Funding Higher Education in Tanzania: Modalities, Challenges, Prospects and a Proposal for New Funding Modalities

Abstract

This chapter discusses (current) modalities for funding public higher education in Tanzania, as well as related challenges and prospects using as a reference point the University of Dar es Salaam-Tanzania's oldest and largest public universityin the absence of data from other public universities. The major thesis of this chapter is that the current modalities of funding public higher education are unsustainable and unrealistic in the wake of the surging demand for higher education. Alternative sustainable models and strategies of financing public higher educationincluding establishing a higher education development/investment bankare urgently needed to achieve financial sustainability. This chapter further argues that while the government has the responsibility of funding public higher education, since it is also a beneficiary, its financial ability to fund both public and private higher education, as is the practice (or malpractice) now, is limited because there are too many competing demands for government funds or because higher education is not a priority, or both. The situation calls for new and eclectic funding models.

The Paradox of Financing Public Higher Education in Tanzania and the Fate of Quality Education: The Experience of Selected Universities

“…Despite this short fall in terms of allocation, the funding of universities and university colleges has been declining, but studies show that this decline is a consequence of the decline in the percent of funds that are set aside for higher education budget from the state budget (Galabawa, 2005;Ishengoma, 2004Ishengoma, , 2013Mgaya & Lokina, 2010). As a result, this has brought fiscal pressures and continued funding constraints (Ishengoma, 2004(Ishengoma, , 2013. In view of this, the government has for many years been adapting different systems of financing for the higher education subsector for its development within the limited available financial resources.…”

“…That is to say, there is a mismatch between student enrollment and budgetary allocations. This is the case in several African countries including Tanzania (Ishengoma, 2013;World Bank, 2010). Studies show, for example, that from 1985 to 1989, 17% of the World Bank's worldwide education sector spending was on higher education, whereas from 1995 to 1999, the proportion allocated to the higher education subsector by this financing institution declined to just 7% (Teferra, 2014, as cited in Bloom, Canning, & Chan, 2006.…”

“…It is also argued that the amount of financial resources a system of education can mobilize is a fundamental element of any effective education policy (Mingat, 2003). However, African higher education funding is at a crossroads; many studies indicate that there has been an acute cut in higher education budgets in recent years not only in universities in the developing world but also in those in the developed world (Ishengoma, 2013;Teferra, 2014;World Bank, 2010). These higher education budget cuts are also driven by a belief that higher education has low economic returns especially in terms of its contribution to poverty reduction, compared with other levels of education.…”

“…This decline mirrors similar trends in individual countries' government allocations to the higher education subsector. For example, in Tanzania, the budgetary requests of the 771729S GOXXX10.1177/2158244018771729SAGE OpenMgaiwa (Ishengoma, 2013). Notwithstanding the decline in government approval of subventions to higher education, the amount of funding has actually increased (Ishengoma, 2013).…”

“…For example, in Tanzania, the budgetary requests of the 771729S GOXXX10.1177/2158244018771729SAGE OpenMgaiwa (Ishengoma, 2013). Notwithstanding the decline in government approval of subventions to higher education, the amount of funding has actually increased (Ishengoma, 2013). In Kenya, the situation is more or less similar to that of Tanzania.…”