South African universities under siege

The number of South African universities with clean audits has dropped to below 50%, which substantiates economist Dawie Roodt’s claim about deteriorating performance.

The debate about the quality of South African universities made headlines following Roodt’s comments that some should be closed or converted into colleges.

He argued that only approximately 10% of the population should attend universities, and that these institutions must produce high-quality graduates.

He noted that the latest unemployment statistics revealed that a significant number of graduates are currently out of work.

The latest Statistics South Africa data indicate that 23.9% of university graduates under the age of 35 are unemployed.

This is concerning as people aged 15 to 34 make up roughly 50.2% of South Africa’s working-age population, translating to approximately 20.9 million individuals.

It shows that a university degree does not guarantee employment, especially in fields which are not in demand in the local economy.

Roodt argued that part of the reason these graduates are unemployed is because we do not produce the right skills at universities.

“The humanities are a good example, which produces degrees like political science. I will not employ such a person, because I do not need those skills.”

“However, there is a scarcity of drone technicians and pilots, geneticists, and people with artisan skills. There is a large shortage of this type of skill.”

He stated that many private tertiary institutions offer high-quality education and produce the skills the market demands.

Roodt suggested that many of South Africa’s public universities should be converted into colleges that produce the skills the economy needs.

“We should also support the private sector tertiary education institutions because they are doing an excellent job,” he said.

He added that many of South Africa’s public universities are poorly run. “Over the years, the quality of public universities deteriorated significantly,” Roodt said.

“South Africa still has brilliant universities, but as a whole, the quality of state-owned universities has gone backwards.”

Backlash from academia

South African academics, including Professor Linda du Plessis from NWU and Dr Phethiwe Matutu from Unisa, criticized Roodt’s comments.

“Roodt’s argument oversimplifies a complex educational and socio-political landscape,” Du Plessis said in a press statement.

“South Africa produces high-quality graduates across numerous fields, and his statements fail to acknowledge the strides made in research, teaching, learning, and community engagement.”

“Given a graduate employment rate below 10%, compared to a youth unemployment rate exceeding 40%, a degree remains a sound investment,” she said.

According to her, Roodt’s focus is almost exclusively on the shortcomings of a handful of public universities, without acknowledging the many achievements in various disciplines.

They include globally recognised researchers and world-class programmes, high-quality research output, and contributions to public health, science, and national policy.

“His narrative is one-sided and overlooks the essential fields that underpin the country’s functioning, such as law, accountancy, engineering, nursing, social work, and teaching.”

She added that public universities are not merely educational institutions. “They are engines of social mobility, redress, and transformation,” she said.

“Suggesting that only 10% of the population should attend university disregards the national imperative to expand access to higher education, as set out in the National Development Plan.”

Matutu shared Du Plessis views, saying Roodt’s argument is disjointed and lacks understanding of South Africa’s tertiary education system.

She said only 20% of students are served by private institutions, while the public sector serves the other 80%.

Matutu added that the insinuation that public sector higher education is worse than what the private sector offers is untrue.

South African public universities’ audit outcomes

South Africa has nineteen public universities and seven universities of technology, totalling 26 state-owned institutions.

Matutu, who serves as CEO at Universities South Africa, claimed that South African universities are well-run institutions and that most received unqualified audits.

She said in the 2023 financial year, 25 out of South Africa’s 26 universities received unqualified audits. “Only one has not submitted its financial reports,” she said.

Roodt responded, saying that a university should be very well-run. “Even if there is only one university with a qualified audit, it is unacceptable,” he said.

“They must be institutions of excellence. I am afraid that there are many examples of mismanagement at South African universities.”

Universities South Africa reply

Subsequent to the publishing of this article, Universities of South Africa submitted a reply to Roodt’s position, which we have published below:

On graduate employability

Contrary to Roodt’s assertion, no data shows that graduates from private and public institutions have uneven employment rates. While youth unemployment in South Africa is about 37%, the overall unemployment rate among graduates is significantly lower at just 10%.

Higher education has one of the highest private returns, with recent figures showing an above 90% employment rate after graduation.

Roodt’s claim that private higher education providers are more responsive to industry skills demands is inaccurate. South Africa’s public universities of technology have strong partnerships with industry, ensuring their curricula align with market needs.

The participation of students in work-integrated learning programmes highlights this alignment. Additionally, many public universities are pioneering advanced training in emerging fields such as artificial intelligence and robotics, showcasing their innovation in a changing global economy.

The inverted pyramid phenomenon

Public universities in South Africa enrol two-thirds of students in the post-school education and training (PSET) sector, with technical and vocational education and training (TVET) accounting for the remainder, creating an “inverted pyramid” phenomenon. The Department of Higher Education and Training’s National Plan for Post-School Education and Training (NPPSET) aims to rapidly expand the TVET sector to enhance access and align it with economic and societal needs.

However, the envisaged expansion needs to take cognisance of the high unemployment rate of TVET completers. Data shows that the unemployment rate of TVET completers is above 55%. This can be partly attributed to the mismatch between the economic demand and the supply in the TVET sub-system of post-school education. In addition, the economy will need to increase entry-level positions for TVET completers.

Roodt’s suggestion to increase colleges is not novel. For that to happen at the expense of universities reflects a limited understanding of the post-school education landscape.

In addressing Roodt’s claims, USAf must also comment on capacity issues. South Africa faces a growing demand for higher education, with over 300,000 learners earning a National Senior Certificate bachelor’s pass in 2025, while public universities could only accommodate 200,000.

Private providers enrol just 21% of higher education students, leaving public universities to serve 79%. With a 25% participation rate in higher education, South Africa falls far behind the Organisation for Economic Co-operation and Development (OECD) countries, whose average participation rate was 78.6% in 2021. Therefore, Roodt’s suggestion to reduce public universities is shallow, especially for an economist.

USAf acknowledges private providers but notes that they primarily serve their shareholders and contribute little to serving the marginalised groups, particularly in infrastructure-intensive fields such as Medicine, Natural Sciences, Agricultural Sciences and Engineering. Both public and private institutions, including universities and TVET colleges, are vital for addressing the country’s PSET needs, a reality Roodt should learn.

On public universities’ financial management

Every year, public universities submit audited financial statements to the Department of Higher Education and Training (DHET). In the 2023 Summary of Audit Findings, 25 out of 26 universities received unqualified audits, indicating strong financial management. One university that initially delayed has subsequently submitted its reports, which are currently under review by the Auditor-General along with the 2024 submissions from other institutions.

USAf affirms that annual audits assess current performance and evaluate the response to previous findings. Thus, we view the verified 2023 audit outcomes as a reliable and sufficient reflection of the sector’s financial health.

On the quality of public higher education

In response to Roodt’s pronouncement questioning the quality of public universities’ offerings, USAf aligns with the views of the Council on Higher Education (CHE), which applies a stringent quality assurance framework equally to public and private institutions.

A recent report from the CHE and Human Sciences Research Council, Stakeholder Perspectives on the Quality of Higher Education in South Africa, highlights a generally positive perception of South Africa’s university sector, both public and private. Stakeholders praised advancements in equity, diversity, staff quality and quality assurance engagement, while noting that quality challenges are common across all institutions.

While graduate employability is often cited as a quality indicator, the report acknowledges the role of external factors, such as a stagnant economy, which might limit graduate absorption despite market demand.

The CHE is conducting a study with the International Finance Corporation on graduate employability practices in South Africa’s higher education system. USAf supports this research and looks forward to its findings, which we hope will clarify misunderstandings.

In the interim, available data do not support the assertion that private institutions offer superior quality to their public counterparts.

Conclusion

All citizens are entitled to freedom of expression as enshrined in the Constitution of the Republic of South Africa. However, this right must be exercised responsibly, with due regard for the reputations and integrity of others.

At USAf, we believe both public and private institutions play a crucial role in advancing South Africa’s knowledge and skills for global progress. Instead of competing for student enrolments, we should complement each other’s strengths to meet the country’s developmental needs in higher education.

By disseminating the aforementioned inaccuracies in the media, Roodt has misled our institutions’ stakeholders and partners, potentially undermining our universities’ ability to attract third-stream income. This narrative must be corrected.

(This article has been updated to remove the audit tables used from the National Government Handbook reflecting outcomes from the AGSA’s PMFA report. 4 June: A formal reply from Universities South Africa has been added.)