Teacher training
Teacher training
Business Model Description
Establish or acquire institutions offering pre- and in-service teacher training programs.
Expected Impact
Increase proportion of teachers in basic education, leading to higher quality education delivery.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- South Africa: Northern Cape
- South Africa: North West
- South Africa: Free State
- South Africa: Gauteng
- South Africa: KwaZulu-Natal
Sector Classification
Education
Development need
South Africa has one of the most unequal school systems in the world. More than three-quarters of children aged 9 cannot read. For each 100 learners starting school, 50-60 will reach Grade 12, 40-50 will pass Grade 12 and only 14 go to University.(1)
Policy priority
The Early Childhood Development (ECD) sector suffers from uneven resource provision - reducing the potential for ECD to enhance returns from later phases of schooling, especially for children from lower socio-economic backgrounds.(2) More adults are attaining upper secondary education yet are less likely to be employed than those with a tertiary degree.(4)
Gender inequalities and marginalization issues
South Africa has made good progress in eliminating gender inequalities relating to access to education, with the ratio of girls enrolled at secondary and tertiary level being greater than that of boys.(12)
Investment opportunities introduction
The education sector's low productivity is contributing to a skills deficit and constraining growth across the national economy.(5) It is a significant factor frustrating the country's commitment to addressing Apartheid's legacy of economic inequality.
Key bottlenecks introduction
Challenges including poor infrastructure and supply of qualified teachers are hampering quality within the basic education system.(1)
Formal Education
Development need
Despite low access to tertiary qualifications, South Africa spends a larger share of its wealth on public funding of primary, secondary and non-tertiary post-secondary education than most OECD and partner countries.(4) Further, the ECD sector suffers from uneven resource provision - reducing the potential for ECD to enhance returns from later phases of schooling.(3)
Policy priority
Childhood Development (ECD) and upper secondary education - Despite the importance of the sector, ECD attracts only 1-2% of the total budget for public education.(3) The majority of the South African population has an upper secondary or non-tertiary post-secondary qualification (where most spending is allocated).
Gender inequalities and marginalization issues
Female participation in tertiary education has increased sharply, mainly in soft skills areas and not in STEM (science, technology, engineering and mathematics) fields. Few women in South Africa are researchers.(12)
Investment opportunities introduction
Despite low access to tertiary qualifications, South Africa spends a larger share of its wealth on public funding of primary, secondary and non-tertiary post-secondary education than most OECD and partner countries.(4)
Key bottlenecks introduction
Basic education is hampered by challenges including poor infrastructure and an undersupply of qualified teachers.(1)
Pipeline Opportunity
Teacher training
Establish or acquire institutions offering pre- and in-service teacher training programs.
Business Case
Market Size and Environment
South Africa needs 456,000 teachers by 2025.
South Africa will need 456,000 teachers by 2025 to offer quality education.(10)
Currently, the country’s initial teacher institutions graduate 15,000 new teachers per year. This is below the 25,000 mark required to maintain an effective teacher-pupil ratio.(10)
Indicative Return
10% - 15%
A listed education services holding company, featuring a dedicated teacher training facility as one of its key educational brands, has achieved a price to earnings (P/E) ratio of 15.6% in 2021, and earnings growth of 14.4% per year over past 5 years.(11)
Investment Timeframe
Medium Term (5–10 years)
Based on studied benchmark projects, investments necessary to scale operations and grow enrolments require an extended term. Investments in listed education companies providing teacher training display good growth prospects within short term timeframes.
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Market - High Level of Competition
Impact Case
Sustainable Development Need
South Africa needs 456,000 teachers by 2025 in basic education. However, the public education system currently has 410,000 teachers and approximately 15,000 new teachers graduate per year - less than the 25,000 required to maintain an effective learner-teacher ratio.
Further, between 18,000 and 22,000 teachers leave the profession every year - more than those entering the profession.(13)
Gender & Marginalisation
Few women in South Africa are researchers.(12)
Expected Development Outcome
25,000+ headcount growth in the total number of teachers per year
Gender & Marginalisation
Increase women's access to research and STEM (science, technology, engineering and mathematics) focused programs
Primary SDGs addressed
In 2017, 91% of secondary school teachers were viewed as qualified in South Africa. The educational system, particularly in rural areas, continues to struggle with achieving adequate quality due to the lack experience or subject knowledge of teachers.(12)
Strategies for a successful National Strategy for Mathematics, Science and Technology (MST) Education 2019–2030 include teacher development, a review of the MST curriculum and the provision of appropriate learning support material. The Department of Basic Education collaborates with companies and international organisations such as Vodacom, Microsoft and the United Nations Children’s Fund to support professional development for educators.(12)
Directly impacted stakeholders
People
Public sector
Indirectly impacted stakeholders
People
Outcome Risks
Shortage of qualified teachers to teach content subjects in specific languages (e.g. teaching life sciences in Afrikaans), the foundation phase, and technical subjects (10)
Impact Risks
Unexpected impact risk: Oversupply of teachers in certain subjects or certain geographical locations which is not absorbed by the system, resulting in unemployment
Impact Classification
What
Produce qualified and capable teachers
Risk
Low - Significant contribution given the number of students, and education outcomes, each teacher can impact
Impact Thesis
Increase proportion of teachers in basic education, leading to higher quality education delivery.
Enabling Environment
Policy Environment
Department of Basic Education: The department has observed that number of new teachers currently being produced by private higher education institutions is negligible, and recommends the government explore ways to encourage private higher education institutions to contribute more to producing new teachers.(9)
Financial Environment
Financial incentives: Bursaries that support students entering higher education can indirectly subsidise training providers. These bursaries include the National Student Financial Aid Scheme (NSFAS) and the Funza Lushaka Bursary Programme.
Regulatory Environment
National Policy Framework for Teacher Education and Development (2006): This policy establishes the government's stance on qualified teachers and guidance on training efforts.
Integrated Strategic Planning Framework for Teacher Education and Development in South Africa (2015): This framework establishes the government's stance on qualified teachers and guidance on training efforts.
Marketplace Participants
Private Sector
STADIO: Faculty of Education, Centre for Creative Education, SANTS Private Higher Education Institution, Varsity College School of Education, Two Oceans Graduate Institute
Government
Department of Higher Education and Training, Department of Basic Education
Non-Profit
Global Teachers Institute
Target Locations
South Africa: Northern Cape
South Africa: North West
South Africa: Free State
South Africa: Gauteng
South Africa: KwaZulu-Natal
References
- (1) Amnesty International (2020). Broken and Unequal: The State of Education in South Africa.
- (2) Mbarathi, N., Mthembu, M. and Diga, K. (2016), Early Childhood Development and South Africa: A literature review. https://researchspace.ukzn.ac.za/handle/10413/13338
- (3) Ilifa Labantwana and Kago Ya Bana (2018). A plan to achieve Universal Coverage of Early Childhood Development Services by 2030.
- (4) Organization for Economic Cooperation and Development (2019). South Africa - overview of the education system.
- (5) International Bank for Reconstruction and Development (2019). South Africa Economic Update: Tertiary Education Enrolments Must Rise.
- (6) Mkhwanazi, N., Makusha, T., Blackie, D., Manderson, L., Hall, K. and Huijbregts, M. (2018). South African Child Gauge-UCT. Negotiating the care of children and support for caregivers.
- (7) The Conversation (2018). Proper child care helps poor working women – and it can boost economies. https://theconversation.com/proper-child-care-helps-poor-working-women-and-it-can-boost-economies-92935
- (8) BusinessTech (2018). Class sizes in public vs private schools in South Africa.
- (9) Department of Basic Education (2015). Integrated Strategic Planning Framework for Teacher Education and Development in South Africa.
- (10) Maphalala, M. and Mpofu, N. (2019). South Africa must up its game and produce more teachers.
- (11) Stadio Holdings (2020). 2019 integrated annual report.
- (12) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. https://sustainabledevelopment.un.org/content/documents/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf
- (13) Human Sciences Research Council (2011). Review of education, skills development and innovation. http://www.hsrc.ac.za/uploads/pageContent/2702/RESDI%20newsletter,%20November%202010%20issue.pdf