Dar es Salaam. With the rising number of students requiring education loans, Tanzania’s Higher Education Students’ Loans Board (HESLB) continues to be stretched thin.
Despite the government increasing funding for this scheme and providing various scholarships to ensure that all students in need can access higher education yearly, there remains a significant need for greater stakeholder participation.
This has prompted the government to encourage the private sector and parents to step up and share the responsibility of sustaining higher education funding for needy students in the country.
Tanzania’s higher education financing has relied heavily on the government through HESLB for years.
The introduction of cost-sharing in 1988 marked a significant turning point, aiming to widen access to higher education.
HESLB was established in 2005 under Act No. 9 of 2004 to provide loans to needy students. Its mandate includes identifying eligible students, disbursing loans, and recovering funds to support future applicants.
Despite this noble initiative, the growing demand for loans has outpaced resources.
Currently, the board finances tuition fees, accommodation, books, and other necessities for needy students, but not every deserving student secures funding.
The government, through HESLB, has issued loans worth Sh787 billion this academic year to 250,000 students. This marks an increase of 25,944 beneficiaries compared to the 224,056 recipients in the 2023/24 academic year.
Parents like Saidi Haji from Mwanza grapple with this reality. “I have strived to support my child to reach this stage so that my government can take over,” he told The Citizen in an interview on 1 January 2025.
“But only to find out that I don’t qualify for an education loan for my child.” This mindset, where higher education financing shifts entirely to the government, is common among many Tanzanians.
Another parent, Ms Halima Juma, a resident of Kasulu in the Kigoma region, echoed similar frustrations.
“Why should my child miss out on a loan while others receive it? I thought university meant relief for us parents,” she lamented.
The board’s means testing mechanism, designed to identify genuinely needy students, often leaves some families feeling excluded.
HESLB’s Head of Communications Unit, Ms Veneranda Malima, clarified that higher education loans are not guaranteed for everyone.
“Most people think that higher education loans are for everyone, but parents should have plans,” she noted.
“The number of needy students continues to grow, yet the loan fund, although increasing every year, remains limited. We should not have a mentality of loans without preparation,” she added.
Experts emphasise the need for a collaborative approach to sustain the education loan scheme.
Economist Dr John Mwakalobo highlighted the importance of private sector involvement. “The government cannot bear this burden alone.
Companies, banks, and individuals should actively participate in funding education as part of their corporate social responsibility,” he said.
Banks like CRDB and NMB have already paved the way. CRDB’s education loan products allow parents to save and borrow for their children’s education.
Similarly, NMB has introduced tailored savings accounts for education, ensuring families can plan. These initiatives provide a blueprint for other financial institutions to follow.
HESLB’s cost-sharing brochure also highlights the importance of partnerships.
“The role of private stakeholders in financing higher education is critical,” it states. “Employers, financial institutions, and communities must collaborate to support students.”
Parents, too, have a role to play. Financial advisor Anna Makonda advised families to save early.
“Education is a long-term investment,” she said. “Parents should start saving as soon as their children begin school. Relying solely on loans creates unnecessary pressure.”
Besides parents and financial institutions, analysts said private companies can contribute through scholarships and grants.
For instance, large corporations in Tanzania’s mining and telecommunication sectors could allocate a percentage of their profits to education funds.
“This not only supports students but also strengthens the workforce they depend on,” Dr Mwakalobo noted.
The impact of increased private sector involvement is evident in other countries.
In Kenya, companies like Safaricom and Equity Bank have set up education foundations that sponsor thousands of students annually.
Adopting similar models in Tanzania could significantly alleviate the strain on HESLB.
Education expert Ms Asha Kileo urged a change in societal attitudes. “Education is a shared responsibility,” she said.
“Families, communities, and the private sector must work together to ensure every child gets an opportunity. Dependency on HESLB alone is unsustainable.”
With 75 universities and colleges—30 public and 45 private—the demand for higher education continues to grow.
The success of cost-sharing depends on all stakeholders embracing their roles.
“Parents must plan and save. The private sector must invest. The government, through HESLB, must continue its efforts but with support from others,” said Ms Kileo.
In the words of Ms Malima: “Together, we can make education accessible to all Tanzanians. It requires a shift in mindset and collective action.”
