Business is concerned by student protests regarding proposed university fee increases and the call for free tertiary education that take place under constraining demands on the fiscus for free basic education, access to health services, the provision of free basic water and electricity supply, reduction in crime levels and increasing social security needs, says the South African Chamber of Commerce and Industry (Sacci).

The chamber said in a statement on Friday that the call for corporate South Africa to fund university education came at a time when companies were already feeling the pinch, as a result of the global downturn and low economic growth in South Africa.

Nevertheless, it highlighted that a large number of bursaries and scholarships were available. “Many companies are also assisting staff members with funding for the education of their children. State-owned enterprises such as Telkom, Eskom and Transnet offer hundreds of bursaries,” it said.
 
Sacci believed the issue was greater than fees. “Statistics reveal that one in four students graduate in regulation time, for example, three years for a three-year degree, and 55% of the intake never graduate.

“This has an impact on the cost of education. It is, therefore, necessary to identify and rectify the causes of the high dropout rate. Universities would be key in such a dialogue,” it stated.
It further highlighted that operational costs incurred in maintaining a level of global recognition of the degrees awarded needed to be considered when determining fees, including technology and teaching aids and the cost of recruiting and retaining appropriately qualified teaching staff.
 
Sacci noted that it sympathised with the students and commended government for its interventions. “However, a solution can be found if dialogue and negotiations between the social partners – government, business, labour, community and academia – takes place as a matter of urgency,” it said.