Private schools urged to diversify income as reliance on fees grows risky
SSC Group chief executive officer, Mr Salum Awadh (right), speaks during a training session with representatives of various non-governmental organisations on designing new sources of revenue beyond donor funding, held in Dar es Salaam recently. PHOTO|ROSEMARY MIRONDO
Dar es Salaam. Private school owners have been urged to reduce their reliance on tuition fees and diversify income sources to remain financially resilient amid an increasingly challenging economic environment at present.
The call was made on Saturday, July 4, 2026, by SSC Group chief executive officer Salum Awadh, who said schools that have developed multiple revenue streams are better positioned to survive financial shocks, expand operations, and improve the quality of education they offer.
Speaking ahead of a specialised training on operating profitable learning institutions scheduled for Thursday, July 9, 2026, in Dar es Salaam, Mr Awadh said school owners must embrace business-oriented strategies if they want their institutions to thrive in today's dynamic economy.
"Depending solely on school fees is no longer the best option. School owners need to think beyond traditional models and establish alternative sources of income that can support the growth and sustainability of their institutions," he said.
He noted that private schools should also explore diverse financing options to fund expansion and improve cash flow management.
"Schools need to consider financing mechanisms such as venture capital, capital markets, impact investors, angel investors, private credit and other innovative funding sources to finance their growth and transformation," he said.
The training will bring together private school owners, investors, board members, finance managers, and school administrators to discuss practical approaches to improving financial sustainability and profitability.
According to him, many private schools continue to face financial difficulties despite increasing demand for quality education, largely because of weak business models, poor cash flow management, and heavy dependence on costly borrowing.
"As an advisory firm, we have conducted assessments in a number of schools and learning institutions and found that many face similar financial and operational challenges. This training is designed to provide practical, tailor-made solutions to address those challenges," he said.
He said participants are expected to leave with actionable strategies that will enable them to strengthen their financial management, improve profitability, and build resilient institutions capable of sustaining long-term growth.
The programme will cover topics including alternative financing options, profitability diagnosis, financial management, business challenges facing private schools, and case studies of successful education enterprises.
SSC Capital, which operates in three countries, provides advisory services in strategy, corporate finance, capital raising, asset management, mergers and acquisitions, private equity, and credit rating.
