On 17 October 2025, SA’s Department of Higher Education and Training (DHET) quietly published a policy that could redefine the country’s entire tertiary education landscape. For the first time in democratic history, private higher education institutions can legally use the title university.
Make no mistake, this single change is monumental. It represents an official recognition that private institutions are core players in SA’s education economy.
A long overdue shift
For decades, private education brands like Stadio, Advtech, IIE Varsity College, and Milpark have delivered qualifications that rival public universities in quality and graduate outcomes. Yet they were legally barred from calling themselves “universities,” even when they met global accreditation standards and maintained higher pass rates, stronger student satisfaction, and better graduate employment outcomes.
That all changes now.
The new policy, issued under the Higher Education Act, establishes three official categories for tertiary institutions – higher education colleges, university colleges, and universities – applying equally to public and private entities. To qualify for the coveted “university” title, institutions must prove strong academic governance, financial stability, ethical leadership, and consistent research output.
In short – the playing field is finally level.
It also creates pressure on government funding priorities. With private institutions increasingly recognised for delivering quality outcomes, policymakers may face calls to invest more strategically in public universities or explore collaborative partnerships with private institutions.
In the long run, this could spur a healthier, more competitive tertiary education ecosystem, but only if public institutions respond proactively.
In essence, SA’s private university recognition doesn’t just open doors for private players – it acts as a catalyst for overdue reform in the public sector, highlighting that quality education requires accountability, innovation, and resources, regardless of ownership.
A big catalyst for this small cap…
Stadio (JSE: SDO) has long been positioning itself as a university in all but name. With over 55,000 students (with its sights on 80,000 by 2030), strong profitability, and a multi-campus footprint across SA, it has already achieved what many small public universities aspire to: scalable, sustainable, and modern tertiary education built for employability.
Now, this policy change could unlock brand equity that Stadio couldn’t previously claim.
Being able to call itself a “university” is about perception, pricing power, and growth. The term carries credibility internationally, opening the door for Stadio to expand its reach into Africa’s cross-border education market, attract postgraduate students, and build out its research credentials.
It will also be able to compete for top academic talent, form partnerships under the “university” banner, and strengthen its already impressive student acquisition momentum. And with private higher education now accounting for 22% of SA’s tertiary market, the growth runway is clear.
Simply put – the policy shift sends a clear signal to the market. Private higher education is no longer second-tier.
For Stadio (and Advtech), this could be a trigger for re-rating as they unlock brand value, expand postgraduate offerings, and solidify their position in a growing sector. This is likely to translate to long-term revenue growth, stronger student pipelines, and improved investor confidence.
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