Is there a social return on investment in higher education? Dr Cornelia Carol September’s doctoral study examined whether South Africa’s substantial public investment in Technical and Vocational Education and Training (TVET) colleges yields tangible social and developmental benefits. The research is framed within the context of South Africa as a developmental state, one that uses education as a strategic tool for transformation, equality, and economic growth.
Background and Rationale
Despite substantial budgetary allocations, including over R10 billion to the TVET sector in 2018/19, questions persist about the efficiency, accountability, and outcomes of this investment. While access has increased through free tuition, transport, and allowances, challenges such as low completion rates, limited labour market absorption, and poor institutional prestige undermine social and economic returns.
The study is motivated by the need for a Social Return on Investment (SROI) framework, an approach that goes beyond financial metrics to include social, economic, and community benefits derived from education.
Theoretical Framework
Grounded in Marxist dialectical materialism, the research views education as a mechanism for societal transformation rather than a mere economic tool. Marxist theory asserts that education should reproduce social equity and collective advancement, aligning with the aims of a developmental state.
Research Aim and Objectives
The study sought to:
- Examine the rationale behind increasing TVET funding.
- Analyse existing policy frameworks and their ability to demonstrate ROI.
- Investigate the usefulness of SROI in shaping funding policies.
- Develop a conceptual framework for measuring SROI in South Africa’s college sector.
Research Methodology
A qualitative, grounded theory approach was adopted. Nineteen participants, including government officials, TVET principals, policy experts, and international specialists, were interviewed. Data was collected through online platforms due to COVID-19 restrictions.
The analysis was interpretive, relying on inductive reasoning and thematic categorisation to build theory from participant experiences and policy review.
Key Themes and Findings
Seven core themes emerged from the data:
Aspiring Developmental State
- South Africa’s investment in TVET should strengthen state capability and technical capacity. However, governance gaps and fragmented implementation hinder progress toward a mature developmental state.
Finance for Responsive Change
- Funding mechanisms are misaligned with social outcomes. Instead of focusing on enrolment numbers, financing should reward qualitative improvements such as employability and social inclusion.
Judging TVET Policy in Real Life
- Policy frameworks appear progressive but lack translation into practical, measurable outcomes at the institutional level.
Comparators and Dimensions
- International benchmarks (e.g., Korea and Singapore) highlight how coordinated policies, industry partnerships, and data-driven governance can yield higher returns.
Agility and Efficiency towards Greater Quality
- TVET institutions remain underfunded and struggle to adapt to economic changes. Participants emphasised the need for agility, flexibility, innovation, and responsiveness to enhance quality and prestige.
Understanding Social Return on Investment
SROI measures the broader value of education, including community well-being, civic participation, and equity, rather than just financial returns. Participants agreed that adopting this framework would strengthen accountability and evidence-based planning.
International Approaches
The study drew lessons from Russia’s and Australia’s models, which enforce shared responsibility between government, industry, and students through contractual commitments that ensure employability and reinvestment in education.
Conclusions
The research concluded that while public funding for TVET colleges has expanded, South Africa has not yet achieved measurable social returns proportional to the investment. A disjuncture exists between funding inputs and developmental outcomes, with limited data integration and weak monitoring systems.
A Social Return on Investment (SROI) framework is proposed to:
- Align financial expenditure with qualitative outcomes.
- Promote shared accountability among stakeholders.
- Embed social value in policy, planning, and evaluation.
Recommendations
- Develop an SROI-Based Funding Model: Shift from quantitative (enrolment-driven) to qualitative (impact-driven) financing.
- Strengthen Partnerships: Establish formal agreements between government, industry, and students to ensure mutual accountability.
- Enhance Data Systems: Integrate social, health, and employment data to evaluate real community impact.
- Capacity Building: Equip TVET colleges with tools to measure and report social value effectively.
Limitations and Future Research
The study was limited to public colleges reporting to the Department of Higher Education and Training (DHET), excluding those under other departments. Future research should broaden the scope and test the proposed SROI framework through pilot projects in selected TVET institutions.
Contribution to Knowledge: Higher Education
This study contributed to policy and academic discourse by linking education financing, social justice, and developmental state theory. It offers a framework for measuring the social value of education investment, thereby shifting the national conversation from “how much money is spent” to “what difference the spending makes.”
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