Funding mechanisms for technical and vocational education and training in Botswana

This paper reviews some of the policies and strategies adopted to facilitate sustainable funding of vocational training and their shortcomings. It also discusses new initiatives and structures that have been or are in the process of being put in place to make financing of vocational training especially at the work place more effective. the new policy on citizen Empowerment and the Small Business Policy (supported by the Small Business Act) has a strong training component which is monitored. The establishment of the Local Enterprise Authority as a result of the Small Business Act will provide a structure approach to supporting small enterprises particularly in areas of entrepreneurial skills. The Income Tax (Training) Regulations provide for 200 per cent tax deduction for training undertaken by companies. The new regulations have been streamlined and training now has to be certified by the Botswana Training Authority as meeting the minimum quality standard before tax claims can be lodged. The proposed Vocational Training Fund (Levy/Grant System) will provide funding for enterprises for training based on a levy/grant system. The potential for these initiatives in improving effective and sustainable funding for vocational training will be analyzed and conclusions will be derived.

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