How EduSolutions makes its millions

2012-06-30 16:17

» The Limpopo, Gauteng, KwaZulu-Natal and Mpumalanga education departments previously negotiated and procured school books and other learner support material from publishers and suppliers directly;

» The state would receive a standard 30% trade discount, reducing costs significantly;

» In these provinces, EduSolutions has effectively replaced the role of the state;

» On winning a tender to procure and deliver school material, it takes over relationships with distribution contractors – and on occasion the state-run warehouses;

» EduSolutions manages a database of schools and their requirements, and takes over negotiations with publishers as well as monitoring deliveries to and orders from schools;

» The publishers continue to offer a 30% discount but now – in the case of Limpopo, for example – EduSolutions retains 70% of that discount and is supposed to give the balance back to the state;

» The trade discount on book and learner support material orders can run to more than R100 million in a single province due to the size of the orders;

» EduSolutions is also paid substantial administrative and management fees in these contracts, so it scores twice; and

» The impact is that textbooks and learner support materials become more expensive for the taxpayer as the benefit of the trade discount is no longer being paid back. 

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.