A Critical Analysis of 10 Financial Sustainability Indicators Applicable to Public Universities in South Africa

Dr Oliver Jan Mbhalati

International Journal of Higher Education, 2025, vol. 14, issue 4, 48

Abstract: I ideated this paper from a realisation that no coherent approach has yet arisen in the analysis of financial sustainability for public universities, particularly in South Africa. The paper originates from a study conducted amongst the 26 public universities in South Africa. The study follows a secondary data analysis approach whereby I analysed annual financial statements of the 26 public universities over the period 2015–2020. I calculated and scrutinised 10 financial sustainability indicators for each of the 26 universities. The main research objective was to determine the impact of funding sources on the financial sustainability of these institutions. Additionally, I determined the impact of university size, location, historic roots and university type on the financial sustainability of the 26 public universities. The findings of the study reveal that government funding, supported by a diverse range of funding sources, plays a positive significant impact on the financial sustainability of South Africa’s public universities.

Date: 2025
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