Management

Our anxiety is reflected by the language we use to define our condition. And pundits say education is in crisis worldwide.

In SA, education is certainly struggling with history, resources, content and purpose given the deeply fractured society seeking to transform itself into a new, inclusive nationhood.

Crisis implies a decisive moment or turning point, for better or worse. The education crisis is expressed in SA by unemployment, low skills and limited job opportunities.

Latest census figures show an unemployment rate of 34% -- 43% for blacks, 21% for coloureds, 12% for Indians and 5% for whites. Of those 20 or older with no education, 24% are black, 10% coloured, 7% Indian and 1% white. That totals 19% for SA. Those with higher education make up 3%, 4%, 10% and 24% respectively.

The vast majority of the population is poor, with incomes below R2 500 a month. Apart from a lack of job-creating economic growth, inadequate education is a major barrier to the unemployed, made worse by disastrous racial imbalances. How can this crisis be brought to a turning point of healing?

Jannie Kitshoff, merchant banker and stockbroker turned entrepreneur, saw business opportunities in providing a solution to the education crisis. The result is the Open Learning Group (OLG), established in 1994 and at present providing distance education to almost 25 000 students in southern Africa.

Kitshoff joined the Independent Development Trust headed by Judge Jan Steyn as financial director in 1990. The IDT obtained State funding for development projects focused on uplifting the disadvantaged.

This experience convinced Kitshoff that sustainable development required the discipline of business principles to ensure mutually reinforcing commitment by the providers and consumers of financial and knowledge resources towards the long-term success of their shared project.

In partnership with Naledi Tsiki, former Robben Island detainee and now CE of the company, OLG opened for business with its mission to enable the disadvantaged to enter the educational mainstream in association with existing tertiary institutions.

The vision is to promote lifelong learning as far as possible throughout Africa. OLG is now one of the biggest providers of education in Namibia.

Through distance learning, OLG provides students with access to courses and qualifications from Technikon SA and the Universities of Pretoria, Port Elizabeth, Potchefstroom and SA. It is a mutually rewarding partnership resulting, for example, in Potchefstroom University acquiring an additional 7 000 students countrywide for its courses (enrolled through OLG).

Ensuring academic standards of content, examinations and certification are maintained remains the responsibility of these tertiary institutions.

From Constantia Park offices on the West Rand, with full-time staff of 160 and 600 part-time tutors and facilitators countrywide, OLG serves its market in accordance with the education and training policies of Government.

Given the population growth, unequal education opportunities of the past and increased demand for education and training, Government faces ``unmanageable pressure'' to provide education, according to Kitshoff.

Government provision for education in the 1997-1998 financial year amounted to 22% of total State expenditure -- high by world standards.

In Kitshoff's view, the private sector must get involved as growing numbers of learners without additional funding can only lead to overcrowding, low staff morale, sub-standard programmes and a general lowering of standards.

Kitshoff's excitement about his venture into mass education as a private business is particularly evident when he talks about Edu-Loan in which OLG is a 25% shareholder. Partners FBC Fidelity Bank and Don Ncube's Real Africa Holdings, both empowerment companies, hold similar stakes, as does management.

It is a serious business with the company managing more than 30 000 loans worth R45m. Any student who is employed and enrolled at a recognised tertiary institution has access to the Edu-Loan facility.

Students at OLG, the universities of Potchefstroom, Pretoria and South Africa are making extensive use of Edu-Loan financing.

A one-page application form is completed and loans are approved at offices on the campuses virtually immediately. In contrast to many other financial institutions, Edu-Loan ensures that the funds go directly to the tertiary institutions and not to the students.

Loans are repaid through monthly deductions from salaries by employers and remitted to Edu-Loan. Loans are approved only if monthly instalments do not exceed 25% of net salary and total take- home pay after deductions is no less than R800.

Kitshoff believes the Edu-loan approach makes business sense not just for his company but also for the participating educational institutions and employers.

If students' financial commitments are met, educational institutions are free to focus on their core business of research and education, he says.

Anton Roodt e-mail: acons@intekom.co.za