The man who went from teaching grade 5 to starting two billion-rand companies

Dr Chris van der Merwe started Curro and Stadio, two of South Africa’s largest private education companies, worth over R12 billion combined. 

Van der Merwe grew up in Goodwood, Cape Town, where his single mother raised him after his father died when he was just three years old. 

Despite growing up in what he describes as abject poverty, Van der Merwe has fond memories of his childhood. 

His mother, he said, was his biggest inspiration. “She believed in me and inspired a lot of confidence in me, encouraging me to make something great of myself,” he said. 

“I was determined to make enough money to buy her a car. That was my only motivation back then.” Van der Merwe noted that he showed signs of an entrepreneurial spirit from a young age.

“When other kids were given 10 cents, they’d buy toffees. But I saved my pocket money until I had about R20 to get myself a rugby ball. Looking back, I could set goals and had the discipline to pursue them.”

After completing his teacher training, he pursued a master’s degree and graduated in 1992. He began his teaching career at Fanie Theron Primary School, but he soon wanted more. 

With the approval of the Inspector of Education, he started a company that developed electronic learning modules as substitutes for textbooks. 

The venture wasn’t profitable but taught him vital business lessons, especially in managing cash flow.

He completed his doctorate in 1988 at Stellenbosch University. His research focused on what educational institutions needed to compete globally. 

After earning his PhD, he applied for a senior position at the Western Cape Department of Education, but was unsuccessful.

“I sat with my wife, Stephanie, and we decided that the only way I would live out my dreams was by starting our own school.”

The start of Curro and Stadio

In 1998, at the age of 37 and working as a deputy principal, he resigned, using his R240,000 severance package to launch a new chapter in his life. 

On 15 July that year, the first Curro school opened its doors with just 28 pupils in church-leased premises in Durbanville. 

“I can tell you without doubt that I never started Curro with the intention of making money,” He said. “I wanted to serve the country by initiating affordable private education.”

Though he had no formal business training, Van der Merwe took responsibility for Curro’s financial planning and business model during its formative years, while his partners focused on academics. 

The first four Curro schools were established in Durbanville, Langebaan, Silver Lakes, and Roodeplaat, and required significant financing. 

Van der Merwe often approached banks, using personal assets as collateral to secure loans. 

“Eventually I realised this capital model wasn’t going to help improve education in South Africa,” he said. “We needed to scale the business to bring about meaningful change.”

That turning point came when Curro started working with PSG Group, particularly its founder, Jannie Mouton. 

PSG bought 50% of Curro and brought in a team of chartered accountants who shared critical business insights. 

“I learnt a lot from Jannie and the PSG team,” Van der Merwe said. “We proposed a 50-50 partnership to help pay off our debt and build many more schools.”

Private education empire

Curro was listed on the JSE’s Alternative Exchange in June 2011, with a market cap of R400 million. 

A year later, with 12,000 students across 19 campuses, it moved to the Main Board. “I supported listing because it gave us access to more capital,” Van der Merwe explained. 

“It also helps to market your company because people then start to believe you are a solid business.”

Curro has grown exponentially. Today, it has more than 73,000 learners and 189 schools across 81 campuses, and its market cap is roughly R5 billion. 

“I stood there humbled that a Grade 5 teacher can go from teaching 28 kids at a rented church to the CEO of a listed company,” he said. 

But Chris wasn’t finished. Curro owned a small teacher’s college in KwaZulu-Natal, Embury Institute for Higher Education. 

PSG, as a major shareholder, proposed unbundling it and listing it separately. Van der Merwe then presented a bold plan: bring together ten colleges into a single higher education company.

In 2017, Chris stepped down as Curro’s CEO to launch Stadio Holdings, the group’s new tertiary education arm. 

“Because I reached the end of my career at Curro in 2017, I thought we would get someone else to run the business. 

But PSG asked me to lead Stadio for three years to establish the fundamentals.” The goal, he explained, was to replicate Curro’s affordable private education model in the tertiary space, with a heavy focus on online learning.

Stadio has since grown to serve over 47,000 students and has a market cap of more than R7.2 billion. Though Chris eventually stepped down as CEO, he continues to serve on the board as a non-executive director.

Chris officially retired in March 2020. “When I get on my knees to pray at night, I thank the Lord that I was chosen to lead this wonderful company, which has been able to widen access to education in the country.”

Looking back, he’s grateful that the government job didn’t come through. “At the time, I was disappointed. But if I’d been appointed, the Curro dream may never have materialised.”

This article was writen with extracts from K. C. Rottok Chesaina’s book, The CEO X-Factor: Secrets for Success from South Africa’s Top Money Makers. It is available here.

Curro

Stadio