By Edwin Naidu
Higher education is a critical driver of growth, development and transformation.
It is tipped to tackle South Africa’s challenges of poverty, unemployment and inequality under the National Development Plan’s vision of an equal society.
But ahead of the 2025 academic year, stories of financial pressures affecting universities are not uncommon. While the usual narrative revolves around the National Student Financial Aid Scheme, others add to the maelstrom.
Universities South Africa (USAf) CEO Dr Phethiwe Matutu, who recently unpacked the challenges ahead, is one of the most reasonable voices on the challenges surrounding the sustainability of tertiary institutions.
According to Matutu, delays in funding disbursements from Sector Education and Training Authorities (SETAs) have further compounded financial difficulties for universities, saying how the lengthy verification process required before SETAs can release funds often leads to prolonged delays.
Students and varsities are left in the lurch by the very organisations meant to assist them. Unfortunately, no one wields the big stick in dealing with errant organisations or their inefficient leaders.
This has been the biggest hurdle [between one SETA and USAf] because, according to Matutu, the SETA cannot verify this data on time, resulting in funds promised from 2020 remaining unpaid. A government that speaks about good governance should ensure better stewardship of taxpayers’ monies, mainly when intended to benefit the country’s learners and learning institutions.
The CEO says these delays disrupt universities’ financial planning and damage their reputation among students who are promised bursaries that fail to materialise.
USAf partners with SETAs to provide student debt relief, bursaries and other programmes.
While Dr Matutu calls for innovative approaches to mitigate the sector’s financial pressures, the Minister of Higher Education and Training, Dr Nobuhle Nkabane, must reign in the SETAs. Under her predecessor, Dr Blade Nzimande, bad governance was given a wrap on the knuckles with a ruler. One hopes the Minister will scrutinise the institutions under her watch.
Dr Matutu has wisely urged universities to consider shared services to reduce costs and improve efficiency. She has called on the government to ensure that any funding policies implemented must be evidence-based, particularly in light of the significant gaps in data surrounding student accommodation and fee-capping decisions.
Regarding the SETA delays, procurement regulations introduced to curb fruitless expenditure have become prohibitive, leading to many of the system’s bottlenecks.
The challenges are laid bare. It’s time for action.
Edwin Naidu is the Editor of Inside Education.
INSIDE EDUCATION
