TEVETA Zambia 2024. (MOTS statutory agency). Mon-Fri (08:00am to 05:00pm)
StudentsLoginStaff Email
Notifications Close
https://www.teveta.org.zm//root/gif/loading.gif
You are here :  TEVETA | HomeIECIEC
TEVETA disburses K15 million for MSME/informal sector training to enhance productivity, efficiency
TEVETA disburses K15 million for MSME/informal sector training to enhance productivity, efficiency
Posted on 27 October, 2021 8:8

Micro, small and medium enterprises (MSMEs) and the informal sector are bigger contributors to national development, job and wealth creation, social stability and enhancing competitiveness across sectors as suppliers and buyers. Relevant human capital (skills, knowledge and attributes) is one of the assets MSMEs require to remain competitive in producing quality goods and services.

With a youthful population, Zambia has a valuable resource that requires harnessing for productivity both in primary and secondary industries. However, the high number of youths that exit the school system for many reasons negates socio-economic benefits derivable from this energetic population. Some these youths leave the school system at Grade 7 9 or before obtaining their school certificate and eventually find space in the MSME/informal sector running enterprises or employed in the sector.

Despite the value derivable from MSMEs to the economy; skills gaps and mismatches in the dynamic economy is negatively affecting growth, competitiveness, innovation, employment and social cohesion of MSMEs. In addition, it is very difficult for a small business to engage staff in training in order to update and upgrade their skills within the life-long learning approach during the course of work. To meet the sector’s human capital needs, TEVETA finances tailor made skills training programmes. Last month, the Authority disbursed more than K15 million to 65 trades training institutions towards skills training for MSMEs and informal sector players across the country.

The financing is benefiting 5, 200 out-of-school-youths, MSMEs/informal sector players that need skilling to enhance their productivity, efficiency and material utilisation in various sectors of the economy. Funded training institutions are Youth Resource Centers under the Ministry of Youth, Sport and Arts; Ministry of Education’s skills training centres; community-based skills centers; Zambia Correctional Services (skills training section); Ministry of Technology and Science TEVET institutions; Private Institutions; and Faith-Based skills training centres.

The financing is under the technical, education, vocational and entrepreneurship training (TEVET) Fund made available by the Treasury from proceeds of the Skills Development Fund (SDF) through the Ministry of Technology and Science. Financed training programmes are in key priority areas including hospitality, construction, agriculture (aquaculture, animal and crop husbandry), and fashion and textile design programmes. The SDF is a long term financing strategy of the TEVET sector, which promotes collaborations with industry and other stakeholders in relation to the Seventh National Development Plan (7NDP) and Vision 2030.

The up-skilling programme designed to meet specific skills needs of target groups. The training is tailor-made and syllabus is packaged to address skills gaps (needs) identified through the training needs assessment (TNA) in MSMEs by training institutions. It targets MSMEs in the informal and formal sectors to sharpen their technical, entrepreneurial, management and social skills. Out-of-schools youths are the other target groups of the training. The training is problem-specific to address real problems that hindered MSMEs’ productivity, affected product/service quality and strategic product marketing. It also focuses on problem solving, business networking, costing and pricing.

Most of the training needs assessments revealed that MSMEs did not appropriately cost their products and services. They rarely factored in cost of raw materials, labour and other costs when pricing correctly. As a result, most of them failed to break even and remained stagnant. They either underpriced or overpriced and lost out on customers. Some carelessly used materials. They wasted a lot of them as they cut pieces to make products. Other wastefully spent their time on nonproductive issues.

Financing skills training for MSMEs and informal sector is one of the strategic actions by Government for productivity and efficiency. With changes in rules of the business world, driven by technological advancements and trade and commerce dynamics, up-skilling MSMEs is very important. The business environment has become more uncertain and at the same time more flexible by enabling up-skilling within workplaces to bring production positivity than in the past. Technology and production systems are also becoming more sophisticated and people’s roles and type of skill have changed. MSMEs thus need to be open to new skills and learning opportunities for them to remain competitive and play their real role in the economy. TEVETA is tapping into those opportunities to up-skill MSMEs to augment their economic role in different sectors.

The main objectives of the training are to i) increase productivity of MSMEs ii) enhance their technical skills for improved product quality and service delivery ii) improving their management and social skills for partnerships and business linkages with others to booster their ability to produce or meet market requirements, iv) broaden their knowledge base and potential to grow their enterprises, v) improve their efficiency and enterprise management and iv) learn how to efficiently use material and time management. 

Globally, the MSME/informal sector is one of the most prolific sources of employment, wealth creation and a breeding ground for industries. But without valuable hands-on and appropriate entrepreneurial skillsets among MSMEs, Zambia’s vision of a vibrant economy characterised by growth, equity, broad-based wealth and job creation cannot easily become a reality. TEVET has many training opportunities for MSMEs, informal sector players, youths and others to acquire hands-on and entrepreneurial skills to adequately participate in the economy. Training needs analyses are undertaken to ascertain appropriate skills to impart on target groups based on their socio-economic opportunities, economic mainstay in their area, government prioritised economic sectors and other economic opportunities they can utilise to earn income.




TEVETA Zambia 2024. (MOTS statutory agency)