Progress Report: Addressing Student Housing Challenges in Higher Education

1. Progress Report Towards Eradicating the Challenge of Student Housing in Higher Education and Training Institutions Portfolio Committee on Higher Education and Training 10 June 2015

2. Overview • Background to issues on student housing at universities • DHET infrastructure grant support for university student housing • Progress on finding additional funding to support student housing development • Challenges • TVET colleges • Way forward

3. University Student Housing Background • Ministerial committee appointed to investigate student accommodation at universities in 2010 • Report showed that 20% or 107 598 students were accommodated in on-campus accommodation • Beds shortage in 2010 was 195 815 and this was projected to increase to a shortage of 207 800 beds by 2013 • Government and universities need affordable and innovative model for effectively addressing the bed shortage • Aone size fits all approach will not work as universities differ

4. University Student Housing Background • The cost (in 2010 prices) of overcoming the shortage over a period of ten years is estimated at R82.4 billion, or R109.6 billion over fifteen years • Estimates based on cost of R240 000 per bed, and between 50% and 80% of contact students accomodated, depending on location and availability of off campus accommodation translates to a requirement of approximately R147 billion, with escalations • However the problem is not simply related to shortages of accommodation. Current conditions in many residences are not conducive and backlog maintenance is a major issue

5. University Student Housing Background • Based on university estimates, the value of the current national maintenance and refurbishment backlog is R2.5 billion • If existing residence stock is to be modernised to render the residences ‘fit-for-purpose’, then a further R1.9 billion is required • This means that R4.4 billion is required just for the refurbishment of the current stock without adding a single bed • The DHET’s infrastructure programme has prioritised student housing, as shown on the following slide

6. Infrastructure Grant 2012/13 to 2014/15

7. Infrastructure funding for student housing • The Department has funded three cycles of infrastructure funding since 2007 – 2007/8 to 2009/10; 2010/11 – 2011/12, and 2012/13 – 2014/15 • During the first two cycles a total of R1.3 billion was allocated to student housing • Over the third cycle R1.651 billion was allocated to student housing of which R1.412 billion was earmarked for HDI universities and campuses • The third round funding was supplemented by a further contribution of R700 million from universities themselves totaling R2.351 billionin the third round

8. Infrastructure funding for student housing • 3rd Cycle funded +9 000 new beds – a drop in the ocean compared to the estimated need of 207 800 beds • Innovative building technologies (IBTs) not yet supported by government funds due to lack of agreed upon standards. The CSIR has been appointed by the PICC to develop these. However, some universities such as the University of Stellenbosch have used IBTs for residences • The Ministerial Report recommended that a Policy on Student Housing be developed to guide the system. The draft policy was published in the Government Gazette in April 2012 for public comment. The final policy will be published by September 2015

9. Progress with respect to additional funding • Most universities not able to build a large number of new beds (e.g. 2 000 plus) without a substantial capital contribution • Engagements held with stakeholders such as PICC, DBSA, PIC, Treasury, Association for Savings and Investment South Africa (ASISA) in attempt to find a feasible funding model • Policy restrictions and challenges makes it difficult to find a feasible funding model for universities with financial constraints • A feasibility study with DBSA to access IIPSA (EU) funding is currently underway • The PICC have developed guidelines for procuring IBTs for student housing - needs to be finalised with the Department for use by universities and could provide more cost effective solutions

10. Student Housing at Universities: Challenges • Funding available (Department and Universities (all)) insufficient • Developers need guarantees from the Department / institution • A special purpose vehicle, off balance sheet, has its own complications. PIC and UFH process was not successful • DBSA requirements can not always be met and do not offer the cheapest rates (commercial banks more attractive) • ASISA cannot provide capital upfront - can only buy a financial instrument • Public Private Partnerships (PPPs) not affordable for students, and University expected to provide guarantees (e.g. occupancy) • Balance between affordability for student and meeting minimum standards • Social housing cannot be a high profit business

11. TVET Colleges • 10 120 beds available in TVET colleges for 2014 (i.e. 1.4% of the current students enrolment of 709 000 in College owned accommodation) 16 133 are in private accommodation • Provision of student accommodation for students with disability is very low and non-existent in some colleges • Provision of student accommodation in TVET colleges is inadequate however TVET college campuses are more accessible and widespread than university campuses - accommodation required needs to be determined to calculate the shortage • There is no DHET infrastructure grant for colleges • Affordability a challenge, most students rely on the NSFAS bursary scheme

12. Way Forward • A significant proportion of the 2015/16 – 2017/18 university infrastructure funding cycle will be allocated to student housing and backlog maintenance • The Minister is holding a Student Housing Symposium on 22 June 2015 to engage with a wide range of stakeholders to look at ways to fund and accelerate the provision of student housing at universities and colleges • A Committee will be established to further investigate some of the opportunities/proposals made at the symposium and to find sustainable solutions

13. Thank You

14. The Development of the National Plan for Post-School Education and Training Portfolio Committee on Higher Education and Training 10 June 2015

15. Overview • White Paper for Post-School Education and Training (PSET): background and ongoing implementation • National Plan for Post-School Education and Training (NP-PSET): - Purpose - Expected outputs - Development process - Governance and management - Actions and time frames

16. White Paper on PSET - Background • A White Paper for Post-School Education and Training: Building an Expanded, Effective and Integrated Post-school System– published November 2013 - sets out the principles, vision and policy framework for the consolidation of an integrated, well articulated, differentiated and coherent Post-School Education and Training (PSET) system. - focuses on the expansion of PSET, improved quality, and building partnerships especially linking formal education, work place based training and the labour market - introduces Community Education and Training Colleges

17. White Paper on PSET - Background • White Paper identifies 3 delivery sub-systems for PSET: - Higher Education (HE) - Technical and Vocational Education and Training (TVET) - Community Education and Training (CET) • Sub-systems are complemented by, supported by, or dependent on, a range of other key role-players: - Quality assurance system (SAQA; CHE; QCTO; Umalusi) - Financial aid (NSFAS) and levy grant system (NSF & SETAs) - range of institutes and bodies to support the 3 sub-systems, e.g. SAIVCET, NAMB, CDS, CAS, NIHSS, NRF and various Science Councils, HRDCSA, professional bodies such as the HPCSA, SAICA, ECSA etc.

18. White Paper Implementation • All units within the Department are currently working at implementing the White Paper, for example: - Community Education and Training Colleges are in the process of being established and developed - TVET system is being strengthened and expanded - Higher Education Act has been reviewed - Staffing South Africa’s Universities Framework has been approved and is currently being implemented - Skills Development Act is under review - Career Development Services have been set up - Central Applications Service is currently being developed - And many many more………

19. National Plan for PSET : Purpose • The National Plan for Post-School Education and Training (NP-PSET) is necessary to ensure: - coordinated implementation of the White Paper - coherence and alignment of all processes to minimise contradictions - cooperation, collaboration, effectiveness, efficiency, differentiation and sustainable growth - identification of funding required for system targets and goals aligned with NDP and other government commitments, e.g. Health expansion, SIPs - clarification of the overall architecture of the system, its structures and the roles, responsibilities and expectations of various institutions/organisations acting at different levels in the system

20. National Plan for PSET : Expected Output • A comprehensive National Plan for the PSET system covering the period up to 2030, comprising: - A Master Systems Plan, which integrates three sub-system plans - Three sub-system plans, one for each of Higher Education and Training, Technical and Vocational Education and Training, and Community Education and Training • An easily accessible ‘Frequently Asked Questions’ booklet on the NP-PSET

21. National Plan for PSET :Development Process • Appointment of multidisciplinary teams to assist in developing the NP-PSET: - Appointment of a Project Management Team (PMT): overall manager at Chief Director level, writer at Director level, administrator at Assistant Director level (technical full-time expertise) - Five task teams in the process of being set up (advertised for expression of interest): • Higher Education and Training • Technical and Vocational Education and Training • Community Education and Training • Cross-cutting 1: integration / ‘system-binding’ elements, e.g. quality assurance, SETAs, organisational structure of the Department • Cross-cutting 2: funding (both fiscus and levy)

22. National Plan for PSET :Governance and Management Minister External stakeholder reference groups - consultation NP-PSET Steering Committee DHET Coordination team Task team oversight group Task Team 1: HE Task Team 2: TVET Task Team 3: CET Task Team 4: Cross cutting Task Team 5: Cross cutting

23. National Plan for PSET :Governance and Management • The Steering Committee (SC): Chaired by the DG, all DDGs, Minister’s Special Advisor and identified senior officials. It meets quarterly, reports to the Minister and provides feedback to the Task Teams • The Coordination Team (CT): led by DDG: University Education and includes the 3-person PMT, and identified officials from each Branch. It is the engine room for the development of the plan and works full-time on the project. It supports the work of all task teams, the SC and oversight group. It engages and consults with external bodies, through reference groups, on a regular basis throughout the development of the NP

24. National Plan for PSET :Governance and Management • The Task Team Oversight Group includes a Chairperson designated by the Director-General, the chairpersons of each task team, and the coordination unit. It meets once a fortnight to ensure progress and integration of the work. The task teams report directly to the oversight group through their chairpersons. The oversight group reports to the Steering Committee on a quarterly basis

25. National Plan for PSET :Timeframes and Actions

26. Thank You