Private Sector must contribute in funding higher education and training in SA
It has almost become trite in SA that each year, as the academic calendar commences, that students strikes becomes the dominant feature, because of NSFAS inadequacy. The Minister of Higher Education and Training, Dr Blade Nzimande is on record in saying that National Student Financial Aid Scheme (NSFAS) cannot satisfy the ever-growing demands for financial assistance.
Government is doing its level best through NSFAS in ensuring that larger numbers of poor students are assisted to enrol and pursue higher education and training institutions. This year alone, government contributed R9.5 billion for the benefit of at least, 200 000 in TVET Colleges and 205 000 in Universities. The combined headcount is 405 000. These are students who would have never entered the system had this scheme was not in place.
The stark reality is that as government our fiscus, currently, cannot succeed in funding the free higher education and training. The government is confronted by many pressing social delivery needs that it cannot relegate to the backburner. In this regard, intervention through NSFAS becomes the single- most contribution that government make.
As the Department we have made a call for the private sector to make its own contribution to the challenge of higher education and training financing in this country. We recognise and appreciate the role that other companies play in the skills levy workplace skills training regime; we recognise that some companies have bursary schemes related to their sector and we also recognise those companies which are responding to Ministers call for building partnerships with TVET Colleges to produce much needed critical skills. But all of this is not enough in comparison to the deep-seated challenge the country has on education. The corporate sector, in general, has been a bystander in funding higher education and training in this country.
Whereas South Africa has an unequal society in the World with acute cleavages of both affluent and indigent communities but it is a middle income country. A perusal of the JSE listed companies justifies the category we are being placed. In 2013, JSE had 472 listed Companies with a market capitalisation of US$182 billion. A cursory glance from the top 40 index, financial sector had 41% domination, mining with 19% and telecommunications with 13%. Whereas there are companies from various countries of the continent but SA companies dominate the JSE.
Countries such as Germany, Switzerland and other European countries leads the way on Companies with huge investments on education especially the vocational education to respond to their industry skills set need. For these industries in Europe, investment to education is a sine qua non for business sustainability. They have very perfect systems of internships to transit these graduates to workplace operational exposures after graduations. All of this is without government duress.
We are already a beneficiaries as a country through Germany companies doing business in SA in terms of training our young people. The minister just returned from Switzerland where he had engagements with Secretary of State to strengthen the existing working relationship between South Africa and Switzerland on education and training. Our bilateral relations in this area is guided by High Level Consultations (HLC) established in 2008. The major contribution Switzerland is structured as Swiss-SA Cooperation Initiative (SSACI). This is a public-private partnership implementing dual Apprenticeship system through Swiss companies doing trade in South Africa.
It is against this background that the responsibility for funding the higher education and training cannot be a government responsibility alone. Business unity South Africa (BUSA), South African Chamber of Commerce and Industry (SACCI), Black Business Council (BBC) and other Chambers in this country must mobilize their industries that befalls under them for this purpose. These important Chambers must help develop a funding mechanism for higher education and training in this country beyond the workplace SETA driven processes. SETAs should be the midwifery between TVET Colleges and industries, playing a facilitative role between these two in the generation of skills and industry absorption.
Our point of departure is that we train and produce graduates for companies to recruit them. There is a strong relationship between a skilled society and a sustainable economic growth for the nation. The absence of the former inhibits the possibilities of the later.
Interventions to education must be seen as a long term solution to resolve skills issue in this country which is a direct benefit to the industries. It must be seen as a long term investments to human capital and economy. It is also a medium to long term solution to the frightening numbers of those dependent on government for survival through social grants. For the private sector, this corporate social investment- education and training, may constitute one of the greatest patriotic contribution for our future as a country. Education and training is a great leveller within which a winning nation can be achieved. To achieve that requires collective commitments in real terms both from government and private sector.
Khaye Nkwanyana is the Media Liaison Officer for the Minister of Higher Education and Training.
