Egypt’s universities are at a crossroads necessitating a reassessment of their financial policies.
The growing economic pressures and widening gap in government funding are pushing universities towards financial self-sufficiency and the development of independent revenue sources.
The majority of universities the world over secure their funding through a diverse range of sources. Similarly, several Egyptian public universities have recently resorted to diversifying their financial resources by investing in the education process, the establishment of revenue-generating projects, partnerships with the private sector, the expansion of fee-based education programmes, and focusing on applied scientific research. The upgrading of curricula has also played a role in attracting a large number of international students who usually pay higher and dollar-denominated fees.
A source told Al-Ahram Weekly that the Ministry of Higher Education is advancing plans to introduce a new financial model aimed at granting public universities greater financial autonomy. This will require universities to develop and expand their financial resources, particularly given the scientific, technological and international advancements that Egypt’s higher education system has witnessed in recent years, alongside its broad geographical expansion.
The Supreme Council of Universities is considering piloting financial independence at five public universities: Cairo, Alexandria, Helwan, Assiut, and Mansoura, the source added. Minister of Higher Education and Scientific Research Mohamed Ayman Ashour said at a recent council meeting that the political leadership has reviewed the proposal, expecting it to be implemented within the coming months, the source noted.
The initiative outlines key mechanisms for adopting the new financial model, such as revenue generation through tuition fees, applying research and innovations through grants and contracts, and integrating entrepreneurship training. Additionally, fostering partnerships with the private sector and advancing institutional autonomy are central to this shift. Global trends indicate that universities tend to search for sustainable funding sources due to declining government allocations amid economic crises in order to be able to provide high-quality education and scientific research.
Although the concept was introduced several years ago, it initially garnered interest from Helwan University which sought to bring it into public discussion. It also resonated with the current minister of higher education, who, during his tenure as dean of the Faculty of Engineering at Ain Shams University, advocated for financial independence at the faculty level, recognising its potential to increase income. He said there were solid proposals to move away from bureaucratic financial management towards sound economic principles in expenditure and revenue generation while refining the academic vision through dedicated efforts to align with contemporary challenges and the country’s demands.
The source noted that the study incorporates several fundamental pillars essential for this transition. These include the establishment of national universities affiliated with the main universities, the expansion of research centres and specialised institutes, the creation of technological universities, the establishment of international university branches, and the expansion in constructing government hospitals. To achieve financial autonomy, a series of practical steps must be undertaken, including the generation of revenue through non-traditional sources, preparing programmes to attract international students, and designing programmes to operate national universities.
The study also suggested strengthening ties with industry and business sectors to provide hands-on training for students at technological universities, finalising agreements for international university branches, and adopting a comprehensive marketing strategy.
The five universities selected for the pilot initiative oversee multiple affiliated national and technological institutions, house notable research institutes, and host a large number of international students, a key revenue that bolsters their financial sustainability.
According to the source, the study will be implemented in steps, prime among which is coordination with the Ministry of Finance to establish a three-year transition to gradually reduce financing until complete financial autonomy is achieved. Another step is the repeal of existing Ministry of Finance decisions that impose deductions on self-generated university revenues. Furthermore, parent universities will be granted full authority to manage and optimise their financial resources and issue new regulations to empower public universities in developing their investment and revenue-generating capacities.
The study estimates that the annual budget for each university under the proposed model is LE2 billion, 75 per cent of which will be allocated to wages and salaries which are currently financed by the state treasury at a rate of 90 per cent, or LE1.8 billion.
The study stressed that public universities will remain committed to traditional admission policies and student distribution mechanisms as determined by the Supreme Council of Universities and the broader state directives.
It added that the legislative and regulatory decisions governing financial independence will uphold the policy of free education, ensuring that universities transitioning to financial autonomy submit legally binding commitments to sustain and develop free education. These universities will also be required to outline clear funding strategies to support this policy.
Moreover, the state will continue to provide financial support when necessary, sourced from non-traditional avenues beyond the national budget, to safeguard the stability of public universities until they attain financial equilibrium. Financially independent universities will remain subject to public financial oversight, adhering to governance and transparency standards.
* A version of this article appears in print in the 20 February, 2025 edition of Al-Ahram Weekly
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