Enhancing local economies in South Africa: the role of Sol Plaatje University in contributing to Kimberley City's local economy

Abstract

The aim of this study is to investigate the economic contribution of South Africa?s Sol Plaatje University (SPU) to Kimberley?s economy in the context of the mining sector?s downturn. The literature underscores the role of universities as multifaceted drivers of regional economic development. However, few studies have explored this role for universities in Africa. As such, their full impact remains largely unknown. This is especially true in South Africa, where a number of universities were established in the post-apartheid era, mainly in small rural local economies faced with slow economic activity or declining mining sectors. This study contributes to the discourse on the role of higher education institutions in their local economy through a multiplier evaluation of SPU?s direct and indirect economic effects. Staff and student surveys were used to obtain a profile of their spending, which is crucial in estimating economic impact. A business survey was used to determine how the increased expenditure in Kimberley had impacted them. The findings reveal the significant role of the SPU in economic stimulation and community interdependence, reflecting the institution?s central position in the city?s economic resurgence. Findings concerning changes in spending patterns; growth in businesses; employment stimuli; and the direct, indirect, and induced economic impacts of SPU on Kimberley are discussed. This research highlights the importance of context-sensitive strategic engagement by universities in fostering regional development, with a particular focus on the demand-side economic activities spurred by the SPU since its establishment in 2013. The findings advocate for tailored policies to leverage universities as pivotal in regional economic revitalisation.