day. It is largely limited to a few trade areas, such as tailoring and motor mechanics.

8.7.4 Training results

The dropout rate at PTPs is estimated at 10-25%. In general, but especially in the case of technical training, the main reason is financial. No clear information on the pass rates is given.

Most of the non-technical training courses lead to a recognized certificate, often in- ternationally endorsed. In contrast, for technical (and tailoring) courses national certifi- cates are more the norm. These, however, lack status, are poorly administered and show low pass rates. In fact, most of the surveyed PTP reward technical training usually with an internal certificate. This is said to follow from the fact that these courses aim at self-employment and adequate recognition of the internal certificates.

8.7.5 Training costs and revenues

Except for two NGOs, all the PTPs surveyed had to cover all their costs from the reve- nues of the training, while even the former, in view of declining donor contributions, are said to become more interested in training as an income-earning activity. The study found that there is a wide variance in the training fees charged by these commercial training pro- viders - and that the fees are not related to the training results.

The -monthly- fees for the secretarial, commercial and (short) computer courses are much higher than those charged for the technical courses - the latter (except for mo- tor mechanics) are 50-100% lower. Apparently the fees, in addition to being based on a cost-plus formula, are determined by the status (‘brand name’) of the PTP and the ability of the target group to pay.

No detailed information on the different categories of training costs incurred by the PTPs is provided in the study. It indicates that the high capital outlay and running costs in providing technical training that satisfies MoHET’s registration requirements are a main deterrent for training entrepreneurs to enter into technical training. Still, it estimates that the profit margin of one of the large PTPs of technical training is 25-50%.

8.7.6 Problems and relations with the government

The major problem of the PTPs in recent years has become the deteriorating eco- nomic situation in Zimbabwe, which has led to a serious erosion of the purchasing power of (the families of) their prospective clients. For some reason (interest? faith in employ- ment results?), this is more of a problem for technical training than for business skills training - even though the fees may actually be higher for the latter type of training.

A second and related problem appears to be the competition from the non-registered training providers. They are becoming more popular since they charge considerably lower fees- even though this will be most likely reflected in the quality of the training.

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