The Education Industry in South Africa 2022

Introduction

Despite receiving about 20% of the national budget for two or more decades, South Africa has a dysfunctional public schooling system.

The education system is characterised by crumbling infrastructure, overcrowded classrooms and poor educational outcomes. The poor quality of public schools and increasing number of people struggling to find a place at university and public colleges is driving enrolments at private schools and tertiary colleges. While school children and students have returned to classroom teaching and in-person lectures, education providers expect to continue to incorporate digital technologies in learning programmes.

Opportunities

A shortage of special needs schools, makes this is a possible area of opportunity for school operators.

Distance education as technology becomes more advanced and there is more widespread access to the internet. Growing demand for higher education in South Africa and on the continent. Growth in the private higher education sector as the demand for high quality and more varied higher education increases. Growth of private schools if the public schooling system remains in crisis. Home schooling, which despite recording lower growth following the lifting of COVID-19 measures, is still growing. Providing or developing accommodation for tertiary education students. Provision of early childhood development services may grow if the government’s proposal to make two years compulsory is enacted. Provision of public education by private operators through “collaboration schools”.

Outlook

The poor economy will see some education providers struggle, particularly with fee collection. Private education is likely to continue to see strong growth in enrolments, driven by increasing demand for quality education, which the state fails to provide.

The shortage of spaces at public universities and tertiary education institutions will continue to drive the growth in enrolments at private tertiary educations. Consolidation of private providers is likely as small schools or colleges are snapped up by large players. Despite lockdown measures being removed, the adoption of online learning will continue, driven by the need to improve learning outcomes and reduce overheads.

Report Coverage

This report on education in South Africa provides an overview of the state of education in South Africa and includes public and private education statistics and information on budgets, fees, enrolments, and trends.

It includes public and private sector institutions and examines their enrolment and performance, corporate actions and developments. There are profiles of 53 companies including private sector players ADvTECH, Curro, Stadio and Educor, the major universities, and home education companies such as Clonard and Optimi Home.

Strengths

An effective independent (private) school sector which includes low-fee private schools.

Education is one of government’s priority sectors. South African universities are among the best ranked universities in Africa in various rankings. South Africa’s higher education sector attracts many students from the rest of Africa.

Threats

Collaboration schools, which are being piloted in the Western Cape, face being scrapped if Equal Education wins its court challenge against the Western Cape government.

Continuing failure to ensure that learners are sufficiently literate and numerate. Continuing shortage of teachers, especially in maths and science. Growing concern over the sustainability of student funding which more than doubled between 2018 and 2022. Shortage of suitably-qualified staff. Some universities have seen a decline in their global ranking in recent years. The tougher economic climate is putting pressure on fees and cost increases.

Weaknesses

Accommodation shortages for students. Infrastructural backlog in many public schools, with little or no access to digital platforms. Insufficient number of qualified teachers. Lack of adequately resourced public schools. Public tertiary education institutions are unable to service demand from all students for placements. The quality of education in many public schools is poor, with low levels of achievement in literacy, mathematics, and science. The school curriculum does not equip learners with skills for the technologically-driven world of work.