This paper starts by discussing an overview of the Higher Education Sector in Tanzania. The relevant institutions are mentioned indicating them as private or public. For purposes of consistence of the discussion, Higher Learning Institutions (HLIs) were selected for an in-depth analysis and discussion. It should be borne in mind that, there are differing appreciations between the service users (customers) and the service providers (Managers and Technicians). For purposes of discussion in this paper, service users are students who are the core customers of the business. The three HLIs selected for this study are: The College of Business Education (CBE), The Dar Es Salaam School of Accountancy and the Institute of Finance Management (IFM). After the data collection and analysis, the Chief Executive Officers with their management teams were invited to attend a brainstorming session on 12th December 2002. This facilitated the critical ethnography approach, which has been the ultimate method of collecting data. Participants gave very good inputs and felt owners of the work. This was the objective of the researcher to engage the service providers in the process of analyzing and understanding the real situation from the beginning. After the brainstorming session, the service providers promised to make necessary improvement to the Value Co-creation System (VCS) and the service delivery system. Models of the co-creation of value and the value chain are suggested in the paper. These models have been reviewed and acknowledged by marketing and competitive strategies 'gurus' such as Prof. Philip Kader and Prof. Michael Porter respectively. Genuine recommendations are also given to rectify the weaknesses pointed out by the customer. It should be borne in mind that this s paper is very much driven by customers' perspective. Value should always be considered from the customers point of view and nor the provider. The study is intended to give a cross-section of the real situation on the ground. The researcher hopes that the findings and analysis made herein will build a stable foundation for all other HLIs to develop their value chain for each contributor of the Higher Education Sector related to that particular Institution. A Communicational Interaction Model (CIM) for the HEL sector is developed and provided. This distinguishes the communicational from informational interaction.