Growth in private education
AFFORDABILITY is a primary challenge for independent schools. Operators need to evaluate and investigate different models, but only those that guarantee academic excellence should be implemented, says CEO of Advtech schools division, Alex Isaakidis.
SA has seen substantial growth across all fee levels in the independent school sector since 2000 — with particular acceleration and at a faster rate than the public school sector (though off a smaller base) since 2013. According to the Department of Basic Education, there were 1,681 registered independent schools (6.5% of all schools) educating 538,421 pupils (4% of all pupils) in 2014. By 2015, there were 1,786 independent schools (6.2% increase) facilitating 566,194 pupils (5.2% increase). By contrast, public school pupils increased 1% for the same period while the number of public schools decreased by 0.1%.
Growth of the independent school sector is driven globally by the demand for alternative and better education than governments are offering. In SA, this demand comes from all population and socioeconomic groups. Another phenomenon fast-tracking the growth of independent schools in SA is increasing interest from companies and entrepreneurs, which are entering the industry to establish or invest in chains of both for-profit and not-forprofit schools.
“There is a steady increase in the demand for independent education leading to more competition,” says Isaakidis. “We welcome this as it forces us to continually improve our offering, be more innovative and learn from the needs of our target market while offering a competitively priced product.”
The Advtech group, he says, distinguishes itself from its competitors by offering a variety of options across pre-primary, primary and high school categories. The JSE-listed company’s brands also provide different curriculums, including the National Senior Certificate and the Cambridge International Examinations. “What’s more, some of our brands have a Christian ethos, some offer a more traditional ethos and others a more progressive approach to education. But our brands are also known for their academic excellence and that, we believe, is the main thing that differentiates us from competing schools.”
Advtech’s interim 2016 performance, which boasted a 20% increase in the schooling division’s revenue and a 6% increase in new enrolments, is, says Isaakidis, evidence that there is opportunity for continued growth within the sector.
“Private education has not only remained resilient, but has continued to grow despite slowing economic growth in the country,” he says. “Our growth in the sector has been via a mixture of opening schools at new sites, increasing the accommodation at existing schools and by acquisition such as was undertaken with regard Maravest and Centurus Colleges in recent years. However SA’s current weak economic position remains a concern for us.”