S. African universities allowed to increase fees: minister

South African universities can increase fees for 2017, provided it does not exceed eight percent, Minister of Higher Education and Training Blade Nzimande announced on Monday.

"We understand the legitimate student concerns about the affordability of university education. At the same time, we need to ensure that those who can afford to pay must pay," Nzimande said.

Responding to universities' insistence on an eight-percent fee rise and students' demand for zero-percent increase, Nzimande said, "Our recommendation is that fee adjustments should not go above eight percent".

The announcement prompted protests at several universities around the country. Students at Wits University in Johannesburg have shut down the campus while protests at the University of Cape Town have led to the suspension of academic programs.

Last month, Nzimande received recommendations from the Council on Higher Education (CHE) on university fee hikes for 2017. The CHE argued for a consumer price index (CPI) based fee adjustment for 2017, while many university leaders have made a strong case that an eight percent agreement (CPI+2 percent) is essential.

Nzimande said he has studied these recommendations, consulted with university vice-chancellors and council chairs, various student organizations, organized labour, faith communities, political organizations and government.

"Currently, our universities face an extremely difficult financial situation. The effects of last year's moratorium on fee adjustments and the extra costs associated with insourcing have both added to these challenges," he said.

"Our immediate and pressing task is to ensure that as we continue to improve access to post-school education and strengthen the quality of learning and teaching, we do not erode the financial sustainability of the sector," the minister said.

SA universities currently face serious challenges in terms of funding. At the same time, large numbers of South Africans are currently finding it difficult to access post-school education because of the financial challenges they as individuals or as families face.

To ensure that such inflation-linked fee adjustments on the 2015 fee baseline are affordable to financially needy students, the government is committed to finding the resources to support children of all poor, working and middle class families - those with a household income of up to 600,000 rand (about 42,000 U.S. dollars) per annum - with subsidy funding to cover the gap between the 2015 fee and the adjusted 2017 fee at their institution, Nzimande said.

"This will be done for fee increments up to eight percent," the minister added.

South African universities were hit by widespread protests over fee increases last year. According to official figures, the unrest cost more than 145 million rand (about 10.8 million dollars) in damage.

Following the unrest, President Jacob Zuma appointed a commission to look into the students' concerns.

The government then suspended fee increases for 2016 and provided universities with billions of rand for the shortfall.

Last month, Zuma instructed Finance Minister Pravin Gordhan, as well as Nzimande to find money for another zero-percent fee increase for 2017.

The National Treasury has told the Fees Commission of Inquiry, looking into the feasibility of free tertiary education, that a zero-percent fee increment for 2017 was not budgeted for.

To date, the National Student Financial Aid Scheme (NSFAS) has received claims amounting to 373.3 million rand (about 27 million dollars) for 17,580 students. Endit