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#FeesMustFall: South African Students Pressure Mining Sector To Fund Free Tuition

#FeesMustFall: South African Students Pressure Mining Sector To Fund Free Tuition

Furthermore, protesters are calling on the CoM to use its clout to lobby the government to increase education funding. The South African Student Congress has called on the government to get the Public Investment Corporation to invest monies from the the Government Employees Pension Fund – the country’s largest – in higher education. Students hope that the CoM could apply pressure on the government to adopt this recommendation, given the substantial role played by mining royalties in financing said funds.

On Wednesday, senior CoM executive Vusi Mabena accepted the student’s memorandum, and saluted them for their activist efforts, promising a response within two weeks. The CoM has stated that it shares the concerns of students, noting that “in the 2015 financial year alone, the Chamber and its members invested more than $359 million in skills development and education projects,” as well as aiding over 18,000 students over the past five years.

Despite this, the CoM has also noted that the mining sector is facing strong headwinds, as the country’s mining industry suffered a combined $2.66 billion loss in 2015.

It is important to note that student demonstrators at CoM offices were joined by a representative from the Union of Mine Workers. This could herald possible ties between student and union protesters, forming a more unified opposition to the ANC, and leading to future joint protest actions. Miner complaints about lack of oversight and poor social services, mesh well with student calls for free tuition, as anger at the political establishment and concerns about inequality drive both protest movements.

The CoM and mining companies therefore face mounting pressure from both outside and within the sector, a trend that will only further increase investor wariness. Pressure from students and miners on the CoM could well force a confrontation between the Chamber and government, as the former demands government action to assuage protester demands. Given that the government is already worried about economic turmoil due to the end of the commodity super-cycle, it is in Pretoria’s best interest to avoid further weakening the mining sector.

Two routes exist: either pressure from the mining sector causes the government to double down on its crackdown of protests, or industry and Pretoria strike a deal. Said deal may involve greater government investment in education, taking some of the onus from the CoM, but at the price of re-negotiated mining royalty contracts in order to pay for this new spending.

A third ‘option’ is for Pretoria to simple continue to muddle along, and hope that the issue blows over. This appears unlikely to succeed, as in the face of inaction, protests will only increase as the 2017 fee hike approaches.