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USAf and Absa Bank launch a R5.5 million entrepreneurship partnership across 26 public universities

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Wednesday, 25 June 2025, saw Universities South Africa (USAf), through its Entrepreneurship Development in Higher Education (EDHE) programme, formalise a groundbreaking R5.5 million partnership with Absa Bank, aimed at creating a vibrant entrepreneurial ecosystem across South Africa’s 26 public universities. The day’s centrepiece was the launch of the EDHE-Absa Innovation Challenge, one of four project focus areas within the partnership, offering over R1 million in prize money.

The launch took place at the Mangosuthu University of Technology (MUT), a deliberate venue choice at a historically disadvantaged institution in Umlazi, a township in Durban.

The graduate unemployment crisis

Delivering her keynote address, Dr Phethiwe Matutu (left), the Chief Executive Officer of USAf, stressed the critical need for entrepreneurial skills to address South Africa’s challenges.

“Our country continues to face the triple challenges of poverty, unemployment, and inequality. Within this context, our universities’ role is to ensure improved economic participation and social involvement of our youth and adults,” she said, adding that “entrepreneurship is one of the areas identified as a game changer for getting our graduates to be employers rather than job seekers in an environment with very low economic growth and high unemployment rate.”

Dr Matutu cited published evidence that entrepreneurs generally earn higher incomes than employees and experience greater autonomy and job satisfaction. More importantly, she noted, entrepreneurs play a key role in employment creation, productivity growth, and innovation.

A strategic public-private partnership

The USAf CEO said Absa’s involvement represents a significant shift in private sector engagement with higher education. “We often hear the private sector referring to the human capital produced by universities. Notably, instead of being a spectator in the production of human capacity, Absa has chosen to partner with us in producing high-level, relevant and responsive skill sets among university students and basic school learners, through this contribution to entrepreneurship development.”

On the centrality of students in the university mission, Dr Matutu went on to say that “Universities are nothing without students. The students are the means through which we deliver to society. The kind of students that we produce is very crucial, because of its multiplier effect in society.”

She concluded with a call to action to the private sector: “I would like to not only thank Absa, but also invite the broader private sector to contribute to this cause.” A partnership formed with USAf, Dr Matutu said, is an opportunity to carve out a national footprint, considering that USAf is a representative body of all 26 public universities.

A comprehensive four-pillar approach

Unpacking the Absa partnership, Dr Edwell Gumbo (right), Director: EDHE, outlined its four interconnected focus areas designed to create an inclusive entrepreneurial support ecosystem. The R5.5 million commitment spreads across four interconnected projects listed below.

1. The EDHE Studentpreneurs Indaba: an annual event gathering approximately 250 students and 100 university staff, to share knowledge, innovation, promote collaboration and showcase student-led businesses, with Absa as headline sponsor.

2. The EDHE-Absa Innovation Challenge: a nationwide challenge for university students and alumni, which is not restricted to specific categories or industries, but encourages participants to align their innovative solutions with real-world challenges and opportunities. Participants are encouraged to challenge norms, explore intersections between different sectors, and propose unique tech or non-tech solutions that respond creatively to emerging or overlooked problems with the ultimate goal of driving real and lasting change.

3. Universities’ Staff Capacity Development programme: this entailed six regional workshops that equipped all 26 universities’ staff with skills to embed entrepreneurship into their programmes, curricula, and research. The workshops were completed in May, in partnership with the United States (US) Fulbright Specialist, facilitated through the US Embassy in South Africa and the Department of Science, Technology and Innovation.

4. Entrepreneurship Education in Schools Initiative: aimed at equipping pre-service teachers with skills to instil entrepreneurial thinking in basic education learners, thus fostering early-stage innovation and problem-solving skills.

This partnership recognises that there are three key components required to set up a thriving entrepreneurship ecosystem,” Dr Gumbo explained. “Firstly, the individual and their propensity toward entrepreneurial action. Secondly, a supportive education system, and thirdly, the content that individuals are exposed to.”

Dr Gumbo underscored that participants in the EDHE programme have demonstrated a strong track record of success and societal impact. He said notably, several recently appointed vice-chancellors at South African universities previously served as deputy vice-chancellors who were actively engaged in EDHE initiatives and its communities of practice. “The student entrepreneurs identified and supported through the EDHE programme at our universities have gone on to gain recognition on various platforms, win prestigious competitions, and secure vital funding to grow their businesses,” he said. “When you are part of EDHE, you are part of the winning team.”

Absa’s Vision: Beyond Sponsorship to Partnership

Representing the Absa Bank, Ms Nonhlanhla Magagula (above), Head of Corporate Citizenship Programmes, stated that their involvement extends far beyond financial support to building sustainable pathways for youth participation in the economy.

“For us, this Innovation Challenge is more than just a competition. It is part of an entrepreneurial movement,” Magagula said.

She then outlined Absa’s comprehensive Financial Inclusion Through Entrepreneurship strategy, which aims to foster youth innovation and deliver practical support that extends beyond initial funding.

“Our support is about building pathways into economic participation, ownership, and lasting impact,” Magagula explained. “We believe in economic participation that goes beyond just access to money. We believe in access to opportunity, access to markets, access to mentors, and most importantly, access to self-belief.”

She said the bank’s commitment extends to becoming the first buyers of products from young entrepreneurs they support, leveraging their procurement systems and encouraging corporate clients to provide market access for emerging businesses.

“We don’t want you to start just another business,” Magagula told student entrepreneurs attending the event. “We want you to build something transformative. We want you to start something that answers the call of your community, your country, and even the world.”

A word of inspiration to Umlazi youth

“Innovation doesn’t always look like Sandton,” Magagula noted, referencing Africa’s richest square mile. “Sometimes it looks like Umlazi. Sometimes it looks like an idea on a piece of paper. Sometimes it looks like a student building an app in a residence room.”

She concluded with a challenge to aspiring entrepreneurs: “You don’t need to be perfect. You need to be present. You don’t need millions in capital, you need one spark and a willingness to work. The future is not something that arrives. The future is something we build, and I believe with all my heart that South Africa’s most important builders are not in boardrooms; they’re right here. On campus. In townships. In you. In fact, it is YOU!”

USAf importance to Absa

In a brief interview following the launch, Magagula reiterated that Absa’s strategy focuses on “meeting young people where they are” – from basic education through higher education to supporting those not in employment, education, or training. “USAf became that ideal partner for us because partnering with them means you’re reaching all 26 public universities. We could have just gone to DUT or MUT, but it is important to touch all these institutions.”

The entrepreneurship programme positions South Africa’s universities as engines of economic transformation, with student entrepreneurs at the centre of addressing the country’s most pressing societal challenges while building sustainable businesses and creating much-needed employment.

A record-breaking prize regime

The EDHE-Absa Innovation Challenge offers unprecedented prize money for student entrepreneurs:

  • First prize: R500,000
  • Second prize: R250,000
  • Third prize: R150,000
  • Fourth prize: R100,000
  • Fifth prize: R50,000

“Our language has changed,” Dr Gumbo announced. We no longer talk thousands. We are now talking millions.”

The competition, open to all 26 public universities, targets student and alumni-led ventures that offer solutions to real-world societal challenges, demonstrating originality, scalability, and meaningful social impact.

Implementation Timeline

The competition opened on 25 June, proceeding as summarised below.

  • University-level shortlisting to identify the top two innovations per institution
  • Expert panel evaluation to choose 20 finalists
  • Two-day bootcamp and eight-week mentorship programme
  • The final pitch competition on 19 November
  • Awards ceremony on 21 November
  • Dedicated incubation programme for winners

More information may be obtained from www.edhe.co.za.

Tersia Gouws is a commissioned Universities South Africa writer.

The post USAf and Absa Bank launch a R5.5 million entrepreneurship partnership across 26 public universities appeared first on Universities South Africa.


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