[#FeesMustFall Leaked] See What SA Universities Make Yearly

Universities Make Billions of Rands Yearly

The #FeesMustFall campaign continue to gain momentum as we saw more institutions of higher learning protesting agains what they call ‘injustices in higher learning.’

A report by BusinessTech shows that universities in South Africa are not as broke as they claim to be. The report shows that universities continue to make money while students are locked out as they contest fees hikes that are way above inflation.

Government’s allocation for higher education is around R30 billion which represents 0,72 percent of the country’s GDP.  NSFAS received more than R9.5 billion of that R30 billion this year alone. The remaining R21 billion goes to universities and they divide it among themselves.
This year alone Wits university received R1,148 billion, UCT got R1,074 billion and Stellenbosch university received R1,177 billion.  This is just government’s portion. Universities will still generate more money from the following:
  • Tuition and other fees
  • Private gifts and donations
  • Residence and catering services
  • Income from research and other contracts

 

University No. of students Revenue (Rbillions) Expenditure (Rbillions) Total Profit/(Loss) (Rmillions)
Stellenbosch University 30 150 5.4 3.9 991.0
University of Cape Town 26 300 4.7 4.3 676.0
University of Johannesburg  48 500 2.9 2.9 266.0
University of KwaZulu Natal  40 000 3.8 3.7 130.6
Rhodes University 7 000 1.05 1.0 116.0
University of Witwatersrand  32 700 4.1 3.9 53.7
North-West University 74 300 3.08 3.1 20.8
Unisa 400 000 5.7 5.8 (40.0)
Wits 2014 annual report shows that the university generated a whopping R1,5 billion from tuition fees. There are other sources of revenue that are reflected in it annual report resulting in a surplus that goes to reserves.
Questions have been asked as to why is it that the Wits Board of Governors has millionaires including a billionaire caught of Totoya SA owner, Albert Wessels who made money during apartheid regime in South Africa. Discovery Health founder, Adrian Gore also sits in the board although it is not clear as to what his interest in higher education is.
University board of directors are responsible for fees hikes as they oversee institutions’ financial and corporate governance management. It is believed that Mr Tokyo Sexwale is also a member of Wits board of governors.
Yesterday we saw on social media, allegations that universities redirect their investments and reserves towards foundations setup by board members which in the end benefits private families of these board members majority of whom are white. Some raised serious concerns about the fact that almost all boards members have a background as CEOs of companies that have milked billions of rands from our country’s economy. These are not even professor or doctors by qualifications yet they are trusted with the responsibility to manage institutions of higher learning that must produce academics.

The BusinessTech report also revealed what VC/Principals earn on annual bases.

VC / Principal University No. of students Pay
Prof MS Makhanya Unisa 400 000 R4.2 million
Prof IL Rensburg University of Johannesburg 48 500 R3.9 million
Prof MW Makgoba University of KwaZulu Natal 40 000 R3.8 million
Prof A Habib University of Witwatersrand 32 700 R3.4 million
Prof HR Botman Stellenbosch University 30 150 R3.1 million*
Dr M R Price University of Cape Town 26 300 R2.9 million
Prof ND Kgwadi North-West University 74 300 R2.8 million
Dr S Badat Rhodes University 7 000 R2.4 million
Prof Cheryl de la Rey University of Pretoria 50 000 R2.2 million**

 

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