ADvTECH has positioned itself as one of South Africa’s more compelling private education providers, says Stephan Erasmus
By Stephan Erasmus
The Anchor Capital investment team in a note highlighted selection of JSE-listed companies that it believes are worth watching in the year ahead, one of which is ADvTECH.
Other Anchor picks for 2025 include Afrimat and Naspers/Prosus, Southern Sun and Renergen.
ADvTECH has positioned itself as one of South Africa’s more compelling private education providers, gaining recognition and investor confidence. Its share price advances this year reflect growing trust in the company's strategy and its ability to deliver steady improvement in both academic outcomes and financial returns.
The company focuses on expanding its student base while keeping tuition affordable. This approach has helped fill classrooms and lecture halls, reinforcing the company's credibility as a provider of accessible quality education. Given SA's harsh prevailing economic conditions, more families seek better schooling but remain mindful of cost. ADvTECH also employs technology to track student performance and teacher effectiveness, ensuring that rising enrolments do not come at the expense of academic standards.
Geographic expansion has added another dimension to its growth story. In Kenya and Botswana, ADvTECH's ability to adapt to local conditions and offer recognised curricula has resonated with parents and students. Building on these successes, it plans to open a new university campus in Ghana next year. This venture will combine local support with digital resources, allowing ADvTECH to reach new markets without excessive capital expenditure.
It's most promising prospects may now lie in higher education. With SA's public universities under strain, private operators are filling the gap. ADvTECH's tertiary institutions have earned respect for producing graduates who find work more quickly than many public education counterparts. The company is also progressing towards full university accreditation, a milestone that would bolster its reputation, potentially draw more students and broaden its academic offerings.
A recent acquisition underlines its ambitions. ADvTECH purchased a former training and conference centre in Sandton. By 2026, it plans to offer two tertiary brands, Varsity College Sandton and Vega Bordeaux, on this 47 000-square-metre site. The new campus will be capable of hosting about 9 000 students, roughly doubling the current capacity. Distance learning is another growth avenue for students who prefer online study, further enhancing ADvTECH’s offering.
The Group has navigated a challenging domestic economic environment with a measured approach, securing trust from parents, students, and investors. As the spotlight shifts towards mid-sized opportunities on the JSE, ADvTECH's proven ability to adapt to demand, invest in quality, and expand thoughtfully makes it an education stock worth watching in 2025.
Stephan Erasmus, CFA, CGMA, investment analyst at Anchor Capital.
BUSINESS REPORT