The Higher Education Institutions (HEIs) revenue has increased by 11% from 2015 to 2016, according to the Financial Statistics of Higher Education Institutions, 2016 report.The report, released by outgoing Statistician General Pali Lehohla in Pretoria on Tuesday, showed that South Africa’s public higher education institutions had a total income from operating activities of R67.4 billion in the financial year ended 31 December 2016, an increase of R6.4 billion from the income received in the 2015 financial year (R61.0 billion).
The report shows that cash receipts from other receipts (R37.3 billion) increased by R1.4 billion from R35.9 billion in 2015 to R37.3 billion in 2016. This was due to increases in sales of goods and services by the University of Cape Town and Stellenbosch University.
Grants received by public HEIs in 2016 amounted to R30 billion, which is R5 billion more compared to R25 billion in 2015.
“The increase can be largely attributed to an increase in transfer payments from the Department of Higher Education and Training to the University of the Western Cape, University of South Africa and University of Mpumalanga,” said Lehohla.
The report also shows a 10% increase in expenses from R53.6 billion in 2015 to R59.0 billion in 2016. Higher education institutions received R21.6 billion in the form of tuition fees, R30.0 billion in the form of grants and R15.7 billion in the form of other receipts. An amount of R33.7 billion was spent on employees, with R6.2 billion spent on capital expenditure.
Although the number of student enrolment increased in the last five years from 953,373 in 2012 to 975,837 in 2016, the total number of students enrolled in institutions decreased by 9,375 from 2015 to 2016. In 2015, student enrolment was 985,212 and 975,837 in 2016.
Lehohla said the country is spending money on students who should have left the institutions. “People are not progressing where they are…”