Resource Mobilization Directorate

CURRENT ACTIVITIES AND SOME IDEAS FOR FUTURE DEVELOPMENT

INTRODUCTION

The development of higher education is a key contributor for economic growth and development of countries. Despite the clear importance of higher education for economic growth and social development, investment in the sector is in crises in industrial as well as developing countries throughout the world. Developing countries have invested considerable resource in their higher education system often with the support of external aid and lending agencies. However, the number of students enrolled in higher education institutions continued to rise rapidly reflecting the pressure of growing enrollments at the secondary level and intensified demand for higher education. This adverse macroeconomic conditions and increased computation for scarce public funds have reduced government’s capacity to support higher education and public expenditures for higher education have fallen. The effect of the squeeze on resource availability has been exacerbating by inefficiency in resource utilization. Therefore, for higher teaching learning institutions our government gives the direction to mobilize resource as to be self supporting institutions in the long run and they were starting to develop their strategies to do so.

Hawassa University is one of the recently established but growing exceedingly higher teachings learning institution and has emerged as one of the largest education systems in the country. Now a days the University encompass three colleges, 13 Faculties and 46 Departments so as to play its great role in the developmental aspect of the country.  The major goals of the university are producing skilled manpower that will fit for the purpose of developing the country in different profession, undertaking and producing quality research and providing different social services to the community. To realize these objectives it requires funds. The university obtains these funds mainly from two sources i.e. government treasury and internal revenue.

As Hawassa University is under the federal government it receives annual budget that is aligned with its plan. But this budget is not enough to use its potential for achieving its plan successfully. Thus In line with duties and responsibilities vested upon higher education institutions by higher education proclamation no. 650/2009, Hawassa University generating its internal revenue by designing different strategies of providing various products and services to the surrounding community and the society at large. Hence, Hawassa University plays its role that caters to the developmental needs of the country. In doing so, Hawassa University can mobilize resources and generate income that is supposed to be reinvested for product and service rendering to the community and to support the teaching - learning process.

The proposal has six parts. Objectives and rationales of the paper is described next to this part which is followed by expected challenges and their suggested solutions. In the fourth part is organization structure of Resource mobilization directorate office is discussed. Next to organization structure of Resource mobilization directorate office descriptions of revenue generating projects in part five. Lastly, conclusions and recommendations are made in the six sections.

Objective and Rationales

With the rapid expansion of knowledge and the unprecedented scientific and technological progress, the universities are finding it difficult to keep pace with the changing need of society due to the inadequacy of financial resources. Given this growing demand for higher education and the increasing constraints on public funds, revenue diversification in both production and service is necessary and inevitable for Hawassa University. Thus the pursuit of nontraditional revenues and efficient utilization of the budget has some financial benefits for it. Therefore, the active mobilization of funds from the non-governmental sectors reduces Hawassa University’s dependence on government financing and also reduces their vulnerability to budget fluctuations, thus making our institution more responsive to market signals. Moreover, additional nongovernmental resources can help us to raise the salary of teachers and to improve teaching and research facilities, which is beneficial to the core activities of our institution.

Generally, Resource mobilization directorate office develops different strategies to achieve these revenue wise objectives:-

  • Encourage universities to mobilize resources by participation/contribution of society in their development;
  • Facilitate the teaching learning activity of the university in various dimensions.
  • Encourage and enhance the flow of resources coming from the society for university development;
  • Encourage university to provide consultancy ON PAYMENT BASIS not only to the industries but to the government, and other bodies and society at large on vital issues of national importance; and
  • Provide incentives to the university which involve society in their development activities.

Expected Challenges and Their Suggested Solutions 

The matter regarding financing our institution is a matter of great concern and is should be discussed at various platforms there might be some potential problems and hidden costs in revenue diversification of which policymakers and university leaders should be mindful. For instance there is an already given direction that higher teaching learning institutions can develop an Enterprise and can compete together with any country’s external traders with their products and services. But it is becoming difficult when we were coming to the practical aspect. It needs further dealing with ministry of Education and higher concerned government officials too. There is always a challenge when implementing a new system therefore it needs much endurance to cope up those challenges and it will be settled in the near future.

Another problem is the failure to understand the university as complex and unique organizations –the planning did not take into account whether projects were sustainable how different departments (especially departments that have close professional coherence/ are linked with the office (No clear linkage even with the main extremes of revenue generating institutions). There should be a continuous examination of project sustainability in addition to developing a clear linkage with institutions and departments.

There is also another internal problem that is existed in the internal work process/system. It should be revised to make it consistent i.e, there is communication gap on the amount of expenses that was taken out from each internal revenue budget account especially when the budget approvals were beyond the mandate of Resource Mobilization Directorate office. Therefore, the higher management officials should give an emphasis on providing the necessary information as soon as possible as they get approved. And it is helpful to get the exact financial report on each quarter and efficient & effective utilization of the budget that go in lined with its plan.

Organizational Structure - Resource Mobilization Directorate

As we are known resources are scarce especially the fiscal constraints and the University is grappling with the challenge of how to preserve or improve the quality of education as education budget & particularly expenditures per student are compressed. Therefore to cope up with this scarcity the University expected to generate excellent strategies to strengthen this internal revenue generating divisions by establishing clear sub structure / framework /in order for accomplishing this government direction of supporting treasury fund for the mean time and financing itself in the long run. Thus it is unquestionable to diversify the income generating activities by any means. Currently Research & Farm center, Agricultural Engineering management workshop (AgEM workshop), Continuous & distance education division (CDED) and Teaching model Hotel are Under Resource Mobilization Directorate office and are categorized under the main sources of the internal revenue for the university. However, these will not be sufficient since the need for fund increases in connection with its expansion; hence the university is planning to diversify revenue generating sources.

 

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