Page 94 - Risk Report 2024

1. Functional State 2. Politics

Service delivery failures impede education delivery. The sector Escalating geopolitical conflicts disrupt international student
also depends on a functional State for strategic projects, mobility, research collaboration, and transnational education
research publications, and State-funded students. Because the programs. Changes in national policies by coalition government
registration and accreditation of qualifications and enrolment may impact the sector’s operations and decision-making
targets are endorsed by the Council of Higher Education, DHET, (potentially challenging their autonomy to make independent
and SAQA, changes in the State’s governance and decision- decisions to fulfil their mandates). Political changes could
making processes may hinder delivery of accessible high- threaten education funding (with institutions largely subsidised
quality education. Governance standards should be clear, easy by the State subject to conditions, while student fees as a main
to interpret and practically enforceable (refer instances where source of revenue are capped).
decisions to place Institutions under administration were
overturned in Court). The quality of graduates and workplace
skills balance will continue to suffer until NSFAS is stabilised
(fee-free education led to increased debt, compounded by
administrative failures at NSFAS). Councils’ size, constitution
and duties must improve to eliminate conflicts of interest (e.g.
proximity to procurement decisions), and to promote appetite
for intellectual exploration and contrarian views. The sector can
benefit from entrepreneurship to increase additional revenues.

3. Economy 4. Social Security
Economic decline, exacerbated by the lingering effects of Increasing cost of living, high unemployment rates, increased
COVID-19, drives student headcount decreases, donor revenue debt, increased inequality, lack of access to good healthcare,
reductions, growing debt, increased operational costs, and swelling mental well-being challenges, and insufficient social
uncertainty on investments and cash flows. These exacerbate services complicate access to higher education, reducing
reduced funding by DHET and institutions’ ability to be diversity in the education system. These factors limit the
financially independent and sustainable. Having lost its status job prospects of graduates, impacting the attractiveness of
as the main gateway into Africa status limits SA’s opportunities pursuing education. Institutions carry additional financial
for research collaboration, and student exchange programs to burdens in the attempt to combat these challenges through
realise the African Union 2063 agenda goals. This curtails SA’s support for students unable to raise minimum registration
ability to contribute to the Continent’s education despite the fees, bursaries (if not funded privately), internship programs
highest internationally ranked African universities being in SA. to expose graduates to workplaces, counselling services, and
mentorship campaigns. This uneven access to education and
persistently high unemployment collectively threatens SA’s
spirit of optimistic conversations and aspirational identity –
the Zeitgeist that distinguishes our Rainbow Nation. The sector
must prioritise impactful community initiatives, e.g. rural and
township schools’ ablution facilities (impacting human dignity),
sports facilities (enhancing competitiveness between learners),
and university-industry-government partnerships to boost
employment.

5. Rule of Law 6. Water
Fraud, collusion, and over-expenditure (often by entrenched Water supply interruptions may lead to interrupted classes and
syndicates) cause operational inefficiencies, financial losses, increased costs to procure water tankers. Institutions are forced
damage to reputation, contract cheating, and hindered to invest in water recycling, alternative water sources, and
academic performance. Failure to report crime inhibits effective water-saving measures where possible. There are opportunities
prevention and response. Fraud and corruption mainly occur for institutions to strengthen water management efforts, e.g.
in student accommodation (where the allocation of student research into wastewater management, water conservation.
residences is engulfed in extortion), physical infrastructure
projects (where construction mafia type extortion affects
upgrading of ageing infrastructure at HEIs), and in buying/
selling/falsification of qualifications. Closer collaboration
between the sector and law enforcement agencies is needed,
while cleansing law enforcement agencies themselves of
corrupt elements, to prosecute perpetrators. Ethics Offices,
and Ethics and Whistle-blowing Hotlines to mitigate threats of
unethical conduct should be in place.