Director: Daniel C. Levy

For-Profit Consolidation in South Africa

(Entry by by Prachayani Praphamontripong)

PROPHE Summary:

Icesa Education Services' latest take-over of Educor Holdings has illustrated one of the major consolidations in the for-profit sector in South Africa's higher education. Generating a 20% average annual growth and a sales value of R10-billion, South Africa's private higher education sector is overseen by government authorities, including the Council of Higher Education, the national education department, the South African Qualifications Authority, and Umalusi (a statutory organization). Icesa's justification for such a consolidation is that Educor's brand has been recognized for 60 years and that private higher education is a robust prospect in South Africa. Currently having about 40 campuses across Southern Africa and planning to penetrate into Australia and China, Icesa's teaching highlights include computer and media related fields, business, and hospitality and tourism.

For the full story, see The Times, November 11, 2007, "Major Coup for Education Company."
http://www.thetimes.co.za/PrintEdition/BusinessTimes/Article.aspx?id=609790

PROPHE Observation:

Private higher education growth in South Africa has been mushrooming across the country (See previous PROPHE news reports on South Africa). South Africa has been one of the region's clearest examples of juridically permitted for-profit higher education. The Icesa's for-profit consolidation above illustrates another move into modern for-profit modes. Indeed, the Icesa case may be seen as a serious for-profit demand-absorbing institution where the search for legitimacy (via an amalgamation with the well-known Educor) comes overwhelmingly alongside the institution's strong financial base. Additionally, with its focus on such demand fields as technology and business as well as its international aspirations, the for-profit Icesa may well prove a major player in South Africa and other regions.