Designing for differences:aligning incentives in Tanzania’s skills sector

Since the introduction of the Skills Development Levy (SDL) in Tanzania, the financing of skills training has been contested. The private sector has raised concerns about the size of the levy and the usefulness of training provided by VET centres, and has accused the government of misallocation and misuse of the raised levy. Lack of transparency in the collection and allocation of the SDL and allegations of corruption including double taxation have been denounced.