Background on Private Higher Education in South Africa

South Africa’s private higher education sector plays a significant role in expanding access to tertiary studies, enrolling approximately 313,000 students and accounting for roughly 30 percent of all higher education enrolments. Public universities, by comparison, accommodate around 1.1 million students. Private institutions such as those under the ADvTECH Group, STADIO, Eduvos, Boston City Campus, Regent Business School and the Da Vinci Institute offer programmes often tailored to labour-market needs, with greater flexibility in curriculum design and delivery modes.

Unlike public universities, students at registered private higher education institutions generally do not qualify for funding through the National Student Financial Aid Scheme (NSFAS). This creates a funding gap for academically capable learners from lower- and middle-income households who prefer or require the smaller class sizes, industry-aligned programmes or flexible study options offered by private providers.

The Emergence of a Proposed Private-Sector-Funded Bursary Scheme

In early June 2026, Deputy Minister of Higher Education and Training Dr Mimmy Gondwe concluded a series of engagements with private higher education institutions and their representative bodies. These discussions, which began on 8 June, focused on practical ways to broaden access amid tightening public finances. A key outcome was a proposal for private higher education institutions themselves to establish, finance, administer and manage a bursary fund targeted at students enrolling at compliant private providers.

The Department of Higher Education and Training described the initiative as a response to fiscal pressures on the public purse and the growing demand for post-school education and training opportunities. By shifting part of the funding responsibility to the private sector, the scheme aims to complement existing government efforts without placing additional strain on NSFAS or the fiscus.

Key Features and Objectives of the Proposed Scheme

Under the proposal, the bursary fund would be sector-led. Private institutions and their associations would determine eligibility criteria, application processes and disbursement mechanisms, guided by the Department. The primary objective is to provide financial support covering tuition and, where possible, related costs for deserving students who would otherwise be unable to access private higher education.

Participants emphasised that the scheme should prioritise academic merit, financial need and alignment with national skills priorities. Early indications suggest the fund could support both undergraduate and selected postgraduate studies, with a focus on fields that enhance employability such as business, information technology, engineering-related disciplines and health sciences.

Beyond direct student support, the engagements identified complementary areas for collaboration, including infrastructure investment, the possible creation of specialised universities, curriculum innovation responsive to labour-market demands, and strengthened public-private partnerships to improve graduate outcomes.

Photo by Jolame Chirwa on Unsplash

Stakeholder Perspectives and Institutional Involvement

Institutions that participated in the June engagements include ADvTECH Group, Regent Business School, STADIO, Eduvos, the Da Vinci Institute and Boston City Campus, together with sector bodies such as the South African Private Higher Education (SAPHE), the Association of Private Providers of Education and Training (APPETD) and the South African Business Schools Association (SABSA).

Deputy Minister Gondwe characterised the talks as “highly constructive and encouraging,” noting the valuable contribution compliant private providers already make to expanding access. Private providers have long argued that their sector can absorb additional students more rapidly than public institutions, provided sustainable funding mechanisms are in place. The proposed bursary scheme represents a concrete step toward operationalising that argument.

Student representative bodies and civil-society organisations focused on access have welcomed the initiative in principle, while stressing the need for transparent governance, clear eligibility rules and safeguards against any perception of exclusivity.

Broader Context: Funding Challenges in South African Higher Education

South Africa’s higher education funding landscape faces well-documented pressures. NSFAS has experienced administrative challenges and growing demand, while public universities contend with infrastructure backlogs and rising operational costs. Private institutions, although not reliant on state subsidies for their core operations, have historically depended on full-fee-paying students or limited corporate social investment bursaries.

Corporate-funded bursaries administered by organisations such as StudyTrust already support students at both public and private institutions in selected fields. SETA-accredited programmes likewise extend bursary support to learners at registered private providers. The new sector-led proposal seeks to scale and coordinate these efforts under a unified private-sector framework.

Potential Impacts on Access, Equity and Quality

If successfully implemented, the bursary scheme could meaningfully increase the number of students able to enrol at private higher education institutions. This would help relieve pressure on public universities and contribute to the national goal of raising overall participation rates in post-school education.

Equity considerations will be central. Proponents argue that well-designed criteria can prioritise learners from disadvantaged backgrounds while maintaining academic standards. Critics caution that any new fund must avoid duplicating existing support or creating parallel systems that fragment student choice.

Quality assurance remains a priority. Only institutions registered with the Department and compliant with the Higher Education Act will be eligible to participate, ensuring that bursary recipients study at providers meeting minimum standards of governance, academic delivery and student support.

Photo by Jolame Chirwa on Unsplash

Implementation Considerations and Next Steps

The proposal is still in its exploratory phase. Private higher education institutions have committed to investigating governance structures, funding sources (including possible corporate contributions and alumni endowments), and administrative capacity. The Department has indicated it will provide guidance while leaving day-to-day management with the sector.

Key questions still to be resolved include the scale of initial capitalisation, whether the fund will operate nationally or through institutional chapters, and how it will interface with existing corporate bursary programmes. A phased rollout, beginning with a pilot cohort in 2027, appears likely.

Legal and regulatory alignment will also be necessary to ensure the fund complies with tax legislation governing public-benefit organisations and with the Department’s oversight framework for private higher education.

Future Outlook for Private Higher Education Funding

The proposed bursary scheme signals a maturing relationship between government and the private higher education sector. Rather than viewing private providers primarily as competitors to public institutions, policymakers increasingly recognise them as partners in meeting national skills-development objectives.

Should the initiative gain traction, it could serve as a model for other forms of blended finance in the post-school system. Long-term success will depend on sustained commitment from participating institutions, demonstrable impact on student success and retention, and continued dialogue with government on regulatory enablers.

For prospective students, parents and career advisors, the development offers a new avenue of hope at a time when traditional funding routes remain oversubscribed. For the sector itself, it represents an opportunity to demonstrate leadership in expanding equitable access while maintaining the distinctive strengths of private higher education.