South Africa’s public universities cannot keep up with demand – and private higher education is stepping into the gap.
For the 2026 academic year, public universities processed hundreds of thousands of applications for just a fraction of the available first-year places. The University of Johannesburg received about 693 000 applications for roughly 10 500 places, while the University of Cape Town recorded more than 98 000 applications for about 4 500 undergraduate seats. Wits attracted about 86 000 applications for approximately 6 000 places, and Stellenbosch University had over 90 000 applications for just more than 6 000 first-year spaces.
Tens of thousands of academically eligible matriculants will not be accommodated at public universities, regardless of pass rates or demand for degrees.
“So where does the overwhelming majority go?” asks Willem van der Westhuizen, manager: Business Development, at Moonstone Business School of Excellence (MBSE). “While there are several alternatives to public universities available to bright young school leavers, one option that deserves far more consideration is private higher education institutions.”
South Africa already has a well-established private higher education landscape. Unlike large public universities, which must serve broad academic mandates, many private institutions focus on specific industries or professional pathways, designing programmes around real-world skills, regulatory requirements, and employability.
As competition for public university places intensifies, the debate is shifting. Private higher education is no longer framed merely as an alternative for those who “miss out”, but as a necessary structural component of South Africa’s higher education framework.
For many, Van der Westhuizen argues, the future will be built through institutions that prioritise relevance, skills, and employability – alongside academic excellence.
“Private higher education is no longer a backup plan,” he says. “It is a necessary part of the solution.”
A policy shift driven by capacity pressure
The Minister of Higher Education and Training, Buti Manamela, has publicly acknowledged that the public university system cannot absorb all qualifying learners. For the 2026 intake, projections showed only about 235 000 first-year university spaces. Manamela warned that “the system can only absorb about half” of the expected eligible cohort.
The minister further emphasised that a Bachelor’s pass no longer guarantees university admission, warning students to “explore multiple options”.
With public universities under sustained strain, the government has increasingly signalled that reputable private higher education institutions must play a larger role in expanding access to quality accredited education.
In October last year, the Department of Higher Education and Training (DHET) gazetted a Policy for the Recognition of South African Higher Education Institutional Types that allows private higher education institutions to be recognised and legally use the title “university” for the first time in South African history.
Private institutions now make up about 22% of South Africa’s tertiary education market, and the policy acknowledges their role in meeting the growing demand for higher education and skills development.
The policy introduces three institutional categories – higher education colleges, university colleges, and universities – which apply to both public institutions and private institutions.
The objective, officials have emphasised, is to build a more flexible, career-aligned post-school system capable of absorbing growing demand.
Van der Westhuizen adds this isn’t about lowering standards.
“It’s about acknowledging that the system needs more pathways, more entry points, and more institutions that are aligned to real skills needs.”
Not all private institutions are equal
With public universities unable to expand capacity at the pace demand requires, the question is no longer whether private institutions should help to fill the gap, but which ones are equipped to do so responsibly.
Although private institutions play a crucial role, the DHET has also issued sharper warnings against providers that fail to meet legal, financial, and academic standards. Recent enforcement actions show just how much can go wrong when governance, sustainability, and oversight are lacking.
The department has framed this crackdown as essential to protecting students and preserving the integrity of the sector – a reminder that private provision is part of the solution only if it is well run and properly regulated.
Van der Westhuizen says this distinction is critical.
“Well-run private institutions focus on specific industries and skills shortages, offer multiple entry points for different matric outcomes, and provide strong academic support in smaller, more guided learning environments,” he says. “They also align learning directly to employability and professional progression.”
He adds that students and parents should assess an institution’s track record, accreditation, regulatory standing, and the quality of academic and student support.
A specialist response in financial services
MBSE positions itself within this regulated, specialist model. The online learning platform, which recently celebrated 10 years in operation, focuses on education and training for the financial services sector, one of South Africa’s most resilient and opportunity-rich industries.
Financial services contribute about 20% of GDP, employ more than one million people directly, and underpin activity across sectors ranging from retail and property to technology and healthcare. As regulation deepens and financial inclusion expands, demand for skills in compliance, financial planning, risk management, and advisory services continues to grow.
“At MBSE, we play this role within financial services,” says Van der Westhuizen. “It’s a sector that offers clear regulatory pathways, strong professional progression, and real opportunities for economic participation.”
The institution offers accredited, FSCA-recognised qualifications, including certificates in short-term insurance, wealth management, and compliance, as well as undergraduate and postgraduate qualifications in financial management and financial planning.
MBSE also recently introduced a future-focused online BCom in Financial Management. Programmes are designed around practical application and taught by lecturers with real-world industry experience, supported by structured academic and student support systems.
MBSE endeavours to align all their qualifications to relevant Professional Bodies’ requirements, to ensure the curriculum is in line with the industry’s skills needs and that MBSE graduates have a pathway to professional designations.
Expanding qualifications for a changing world
MBSE offers six accredited qualifications, ranging from entry-level certificates to advanced postgraduate studies:
- Postgraduate Diploma in Financial Planning (NQF 8)
- BCom Financial Management (NQF 7)
- Advanced Certificate in Financial Planning (NQF 6)
- Occupational Certificate: Compliance Officer (NQF 6)
- Higher Certificate in Wealth Management (NQF 5)
- Higher Certificate in Short-term Insurance (NQF 5)
Applications for the second semester open in February.
Visit www.mbse.ac.za to learn more and secure your place for the 2026 academic year.
For more information, contact MBSE at help@mbse.ac.za.
