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In this publication, the author suggests that, in developing countries, vocational training is crucial for enhancing productivity and economic competitiveness and alleviating poverty. However, training provision in many of these countries is underfinanced and government funding mechanisms are constrained by other pressures. New sources of financing are required to support skill development. In addition, financing mechanisms can influence the effectiveness and efficiency of skill development systems. The publication emphasises the key role of financing strategies in improving the effectiveness and efficiency of training systems in Sub-Saharan Africa. It describes the emerging consensus on best practice in the financing of training, using the experiences of Latin America and Asia to test this consensus against findings from Sub-Saharan Africa. A case for financing interventions by governments is outlined. The role and effectiveness of national training agencies, payroll levies and alternative transfer mechanisms for institutional funding are investigated. The discussion is based on the experiences of Kenya, South Africa, Tanzania and Zimbabwe.