JSE-listed private tertiary education group Stadio says it is ripe to transition to being a university, having set its sights on accommodating 20,000 contact-learning students and more than 80,000 distance-learning students over time.
Brands in the group’s stable include AFDA and Milpark Education — with the company offering a diverse range of accredited qualifications, ranging from undergraduate to postgraduate qualifications across both contact-learning and distance-learning modes of delivery.
South Africa’s higher education sector is about to undergo a transformational pivot, with the department of higher education & training (DHET) having kick-started a process to allow private higher education institutions to be recognised as universities.
The regulations outlining the application process, timelines and criteria are still being drafted by the government.
Stadio, which has more than 50,000 students, said it was well placed to be recognised as a fully fledged university when the mooted policy change comes into legal effect.
The group’s chair, Vincent Maphai, said in his annual letter to shareholders that the group was poised to attain university status.
“AI is undoubtedly changing the future, and we must embrace these changes and equip the staff and students to use these tools to enable operational efficiencies, supported by a solid governance structure and strict boundaries.”
— Vincent Maphai, Stadio group chair
“Our major priority in the short term is to achieve university status for our selected institutions, and we believe that we are well placed to become a university once the regulations allow,” Maphai said.
“Furthermore, the board acknowledges the importance of technology and AI in allowing our business to scale without wavering in its commitment to academic excellence.
“AI is undoubtedly changing the future, and we must embrace these changes and equip the staff and students to use these tools to enable operational efficiencies, supported by a solid governance structure and strict boundaries.”
The group’s revenue for the year ended December grew 14% to R1.8bn, while the key metric of return on equity rose to 15.7%.
Competition in higher education in South Africa is heating up, with public institutions running out of space to accommodate the thousands of learners graduating from the basic education system annually.
For example, in 2025 more than 300,000 learners achieved a bachelor’s pass. However, the country’s public higher education institutions had space for only about 200,000 students.
The disadvantage of private higher education has been the exorbitant costs that students pay to get access.
Maphai acknowledged this shortcoming, with group CEO Chris Vorster saying the group was exploring options to address the challenge.
“While quality remains our commitment, it is inclusivity that remains at the heart of what we do,” Vorster said. “With 61% of our students being black African and 68% female, our student body reflects the South Africa we serve.
Stadio rival Advtech, South Africa’s leading private education provider, is also seeing big opportunities in the higher education sector
“We acknowledge that affordability remains the biggest barrier to entry to higher education and therefore have sought innovative ways to ease the financial burden for our students.
“Our bursary spend increased by 41% in 2025, and our student funding initiatives continue to break down affordability barriers. This is an area we will continue to challenge ourselves on, to ensure we continue to give more individuals the opportunity to access quality higher education.”
The company, worth R10bn on the JSE, had just 840 students when it listed on the bourse in 2017 and had grown to 53,303 students by December last year — with the next target being the 100,000 students milestone.
Stadio rival Advtech, South Africa’s leading private education provider, is also seeing big opportunities in the higher education sector. The JSE-listed company’s seven higher education brands include Emeris and the Vega School. The Emeris brand brings together Varsity College, Vega, MSA and HSM under a single entity.
Advtech, worth R24bn on the JSE, said once the regulations governing applications to apply for university status are published, its Rosebank International and Emeris entities will both apply for university status.
The company said university recognition will ultimately benefit its students who will finally be afforded the same status as their peers who obtain identically accredited qualifications through public institutions.
“The development is an important next step to ensure private higher education institutions can rightfully be designated as universities alongside their peers in the public sector,” Advtech said.
“As soon as it is possible, Advtech will apply separately for university status for both its Rosebank International and Emeris brands.
“The status of private higher education institutions will shift with the publication of the DHET’s criteria for the three institutional types: higher education college, university college and university.”
Business Times
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