Factors That Determine Financial Sustainability Of Private Universities In Tanzania

ABSTRACT

This study investigated factors that determine financial sustainability of private

universities in Tanzania. The general objective of this study is to explore financial

sustainability of private universities in Tanzania. The reason being that; since private

universities begun in Tanzania in the 1990s it is clear that the private sector has had

a role to play in the provision of university education in Tanzania. Today, it is

evident that the entrance of these private providers into higher education has

increasingly reduced or supplemented the governments‘ heavy responsibility of

providing education and the private sector‘s role is on the increase and continues to

be welcome.

An explanatory case study was undertaken to investigate factors that determine

financial sustainability of private universities. A combination of both secondary and

primary sources of data was collected for this study. The instruments used for

collecting primary data were questionnaires, face-to-face interviews schedules and

Focus Group Discussions guide. Overall a total of 80 respondents who included

university students, academic and non academic staff, service providers,

partners/donors and government employees from HESLB in Dodoma zone.

The findings of this study clearly indicate that student fees specifically tuition fee

represent a significant income source in all private universities. Their importance

varies greatly however, depending on the legal framework in which a particular

private university operate. Also that the strategies in place include number of

students enrolled, high quality delivery in academic program, good leadership and

governance, consultancy and research, publicity and advertisement and direct

involvement in community services. Not only that but also courses offered. Policies

/strategic plan available and implemented, quality of human resource, number of

students, strong control of fund, Diversification of university activities/projects,

Good learning environment and use of financial institution ( banks and DSE ) are

factors that determine financial sustainability of private universities in Tanzania .

Finally the private universities are faced with the following; poor planning, weak

policies and strategies, few number of enrolled students, poor government policies

on Higher education Fraud.

It is until when Private Universities have Proper Planning and Budgeting,

fundraising diversify their income, invest in the development and

professionalization, concentrate on knowledge revolution, invest not in the large

number of universities and students but good quality higher education they will be

financially sustainable.