Developments in vocational education and training (VET) in Tanzania and Zimbabwe since the 1980s were examined in the context of economic reform. Formal VET provision in each country's public and private sectors was reviewed, and case studies of one firm in each country's manufacturing and tourism industries were conducted. The research identified important changes in Tanzania's and Zimbabwe's VET systems since the start of economic reforms. Tanzania's fiscal crisis has forced public sector training institutions to commercialize their training activities. Although Tanzania has made very significant progress in adjusting its VET system to meet the major skill requirements of a rapidly liberalizing economy, economic liberalization has not resulted in the creation of an effective and efficient demand-driven VET system in either Tanzania or Zimbabwe. Unlike the situation in Tanzania, the government in Zimbabwe has not relinquished its tight control over the VET system. Public sector VET there remains supply-driven because of government control of training resources, little involvement of key stakeholders, and massive social demand for postsecondary VET. The following are among the actions required in both countries: (1) create a properly functioning national training agency whose governance and planning structures can respond to the training needs of their main economic sectors; (2) accelerate the pace of organizational reform among public sector training institutions; (3) reform the existing VET qualification and accreditation systems; and (4) establish a coherent strategy for VET for the poor and disadvantaged. (Sixty-eight tables/figures are included. Contains 10 references.) (MN)