Nzimande’s R500m allocation is old news and only amounts to 0.5% of actual student housing need 

29 March 2016

The allocation for student housing announced by Blade Nzimande, Minister of Higher Education and Training, yesterday, is a small step in the right direction, but falls desperately short of the actual needs of South African students. 

Nzimande announced an allocation of R500 million for student housing, R700 million for backlog maintenance and refurbishment and R763 million for priority projects. Although R500 million for student housing is a start, it represents merely 0.5% of the actual need as estimated in 2012. 

According to 2012 figures, the student accommodation shortfall amounted to approximately 195 815 beds. In the 2012 report, the cost of overcoming this need was estimated at approximately R82.4 billion. 

The Minister was, unsurprisingly, silent on how much the actual need has grown since 2012. 

Of equal concern is the fact that the Minister has portrayed this is a new grant when, in fact, it was announced a year ago, as part of the 2015-16 budget. 

What the Minister is yet to do is announce a plan to prevent above inflation fee increases later this year. South African universities have made it clear that the subsidies are not enough this year to prevent further fee increases. Our own estimates indicate that universities require approximately R1.9 billion more than the allocated budget to simply prevent above inflation increases without cutting essential services, particularly to poorer students.

Indeed, this year’s allocations to university subsidies have been so insufficient that UCT, one of the country’s best resourced universities, has announced austerity measures simply to keep the university running a positive budget. Historically disadvantaged universities, much worse off, are on the brink of bankruptcy.

Instead of boasting about old grants, which were themselves grossly deficient, the Minister will be asked to respond to DA questions clarifying the current financial need for student housing and the extent of government’s shortfall. We will continue to argue for an amendment to this year’s budget to ensure that universities receive sufficient grants to build much needed student residences, as well as keep the essential services, particularly to poor students, running.

Issued by Belinda Bozzoli, DA Shadow Minister of Higher Education and Training, 29 March 2016