Blade Nzimande on student housing at universities

29 Feb 2012

It is my pleasure and privilege to release the much anticipated report of the Committee for the Review of the Provision of Student Housing in South African Universities.

Ladies and Gentlemen of the media, after my appointment as Minister of Higher Education and Training in 2009, I visited a number of institutions as part of my orientation with the portfolio. During these visits it was glaringly apparent that student housing is a major problem in our public university system and that something needed to be done urgently. The conditions of some of the student residences both off and on-campus left much to be desired and this can in part explain why there has been so much unhappiness related to accommodation in many campuses.

Further exacerbating the problem has been a lack of supply of adequate and affordable student housing offered by universities, which in turn forced students to rent sub-standard accommodation off campus. In some cases the living conditions, both on and off campus, were not conducive for academic studying, thus having a detrimental impact on the success and throughput rates of students at universities.

The lack of sufficient and adequate on-campus housing has resulted in overcrowding, thereby jeopardising students' academic endeavours and creating significant health and safety risks for them.

From 2005 to 2010, universities reported a total of 39 incidents of student housing-related protests of varying intensity and scope, several of which were sparked by dissatisfaction with residence maintenance and facilities. Most of the protests were in historically black institutions. There were similar protests in 2011 and also in recent weeks there have been a handful of student protests linked to the desire for affordable and academically conducive student residences.

In 2010 I appointed Professor Ihron Rensburg, the Vice Chancellor of the University of Johannesburg to lead a committee whose purpose was to assess the current provision of student accommodation, and benchmark the South African universities against each other as well as against international institutions operating in a similar environment. Furthermore, the Committee had to determine the real need and assess the various models of provision of student housing, the various types of housing that can be provided and the potential funding models which may assist in alleviating the problem.

The Committee was further required to ensure that the provision thereof does not in turn detrimentally affect the operating budgets of the universities in future.

Prof Rensburg completed this task in September 2011 and presented a report to the Ministry. I am only releasing the report now because it would not have benefitted the universities to merely state the obvious and present the report without the Ministry coming up with a plan of action about how the challenges in the report would be addressed. As a result, I will also share with you how the Ministry aims to address the key challenges identified in the report.

The report does indeed confirm that there are major backlogs in the provision of student accommodation, and that in some instances students are living in appalling conditions. Many of the institutions have not been able to make sufficient investments in maintaining their infrastructure, and far too few students can actually be accommodated.

It is clear that massive investments are required to address the backlog that currently exists. Student enrolment in the residential university system for 2010 was 535 433 and is expected to grow at a rate of over 2% (our academic enrolment target for the cycle 2011 to 2013 suggests an average growth of 2, 8%).

The number of beds available at residential universities in 2010 totalled 107 598, or 20% of the total contact student enrolment. This means that 80% of contact students in 2010 could not be accommodated in the residences owned by our public universities. By way of example, it takes a student that resides at home in Mamelodi and travels to and from either the University of the Witwatersrand or the University of Johannesburg, between 3-4 hours a day to attend classes using public transport.

The estimated distance between Mamelodi and Johannesburg is only 82 kilometres apart. It's no coincidence that many students experiencing these conditions, especially at first year, fail to cope with the demands of academia given the time spent commuting. While it is clear that every student cannot be accommodated at university residences, research evidence suggests that being housed in a safe, well-managed residence does advantage students, particularly those from poorer backgrounds as they do not have to spend hours commuting to and from the university. Affordable student accommodation allows these students to focus their energy on their academic endeavours, thereby improving their chances of success.

Nationally, the racial demographic profile of students provided with accommodation in universities is close to that of the national demographic profile of the country. As might be expected, there are more female than male students accommodated (55% of females are accommodated in student residences). Most disconcerting though is that only 5.3% of first year students, those arguably in greatest need of accommodation, are in residences.

The department will be encouraging universities to ensure that preference is given to first year students so that they can be supported in their academic endeavours. It is easier to develop special programmes for academic support when you know where students reside.

Of particular concern also is the severe shortage of accommodation for students with disabilities, as well as the big differences in what facilities are provided at different institutions. Some campuses have no residences suitable for students who require wheelchair accessible buildings, rooms and bathroom facilities.

Even more disturbing was the discovery that many students at our institutions actually go hungry.  Only 41% of campuses have dining halls, of which 40% are self-catering and 19% have both options. The Committee found that some students go for days without a meal, and sadly, this was found to be a particularly serious problem among first year students, including even those with bursaries.

I am deeply concerned about this state of affairs. Students need to have access to, and funding for, proper meals. Hunger and poor nutrition are believed to affect attendance, concentration levels during lectures and ultimately, academic performance which in turn leads to high drop-out rates. Hungry students cannot be expected to fare well academically.

I want to appeal to all Vice-Chancellors to ensure that students in their residences have access to, and funding for, proper meals. For those who prefer to prepare their own food, then residences should have proper kitchenettes. The proposed minimum standards in the report provide guidelines on proper meals and catering facilities to ensure that students eat properly.

Current provisioning and condition of Student Housing
There are at least 554 student residences/ housing complexes, including 93 dining hall facilities, serving the 49 campuses of the 22 universities. A quarter of all residential infrastructure at universities is unsatisfactory or in poor condition. Students in some residences are using bathrooms as kitchens, since there are no kitchen facilities. Around a quarter of all infrastructure, fixtures, fittings and dining hall facilities are assessed by the universities concerned to be in an unsatisfactory or poor condition.

The value of the current national maintenance and refurbishment backlog is R2.5 billion. Furthermore, if the existing residence stock is to be modernised to render the residences ‘fit-for-purpose', then a further R1.9 billion is required. This means that only taking care of the current backlog without adding any new infrastructure will require R4.4 billion as at September 2011.

Backlogs in the system and cost to address the backlog
The average cost to build and provide a single bed is estimated at R240 000 at 2010 prices. This cost includes all the necessary standard fittings and furniture, kitchenette and social space that a student accommodation is expected to have. It should be noted that the actual cost differs considerably from one institution to the next depending on the location of the institution and whether the institution has its own land for development or not.

It is estimated that the 2010 residence bed shortage was approximately 195 815, and this grows yearly with the expansion of the system. The estimated shortage in 2013 will be 207 800 beds. These estimates are premised on the provision of residence accommodation for 80% of full time contact student enrolments on campuses where off-campus accommodation is unsuitable and/or unavailable especially in rural universities and for 50% of full time contact student enrolments on campuses where limited off-campus accommodation is both available and suitable.

The cost of overcoming this shortage over a period of ten years is estimated at R147.37 billion over fifteen years, including escalation for building and increased intake growing at an average of 2% per annum.

Role of the private sector
The private sector is a significant contributor and stakeholder in the provision of accommodation to university students in South Africa, as is the case internationally. Leaving aside those students who live at home or in their own accommodation, it is estimated that the number of student beds currently made available by both small and large scale private providers in South Africa is close to 10% of the total full-time contact enrolment at universities in 2010.

However, the study indicates that the provision of private student accommodation is unregulated in South Africa, allowing widespread exploitation of students and exposure of students to various types and levels of risk. As a result, we also need to be very careful about the role of the private sector as it does come with risks of exploitation, especially if left unregulated.

Recommendations
The report makes key recommendations in eight areas:

• residence admissions and allocations policy
• minimum standards for student housing and accommodation
• private student housing and accommodation
• residence management and administration
• role of residences in the academic project
• financing of student housing and funding of student accommodation
• condition of residence infrastructure
• future planning.

My department has engaged deeply with this report. An immediate response to begin addressing the infrastructure backlogs has been implemented: An amount of R3.8 billion has been allocated as an infrastructure and efficiency grant for universities over the next two financial years (2012/13 - 2013/14). Out of this, R847 million has been exclusively earmarked for Student Housing (R743 million of this for historically disadvantaged institutions).

However, this amount is not enough to address the backlogs in the system. To augment the funding above, the department is currently in discussions with the Public Investment Corporation (PIC) about setting up a special fund for university accommodation. It is anticipated that the fund will be operational in the next 3-4 months and will offer preferential rates to universities. However, institutions do not have to wait for the legal establishment of the fund, but can start applying immediately for student housing loans.

The department is also planning a workshop with all universities to work through the recommendations of the report and to specifically take forward the guidelines on minimum standards for student accommodation and finalise these for implementation across the system.

We urge universities to engage with the report and start implementing the recommendations at the institutional level while national policies and guidelines are being finalised.

Let me take this opportunity to thank Professor Rensburg and the team that supported him for the excellent report which will assist the Ministry and the Department in addressing the housing needs of students at our institutions through different interventions and initiatives.
Issued by the Department of Higher Education and Training, February 29 2012

South Africa: R147 Billion Needed to Address Student Housing Backlog

Cape Town — Over R147 billion invested over 15 years is needed to alleviate the massive backlog and improve conditions for student housing, revealed a report released by the Minister of Higher Education Blade Nzimande today.

Releasing the ministerial committee's report on the review of the provision of student housing in Parliament, Nzimande said inadequate student housing had been a contributing factor to the country's high university failure rate.

He said the student bed shortage stood at about 195 800 in 2010 and was expected to rise to 207 800 next year.

There was also a significant backlog for the maintenance of existing residences, which stood at about R4.4 billion as at September last year.

Nzimande said his department had already taken action by allocating R847 million of the over
R3.8 billion infrastructure grant to student housing - of which R743 million would go to previously disadvantaged institutions.

His department was also in discussions with the Public Investment Corporation (PIC) to set up a special fund for university accommodation.

"It is anticipated that the fund will be operational in the next three to four months and will offer preferential rates (for funding) to universities," he said.

Universities did not, however, have to wait for the fund to be set up, but could start applying immediately for student housing loans, he said.

In 2010, 535 433 students had applied to be enrolled in the country's 554 residences, but only 107 598 could be accommodated in that year because of the limited number of beds available - meaning 80% of students could not be accommodated.

Nzimande said of serious concern was that only 5.3% of first-year students were in residences.
The department would therefore be encouraging universities to place more first-years in student housing.
He said the conditions of student housing on and off campus at the country's 22 universities and 49 campuses "left much to be desired".

Added to this, a shortage of housing had resulted in overcrowding, jeopardising their studies and creating health and safety issues.

The shortage of housing had also forced students to rent accommodation, running up their costs and forcing them to spend hours commuting to and from university.

"Between 2005 and 2010, there were 39 student protests, with most of these being at previously-disadvantaged universities," said Nzimande.

The estimated shortage in 2013 will be 207 800 beds. These estimates are premised on the provision of residence accommodation for 80% of full-time students on campuses where off-campus accommodation is unsuitable and/or unavailable, especially in rural universities and for 50% of full-time students on campuses where limited off-campus accommodation is both available and suitable.

The cost per room in 2010 was about R240 000, which included fittings and furniture, a kitchenette and social space that a student accommodation is expected to have as well as water and electricity tariffs.
Some campuses had no housing suitable for disabled people.

The committee found that many students went for days with out meals, which he said explained partly why about 40% of first-year students failed during their first sitting of exams.
Only 41% had dining halls (93 in total), of which 40% are self-catering, with 19% including both self-catering and ordinary.
"Hungry students cannot be expected to fare well. I want to appeal to all vice-chancellors to ensure that students in their residences have access to funding for proper meals," he said.
To alleviate backlogs, his department would also be looking into building cheaper, yet more durable student housing to ensure that costs were kept down.
He said certain minimum standards for costs, safety, noise and access for disabled people were also needed.
In 2010, Professor Ihron Rensburg, the vice-chancellor of the University of Johannesburg, was appointed to look into student housing and draft a report on it.

The report was presented to Nzimande in September but he said it was only released now to allow time for the department to come up with measures to address the problems.

Rensburg said his university had made a decision two years ago that at least 40% of its students should be in a residence.
He said this was informed by both Stellenbosch University research as well as a US study that suggests that spending your first year in residence significantly increases the chance of a student of attaining their degree or qualification in the specified number of years.

Rensburg said adequate student housing was crucial to South Africa's future.
"We are creating the possibility here for these men and women to become leaders; if we provide them with accommodation of this kind, what is their experience going to be and what kind of leadership we will receive?" he asked.

SA investros cash in on student homes

SA investors cash in on student homes

Property 24

17 Jan 2012


A shortage of student accommodation at universities and tertiary institutions has seen old office blocks being turned into upmarket student homes.

Johannesburg has seven properties located right across the road from the University of Witwatersrand and will take 934 students.

The shortage of student accommodation and funds to build new residences has led some universities in Johannesburg, Port Elizabeth and Durban to outsource their accommodation to private developers and building managers, says Richard Rubin, chief executive officer of Aengus Property Holdings (APH).
He says there is an ever increasing investor appetite for this type of housing and the private sector is in an ideal position to step into the breach.
APH is known for its inner-city regeneration projects, urban renewal and a new wave of fashionable inner-city living.
The developer is one of the leaders of affordable yet upmarket accommodation within the city centres across the country converting old office blocks into upmarket accommodation for university students.
Rubin says according to the Department of Higher Education statistics, out of a student population of 530 000, there is currently only enough student accommodation for 100 000 students, meeting just 18 percent of the demand.
The department says the lack of supply of student housing is the primary cause for poor performance and high dropout rates at some universities, with students forced to live in conditions not conducive to studying, he says. 
“Accommodation costs are also pushing university out of the reach of many disadvantaged students as rent eats up a major proportion of their monthly budgets.”
After piloting their successful student accommodation model in Johannesburg with 10 buildings, APH has purchased and converted 11 additional buildings in Johannesburg, Durban and Port Elizabeth into high quality student apartments.
He says a number of transactions spanning Johannesburg, KwaZulu-Natal and the Eastern Cape have been concluded adding that student accommodation is breathing new life into South African city centres.
Rubin explains that from the 11 properties, three are in Greyville Durban and will accommodate 183 students.
Central Port Elizabeth has six properties and will accommodate 482 students and Johannesburg has seven properties located right across the road from the University of Witwatersrand and will take 934 students.
Rentals in these types of properties range from R1 950 to R2 500 per person depending on the offering.
In Braamfontein Johannesburg, Aengus is already offering 1 000 new beds for 2012, he says.
Rubin says this is a growth market based on Higher Education Minister Blade Nzimande’s plans for growth to tertiary catered students.
He says if there were investments for sale (none of the students units in the Aengus Investment Properties buildings are currently for sale), investors need to make sure they are well run and located close to tertiary institutions.
Jaco Rademeyer of Jaco Rademeyer Estates says their main student accommodation is in the Summerstrand area in Port Elizabeth close to the Nelson Mandela Metropolitan University.

The developer is one of the leaders of affordable yet upmarket accommodation within the city centres across the country converting old office blocks into upmarket accommodation for university students.

Rademeyer says savvy investors buy property in this area close to the university and rent out per room with rooms costing up to R2 000 per month.
An investor in this case then earns income of R6 000 on a three bedroom property whereas a normal rate would have been about R4 500 per month.
He says people create extra rooms from garage spaces to earn more income.
Furthermore, he says January and February are generally busy months when it comes to student accommodation with many students opting to share a house, townhouse or flats and mostly looking for furnished accommodation.
The average price range that students are looking to pay this year is between R1 800 to R2 500 per student per room.
With the majority of students using public transport, the popular locations are Humewood and Summerstrand.
He says Humewood has mostly flats and students share these while Summerstrand has mostly townhouses and a variety of garden cottages.
“Student accommodation is very popular and there are plans of doing a whole student village very close to the university at the moment.”
Durban North is currently experiencing a fairly good demand for student accommodation because of Varsity College and Sharks Academy in the area.
According to Grant Gavin, broker/owner of RE/MAX Panache, student accommodation on offer varies from a converted house often with out-houses converted on the property to granny flats on existing properties to luxury homes booked up a few years in advance.
Closer to Durban, around the Durban University of Technology, there are large blocks of flats such as Bryanston Heights where two and three bedroom flats are being used as student digs.
Quite often the lounge is converted into an extra bedroom and the cost per bed is kept down, he says.
Asked about rentals, he says as an example, in Bryanston Heights, students can double up in a room from R900 per month and for own room upwards the cost is R1 200 per month.

Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat, according to Engel & V?lkers Potchefstroom

In Durban North, the bottom end accommodation costs around R1 500 per bed per month, granny flats between R3 500 to R4 000 and luxury accommodation often inclusive of meals (although limited) to R3 000 per bed.
“For a residential property owner looking at additional income streams from their property, this does provide a good option.”
We are seeing more investors buying a property with the specific intention of converting the house and outbuildings for student accommodation and the property then becomes a cash positive investment – something you very rarely attain on a normal residential property, says Gavin.
He says investors of this type of housing should have somebody living on-site to manage/supervise what goes on at the accommodation.
Students enjoy the good life and it is therefore important that the landlord takes responsibility to ensure that there are strict rules in place for noise levels and unruly behaviour, particularly given that these properties are located in residential areas.
It’s probably also advisable to contact somebody at the council to ensure that the number of students living at the property is approved correctly, he says.
In Bloemfontein, the University of the Free State (UFS) and Central University of Technology (CUT) campuses does not have enough student accommodation.
CUT students live mainly in Willows which have over the years become predominantly a student area and many families have moved out, according to Mike Spencer, owner at Platinum Global.
He says UFS students tend to live in Brandwag, Universitas and Westdene and tend to be economically better off.
Bachelor flat accommodation has been snapped up and normal one or two bedroom flats are virtually unobtainable.
A new building was constructed outside the UFS campus and will eventually have about 370 fully furnished two person apartments at Unilofts, he says.
Spencer says the Free State Province believes that there is a shortage of about 2 000 student flats.
This year has seen a well publicised increase in the number of students and this is on top of the 1 000 extra students at each university last year.
“Rentals continue to increase at about 10 percent as they have done for some time,” he says.
At Willow Glen, bachelor pads are now priced at R2 150 from the beginning of the year and Unilofts R5 500 per month.

Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat and student units are 100 percent occupied and investors enjoy capital growth as new buyers and tenants come to the city annually, says Venter.

Investors in this housing sector cannot go wrong as there is demand for student accommodation.
He explains that as for the disadvantages, CUT students that mainly come from Lesotho require affordable housing and cannot afford unrealistic rentals.
“Investors have to make sure that the returns make it worth their while and need to factor in the high levies, high maintenance and vacancy factors in their pricing.”
He says Bloemfontein has no forward town planning for building student accommodation meaning there is no zoned ground.
The CUT has a major problem because it is situated in the built up city centre with limited opportunities for acquiring ground to build new hostels/blocks of flats.
He says although UFS has a similar problem, many of the students come from better off families and have their own transport, which gives more of a choice unlike CUT students.
Engel & Volkers reports an influx of investors into student housing In Potchefstroom, says Carl Venter managing director of Engel & Volkers Potchefstroom.
Venter says they are currently marketing a few well designed student housing developments in prime locations and investors from across South Africa are keen to invest in a good quality product with great returns and steady capital growth.
Developments in the area include Carmen, Ivy League, Annes Garden and Botanika.
Botanika and Anne’s Garden Two will be ready for occupation in March, Carmen at the end of 2012 and Ivy League will be completed at the end of 2013.
The agency’s property sales for 2011 revealed that 25 percent comprises student accommodation, 20 percent commercial and 55 percent residential.
“Buyers are parents buying for their children studying at the North West University and investors.”
Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat.
These student units are 100 percent occupied and investors enjoy capital growth as new buyers and tenants come to the city annually.
He says demand for student housing this year is peaking at a 5 year high.
In the Western Cape, Pam Golding Properties (PGP) rentals manager Dexter Leite says there are two areas that are in demand for the University of Cape Town (UCT) students and City Bowl with other student accommodation coming from Cape Technikon, AAA Advertising School and Boston City School.
They look for two bedroom apartments to share with both parents invariably signing the lease as this is generally a cheaper (and considered safer) option than a one bedroom unit for one person.
Security, safety and secure parking are paramount concerns for students and their parents with many choosing newer developments, with mixed residential and retail components which offer an appealing lifestyle.
“Demand starts in October each year, peaking in November and December with enquiries continuing through January.”
Asked about property returns, he says gross returns on average are around 5 percent, whether for student accommodation or other tenants, in similar rental categories.

Inside one of the student units provided by Aengus in Johannesburg.

He says almost all the units they let to students were not purchased specifically as student investment accommodation, but were bought as investment properties.
In the Southern Suburbs of Cape Town, rentals range from R4 500 to R5 500 per month for a one bedroom unit with one parking bay to between R8 500 to R10 000 per month for two bedrooms with two secure parking bays.
Leite says there is demand across all rental price categories in the Southern Suburbs and City Bowl areas depending on affordability and the student / parents’ specific requirements.
Overall, demand for student accommodation in these areas outweighs supply, he says.
He says the The Quadrant (Claremont), Mont Clare (Claremont), The Claremont (Claremont), Intaba (Claremont) Albion Place (Newlands) are very popular with students.
In City Bowl, bachelor apartments are priced from R4 000 to R5 000 per month and one bedroom units from R5 000 to R6 000 while two bedroom units cost between R6 500 to R8 500 per month.
Popular developments in the area include Mutual heights in Darling Street, St Georges (Strand Street), Wembley Square and Perspectives (Roland Street).
PGP Stellenbosch area manager, Louise Varga says buyers of student apartments are parents and investors.
Parents normally buy an apartment and keep it for around six years on average.
As an example, Varga says a parent who bought a 65 square metre, two bedroom unit in Andringa Steet for R825 000 in 2004.
When both the children completed their university studies six years later, the unit was sold for R1.4 million in 2010, which equates to an annual growth of 9.82 percent. 
“I believe we have this steady capital growth due to the fact that every year we have parents selling and parents buying.”

A new development on campus, Andringa Walk will make an excellent investment with rental income of R4 000 per room. These units are priced from R1.4 million to R3.350 million with an average price of R1.940 million.

Varga says in Stellenbosch, they have always had more student parents buying compared to buy-to-let investors.
On campus we currently will rent out rooms for R4 000 while a two bedroom apartment can achieve R8 000 per month and bachelor apartments at R4 500 per month, says Varga.
She says they recently sold a two bedroom unit in Merriman street for R1 750 million (54 square metres with two basement parking) with a return of 4.6 percent in the first year and this increases annually.
“On average the rental increases around 10 percent per annum and over a period of five years the recent past has proved a capital growth of 9.8 percent per annum.”
A new development on campus, Andringa Walk, will make an excellent investment with rental income of R4 000 per room.
These units are priced from R1.4 million to R3.350 million with an average price of R1.940 million.
She adds that this is an ideal buy for any parent compared to simply paying rent and getting nothing in return. – Denise Mhlanga

Fund brings additional student apartments to Jozi

International Housing Solutions (IHS), a global private equity investor in affordable housing in South Africa, is funding the refurbishment of hundreds of apartments near the University of Johannesburg and Wits University, major public transport routes and shopping centres.
Previously co-owned by IHS and Aengus Property Holdings, IHS, with its sterling asset management reputation, now holds 100% ownership of the Student Digz property portfolio following the recent approval by the Competition Commission of the sizeable transaction.
“Student Digz differs from other student developments in that it is not based on the dormitory-style model. All apartments are self-contained, which means that students have their own bathrooms, kitchens and living spaces, and most importantly, privacy and quiet to ensure successful studies,” says Rob Wesselo, managing partner at IHS.
IHS has been steadily building up a portfolio of new-generation student housing solutions in the country’s major urban centres. Contrary to the popular view that student housing is an unpleasant mix between boarding school and down-market apartments, IHS has brought a new vision to the market.
“Since we have taken over complete control of the management of the development, we have launched a massive project to ensure all maintenance was completed and apartments refurbished where necessary. Lots of time, money and human resources have been poured into ensuring students have great living and studying space for the 2012 intake,” says Wesselo.
“The result is modern, clean and inviting apartments where students won’t only live, but be able to enjoy a satisfying lifestyle.”
Wesselo says that as the year draws to a close, students who will be studying in Joburg in 2012 should ensure they have accommodation lined before they put up their feet and enjoy the December holidays.
“There is a significant shortage in quality, affordable student rental accommodation in Joburg, and leaving these arrangements for the New Year may result in students being forced to stay far away from their tertiary institutions or having to settle for sub-standard accommodation,” says Wesselo.
He says there are close to 1 900 accommodation opportunities available, with rentals starting at R1 800; a new letting office has been opened in Braamfontein, and prospective students can visit the office, or contact letting agent Mafadi for enquiries.

Student Insurance Policy - A South African First

Student Insurance Policy (Launching February 2012)

Firststay Insurance Brokers, in collaboration with Santam Insurance and Let and Stay Student accommodation agency, have through extensive research and experience crafted a South African first, an affordable and relevant student insurance policy.

This policy, priced at R100 per month, will now offer the student staying in a shared accommodation environment, basic cover for a range of items as well as additional benefits. Benefits include;



Students and their parents are often financially and emotionally paralysed by theft or injury, severely affecting their ability to continue their studies successfully. This policy should mitigate this risk and allow them to focus on their studies.

The policy will be launching in February 2012 through relevant student accommodation and letting agents nationally. Agents that would be interested to offer this policy to their tenants can contact Ryno Diedericks at ryno@firststay.co.za or 082 928 0170

The policy is underwritten by Santam and all claims will be administered by the Santam call centre. For more information on the policy please visit www.firststay.co.za

Dept to help pay for 25 000 students waiting to graduate

Compiled by the Government Communication and Information System
Date: 26 May 2011
Title: Dept to help pay for 25 000 students waiting to graduate
--------------------

Cape Town - The Department of Higher Education and Training is coming to the rescue of about 25 000 students from universities who have completed studies but are not able to graduate and get jobs because they have not finished paying student loans.

Briefing the media before his Budget Vote in Parliament today, the Minister of Higher Education and Training, Blade Nzimande, said his department would set aside about R200 million to help students who had taken out loans and had since graduated, but still owed monies to the National Student Financial Aid Scheme (NSFAS).

Those who meet the requirements to graduate between 2000 and 2010, and who are eligible for NSFAS loans can apply for this special funding through their respective student financial-aid offices, he said.

Nzimande, who also made several other announcements on the NSFAS, said the new measure would apply to students that registered for loans from April 1.

These included a doubling of disbursements under the fund - from R2.7 billion in the 2010/11 financial year to R5.4 billion this financial year - and placing a limit on interest charged on student loans, so that students no longer have to pay the interest on their loans until 12 months after their graduation.

At present, interest charged on loans kicks in the moment you sign for a loan, unlike in Brazil and Canada, where interest payments on student loans only become payable after a student graduates.

Added to this, R50 million has been provided for post-graduate students who require financial assistance to complete their degrees.

These students will enter into loan agreements with the NSFAS and the money they pay back would be earmarked to fund post-graduate students, Nzimande, said.

But Nzimande hastened to add that this wasn't a license for other students to not pay back their NSFAS loans.

He said the department would approach SARS to assist in tracing and forcing those NSFAS loan beneficiaries, who are now working but are not paying back loans, to pay back their loans.

The department is also looking to increase the number of university accommodation available to students.

Currently only 18.5 percent of students stay in university accommodation and the department had set aside R686 million for the years between 2010 and 2012, to build and refurbish student residences, he said.

Nzimande said preliminary reports were being studied by the department on setting up universities in the Northern Cape and Mpumalanga, while work is also under way to increase the number of universities that offer courses for teachers that want to teach in African languages.

The department was also busy overhauling Further Education and Training (FET) colleges and department officials had already visited all 50 FET colleges to assess how to give hands-on support.

The minister said the career advice services programme, run by the South African Qualifications Authority (Saqa), was launched in January this year and a website was now up and running - www.careerhelp.org.za, as well as a Facebook group - www.facebook.com/careerhelp.

The department is partnering with the SABC, which is running 30-minute career guidance slots on nine radio stations, reaching about 2.3 million listeners per week.

The programme is broadcast in nine African languages and Nzimande said the department intended expanding the radio programme to Afrikaans as well.

Turning to the transformation of the Skills Education and Training Authorities (Setas), Nzimande said the department was strengthening Seta governance and had reduced the number of Setas from 23 to 21.

He said the department is tackling underspending at Setas and has told boards to reduce the trend.

Setas would be reconfigured to spend more on long-term workplace-orientated training.

The department would also be setting up a task team to analyse where Setas spend money and how much use Setas make of public learning bodies, rather than just private consultants.

Commenting about media reports on the appointment of ANC secretary general Gwede Mantashe's wife Nolwande as a member of the new Services Seta's board, Nzimande said Mrs Mantashe is a human-resource expert and should be seen on her own merits as a professional, rather than be judged on who she is married to.

Nzimande said the Green Paper on Higher Education would be released later this year.

The appointment of a new director general is in process and the department would begin interviewing candidates soon, he said.





Reported by: South African Government News Service

Business unusual at Public Works

Compiled by the Government Communication and Information System
Date: 02 Jun 2011
Title: Business unusual at Public Works
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Pretoria - The Department of Public Works is set to embark on an ambitious programme that will see it invest in repairs and maintenance of government buildings, which will result in huge savings for the state.

The programme, announced by Public Works Minister Gwen Mahlangu-Nkabinde on Wednesday during her inaugural Budget Vote in Parliament, will be undertaken by the department in three years.

"Investment in repair and maintenance, continuous maintenance and construction of new government buildings could generate major savings for the state ... This will also include ensuring the relocation of national departments to state owned buildings where it is feasible to do so," said Mahlangu.

She noted that the leasing portfolio was costing the state a lot of money, where in the past year alone, her department spent billions in leases and functional accommodation for client departments.

"We acknowledge that our lease portfolio will take a while to reduce but in the interim, the department will continue to find ways to structure its current leases such that the socio-economic goals of government are realised including black, women and youth economic empowerment," said the minister.

Mahlangu said the department would invoke the National Infrastructure Maintenance Strategy and the National Contractor Development Programme to target investment in this sector, a move that would also benefit small and emerging contractors.

With regards to the rehabilitation of unused as well as underutilised public buildings, the department will in collaboration with the Department of Higher Education, convert these buildings to provide affordable student accommodation where it is possible.

The upgrading and refurbishment of the HG De Witt building in Tshwane will result in accommodation for approximately 180 students, while the upgrading and refurbishment of Pelonomi Hospital in Bloemfontein will result in accommodation for about 700 students.

"Through this intervention, the department is looking at alleviating the problem of lack of decent student accommodation while creating job opportunities," explained the minister.

The department will also rehabilitate selected military bases, while it is also paying attention to the deteriorating state of the infrastructure at harbours, starting in Cape Town.

Turning the focus to accommodation needs of the South African Police Service, Mahlangu said in the year under review, these will be extensive given the need to fast-track the goal of creating "a safe and secure South African society."

She said infrastructure projects were solid proof of government's commitment to service delivery.

"Furthermore, and with respect to the SAPS portfolio, I wish to announce that in the current financial year, the department will complete the first ever state-of-the-art Forensic Laboratory for SAPS in Cape Town," said the minister.

The department will also launch a campaign to encourage South Africans to reclaim lost or missing immovable assets.

"We will soon launch the Amnesty Campaign aptly named 'Operation Bring Back' in order to encourage South Africans to reclaim lost and/or missing immovable assets. These properties, we believe, were insincerely wrested from the state in the turbulent transitional period following the demise of apartheid and were being unlawfully occupied.

"The significance of the state-owned real estate as a major revenue generator for government cannot be over-emphasised," said Mahlangu.

She said once recovered, the properties will either enhance the department's disposal programme or contribute positively to the Inner City Regeneration programme in revitalising the economy.


Reported by: South African Government News Service