Impacts of new universities on hosting cities and the implications for Kimberley, Northern Cape, South Africa

Abstract

This research investigated the impact of the establishment of a new university on hosting cities by reviewing the literature on such impacts. The aim of the article is to establish the likely impact of a new university (Sol Plaatjie University) to be established in the city of Kimberley during 2014. The study found that generally a university could impact its hosting city in terms of its local economy, employment, human capital, social character and real-estate market. Given the current characteristics and demographic profile of Kimberley, it is likely that positive impacts of a new university in Kimberley would include increased spending capacity in the local economy and short-term employment gains during construction of the university infrastructure. The proposed university could, however, exacerbate the existing pressure on the rental market in Kimberley and encourage the out-migration of specific skilled professionals. The research concludes with a number of steps to be taken by a hosting city that could contribute to strengthening a university's role as an anchor for urban development.