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The future of universities – Prof Burger part of DHET Expert Panel on University Fees

17 June 2025 | Story Lacea Loader | Photo Supplied

Prof Philippe Burger, Dean: Faculty of Economic and Management Sciences at the University of the Free State (UFS), has been appointed as a member of a team that will represent Universities South Africa (USAf) in a DHET Expert Panel on University Fees. The panel, which comprises representatives from USAf, the DHET, and NSFAS, focuses on the affordability of tuition fees and the future sustainability of the sector, looking at potential solutions for tuition fees beyond the 2025 academic year.

With more than 30 years of experience in higher education, mostly in management positions, Prof Burger understands the sector well. Combined with his expertise in macroeconomics, fiscal policy, and public sector economics and finance, he is uniquely positioned to make a significant contribution to this task team.

Universities matter

Despite the high national unemployment rate (32%), Prof Burger points out that unemployment is largely a problem of the unskilled. “The unemployment rate of people with university degrees is about 12%, much lower than the national average,” he notes. “South Africa has a large shortage of skilled labour, which it needs to grow the economy and improve lives.” He trusts that universities can fill this void, in addition to providing the thought leaders needed to take the country forward.

Although universities in South Africa are experiencing financial pressures, they continue to lift thousands of people to better lives each year. Universities make a profoundly positive contribution to the country and its population, and Prof Burger believes that once the public is fully aware of this, it will support broader discussions in favour of higher education.

The challenge

Universities face several cost pressures that are causing an increase in cost at a higher rate than consumer inflation, Prof Burger explains. “For instance, we buy equipment, software, and journal subscriptions that are all priced in US dollars. Affected by the exchange rate, these types of expenses have increased by much more than the price of consumer goods in South Africa over the past ten years.” According to Prof Burger, increased operational costs, coupled with constrained university income, necessitate a model that will provide universities with enough income to cover their costs while delivering quality education in the long run.

The solution

“There is an argument for universities to become more efficient, and there is certainly room for universities to look at their cost structures, but there is also a limit to what we can do,” Prof Burger says. “It is important to stress that we cannot talk about the sustainability of universities and not contextualise it within a framework that seeks to deliver quality learning, teaching, and research. In the absence of that quality, we will not be able to address the skills shortages and thought leadership that the country needs. And that is the sustainability we need to talk about – the sustainability of quality education and scholarship,” he concludes.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher

2014-09-01

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail

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