Private sector called upon for tuition funding
In a recent ENCA interview, Higher Education Minister, Blade Nzimande revealed that the challenges facing the universities could be partially accredited to the growing success of the ANC government.
He went on to substantiate by drawing attention to the growth of the university sector under the governance of the political party, post 1994.
Nzimande acknowledged that there had been a decline in government funding to universities. However, according to him, this is a result of the system growing faster than the "core money" government was contributing.’
Nzimande highlighted that a more detailed analysis through information gathered by the various institutions still needed to be acquired to determine the financial impact of the decision taken, but remarked that the funding shortfall would be around R3 billion.
When asked about the students’ plight for free education, he remarked that the country could afford free education but the money to do so was admittedly monopolised by the private sector.
He went on to state that: “It would cost R37 billion over the next three years, in addition to the R9.5 billion in the National Student Financial Aid Scheme (NSFAS).”
The department under, Nzimande’s instruction, has apparently given their ‘respective director generals’ the task of exploring prospective income avenues. He also added that were currently liaising with the Minister of finance on the matter.
This response coinciding with the call from the National Union for Mine Workers Youth Structure (NUMYS) last week, in appealing to major businesses to step in, in funding national tertiary education.
Several companies currently offer bursaries and learnerships to tertiary students. However, in general these are specific to the company’s core business focus, such as accountancy, engineering and architecture.
“Our investment in human resources development initiatives across our business in South Africa is aimed at developing potential and current employees whilst also contributing to the development of South Africa. These initiatives place specific emphasis on historically disadvantaged South Africans and women. These initiatives include bursaries, learnerships, portable skills training, and a professionals-in-training programmes amongst others. In 2014 we spent R1 billion on bursaries, ABET learners and learnerships. We fund student tuition through our bursary programme which included the allocation of 978 bursaries last year,” said Shamiela Letsoalo, external communication manager for Anglo American.
Nzimande concluded by saying: "The fiscus has been stretched and my own view is that we should look at all these proposals being made to get more money, whether you use the wealth tax, or you raise the skills levies, but it’s very clear that money will also have to be gotten from the private sector, because they are the principal beneficiaries from the graduates that we produce from our universities."
Featured Is your car protected under your normal insurance if you use it for commercial purposes?
Taking out car insurance is a responsible action. Depending on the cover you choose, you will protect both yourself and anyone involved in an accident with you. However, what happens if you use your car for commercial purposes?
What are the risks of signing as guardian for your child’s student loan?
As your child embarks on their journey towards higher education, they will likely be faced with a funding shortfall. This may include the cost of their studies, as well as additional living expenses. In order to assist them, you may consider signing as their guardian for a student loan.
What is revolving debt, and how is it different from “normal” debt?
When applying for a credit card, you may have come across the terms “revolving credit” or “revolving debt”. Perhaps you thought it makes no difference what the debt is called – debt is debt, right? But whether you take out revolving debt or “normal” debt can make a difference.
5 common money-saving mistakes and how to avoid them
If you diligently dedicate a portion of your income towards an appropriate savings vehicle, over time this will act as your financial safety net. So why then do so many people struggle to save?
Take advantage of the Aha Pensioners’ discount
Price: Available on request
Save on VW Polo with Absa
Price: Available on request
When: Until 30 April 2021
Large Pizza for R169.90 at Debonairs
When: While stocks last