South Africas higher education sector is faced with new technological, financial and collaborative challenges in the face of the Covid-19 pandemic.
These challenges and new areas for growth are some of the most pressing issues for university vice-chancellors. In order to succeed, academic and research institutions will have to reimagine a different future for higher education.
These are some of the key highlights from PwCs Vice-Chancellor Pulse Survey 2020.
Roshan Ramdhany, PwC education industry leader, comments: The Covid-19 pandemic is a catalyst for change in the higher education sector, how the sector can serve the general population as well as equipping its students with the knowledge and skills to make an effective contribution to the South African economy.
Universities will need to take action as quickly as possible to avoid students dropping out of the academic year due to financial pressures, or family and health circumstances. It is notable that not all students have access to the internet or the necessary tools in their habitual areas. While the pandemic has had an adverse impact on the socio-economic state of South Africa, it could nevertheless become the very driver for action in addressing the consequences of social inequalities.
The survey shares insights on several challenges faced by the South African academic and research institutions as well as how these challenges have resulted in new ways of thinking along with providing opportunities to reassess their future investment in technology and the wider formation of partnerships.
Key findings include:
* Overall, every respondent in our survey was of the view that technology has helped support their institution during the crisis. Fifty-three percent believe that technology supported them very well, with the remaining 47% feeling that technology has supported them fairly well.
* 94% of global higher education leaders identified digital transformation to enhance online delivery and remote working arrangements as the number one action to consider in the short-to-medium term to meet the priorities of their respective institutions.
* 87% of institutions expect financial support from government to increase, while 13% believe that there would be no change in levels of assistance from government.
* 74% of survey respondents felt they were prepared in some way for the effects of the COVID-19 pandemic, with 67% believing that they were fairly well prepared and 7% believing they were well prepared. 26% indicated that they werent prepared at all.
* As many as 80% of respondents believe that a return to normal after the COVID-19 pandemic will take between one and three months, with the remaining 20% expecting it to take six months or more.
Digital agility
Worldwide, the Covid-19 pandemic has accelerated the digital agility agenda of higher education. All universities and academic institutions are having to rethink and embrace digital technologies. There has been a shift to online learning, with many universities providing laptops and data bundles to students who had relied on campus facilities to complete their coursework during the lockdown period.
The importance of completing the 2020 academic year remains a top priority and universities have had to ensure that no student is disadvantaged by having to work remotely. 61% of the Global Higher Education Leaders Survey believe that the best scenario for 2020/2012 will be a complete or blended online instruction programme.
Financial sustainability
The survey highlights the fact that financial sustainability and cost containment is a key priority for leaders of universities. However, due to the current economic climate an increase in cost rationalisation initiatives is expected, as well as opportunities for partnerships and collaboration.
The negative effects of the pandemic on university operations are expected to cause a shortfall in revenue, which means universities will need to look at alternative sources of revenue. Based on the four options provided to recover revenue shortfall, 93% of respondents chose to focus on third-stream revenue. Local and global partnerships were also among the choices of 40% and 53% of respondents, respectively.
Research opportunities were identified as the third most popular choice as 47% of respondents indicated this as a focus area to mitigate the expected revenue and cash shortfall.
The financial sustainability of educational institutions is also impacted by the rise in student debt. More than half of respondents said their institution would resort to legal handover to recover any outstanding debt. 38% of respondents also intimated at a possible write-off of student debt.
Crisis management
It is notable that higher education institutions have shown much resilience and agility in the face of adversity. Seventy-four percent of respondents felt that their institutions were equipped to deal with the effect of Covid-19.
The survey findings anticipate a decrease in the enrolment of students. A decrease of up to 5% is expected by more than half of all respondents, while13% expected a decrease of between 10% and 20%. The remaining third are not expecting a decrease in student enrolments.
Enrolment numbers affect government grants that are calculated according to the student base. Fewer students enrolled means a weaker chance of meeting financial targets for the current investment infrastructure. If student capacity remains the same or improves, institutions might have a stronger path to financial recovery.
Moving beyond Covid-19
It is highly likely that the most resilient universities will be those that focus on a future beyond the pandemic and that have a clear understanding of their own identity and strategy in a post-COVID-19 learning and research environment.
Over the short-to-medium term, the impact on higher education will largely depend on what type of economic recovery scenario the country faces and how long it takes.
In the most optimistic scenario, well probably have a once off impact on student enrolment, a domination of online learning instead of face-to-face learning, a sharp immediate impact on the bottom line and an increase in additional expenses not budgeted for. In the prolonged recession scenario, economic slowdown may create opportunities for graduate enrolment as job seekers look for price-competitive education as a means of gaining a competitive edge.
Ramdhany concludes: Ultimately, and far from being just a threat, Covid-19 has to be considered as an impetus for accelerating long overdue changes within the South African higher education system. Educational institutions will undoubtedly form a critical part of the countrys post-Covid-19 recovery if they successfully align short-term financial sustainability with a clear view of long-term identity and purpose.
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Pandemic is a catalyst for change in higher education - IT-Online
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