Future of Varsity College, Vega, and others up in the air in South Africa

The Independent Institute of Education (IIE), the largest private higher education provider in South Africa, is in the middle of a legal standoff with the Department of Higher Education and Training (DHET) over its use of multiple brand names.
The IIE operates well-known institutions like Varsity College, Vega, Rosebank College, and IIEMSA (formerly Monash South Africa).
However, the DHET’s interpretation of regulations has thrown the future of these institutions into uncertainty.
As reported by News24, the controversy escalated in September when the DHET directed the Independent Institute of Education (IIE) to eliminate all references to its various brand names across its campuses by 31 December 2024.
The department’s stance is based on its interpretation of the Regulations for the Registration of Private Higher Institutions, which state that an institution may operate under “a trade name, not trade names.”
However, the IIE strongly disagrees with this interpretation.
Referencing the Interpretation Act, the IIE contends that words in the singular can encompass the plural unless clearly stated otherwise.
This disagreement over regulatory interpretation has been going on for several years but intensified earlier this year when the department denied the IIE’s formal application to amend its registration to permit the use of multiple brands.
Facing a directive that could put its entire operation at risk, the IIE approached the Gauteng High Court in Pretoria last week with an urgent application to suspend the department’s decision.
The IIE argued that complying with the directive would take at least 18 months and more than R50 million, given the significant costs of rebranding its 23 campuses.
Missing the December 2024 deadline, the IIE claimed, would mean breaching its registration conditions, potentially leading to the cancellation of its registration and forcing it to shut down.
With over 50,000 students enrolled across its institutions in 2024 alone, the fallout of such a move would be catastrophic, leaving tens of thousands of students stranded.
However, The DHET agreed to suspend the directive pending the outcome of a formal review application, and this agreement was made an order of the court.
While this provides short-term relief for the IIE, the future of its brands remains uncertain.
Despite agreeing to the suspension, the DHET has been clear in its stance that the IIE has been in violation of regulations for years.
Nkosinathi Sishi, the department’s director-general, accused the IIE of disregarding the law since 2010 by continuing to use its various brand names alongside the IIE name on academic materials and certificates.
In its defence, the IIE emphasised the importance of its brand structure, arguing that each institution’s identity is tied to its educational focus, fee structures, and reputation.
Shevon Lurie, the IIE’s director, explained in court documents that the brands serve distinct markets and contribute to the cost-effectiveness of their operations.
Sharing administrative resources across brands has enabled the IIE to keep costs lower and provide financial assistance to students from low-income backgrounds.
Lurie warned that eliminating these brands would not only cause significant confusion for current and prospective students but also undermine the goodwill and recognition built over the years.
The financial burden of compliance would be substantial, with an estimated cost of R2.2 million per campus, ultimately totalling more than R50 million.
The DHET, however, remains firm.
The department maintains that the law clearly restricts private higher education providers to a single trade name, a rule it claims the IIE has flouted for over a decade.
While the review application is yet to be heard, both parties have been directed to expedite the process.
The outcome will have significant implications for the IIE and its students, as well as the broader private higher education sector in South Africa.
For now, the IIE’s brands, including Varsity College and Vega, will continue operating under their current names.
However, until the review application is resolved, their long-term survival hangs in the balance.
The legal battle underscores the tension between regulatory compliance and the practical realities of running a multi-brand educational institution.
It also raises questions about the department’s approach to private education regulation and its potential impact on thousands of students and staff members who rely on these institutions for their education and livelihoods.
The next steps in this saga will determine whether the IIE’s brand model can endure or whether significant changes will be forced upon the country’s largest private education provider.
Read: 5 well-known franchises that have disappeared across South Africa