What is the difference between TEVET and TEVETA?

TEVET stands for Technical, Entrepreneurial and  Vocational Education and Training and it is a system while TEVETA stands for Technical, Entrepreneurial and Vocational Education and Training Authority and it is an authority established through an Act of Parliament number 6 of 1999 to implement the TEVET System.
 

 What is the  vision and mission of TEVETA?

Our vision is to create an adequate and sustainable generation of internationally competitive skilled workforce capable of spearheading the country’s production and export-led socio-economic growth in a socially responsible
manner.

Our Mission is to direct sustainable acquisition of internationally competitive and recognisable technical, entrepreneurial and vocational skills by the Malawian workforce.

 Who runs TEVETA?

According to the TEVET Act, the Board of Directors, is the governing body which has powers, to among others, develop policies on technical education and training and supervise the implementation of such policies at national level; to set policies and procedures for the use of the fund and to approve the registration of technical education and training institutions in accordance with prescribed standards and rules. The membership of the TEVET Board includes stakeholders from the private and public sector, civil society and NGOs. TEVETA which is a secretariat is headed by the Executive Director.

   What is TEVET Levy?

In accordance with section 20, sub-section 2 of TEVET Act, TEVET Levy (payroll-levy) is defined as the sum of money TEVETA collects from employers. This sum of money is equal to one percent (1%) of the basic payroll which an employer pays in respect to the previous financial period of July to June.

 How is the TEVET Levy used?

The Levy is used to run various programmes and activities in line with the TEVET system

- How can i(we) benefit from TEVET Levy?

Companies can benefit from the Levy through the trained staff produced throught the TEVET system and by by particpatiing in the Private Sector sector prorgamme and reimbuersemt of 33 percent of the costs of  in-house training programmes.

 Why should companies be re-immbursed?

We are talking about 33% reimbursement on direct training costs incurred by a levy compliant company that contributes to the TEVET Fund. Refunds should be made to such companies on two fold: firstly to further encourage them to prioritize training as a worthwhile investment that TEVETA believes would ultimately lead to increased productivity hence profitability by companies. Secondly, the hand that feeds you deserves reciprocity. Although all employers in Malawi are mandated by law to subscribe to the TEVET Levy, the reimbursements are meant to provide a direct benefit and a thank you to all the complying employers. In this way the defaulters or would-be defaulters and non compliers would be sensitized and hopefully – to a certain measure – been persuaded to comply.  

When do you reimburse a company?
Immediately training has taken place and a company has complied by submitting supporting documents including proofs of expenditures, reimbursement can be effected. 

Do you reimburse all types of training even if they are held abroad?

All types of training deemed relevant to a company must be supported through this reimbursement system. However, because of resource constraints, TEVETA currently does not reimburse direct training costs held outside Malawi. Instead, TEVETA encourages companies to embrace economies of scale whereby communal training gaps can be addressed together even if it calls on TEVETA to identify a Trainer from outside Malawi should efforts to identify one within Malawi not materialize.

If someone would like to be reimbursed, what process should an organisation follow?

Companies should first share their training plans with TEVET officials in all the three regional centres in the north, centre and south. This would enable meaningful involvement and participation by TEVETA’s regional staff on those courses companies wish to be reimbursed. Then reimbursement request forms available in all TEVET regional offices must be filled and like-wise submitted to TEVET regional offices for processing.   

How long does it take for a company to get reimbursed?

Ideally within a week of a company submitting their reimbursement requests to TEVETA, they should receive their reimbursements. Where bottlenecks have resulted into some delays, immediate corrective measures have been adopted in order to improve the service delivery. For example previously all such processes used to take place at the TEVET Secretariat after receiving all the claims from regions. Currently, regions have been empowered to process claims unless if the amount involved exceeds K300, 000. 00  

How can someone participate in Private Sector Training Programs and be reimbursed?

Importantly such a company must be one that contributes to the TEVET Fund; then it must have a Training Plan which it must share with TEVET establishment (Service Centres) indicating which courses will be implemented with the expectation for refund on the direct training costs. TEVETA regional personnel must be involved in the coordination and facilitation of these trainings as evidence of their occurrence. A form applying for TEVETA’s approval for a company to proceed with a particular training is available at all the three Service Centres. Once training has been completed, a company then applies for reimbursement attaching copy of the approved application form to their letter. All this is done at Service Centre levels that isolate huge claims for Secretariat.  

Some companies will be interested to know what Private Sector Training program, and how it can lead them to understand the importance of reimbursement?
(Sido, this question is like a repeat of another one above that I have already responded to)


Can you list some companies which have been benefit from this arrangement?

The list is endless. A few that come to mind now includes Limbe Leaf Tobacco; Auction Holdings, Alliance One, National Bank of Malawi, Standard Bank of Malawi, Sunbird Hotels including Mount Soche, Livingstonia Beach; Mzuzu; Kamuzu Academy, Illovo Dwangwa and Nchalo, Kawalazi, Vizara, Raiply; Malawi College of Health Sciences, Telecom Network Malawi (TNM), Lujeri Tea Estate, NEDBank, Providence Industrial Mission (PIM) Universal Industries, Rab Processors SDV  and many more.
 

 Does it happen every year?

Yes. Not only does it happen every year but it happens all the time considering that companies have different financial years.

 Don’t you think TEVETA can become bankrupt if it continues reimbursing companies?

No. TEVETA cannot become bankrupt. Out of the contribution from employers into the TEVET Levy Fund, it is only a maximum of 33% of the total contributed that can be reimbursed to any employer. Claims beyond 33% are thoroughly screened and reduced to their maximum of 33%. Secondly, not all companies submit claims for reimbursement. Most employers pay the levy as a matter of legal obligation and social responsibility. There is therefore a closely monitored threshold beyond which the TEVETA Board through Management may revisit the reimbursement policy.