Funding of public higher education institutions in South Africa

Current model for universities

The cost of delivering university education in South Africa amounts to close to R50 billion annually. South Africa subscribes to a funding framework in which costs are shared among the beneficiaries of university education (mainly government and students). 

State contributions to university education declined from 49% at the beginning of the century to 40% by 2012, while the burden on students increased from 24% to 31% during the same period. It is therefore not surprising that each calendar year starts off with student protests demanding free education or lower tuition fees or a cap on tuition fees. The report of the ministerial committee reviewing university funding³, recommended that capping of fees should not be implemented. The Minister of Higher Education and Training in his foreword to this report, expressed the view that “the capping of student fees is an area that I believe requires further attention”.

From 2010 to 2012 tuition fees at the 23 public universities in South Africa increased from R 12.2 billion to R 15.5 billion, while enrolments only increased by 7% during the period. At the same time, student debt rose from R2.6 billion to R 3.4 billion – an increase of 31% over two years. In light of the dependence of universities on tuition fees as a source of revenue, a scrapping or capping of tuition fees would leave universities with a major revenue shortfall.

Let's look at international jurisdictions to see how other countries are approaching tuition fees.

Selected international comparisons

Different countries fund education differently. We will look at the models applicable in Germany, the United Kingdom and the United States.

Higher education has historically been state funded in Germany, since education has been regarded as ‘a public good’. In 2006, the German Constitutional Court ruled that tuition fees did not conflict with Germany's commitment to universal education and as a result tuition fees were introduced. After exploring tuition fees for almost a decade, public universities in Germany have now abolished tuition fees for undergraduate students in all 16 states – the last state did this during 2014. Higher education in Germany is therefore free again, with 84% of funding coming from government.

The United Kingdom introduced tuition fees for the first time in 1998, with an upper cap of £1 000. This cap increased to £3 000 in 2004 and in 2010 the cap on tuition fees was removed, which enabled universities to charge students up to £9 000 annually.

More than half of the UK universities announced their intention to charge students the full £9 000 in annual tuition fees. In the UK, the state contributes 30% of the cost of higher education. During the 2015 UK election campaign, the future trajectory of tuition fees has been a hotly debated election issue.

In the US, which has one of the most expensive higher education systems in the world, the state contributes 34% to the cost of higher education. State-funding for public universities decreased significantly over the last decade, which resulted in an increased reliance on tuition fees as a source of revenue. This also resulted in student debt in the US exceeding $1 trillion for the first time in 2014, which is bigger than the nation’s credit card debt of $0.7 trillion.

In his state of the nation address in 2015, President Obama proposed that the state fund two years of community college education for every citizen with an interest in progressing towards a degree and with sufficient academic marks. The higher education model whereby students share in the cost of education is truly under pressure in both the USA and the UK.

Future funding of higher education

The National Development Plan (NDP)5 requires the higher education sector to increase enrolment levels annually from 950 000 in 2010 to 1.6 million by 2030. Unless we find ways to reduce the costs of delivering higher education, an increased enrolment will require increased funding.

While South Africa is spending 0.75% of its gross domestic product (GDP) on higher education, the US and the UK spend 0.9% of GDP on higher education and Germany spends 1.1%. I agree with the ministerial committee’s recommendation that Government should increase the level of spending on higher education. Increasing Government’s spending from 0.75% of GDP to 2% of GDP will relieve the burden on students to fund their own education.

Sources:

• DHET 2010: Audited financial statements of the universities for the period 2000/01 to 2011/12
• Moving Forward: Trends in annual reporting by South African public universities - September 2014
• Report of the Ministerial Committee for the Review of the Funding of Universities - October 2013, released February 2014
• OECD Indicators: Education at a Glance 2014
• National Development Plan 2030, Our future - Make it work, 2012

The original article was posted at www.pwc.co.za

Industries where South African's richest got their wealth

A report published by New World Wealth reveals the industry from which South African multi-millionaires have acquired their wealth.

According to NWW, South Africa is home to 2,060 multi-millionaires – high net worth individuals (HNWIs) worth US$10 million or more.

Unsurprisingly, the financial services industry is the primary source of wealth for 20% of local multi-millionaires.

Other important industries for them include real estate and construction (16%), basic materials, which includes the mining and refining of metals, chemical producers and forestry products, and diversified.

NWW defines wealth as the net value of assets, which includes financial holdings, business interests and tangible assets. The group excludes primary residences from it’s valuation.

Multimillioniares by industry

Forbes recently listed seven South African billionaires in its 2015 ranking of the world’s super wealthy individuals.

While the country has no individuals from the financial services and construction sector with billionaire status, the source of super-wealth comes from a diverse pool.

South Africa’s richest man, Johann Rupert, made his fortune in retail – though more specifically, luxury goods. He is joined by Shoprite chairman and investor, Christo Wiese in the sector.

Diamond Magnate, Nicky Oppenheimer, Patric Motsepe of Africa Rainbow Minerals, as well as mining group Assore’s MD, Desmond Sacco (who edged out of billionaire status in 2015) all found wealth in basic minerals.

Incoming Naspers chairman and former CEO, Koos Bekker drew fortune from Media, with Stephen Saad’s wealth tied to pharma-care, and Allan Gray tied to his investments.

Richest people in South Africa

#	Name	Net Worth 2015	Industry
1	Johann Rupert	R91.9 billion	Luxury Goods
2	Nicky Oppenheimer	R83.2 billion	Basic Minerals
3	Christo Wiese	R78.3 billion	Retail
4	Koos Bekker	R28.6 billion	Media
5	Patrice Motsepe	R27.3 billion	Basic Minerals
6	Stephen Saad	R26.1 billion	Healthcare
7	Allan Gray	R19.9 billion	Investing

This article was originally published www.businesstech.co.za

South African's poor living on R7 a day

A new report shows the impact of food price inflation for low-income households in South Africa.

The report, published by Pietermaritzburg Agency for Community Social Action (Pacsa), found that low-income households are underspending on food by as much as 55.6%.

The 2015 PacsaFood Price Barometer Annual Report is a composite index of monthly food prices from  November 2014 to September 2015.

The cost of a basic but minimum nutritional food basket for a household of 7 (the average

household size of urban households in Pietermaritzburg) was R3,644.09 per month in September 2015.

For a household with an income of R3,200 – the maximum income level for 60% of Pietermaritzburg households – proper nutrition comes to 113.9% of household income.

The food which these households buy every month cost R1,616.97 in September 2015; and comes to 50.5% of the R3,200 household income.

Broken down further, when dividing that amount between seven people monthly, it means R230 for each inhabitant, or R7.66 per person, per day for food.

The overall food price inflation on the Pacsa food basket over the period of review:

from November 2014 to September 2015 was 4.3%.  In Rand value, the cost of the basket increased by R66.10 from R1,550.87 to R1,616.97, the organisation said.

It found that maize meal (25kg), South Africa’s core staple food, increased by 14.4%, white  sugar (10kg) increased by 6.7%, rice (10kg) increased by 6.3% and salt (1kg) increased by 9.7%

For households living on low incomes, food expenditure is not the first priority. Households prioritise transport, education,  electricity, and burial insurance, Pacsa said.

“Because food is last in the line of expenditure, in a context of low levels of

income, households struggle to purchase the food they require.  In most low-income households the food runs out before the end of the month,” the report said.

While R2,362 is the average minimum wage set by the Employment Conditions Commission across sectoral determinations, Pacsa says that the minimum wage should be R8,000 “if we are talk of the possibility of accessing a basic life of dignity”.

This article was originally posted by www.businesstech.co.za

Success as a process

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                                         image by: www.instantbi.com

Many people do not understand what success is. Success is not a destination as many may think. In fact, success is a process. It is a discipline and culture in which a person partakes in order to reach or meet a set goal/s.

Discipline can  be defined according to Oxford dictionary as "a system of rules of conduct" or according to www.thefreedictionary.com "to train by instruction and practice, as in following rules or developing self-control". Note the use of the word "system"; which is a set of interrelated ideas or a structure based on interrelated ideas with the purpose of producing or reproducing a known/expected outcome.

Any form of discipline whether be at social, financial, military, religious, academic or whatever you can think of takes time to develop. In many cases, most disciplines are obtained through years of training while others remain a life long process. This applies especially to success, which I said it is a process or discipline (not the outcome) practiced through a specific system with the intention of achieving/obtaining a specific outcome.

No one wakes up to be amused by the news that they are successful. No one comes to your door to announce that now you are a successful woman/man. Your achievements though maybe be surprising to many are never a surprise to you. That's because of the set of principles and discipline you took in order to reach where you are today. Your achievement is the direct result of your pain, sweat and sacrifice you made along the way to get to where you are. Hence I find it very insulting when someone tells me that I'm lucky, and I'm sure you do too.

Many people what quick fix or overnight riches, but these things are not success because one can never maintain such. Gamblers and lotto winners can not maintain their quick earned riches because they never took the time to learn the discipline concerning the handling of money. Money fell took quick into their palms and slipped through their fingers just as quick because they haven't development the skills required to maintain it.

This applies to many of us, including of sports heroes and heroines. Although these people have mastered their art in whatever field their in, they still lack the discipline required to handle money. Handling money requires a set of skills and discipline like every other sport, and those who achieve this art and master it have the bank accounts to prove it.

Success itself has nothing to do with money. Yes, one can be success in the handling of money and accommodates wealth as a result but this is just a small portion of what success really entails. Success applies to managing your family, your relationships, your occupation, your service to your community and fellow human beings and animals but most importantly managing your time. If you can't successful manage your time then how can you enjoy the fruits of your labour?

Like everything we have mentioned this far, time management requires discipline and takes time to excel, but those with the desire to achieve this skill can one day manage it better than others.

Whatever your dreams, whatever your challenges, take time to learn and master the field and you will one day achieve. Remember, its a process. It takes time. Be patient and willing to learn.

I'm @PowderBlaq, and thanks for reading

Money tips: The difference between saving and investing

Written by: Opinion Piece, posted by: www.sabreakingnews.co.za

Savings is regularly putting away part of your income into a low or no-risk account, meaning that your money is guaranteed to earn a specific amount of interest and the original deposit is safe.

People do not always understand the difference between saving and investing and the two are sometimes confused. However, understanding and putting both concepts into practice will go a long way to ensuring your financial future.

“In a nutshell, saving is the short-term practice of putting money away for a goal or unexpected expenses and investing is the long-term strategy of putting money away and letting it grow,” says Eunice Sibiya. “It is important to understand the difference between saving and investing, as they are two ways of making your money work for you to achieve different goals.”

Savings is regularly putting away part of your income into a low or no-risk account, meaning that your money is guaranteed to earn a specific amount of interest and the original deposit is safe.

Regular deposits gradually build up, and this money can be used at a later stage. Savings is vital as building up reserves is an effective way to ensure that you are financially secure when you are hit with unexpected expenses such as a medical emergency or a car breakdown. It is also a way of paying large expenses such as holidays or school fees without taking on debt.

“Every single South African with an income should be saving,” says Sibiya. “Those who haven’t started usually use the excuse that they don’t have the money. However, in most of these cases, if they scrutinise their budget they will find that they are spending money on unnecessary items and expenses, such as clothes or entertainment.”

Another myth is that you need lots of money to save, putting away just R100 a month will jump start this critical step in your financial journey.

Investing is when you commit money for the long-term and let it grow. It is different to savings in that there is no set or guaranteed interest rate, and there are varying levels of risk meaning that your money isn’t always fully guaranteed. However the potential for profit or more aggressive growth is much higher.

“Investing may seem intimidating, with concepts like stocks, unit trusts or bonds,” says Sibiya. “However, what you need to understand is that investing is not gambling and is the next step after saving to make your money work for you and provide additional income in the future.”

If you are just starting out, opt for something that is not too daunting. There are multiple options available to save or invest with most financial institutes.

The Beauty of a Human Mind

The human mind is incapable of visualisating the world the way it is. Human mind can only visualise the world or any situation they way it was taught to. For example, you might view a complex mathematically questions as difficult and unnecessary while another views it as exciting and stimulating.

The human mind is so subjective it ignores completely the world's realities and focuses on what it was taught and believes the world or reality to be. This is why you view the African continent as a diseased and poverty stricken land while the Chinese see it as a land of untapped opportunities. This is why you view African leadership as stupid and arrogant while they are regarded as heroes and heroines in the native land.

This is why you view a black man as a criminal and stupid while you regard Mandela as the greatest man to ever live. Your mind can only view the world for what you have taught it or what you have been taught. You are incapable of being objective.

Science for most of us is a measure of objectivity. It sees the world in its purest form and every theory is subjected to scrutiny or falsification and only if passes, only then does the scientific society adopt it to be a scientific theory. So basically science is the only measure of objectivity known to man right? Well,  not really. You see,  science measures the world the way a man sees it, and this is not necessarily the way the world is. Science uses scientific materials and methods to extrapolate what is constant and what is variable. Does nature look at itself this way?

Does the sun measure it's heat using a thermometer? Or day its duration using a watch? I don't think it does. Science is just a way in which we have accepted as a reliable way of looking at the world. It's simply an agreed method by man of looking and explaining the world. You probably think I'm crazy right now...

Look at it this way, science in it's bias form (like every human mind) chooses to accept and reject certain theories and phenomenons that itself cannot explain. It chooses to reject the ideology of God as he is unseen and cannot be measured but at the same time chooses to accept 'cold' which is also unseen and cannot be measured. Science can only measure heat and not cold.

We accept darkness yet we can't create or measure it. We can only measure and create light, not darkness. We simply define darkness as the absence of light. We choose to accept death in which we cannot create, see or measure it. We can only define it as the absence of life with a recorded history of previous life.

My whole point of this unnecessarily long blog is simply; you can change your whole world by just simply changing the way you look at it. The world is different depending on what angle you looking from. So once in a while take time back and look at it from a different angle, you'll be amazed what you gonna discover.

I'm @PowderBlaq, and thanks for reading

I will wait.... for You - Janette Ikz

“I Will Wait…for You” — Janette Ikz

So it seemed, that it was cool, for everyone to be in a relationship but me..

So I took matters into my own hands… and ended up with him

Him who displayed the characteristics of a CHEATER, a LIAR, an ABUSER, & a THEIF

So.. why was I surprised when he broke into my heart?

I called 911, but I was cardiac arrested for aiding and abetting,

Cause it was ME who let him in…

Claiming we were “just friends”..

It was already decided for me by the first date, that even if he wasn’t!

I was gonna make him ‘The One’..

You know… I was tired of being alone,

And I simply made up in my mind, that it was about that time so I decided to drag him along for the ride,

Cause I was always the bridesmaid & never the bride..

A virgin in the physical, but mentally just a grown woman on the corner in heat!

Who was tired of the wait!

So I was gonna make him ‘The One’.

He had a… form of Godliness… but not much..

But hey, hey I can change him! So (honey) I’ll TAKE him, I mean he’s close… enough

Ready to sell my aorta for a quarter, not knowing the value of its use to me

Arties so clogged with MY will, it blocked HIS Will from flowing through me

So, I thank Christ that His blood pressure gave this heart an attack,

That flatlined my obscured vision, put me flat on my back

Through my ignorance He sawed,

Through my sternum He sawed & cracked open my chest

TO transplant Psalm 51:10

A new heart & a renewed right spirit within!

So now I fully understand,

Better yet I thoroughly comprehend,

How much I NEED to wait… for You.

See, the bad thing is that I knew he wasn’t you from the beginning..

Cause in the beginning was the Word

And he didn’t even sound or shine like Your Son

Out of the abundance of the heart the mouth speaks,

And all he could whisper was sweet, empty nothings —

Which meant NOTHING.

He couldn’t even pray when I NEEDED him to

Asking him to fast would be absurd!

So forget about being cleansed & washed with water through the Word…

But I know You.. ♥

You were already praying for me

Even never having met me

Let me assure you, I will wait for you.

I will no longer date, socialize or communicate with carbon copies of you

To appease my boredom or to quench my thirstiness I have for attention

And short-lived compliments from ‘sorta kindas’.

You know…. He ‘sort kinda’ right, but ‘sorta kinda’ wrong?

His first name LUKE,

His last name WARM.

I, I won’t settle for false companionship

I won’t lay in the embrace of his arms,

Attempting to find some closeness,

But never feeling so far apart cause, I just wanna be held

Cause ♫”all I gotta do is Say” No!

NO more ‘almost sessions’ of ‘almost coming close’

Passing winks & buying drinks,

I’ma, I’ma, I’ma flirt!♫

Who flirts with the ideology of,

‘Can you just tell me how much I can get away with & still be saved?’

NO more.

I’ll stay in my bed… alone, and write poems, about how I will wait for you :)

He won’t even come close,

Our fingers won’t even interlock

We won’t even exchange breath

Cause I have thoughts that I’ve ‘saved as’ in a file that God has only equipped you to open.

I will no longer get weighted down,

From so-called friends & family talks,

About the concern for my biological clock

When I serve the Author of Time.

Who is NOT subject to time,

But I’M subject to Him,

He has the ability to STOP, FAST FORWARD, PAUSE, or REWIND at any given time…

So if we could role play,

You would be Abraham & I would be Sara

Or you can be Isaac & I can be Rebecca – a servant’s answered prayer

I am bone of your bone, flesh of your flesh,

Made up of your rib Adam!

And once we meet, like electrons

I will be bound to your nucleus, completely indivisible atom.

We even speak the same math: 1 + 1 + 1 = 3, which really equals 1 if you add Him.

We were all created in His image,

But you have the ability to reflect, project & even detect the Son.

If I were to explain what you looked like,

You would have to look like a star,

A son of the Son..

I would gain energy simply from the light on me.

I would need you , in order to complete my photosynthesis

I await your revelation, but once again from the genesis, I will wait for you ♥

And I will know you… because when you speak I will be reminded of Solomon’s wisdom,

Your ability to lead will remind me of Moses,

Your faith will remind me of Abraham,

Your confidence in God’s Word will remind me of Daniel,

Your inspiration will remind me of Paul,

Your heart for God will remind me of David,

Your attention to detail will remind me of Noah,

Your integrity will remind me of Joseph,

And your ability to abandon your own will, will remind me of the disciples,

But Your ability to love selflessly & unconditionally will remind me of Christ.

But I won’t need to identify you by any special Matthews or any special Marks,

Cause His word will be tatted all over your heart.

And you will know me, and you will find me,

Where… the boldness of Esther meets the warm closeness of Ruth.

Where the hospitality of Lydia is aligned with the submission of Mary,

Which is engulfed in the tears of a praying Hanna.

I will be the one, drenched in Proverbs 31… waiting for you.

But to my Father, my Father who has known me before I was birthed into this earth

Only if you should see fit…

I desire Your will above mine,

So even if you call me to a life of singleness,

My heart is content with YOU – the One who was sent.

YOU are the greatest love story ever told,

The greatest story ever known

You are forever my judge & I’m forever Your witness

And I pray that I’m always found on a mission about my Father’s business

Oh, I will always be Yours!

And I will always wait for You Lord, more than the watchmen wait for the morning…

More than the watchmen wait for the morning… I WILL WAIT ♥

****please see the video on YouTube  https://youtu.be/igCj3jsbcqs *****