Department mulls new funding models for varsities

This comes after the review commission was set up to look into funding models for universities.

"Once we are done, I will publish this for engagement and final consultation with all the stakeholders so that we arrive at a better informed and transformation based funding formula," Minister Nzimande said.

The Minister was speaking at the opening of the 2nd Higher Education Transformation Summit at the Inkosi Albert Luthuli ICC in Durban.

The summit, which runs from 15 - 17 October, brings together key stakeholders for a critical dialogue on transformation in the higher education system. It is an opportunity to re-imagine higher education transformation, tackling the difficult issues that are currently explosive on campuses and building a vision for what a South African university should look like today and in the future.

Minister Nzimande told delegates that the department has started implementing some of the obvious recommendations, including the significant increases in the National Student Financial Aid Scheme (NSFAS), increases in bursaries for scarce skills and the addition of infrastructure.

"I already have decided that we need more ring-fenced funding to promote African languages in our universities. We have already agreed with the university vice chancellors that we urgently need to engage the whole sector on the pressing issue of cost drivers in higher education, including the issue of the size of increases in university fees," the Minister said.

He also welcomed the recent establishment of the Presidential task team to look into improved and sustained funding of the sector. He said the department is committed to working with all stakeholders to find ways of addressing the funding challenges of the system.

"We must be sustainable and we must grow to meet the policy expectations placed upon us. The paper prepared by my department presents a detailed overview of how funds are allocated and what the changes have been.

"The National Plan for Post-School Education and Training (PSET) process will look closely at this, incorporating a number of initiatives examining the funding needs of the system," the Minister said.

The Minister said while it appears they have money due to surpluses in the National Skills Fund, the department doesn't have the money to fund at the desired levels.

"We are competing for funds with a whole range of very serious and pressing priorities: health, basic education, housing and infrastructure. I acknowledge that although the subsidy for universities has increased, it has not kept pace with inflation.

"The review commission on the funding of universities, chaired by the Deputy President, made this observation. We recognise that the situation is precarious and difficult for many institutions," said Minister Nzimande.