SUMMARY: You can start a health college, a medical college, or a medical school in Tanzania by following three steps. First, you need to prepare the requirements and mobilize resources.
Second, you need to register the college, a vital process that paves the way for its legitimacy and recognition. Lastly, the final step entails operationalizing the college by hiring the extra employees to fortify and support your vision.
But before detailing all that, is it a good business to pursue?
A health college is a college that focuses on offering programmes that lead to attainment of certificates and diplomas in various health disciplines.
In Tanzania, the main disciplines offered include Clinical Medicine, Nursing and Midwifery, Pharmaceutical Sciences and Medical Laboratory Sciences.
Others are Clinical Dentistry, Physiotherapy, Clinical Optometry, Environmental Health Sciences, Health Records Management, Health Information Sciences, Disaster Management, Counseling Psychology, and Radiology.
The direct regulation of Health Colleges in Tanzania is vested on two ministries, Ministry of Health and Ministry of Education.
Ministry of Education uses NACTVET1National Council for Technical and Vocational Education and Training and the Ministry of Health uses MCT, PC, TAHPC, MRIPC, OC, TNMC, EHPRC and HLPC. There was an issue displaying the chart. Please edit the chart in the admin area for more details.
Is healthcare or medical college a good business to pursue in Tanzania?
Statistics from the NACTVET and Ministry of Health budget show that, in Tanzania, around 50,000 students are admitted to the 208 health colleges every year.
This gives an average of 240 admissions per college per annum, and since most colleges have three-year programmes cycles, this converts to an average of 720 students per college in a complete cycle.
The fees indicated in the NACTVET guidelines range between Tshs 1.6 million and 1.9 million, depending on the programme. Doing some calculations, a health college has a potential of generating around Tshs 1,152 – 1,368 million revenue per annum.
Obviously, some colleges are performing above the average and some below the average depending with the marketing initiatives and several other factors.
A: Projections of revenue, costs and profits
We have included a projected income statement for a new medical college that is started in an urban town in Tanzania. The projections are based on the facts available in 2023.
| Details | Notes | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|
| Number of students | 1 | 80 | 160 | 320 |
| Average fee per student | 2 | 1,600,000 | 1,600,000 | 1,600,000 |
| Tuition fees from students | 3 | 128,000,000 | 256,000,000 | 512,000,000 |
| Other fees from students | 4 | 30,000,000 | 45,000,000 | 60,000,000 |
| Subsidies, grants & donations | 5 | 20,000,000 | 20,000,000 | 20,000,000 |
| Total revenues | 6 | 178,000,000 | 321,000,000 | 592,000,000 |
| Salaries to principal | 7 | 7,200,000 | 10,800,000 | 12,960,000 |
| Salaries to Finance & Adm Officer | 8 | 4,800,000 | 7,200,000 | 9,600,000 |
| Salaries to cashier | 9 | 3,600,000 | 5,400,000 | 7,200,000 |
| Salaries to office attendant | 10 | 2,400,000 | 3,600,000 | 3,600,000 |
| Salaries to garden boy | 11 | 2,400,000 | 3,600,000 | 3,600,000 |
| Salaries to watchman x 2 | 12 | 8,400,000 | 10,800,000 | 10,800,000 |
| Salaries to teachers x 8 | 13 | 57,600,000 | 69,120,000 | 82,944,000 |
| Books and stationeries | 14 | 7,200,000 | 14,400,000 | 28,800,000 |
| Legal & professional expesnes | 15 | 900,000 | 900,000 | 900,000 |
| Insurance | 16 | 2,400,000 | 3,000,000 | 3,400,000 |
| Staff meals & beverages | 17 | 14,560,000 | 16,744,000 | 17,472,000 |
| Licenses & regulatory authorities | 18 | 2,800,000 | 2,800,000 | 2,800,000 |
| Rent | 19 | 72,000,000 | 72,000,000 | 72,000,000 |
| Total expenses | 20 | 186,260,000 | 220,364,000 | 256,076,000 |
| Profit before taxes & depreciation | 21 | -58,260,000 | 35,636,000 | 255,924,000 |
The projections above have been prepared based on a number of key facts and assumptions.
| Note 1 | In the first and second year, admissions are projected to be very low at 80 students per year. The third year admission double. This means during the second year, the college will have 160 students and during the third year the college will have 320 students. |
| Note 2 | It is projected that, for the first three years, tuition fee will be the lowest at Tshs 1.6 million per annum per student. This is necessary to attract more students for admission. |
| Note 3 | This is obtained by taking number of students times the tuition fee per student. |
| Note 4 | Other fees include the fee for books and stationeries. |
| Note 5 | The college is projected to receive grants of Tshs 20 million per annum for the first three years from good friends. This is very important as it will help in meeting operational expenses. |
| Note 6 | Total revenue received by the college |
| Note 7 | Salary for Principal will be Tshs 600,000 per month during the first year, Tshs 900,000 per month during the second year and Tshs 1,080,000 per month during the third year. |
| Note 8 | Salary for the Finance and Admin Officer will be Tshs 400,000 per month during the first year, Tshs 600,000 per month during the second year and Tshs 800,000 per month during the third year. |
| Note 9 | Salary for the college Bursar will be Tshs 300,000 per month during the first year, Tshs 450,000 per month during the second year and Tshs 600,000 per month during the third year. |
| Note 10 | Salary for Office Attendant will be Tshs 200,000 per month during the first year, Tshs 300,000 per month during the second year and Tshs 300,000 per month during the third year. |
| Note 11 | Salary for the Gardener will be Tshs 200,000 per month during the first year, Tshs 300,000 per month during the second year and Tshs 300,000 per month during the third year. |
| Note 12 | Their will be two Security Watchmen and the salary for each will be Tshs 350,000 per month during the first year, Tshs 450,000 per month during the second year and Tshs 450,000 per month during the third year. |
| Note 13 | Their will be 8 teachers/lecturers and the salary for each will be Tshs 600,000 per month during the first year, Tshs 720,000 per month during the second year and Tshs 864,000 per month during the third year. |
| Note 14 | It is projected that the cost for books and stationeries will be around Tshs 90,000 per student. |
| Note 15 | Audit fees and other professional fees |
| Note 16 | Fidelity, fire, money, theft insurance |
| Note 17 | The college will provide breakfast and lunch to all the staff and the cost is projected to be 14 staff @Tshs 4000 per staff, five days a week for 52 weeks |
| Note 18 | Licenses and other regulatory bodies |
| Note 19 | The college will provide free hostel to attract more admissions during the first three years. Total rent for college and hostel buildings is projected to be Tshs 6,000,000 per month. |
| Note 20 | Total expesnes |
| Note 21 | Profit before taxes and depreciation |
The college may manage to reach the 720 students average by year 5 if it implements all of the proposed strategies in this article.
B: Gap analysis
It’s key to establish the gap that a new health college wants to fill. What is it that the business can deliver more efficiently that existing colleges in the chosen location couldn’t.
If a new health college is to succeed in this environment, it will need to address existing gaps and differentiate itself from the established institutions. Here are some potential gaps that a new college can utilize to succeed:
C: Key Success Factors (KSF) of a health college business in Tanzania
To increase your chances of success in the health college business, you need to have a clear strategic focus, the right staff and a proper management. You also need proper marketing and financial management.
D: Key challenges facing health colleges in Tanzania
1. Tuition fees delays
Challenge: Health colleges in Tanzania often face challenges with students’ tuition fees payments being delayed. This issue can be attributed to various factors, such as economic hardships faced by students’ families and the overall economic situation in the country.
Delays in tuition fees can result in financial strain on the colleges, making it difficult for them to maintain day-to-day operations, pay faculty and staff salaries, and invest in necessary resources.
Proposed solution:
- Implement a more efficient and transparent payment system for tuition fees, utilizing digital payment methods to reduce delays and administrative burdens.
- Establish a financial aid program or scholarships for students from economically disadvantaged backgrounds to help them meet their tuition obligations promptly.
- Establish a database of parents with their contact details, especially WhatsApp numbers, and send reminders for the fees.
- Be stern on tuition fees payment, which might even necessitate the expulsion of students who don’t pay the tuition fees. Some colleges go far by publishing names of the students who don’t pay tuition fees.
2. Lack of adequate infrastructure and resources
Challenge: Many health colleges in Tanzania suffer from a lack of proper infrastructure and resources. This includes outdated or inadequate classroom facilities, limited laboratory equipment, and insufficient learning materials like textbooks and reference materials.
Inadequate infrastructure can hinder students’ learning experiences and limit the practical training opportunities required for health professions, affecting the quality of education provided.
Proposed solution:
- Seek partnerships with government agencies, private organizations, and international donors to secure funding for infrastructure development and resource acquisition.
- Advocate for increased budget allocation for health colleges within the national education budget to address infrastructure and resource needs.
3. Shortage of qualified and experienced faculty
Challenge: Health colleges in Tanzania often struggle to recruit and retain qualified and experienced faculty members.
The shortage of skilled educators in specialized healthcare fields, coupled with low salaries and limited career growth opportunities, leads to many instructors seeking opportunities in other sectors or even in foreign countries. The lack of qualified faculty can impact the delivery of high-quality education to students.
Proposed solution:
- Introduce competitive remuneration packages for faculty members, offering incentives for experienced instructors to remain in academia.
- Establish faculty development programs, including research grants and opportunities for advanced studies, to enhance teaching and research capabilities.
4. Limited access to modern medical equipment and technology
Challenge: Health colleges in Tanzania may face challenges in accessing modern medical equipment and technology needed for practical training and research.
This is mainly due to budget constraints and the overall lack of investment in healthcare infrastructure. Outdated equipment can hinder students’ exposure to cutting-edge medical practices, limiting their preparedness for the evolving healthcare landscape.
Proposed solution:
- Collaborate with hospitals, healthcare facilities, and private companies to gain access to modern medical equipment for practical training purposes.
- Lobby for government support and funding to upgrade medical equipment and technology in health colleges to align with current industry standards.
- Seek donor funds tailored towards upgrading health college infrastructures. To win donors, you might have to be willing to cut down fees or even admit students from marginalized communities for free.
5. Insufficient funding and budget constraints
Challenge: Health colleges in Tanzania often face funding challenges, with insufficient financial support from the government and other sources.
Limited budgets can impact the colleges’ ability to enhance facilities, upgrade resources, and invest in faculty development programs.
It may also lead to an increase in student fees, further affecting access to healthcare education for economically disadvantaged students.
Proposed solution:
- Engage in advocacy efforts with government officials and stakeholders to highlight the importance of healthcare education and the need for increased funding.
- Seek donor funds tailored towards upgrading health college infrastructures. To win donors, you might have to be willing to cut down fees or even admit students from marginalized communities for free.
6. Inadequate awareness and support for health education in the community
Challenge: Despite the importance of healthcare education, there may be a lack of awareness and support within the community for health colleges.
This can lead to a lower number of qualified applicants and limited interest in pursuing careers in healthcare fields.
Building awareness and support for health education among parents, students, and community leaders is crucial for promoting the growth and development of health colleges.
Proposed Solution:
- Launch awareness campaigns to highlight the significance of healthcare education and its impact on community health outcomes.
- Collaborate with local leaders, community organizations, and healthcare professionals to promote the value of health professions and education.
7. High competition from other educational institutions
Challenge: Health colleges in Tanzania face competition from other educational institutions offering a variety of courses and degrees.
Students might be drawn to other disciplines, especially those with perceived better job prospects or higher social status.
As a result, health colleges may find it challenging to attract a sufficient number of students, leading to potential financial strain and decreased institutional viability.
Proposed solution:
- Strengthen career guidance services to showcase the potential career opportunities and rewards in healthcare professions.
- Partner with hospitals, pharmacies, and other healthcare providers to seek internship and employment opportunities for your graduates. Given the rising unemployment rates of graduates from colleges, this will attract more youths to choose healthcare colleges, specifically your college.
8. Difficulty in recruiting and retaining skilled staff
Challenge: Along with faculty, health colleges may struggle to recruit and retain skilled administrative and support staff.
The lack of competitive remuneration packages, limited opportunities for career advancement, and challenging working conditions can discourage qualified individuals from joining or staying in the education sector.
This can lead to administrative inefficiencies and affect the overall functioning of the institutions.
Proposed solutions:
- Conduct comprehensive salary reviews to offer competitive compensation packages for all staff categories.
- Implement professional development opportunities and clear career paths for administrative and support staff to enhance job satisfaction and retention.
- Implement graduates program in the best Universities like Muhimbili University of Health and Allied Sciences (MUHAS).
Steps to start a health college in Tanzania
Step 1: Do research
Every business starts with a proper research. I will kindly advise you not to skip this step. We also do researches and prepare feasibility studies for health college projects in Tanzania.
The first step is to do or get a custom research that is in line with your preferences. In this article we provide a general case of a nursing college.
You may need a custom research based on your preferences. You can always contact us for a proper business research, our fees a reasonable and negotiable.
Once you have a custom research report that is in line with your preferences, the next step is to register the college. The following step details how to do that.
Step 2: Prepare requirements and mobilise resources
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Step 3: Register the college
Regulatory authorities to register with
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How to Register Health College in Tanzania?
<a href="https://nacte.go.tz/" target="_blank" rel="noreferrer noopener">NACTVET</a> is the council mandated to register and regulate all colleges in Tanzania (business & tourism colleges, medical & health colleges, and tech colleges).<br><br>But registration process doesn't start directly at NACTVET. The college has to get business registrations and Tax registrations first. The follwing section talks about the steps involved.
A. BRELA Registration
Starting a health college business begins by choosing and registering the business ownership structure. In Tanzania, there are three business ownership structures you can register with BRELA. These are:I. Private company: Ownership of the college can be under a private company. Click here to learn more about what a private company is and how to register it.II. Sole proprietorship: A sole proprietor can own a nursing college. Click here to learn more about what a sole proprietorship is and how to register it.III. Partnership: It can also be owned by a partnership. Click here to learn more about what a partnership is and how to register it.
B. TRA Registration
After registering with BRELA, you will need to obtain a Taxpayer Identification Number (TIN) and Tax Clearance from TRA.Steps to register with TRA:
C. NACTVET Registration
NACTVET Registration Requirements1. Certificate of incorporation from BRELA, Memorandum and Articles of Association and BRELA official search showing current ownership structure and directors.2. TIN Certificate from TRA3. Business License4. Curriculum of studies for all the intended programmes.5. Master Plan with evidences of financial ability.6. Adequate infrastructure, human, physical and financial resources.7. Evidence of ownership or hire of building or ongoing construction.8. Evidence of procuring or a plan of acquiring learning equipments and materials.9. Organization structure.10. CV of the college CEO or principal.
D. Business License
Get business licence
E. OSHA Registration
F. FIRE Registration
G. NSSF Registration
H. WCF Registration
Step 4: Start operations
A: Hiring staff
B: Launch the college
C: Plan and do marketing
Let the potential students know that the college exists and the gap it fills.
D: Devise a monitoring, evaluation & reporting system
It’s very important to monitor how the business performs
Appendices
1. Registered Health Colleges in Tanzania
Source: NACTVET, as of June 2023
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 Kessy Juma is the founder of Miamia Trading Company (miamiatz). He is a Techpreneur with roots in accountancy. He believes that any business is good as long it caters the right market using the right strategy. 
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