Funding the future: The evolution of University College Financing

By KINGSLEY LARBI (Rev. Prof)

In Born to Win, Chapter 34, the narrative around funding the establishment and sustenance of a university college provides critical insights into resilience, vision, and strategic financial maneuvering.

The case of Central University College (CUC) underscores the importance of foresight, strategic alliances, and innovative financing models in higher education.

This article extends the discussion to contemporary developments, regulatory frameworks, competitive forces, and digital innovations shaping university financing today.

Since the original article was written, the number of private universities in Ghana has increased significantly, with over 120 institutions now operating across the country. This growth includes the establishment of numerous university colleges in recent years. Here are some notable examples:

1. Lancaster University Ghana:

Established in 2013, this institution is a branch campus of Lancaster University, UK, offering globally recognized degrees in Ghana.

2. Ensign College of Public Health:

Founded in 2014, Ensign focuses on public health education and research, aiming to improve health standards in Ghana and beyond.

3. Family Health University College:

Starting as a nursing training institution, it evolved into a university college in 2015, offering programs in medicine and allied health sciences.

4. Academic City College:

Launched in 2018, this institution emphasizes STEM education and entrepreneurial leadership, preparing students for the demands of the modern workforce.

Kessben College:

Established in 2014, Kessben College offers programs in business, communication, and information technology, contributing to the professional landscape in Ghana.

These institutions, among others, highlight the rapid expansion and diversification of private higher education in Ghana over the past few decades.

The Historical Perspective: A Foundation Laid with Sacrifice

CUC’s formative years illustrate how private higher education institutions (HEIs) navigated financial constraints. Churches, philanthropists, and global partnerships played crucial roles, with figures like Pastors Randy Morrison and Matthew Ashimolowo making significant financial contributions.

Notably, in the early 2000s, Morrison’s $30,000 donation enabled the acquisition of modern computers, helping Central establish its first computer lab. Such philanthropic investments exemplified an era where private HEIs largely relied on goodwill and loans, such as the one from Ghana Commercial Bank that was later written off by the International Central Gospel Church (ICGC).

Contemporary Developments in University Financing

The landscape of higher education funding in Ghana has evolved significantly in the past two decades. Several key factors now influence university financing:

1. Regulatory Changes and Government Policies

1.1 The National Accreditation Board (NAB), now part of the Ghana Tertiary Education Commission (GTEC), has introduced stringent regulations requiring institutions to demonstrate financial sustainability before accreditation.

1.2 The Ghana Education Trust Fund (GETFund) has increased support for public universities, intensifying competition for private institutions reliant on tuition fees.

Competitive Additions: The Rise of Private and International Universities

1. As of 2023, Ghana had over 80 accredited private universities, including Webster University and Lancaster University Ghana, which operate with international accreditation and access to external funding sources.
2. Institutions like Ashesi University have pioneered sustainable funding models, including endowments, grants, and innovative financial aid structures.

Technological and Digital Developments in Higher Education Finance

1. The integration of blockchain technology in financial transactions is reducing fraud risks in student tuition payments.
2. The adoption of Artificial Intelligence (AI) and predictive analytics enables universities to forecast financial needs and optimize revenue generation.
3. E-learning platforms have opened new revenue streams, with universities offering online degrees to both local and international students. The global online learning market is projected to reach $375 billion by 2026, and Ghanaian institutions are tapping into this trend.

Sustainable Funding Strategies at Leading Ghanaian Universities

1. Ashesi University has established an endowment fund exceeding $10 million, reducing its dependence on tuition fees and enabling it to offer financial aid to over 50% of students.
2. The University of Ghana has leveraged public-private partnerships (PPPs) to develop student housing and technology hubs, reducing financial burdens while enhancing infrastructure.
3. Central University itself has evolved by exploring international funding avenues, such as grants from institutions like the Mastercard Foundation, which has committed over $500 million to African higher education initiatives.

Strategic Recommendations for the Future

1. Diversified Revenue Streams

1.1 Universities should explore corporate sponsorships, research grants, and venture capital partnerships to reduce reliance on tuition fees.

1,2 Establishing an endowment fund can provide long-term financial stability.

2, Embracing Digital Finance and Fintech

2.1 The adoption of mobile money and fintech solutions like MTN Momo, AT Momo, and Telecel Momo can streamline tuition collection and financial transactions.

3. Strengthening Industry Partnerships

3.1 Collaborative programs with tech giants like Google, Microsoft, and Huawei can bring funding and industry-aligned curricula.

3.2 Work-study programs can integrate students into industries while generating revenue for universities.

Conclusion: Running Faster to Stay Ahead

As Mohammed bin Rashid Al Maktoum once noted, “With each new day in Africa, a gazelle wakes up knowing he must outrun the fastest lion or perish.” Higher education in Ghana must continuously evolve, leveraging innovation, digital transformation, and diversified funding strategies to remain competitive.

The lessons from Born to Win remain relevant, but the future calls for smarter, tech-driven, and globally integrated financing models to sustain excellence in university education.

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