CHAPTER 2.1 In an increasingly interdependent and globalized world, countries that are able to compete and effectively partic- ipate in the global economy are those with large and Reforming Higher Education: rapidly expanding stocks of human capital. The impor- tance of education, especially higher education, for Access, Equity, and Financing Africa’s economic growth has been highlighted by the recent World Bank publication Accelerating Catch Up: in Botswana, Ethiopia, Kenya, 1 Tertiary Education for Growth in Africa. Unfortunately, 2.1: Reforming Higher Education South Africa, and Tunisia very little work has been done to study Africa’s tertiary education sector—including elements such as enrollment trends, relevance, efficiency, adequacy, management, and KWABENA GYIMAH-BREMPONG, University of Southern Florida financing. PETER ONDIEGE, African Development Bank The objective of this chapter is to analyze systems of higher education in Africa using five African countries— Botswana, Ethiopia, Kenya, South Africa, and Tunisia— as case studies. Other countries that were originally meant to be included—Mauritius, Senegal, Ghana, and Nigeria—were excluded because of inadequate coverage in the initial stages. Specifically, the chapter analyzes current enrollment trends, accessibility and equity, governance, quality and relevance, financing, university-industry linkages (UILs), and entrepreneurship education in tertiary education curricula. The idea is to look at what works well and what does not, to consider what challenges need to be confronted, and to discuss lessons learned and the way forward for reforming tertiary education in Africa. 39 Although African countries have generally spent relatively large proportions of their national resources on the production of education, the stock of human capital with tertiary education in Africa continues to be very low compared with other regions of the world. While the proportion of the adult population (25 years and older) who have completed tertiary education averaged 3.94 percent in the world in 2010, the average for sub-Saharan Africa in that year was 0.78 percent. The average years of tertiary education completed by the adult population in Africa is 0.05, compared with 0.2 for the world as a whole, as shown in Table 1. This figure varies among different African countries—for example, the proportion of the adult population that has completed tertiary education and the average years of tertiary education are 0.43 and 0.02, respectively, for Ethiopia; in Tunisia, this is 6.20 and 0.11, respectively (Table 1). Table 1: Tertiary educational attainment, Africa and the world Adult population with Average years of Country/Region tertiary education (percent) tertiary education Botswana 2.70 0.06 Ethiopia 0.43 0.02 Kenya 2.00 0.05 South Africa 0.60 0.08 Tunisia 6.20 0.11 Sub-Saharan Africa 0.78 0.05 World 3.94 0.20 Source: Authors’ calculations, based on Barro and Lee, 2010. The Africa Competitiveness Report 2011 © 2011 World Economic Forum, the World Bank and the African Development Bank Other major concerns include the relevance of skills that are irrelevant to the needs of Africa. The the fields of study, the curricula, and the effectiveness unemployment rates among graduates of tertiary institu- of pedagogy for the development needs of African tions are in the double digits in most African countries, countries as well as the general quality of programs and while businesses are not able to find the skilled labor graduates. While about 50 percent or more of students they need. This suggests a mismatch between what the enrolled in tertiary educational institutions in fast- tertiary institutions produce and the skills that businesses growing countries such as Korea, China, and Taiwan demand. This has led to massive emigration of African 2.1: Reforming Higher Education are enrolled in science, engineering, technology (SET) graduates of tertiary education to the developed world, or business, only about 20 percent of tertiary education effectively making African countries pay for the training students in Africa are enrolled in these subjects. The of workers for developed countries. There are also ques- result is that while graduates of African tertiary educa- tions of gender and of geographical and socioeconomic tional institutions go unemployed, African countries equity in access, as well as cost inefficiency, in tertiary continue to face shortages of skilled labor. The perceived educational institutions in Africa. low quality and irrelevance of tertiary educational insti- The low endowment and low quality of tertiary tutions, as well as their small size, indicate that it may be education in Africa has serious implications for the difficult for these institutions and their graduates to lead continent’s development in an increasingly globalized Africa’s development. world in which economic growth and development is There is solid theoretical and empirical evidence critically dependent on knowledge intensities of coun- that education—especially tertiary education that tries. A workforce with abundant high-quality, relevant emphasizes SET and business—has a strong positive tertiary education may hold the key to Africa’s future effect on the growth rate of income in all countries.2 development. Although economic growth rates in The quality of tertiary education, as well as the subjects African countries rose dramatically in the last decade, studied, may be more important for growth than the most of that growth was the result of commodity price quantity of people who have obtained a tertiary booms. It is unlikely that this commodity price–led education. For example, a high-quality SET-based growth will be the region’s recipe for long-term growth and empirical inquiry–driven tertiary education may and development. African countries may have to transi- 40 contribute more to a country’s growth than a social tion very quickly from natural resource–based growth science–based education that is not driven by relevant to growth that is based on knowledge. research based on local needs. This positive effect could Knowledge creation and accumulation, together come through several channels, including knowledge with a positive work ethic, is seen as the key to long- creation and spillovers,3 as well as the ability to borrow term success in economic development.9 In addition and adapt technologies.4 to the well-established private benefits of higher educa- In a recent study, Teal concludes that African eco- tion (including better employment possibilities, higher nomic growth has been powered by increased invest- salaries, and a greater ability to save and invest), higher ment in physical capital rather than increased tertiary education also has a major public benefit: it enhances education.5 However, he also finds that investment in economic development through technological catch- physical capital depends on the availability of an educat- up.10 This idea supports the proposition that expanding ed workforce, suggesting that tertiary education indi- tertiary education may promote faster technological rectly contributes positively to income growth in Africa. catch-up and improve a country’s ability to maximize its Several researchers argue that it is not only the economic output. Raising tertiary education attainment quantity but also the quality of tertiary education that as well as its quality in sub-Sahara Africa will enable matters for income growth.6 In addition, democratic these countries to stimulate innovation, promote the access to improved tertiary education can be a pro-poor diversification of products and services, and maximize growth strategy.7 When the quality of tertiary education returns from capital assets through more efficient alloca- is unequal among groups, it generates inequality in tion and management.11 In the face of competition from incomes.8 South and East Asian countries, a more skill-intensive Africa has devoted substantial resources to higher route to development could provide both resource-rich education, especially in the last decade, during which and resource-poor countries with an avenue for raising some African countries have doubled or tripled capacity domestic value-added. These arguments underscore the at considerable cost. Indeed, some African countries importance of tertiary education for the development of spend a larger proportion of their GDPs on tertiary African countries. education than most rich industrial nations. However, This analysis is timely, relevant, and important for the stock of human capital with a tertiary education is Africa’s development for a several reasons. First, this is low. The average quality of that education is equally the first time a comprehensive and comparative study of low, with most African countries at the bottom of world higher educational systems in African countries has been rankings, as various analysts show. In addition, tertiary done. At the minimum, there is the need to ensure that educational institutions are producing workers with African countries get suitable social and private returns The Africa Competitiveness Report 2011 © 2011 World Economic Forum, the World Bank and the African Development Bank Table 2: Tertiary enrollment statistics, 2000–07 2000 2007 GER Total Women GER Total Women Change in enrollment Country/Region (percent) enrollment (percent) (percent) enrollment (percent) (2000–07) Botswana 3.0 6,332 47.0 5.0 16,950 50.0 167.7 Ethiopia 0.8 67,732 22.0 1.8 210,456 25.0 210.7 Kenya 4.8 89,016 35.0 3.4 139,524 36.0 56.7 South Africa 14.0 644,763 55.0 15.0 761,090 55.0 18.0 Tunisia 19.0 180,044 48.0 32.0 364,283 57.0 102.3 2.1: Reforming Higher Education Africa* 2,342,358 4,139,797 76.7 Sources: UIS, 2009; Republic of Kenya, 2010. * For 2003–08. on their tertiary education investment. Second, the expansion in these countries. For example, in Kenya less internal efficiency of the educational system must than 20 percent of candidates who qualify for admission improve, and these institutions must be made responsive to tertiary institutions each year actually gain admission to the needs of society.