Human capital refers to a broad range of knowledge, skills, and capabilities that are needed for life and work and that are typically build through quality education. Countries that fail to invest consistently in education often do not experience robust economic growth because investments in physical infrastructure, such as dams, roads, and airports as well as developments in other economic sectors such as banking or information technology, are often constrained and yield low returns in the absence of an adequately educated work force.
Human capital development is critical for setting Tanzania on a trajectory toward middle income status, a target it wants to reach by the year 2025. It is projected that a significant share of Tanzania’s economic growth over the coming decades will be concentrated in occupations that require citizens with postsecondary training and skills, as is already the case in middle-income countries. Hence the pressure and the challenge to close systemic gaps and inefficiencies that hamper the education system in the country.