Private schools face Sh15bn loss due to closure

Dar es Salaam. Private schools could lose up to 20 per cent of their annual revenues due to Covid-19.

This has prompted private school owners to appeal for government intervention to save them from imminent financial ruin.

However, the government said in a swift response yesterday that there were no plans to bail out private schools.

“If these schools had insurance cover prior to this pandemic, it could have helped them a lot,” the permanent secretary in the Ministry of Education, Science, Technology and Vocational Training, Dr Leonard Akwilapo, told The Citizen.

“Any rescue package needs to follow a long process, including seeking parliamentary approval. There is currently no such plan in place.”

Education Initiative Tanzania (EIT) chief executive Benjamin Nkonya, who is also a member of the Tanzania Association of Owners and Managers of Non-Government Schools (Tamongsco), said there were about 4,500 private schools in Tanzania.

“Each school has an average of 500 students, who pay, on average, between Sh2 million to Sh3 million every academic year. This means that the average annual income per school is about Sh1.5 billion. Each school therefore stands to lose about Sh300 million, and this translates into a cumulative loss of Sh15 billion,” he said.

Mr Nkonya added that some schools had taken sizeable loans from banks.

“Under these circumstances, some schools will just collapse, or be auctioned off by banks as they wouldn’t be able to repay their loans. Since our schools also attract students from neighbouring countries, restricted cross-border movement as a result of Covid-19 means that enrolment will also be drastically reduced. We appeal for urgent government intervention.”

The government, through Prime Minister Kassim Majaliwa, on Tuesday extended the closure of schools, colleges and universities for an indefinite period as Tanzania battles increasing Covid-19 cases.

The extension means that teachers and non-academic staff of some schools are on indefinite unpaid leave as their employers struggle to meet operational costs without having to depend on fees paid by parents and guardians.

The administration of a prominent private school in Dar es Salaam said in an April 14, 2020 communication to employees that the institution would not be able to pay March salaries because revenue in the form of schools fees had fallen drastically after schools were closed due to the Covid-19 outbreak.

“Due to the overall economic impact of the coronavirus and as we are currently operating under some uncertainty, we have to take measures to protect the financial stability of our school, including offering temporary unpaid leave to all our employees,” the letter said.

A teacher working at the school said the decision to pay them only half of their March salaries caught him by surprise.

“I’m now more prone to Covid-19 than even those who are not employed. My budget is driving me crazy...I have a family to look after. The government should help us survive this pandemic,” he said.

The Tanzania Private Schools Teachers Union (TPTU) yesterday asked its members to furnish it with details of their current situations in an effort to address their plight.

TPTU secretary-general said in a statement that the union had expected schools to reopen at the end of the initial 30-day closure, and that employers would have paid teachers their March dues.

However, the government’s decision to keep schools closed would further worsen the dire situations most teachers were in.

“The union has been in consultation with the relevant national authorities, and is also in touch with employers as we seek an urgent solution to this problem,” the TPTU statement said.

Contacted by The Citizen, TPTU director of education and training Damas Chogo said he was optimistic that a way forward would be found soon.

“What we are doing is collect details of all teachers from which we will get a clearer picture of what needs to be done as a matter of urgency. However, only those who have been affected should contact the union,” he said.