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23 April 2020 | Story Prof Francis Petersen | Photo Sonia Small

The COVID-19 pandemic has created profound disruptions in our economy and society.  Due to the challenges of this pandemic, most universities have decided to move from face-to-face classes to online teaching (more accurately defined as emergency remote teaching and learning) so as to complete the 2020 academic year, and to prevent the spread of the virus.

Online learning vs emergency teaching and learning
Online learning is the result of careful instructional design and planning, using a systematic model for design and development.  With remote emergency teaching and learning, this careful design process is absent.  Careful planning for online learning includes not just identifying the content to be covered, but also how to support the type of interactions that are important to the learning process.  Planning, preparation, and development time for a fully online university course typically takes six to nine months before the course is delivered.

Emergency teaching and learning is a temporary shift of instructional delivery to an alternative delivery mode due to crisis conditions.  Hence, one cannot equate emergency remote teaching and learning with online learning, nor should one compare emergency remote teaching and learning with face-to-face teaching. What is crucial is the quality of the mode of delivery, and although assessment methodologies will differ between face-to-face teaching and remote teaching and learning, the quality of the learning outcomes should be comparable.

Funding to universities 
The financial model used in a South African (residential) university consists of three main income sources: (i) the state or government through a subsidy (the so-called ‘block grant’), (ii) tuition fees, and (iii) third-stream income (which is mainly a cost-recovery component from contract research, donations, and interest on university investments). The National Student Financial Aid Scheme (NSFAS) contributes to the tuition fees through a Department of Higher Education, Science and Innovation Bursary Scheme, providing fully subsidised free higher education and training for poor and working-class South Africans (recipients will typically be students from households with a combined income less than R350 k per annum).  

The negative impact of COVID-19 on the income drivers of the university can, and probably will, be severe.  Although the subsidy from the state or government can be ‘protected’ for a cycle of two to three years through the National Treasury, the pressure on income derived from tuition fees (that component which is not funded through NSFAS) will be increasing, as households would have been affected by the nationwide lockdown and with the economy in deep recession, a significant number of jobs would have been lost. The economic downturn, due to both COVID19 and a sovereign downgrade by all rating agencies, has already negatively impacted local financial markets as well as the global economy. The multiplier effect of this would be that the value of investments and endowments decreases (at the time of writing the JSE was still 20% down compared to the previous year), and philanthropic organisations and foundations will most probably reduce or even terminate ‘givings’ to universities.

Industry, private sector, and commerce will re-assess their funding to universities, whether for research or bursary support.  Overall, it is possible that the income sources for universities can be affected negatively in the short term, but it will definitely have longer-term implications on the financial sustainability of universities.  In this regard, it would be important for universities to perform scenario planning on the long-term impact of COVID-19 on the financial position of the university, and to adjust their strategic plans accordingly.

By Prof Francis Petersen is Rector and Vice-Chancellor of the University of the Free State.
 

News Archive

UFS SIFE is the best in SA!
2004-07-09

The SIFE team celebrates their victory with Jack Shewmaker, founder of SIFE in 1975 and past-president of Walmart in the USA, and Moses Kgosana, Chairman of KPMG SA.

The Students in Free Enterprise (SIFE) team of the University of the Free State competed in the National SIFE championships on Thursday, June 17, 2004 at Ceasar’s Convention Centre in Johannesburg.

Strong competition was experienced from the other ten participant SA universities, e.g. the Universities of the Western Cape, Kwazulu-Natal, Cape Town and RAU, but die UFS SIFE team retained the national championship for the third year running.

The team will now represent South Africa and the University of the Free State in Barcelona, Spain at die SIFE World Cup. The competition will be held from 22 to 24 September 2004.

The presentation team members for the competition were Tsholofelo Tlhomelang, Imameleng Matete, Kenneth Lefa, Kabelo Lephaka, Nadia van Staden, Tshepo Mahloko (Multi-Media), Werner Schmidt (Faculty Advisor). Supporting the presentation team were Lineo Peete, Keketso Ntene, Ruth Morienyane, Motaung Mathaba, Tshireletso Seekoe, Peter Letsoalo, Obakeng Msuthwana, Tshepiso Lebentle, JC Langeveldt and Michelle Stanley.

SIFE is a world-wide non-profit organisation with the express aim of encouraging students to spread their business knowledge - gained in the classroom - to the community, to promote and expand the principles of free enterprise.( www.sife.org )

The criteria by which SIFE-projects are measured are the following:

• How free markets work in the global economy.
• How entrepreneurs succeed by identifying a market need and then profitably producing and marketing a product or service to fill that need.
• The personal entrepreneurial, communications, technology and financial management skills needed to successfully compete.
• Practicing business in an ethical and socially responsible manner that supports the principles of a market economy.
• Measuring the results of projects, utilizing mass media and the Internet, involving non-business majors and utilizing a Business Advisory Board, communicating the program through a written report and verbal presentation.

The UFS’ SIFE-team’s presentation complied with all the above mentioned criteria. SIFE UFS’ education drive stretched from primary school learners, to adults who had been working for thirty years – this diverse group was taught about the free market system and its value in the global village. Business ethics and basic business principles were communicated in a fun and interactive way to learners. High-level business advice was given to entrepreneurs who started new projects, e.g. a brick-maker, and marketing advice were given to existing businesses in need of expansion.

If you are interested in helping SIFE UFS achieve its goals, e-mail Werner Schmidt at
schmidtw.ekw@mail.uovs.ac.za or phone him at 051 – 401 3376.

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