<\/p>\n
The long-standing divide between SA\u2019s public universities and private tertiary institutions could soon narrow, with the country\u2019s largest private education providers positioning themselves for a major structural shift.<\/p>\n
However, the industry remains in limbo as the private sector awaits final application criteria and regulations.<\/p>\n
Following the Department of Higher Education and Training\u2019s (DHET) promulgation of an updated institutional framework, private education operators now have a formal legal pathway to apply for official \u201cuniversity\u201d status.<\/p>\n
The policy shift follows years of legal friction between private institutions and regulators.<\/p>\n
In 2019, when a law graduate from Varsity College (an Advtech institution) was refused registration by the Law Society because the college was not recognised as a \u201cuniversity\u201d, the matter went to court.<\/p>\n
The high court ruled that accredited private institutions qualify under the Legal Practice Act, declaring the restriction \u201cunjust discrimination\u201d given that their degrees were accredited by the same bodies as those of public universities.<\/p>\n
The Constitutional Court later confirmed the ruling.<\/p>\n
Furthermore, the Higher Education Act was amended in 1997 to require government to publish criteria for private institutions to qualify as universities. However, delays prompted Advtech to take the higher education minister to court in 2022 to force the publication of draft criteria.<\/p>\n
Although the final policy framework was gazetted in 2025, the underlying regulations and formal application process have yet to be finalised.<\/p>\n
For JSE-listed education giants like Advtech and Stadio Holdings, dropping historical designations such as \u201chigher education college\u201d in favour of \u201cuniversity\u201d could mark a significant operational and valuation milestone.<\/p>\n
Advtech confirmed that once the government\u2019s pending regulations setting out application criteria, timelines and accreditation standards are published, it will apply for full university status for two of its consolidated tertiary brands, Rosebank International and Emeris.<\/p>\n
Read:
Advtech hopes to have full university status soon
Advtech\u2019s \u2018university\u2019 division leads group\u2019s growth<\/p>\n
Commenting on the pending regulations, Advtech Group CEO Geoff Whyte said resolving the accreditation framework will level the playing field for private-sector graduates.<\/p>\n
\u201cAdvtech welcomes the promulgation of the policy for the recognition of institutional types during 2025, which created a formal pathway for private higher education institutions to apply for university status,\u201d Whyte said.<\/p>\n
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\u201cResolution of these issues will ultimately benefit our students who will finally be afforded the same status as their peers who earn equivalently accredited qualifications from public universities.\u201d<\/p>\n
Stadio joins the race<\/p>\n
Advtech is not alone in preparing for the regulatory green light.<\/p>\n
Speaking to investors at Stadio\u2019s half-year results, CEO Chris Vorster said the group is actively preparing its academic and physical infrastructure to meet the forthcoming DHET standards.<\/p>\n
\u201cWe believe we\u2019re a university in waiting and that we will meet the criteria that will be set by the department when we can apply for university status.\u201d<\/p>\n
Vorster said the group\u2019s investment priorities include expanding its curriculum, faculties and offerings, improving teaching and learning across its campuses, increasing research output, and strengthening community engagement.<\/p>\n
Read: Stadio results show them as best in the class<\/p>\n
Vorster said executive management visited the department to clarify regulatory timelines, although specific criteria remained in draft form.<\/p>\n
\u201cI can report back that there is still not a clear timeline on when regulations will become available,\u201d he said.<\/p>\n
\u201cThe department is working on it. There are a lot of complexities in this regard, but we know it is coming \u2026 So we keep on preparing as if we can become a university tomorrow.\u201d<\/p>\n
Once the regulations are gazetted, Stadio plans to apply for full university status for Stadio Higher Education, while seeking \u201cuniversity college\u201d status for Milpark Education.<\/p>\n
Meanwhile, AFDA (\u2018The School for the Creative Economy\u2019) will remain registered as a higher education college because of the practical, specialised nature of its creative programmes.<\/p>\n
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Bridging the \u2018perception premium\u2019<\/p>\n
Public universities have historically held a strong position in terms of prestige, partly because of the legal restrictions around use of the word \u201cuniversity\u201d.<\/p>\n
Official university status could help private operators narrow that perception gap.<\/p>\n
Kwame Antwi, an analyst at Longmark Securities, says university status could significantly enhance the appeal of private higher education institutions and improve their competitive position relative to public universities.<\/p>\n
Regarding competition between the listed groups, Antwi says university status is unlikely to materially change the intensity of competition between Advtech and Stadio if both attain the status at roughly the same time.<\/p>\n
\u201cHowever, if one gets a head start, it could create a sustainable competitive advantage,\u201d he says.<\/p>\n
Chantal Marx, head of investment research at FNB Wealth and Investments, says official recognition will act as a structural tailwind for listed private providers.<\/p>\n
\u201cThis could have a long-term positive impact on the brands that gain university status,\u201d Marx says.<\/p>\n
\u201cOne of the reasons put forward for why students prefer public universities over other tertiary institutions will be the perception premium placed on being a \u2018university\u2019.\u201d<\/p>\n
Antwi says the change could help unlock brand equity and commercial reach, including by allowing Rosebank and Emeris to attract international students.<\/p>\n
Read:
Advtech hits historic financial milestone
Advtech unveils new higher education brand, Emeris<\/p>\n
But Marx cautions that achieving pricing power or a corporate advantage over established public institutions would require sustained execution.<\/p>\n
\u201cI think it will help to bring it closer to being on par with public universities in terms of brand and perception, but even this will take time,\u201d she says. \u201cTo command a brand premium, other factors such as research output and qualification breadth will probably need to be stepped up.\u201d<\/p>\n
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Capex strategy and regulatory delays<\/p>\n
While the market awaits the government\u2019s criteria, questions remain over whether regulatory delays could create strategic risks or constrain capital deployment.<\/p>\n
From a capital perspective, Antwi says waiting for government timelines presents limited financial risk.<\/p>\n
\u201cFrom what the companies are saying, the requirements for university status are unlikely to result in significant capital outlay,\u201d he says.<\/p>\n
Marx says established listed operators are unlikely to be caught off guard by regulatory delays.<\/p>\n
\u201cThese businesses usually have their growth strategies and capex commitments planned well in advance,\u201d she says. \u201cI would not expect a meaningful change until there is more certainty on the criteria and perhaps time to assess the impact once accreditation is received.\u201d<\/p>\n
For smaller, unlisted competitors, however, the barriers to entry could be higher.<\/p>\n
Marx says their ability to compete will depend heavily on the stringency of the department\u2019s requirements around physical facilities, faculty qualifications and research output.<\/p>\n
Read:
Advtech expands African footprint as earnings surge 16%
Stadio top but Advtech close behind
Advtech surpasses 100 000 students amid strong enrolment growth<\/p>\n
As capacity constraints and funding challenges continue to pressure SA\u2019s public higher education system, private operators are positioning themselves to capture a larger share of tertiary demand.<\/p>\n
The forthcoming DHET regulations will determine not only which institutions qualify for university status, but also how quickly private capital can expand university-level access across the country.<\/p>\n
#Private #education #groups #prepare #university #status<\/p>\n","protected":false},"excerpt":{"rendered":"
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