BusinessPREMIUM

New online-only schools enter the market

Growing interest from parents as kids prove they can cope with remote learning

Picture: SUPPLIED
Picture: SUPPLIED

New online-only schools will open in January, giving parents and pupils an alternative to traditional learning methods in a sector whose massive growth potential is attracting investors.

Distance learning has for years embraced digital platforms, but the take-up of online learning for schools and universities has accelerated since the onset of the pandemic as restrictions meant many students globally were unable to attend school.  Given the rapid adoption of online learning, the switch is expected to persist post-pandemic. 

New online schools include the University of Cape Town’s Online High School,  and Switch eDu Online, which will go live in January, joining Durban-based Swales Online Academy and private education group AdvTech’s Evolve, both of which launched this year. 

In October MTN launched a virtual platform that offers a comprehensive digital curriculum for all school grades and additional features, such as video lessons, assessments and extra-tuition lessons for grade 10 to 12 pupils. 

Lauren Jacquin, business head at Swales Online Academy, said parents realised during school closures that their children can cope in the online learning environment. As a result, parents have opted for this choice due to affordability, safety and convenience, she said.

Mainstream schools are often too big to allow for individual attention, many have tight budgets and limited access to technology

—  Lauren Jacquin, Swales Online Academy

Globally, expenditure on edtech is expected to reach $404bn (R6.4-trillion) by 2025, representing a 16.3% compound annual growth rate since 2019, according to a report by global education market intelligence firm HolonIQ.  

The UCT school will offer high school grades, but the others will start with lower grades and add more over the years. All three will provide subjects in accordance with the department of basic education’s requirements. Fees will range from just over R1,000 to about R2,500 a month.

Jacquin said the argument for online schooling is clear. “Mainstream schools are often too big to allow for individual attention, many have tight budgets and limited access to technology,” she said. 

Swales's intake is likely to increase from 70 to 150 this year. 

Nicky Blumenfeld, communications specialist at Switch eDu Online, said the school is “seeing parents who would not have considered online schooling a few years ago now adapting, coming on board to be part of the world of online learning”.

To gain access to online learning platforms, pupils will need to have the necessary equipment and reliable internet, which is still lacking in many communities, especially townships and rural areas.  

Blumenfeld said Switch eDu does not have any partnerships yet to assist pupils and parents, “but we certainly hope to have, going forward, particularly in line with our belief in making education accessible and affordable, which is reflected in our fees. The recent announcement of Vodacom’s investment in Vumatel and Dark Fibre will hopefully accelerate SA's fibre reach and access to the internet for all.”

Picture:  123RF/KADETTMANN
Picture: 123RF/KADETTMANN

Vodacom has merged its fibre-to-home and business operations with Dark Fibre Africa and Vumatel, in what will create the country’s biggest fibre network operation. The merged business hopes to double the number of fibre-connected homes and businesses to more than 2-million in the next three years. It also has plans to connect as many township homes as possible. 

Yandiswa Xhakaza, UCT Online High School’s first director and principal, said the school has received more than 8,000 applications. “The interest has far exceeded our expectations and is a sign that innovation in the education space is so needed,” she said.

The target is to have 5,000 pupils in year 1, next year, which will go up in subsequent years as online education is quite scalable, she said.

“We are observing quite an upsurge and we anticipate that there will be more online schools that will emerge — what is important is for parents to really understand what they need to look out for when enrolling their children in an online school. The quality of education and back-end human support is critical, among other things.”

HolonIQ said governments, employers and consumers together will spend more than $7-trillion a year on education and training by 2025. 

Jacquin said Swales, owned by DigiCampus, is in the developmental phase of offering short-term courses for its pupils from next year. DigiCampus provides a library of video lessons that cover most school grades and subjects. 

Investments in digital educational platforms have also increased in recent years, with companies such as Prosus and Naspers making substantial investments in international edtech businesses that include Brainly, Byju’s, Codecademy, Eruditus, SoloLearn and Udemy, and Stack Overflow.

Last month, EduOne, a Cape Town-based edtech start-up, was acquired by education finance and fund management specialist Fundi. EduOne builds platforms to help people with career guidance, mentorship programmes, bursary beneficiary recruitment and more.

US education group 2U, which in 2017 bought Cape Town short course provider GetSmarter, recently completed the acquisition of edX, an online learning platform founded by Harvard and MIT.

Suraya Hamdulay, vice-president of regional strategy and engagement at 2U, said the deal meant that the group’s portfolio of courses had expanded student access to affordable and career-relevant online education.

Ryan O’Mahoney, MD of executive education at 2U, said 2U and edX will now serve more than 230 partners — including 19 of the top 20 universities globally — and offer more than 3,500 online learning opportunities to more than 40-million students, including free courses, executive education, boot camps and undergraduate and graduate degrees.

For the South African market, O’Mahoney said, the group will expand access, from free courses all the way to postgraduate degrees. UCT will also join the edX platform and offer higher education across this spectrum, he said.

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