Universities must lead with purpose and ambition to seize the future and endure
As globalisation blurs borders, there is a need to balance global relevance with the delivery of a locally significant education. At the same time, the increasing cost of higher education and shrinking public subsidies place a heavy financial burden on students and universities themselves.
This was the message from Dr Linda Meyer (right), Managing Director of Rosebank College at the recent 3rd Higher Education Conference themed “The Future of the University.”
Dr Meyer was speaking to the sub-theme Towards An Innovative Institutional Strategy, Appropriate Resource and Dynamic People Planning for a Sustainable and Successful Future in the University during a Leadership and Management Strategy Group breakaway session.
“To remain relevant, institutions are aligning their strategic plans with global developments like digitalisation, sustainability goals and evolving workforce demands. However, institutions of higher learning often leave students to their own devices,” Dr Meyer said. “They have to enter the world of work and really struggle around these particular issues on their own.
“At the same time we need to make sure that local needs are being addressed. Staying attuned to local needs is essential, ensuring that education remains accessible, culturally appropriate and responsive to regional challenges. Effective strategy alignment involves tailoring global best practices to fit local contexts, ensuring that the institution can contribute meaningfully to local and global communities.”
Fiscal impediments
Dr Meyer addressed the fiscal impediments facing universities across the globe.
She said in the US, student debt surpasses $1.7 trillion, pushing universities like the Massachusetts Institute of Technology (MIT) to rely more on private endowments and partnerships.
The debt in South Africa, according to the Department of Higher Education and Training (DHET) 2021 audited financials, was approximately R21 billion, escalating at around R2 billion per annum — leaving some universities with severe cash flow problems. And yet the continent needs more growth than ever in the higher education sector.
Africa has the world’s youngest population with more than 60% under the age of 25. This, Dr Meyer reiterated, means “the continent is the future globally” and creates a unique opportunity for South African universities to play a pivotal role in equipping the next generation with skills for the future, particularly to meet the skills demand in growing sectors like technology and renewable energy.
While at it, South African institutions should also start to focus on African knowledge systems: “Integrating African cultural knowledge and indigenous research into the curriculum ensures that education is globally relevant and locally grounded. We are not doing enough to embed these systems into our curriculum. We still have this historic context – the BCom is exactly the same as what your father and your grandfather studied, even the jokes are the same!,”she said to roaring laughter in the room before she wrapped up: “We need to examine and focus on what is relevant in our context.”
Stagnant growth at public universities
Dr Meyer pointed out that South African higher education institutions face declining government support, making financial sustainability a key priority. Although there is an increasing demand for higher education, growth at public universities remains stagnant in the region of 1.1 million students.
“Universities are not getting adequate subsidies so this means that their capacity is not being expanded. Because of DHET limited budgets, public universities’ available F10 spaces are around 210 000 per annum — yet we have almost 570 000 matric students annually who qualify to go into higher education studies. So, if they are not accepted at a public university, their options are to go private colleges, to Technical Vocational Education and Training (TVET) colleges or to fall through the gap. If we, as taxpayers, are investing in the school structure only for young people to drop off after 12 years, how is that benefiting society?” she questioned.
“The graduate unemployment rate in South Africa is 9.7 percent at the last quarter while the youth unemployment rate is around 60 percent, the fourth highest in the world. So if you look at the investment in graduate unemployment at around 10%, the argument is made; we have to invest in our individuals getting degrees.”
Dr Meyer argued that this low participation rate in higher education is inexcusable.
The TVET challenge
“We unfortunately also have this particular challenge in South Africa where people would rather be an unemployed lawyer than an employed plumber. TVET enrolments are going down so the answer isn’t just to open more TVET colleges. If you go into a room of HR professionals and ask them where they employ from, their preference is still graduates from five universities. If you ask any of them if they hire graduates from TVET colleges, the answer is a straight no. So we can’t keep on investing in skill sets that the economy doesn’t want because it is a waste. We need to find better ways to equip our higher education students.”
However, she said, more vital collaboration between universities and TVET colleges could align educational programmes with industry needs, helping to bridge skills gaps in the workforce. Partnerships with industry would also enable institutions to offer students practical experience and work-based learning opportunities, thereby enhancing their employability.
“These collaborations would ensure that graduates are equipped with employers’ required skills, facilitating a smoother transition from education to meaningful employment.”
Dr Meyer praised the National Student Financial Aid Scheme (NSFAS): “This is one of the best initiatives that has happened in this sector; you only have to look at the transformation that it has brought to society. Children from impoverished families have been able to enter higher education and that has changed the destinies of their families and their communities.”
She discussed other key areas of concern:
- The gender split currently at universities shows that young men are falling out of the higher education system.
- There are wonderful leaders in institutions of higher learning and it is imperative that they are supported and retained within the system. Low salaries are a cause for concern.
- University leadership needs to engage with DHET and Treasury because universities cannot rely solely on third stream revenues.
“Some universities have endowments but others are not well advanced in the third stream revenue space and it’s disingenuous to think that that’s going to happen overnight. At some institutions nearly 80% of students are on NSFAS and, while those positions have to be filled, there is a consequence. Are we becoming teaching and learning institutions at the expense of research? We have to ensure that we don’t become our own worst enemies through these fiscal constraints,” she said.
In conclusion, Dr Meyer said that HEIs are more than just centres of learning; they play a pivotal role in driving economic development through research, innovation, and partnerships with industry.
“We must embrace a forward thinking mindset. Higher education must move beyond mere adaptation; it must lead with purpose and ambition, seizing the opportunities of our ever-changing world. We can transform the future by championing bold innovation, forging deep collaborations and committing unwaveringly to sustainability. Together, we can shape a resilient, inclusive and prosperous tomorrow – one where education is the driving force behind global progress and societal transformation.”
Janine Greenleaf Walker is a contract writer for Universities South Africa.