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South African EdTech Companies Need Government Partnerships for Sustainable Growth

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Edtech,South Africa,Government Funding

This article argues that South African EdTech companies need to actively collaborate with the government to secure sustainable funding and growth. It highlights the challenges faced by EdTech companies, such as reliance on donor funding and difficulty in earning revenue from end-users. The author suggests that a shift towards outcome-based business models and collaboration with educational institutions will be crucial for long-term success.

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.With the department of basic education’s budget for 2024-25 set at R32.3 billion, and with strategic priorities including improved outcomes and access, an opportunity exists for edtech companies to become key players in the education landscape.

Currently edtech companies are not working with the government as actively as they should to foster more buy-in from this critical stakeholder on edtech being further adopted across the sector . Closing this gap will be essential to unlocking revenue streams through government contracts and long-term partnerships, enabling companies to move beyond short-term donor funding and towards sustainable profitability.

Last, a modular approach to solution development is advisable, where solutions can be scaled based on their performance and user engagement. This strategy allows edtech companies to refine their offerings and achieve economies of scale, improving financial sustainability while delivering better educational outcomes.

One of the most significant challenges to edtech adoption in South Africa is the financial barrier. Many students, especially from disadvantaged backgrounds, simply cannot afford to pay for online education tools. To address this, edtech companies need to rethink their financial models by targeting government and educational institutions as primary customers, with students benefiting from free or subsidised access.

 

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