Has the MBA degree lost its lustre in East Africa?

This question was posed at a recent social gathering, chiefly prosecuted by a seasoned head hunter in East Africa.

While the discussions, invariably, took a tangent, this being a social event on a Saturday evening where wine was perhaps served with too much verve, I listened carefully to the arguments of those who freely dove into this conversation, especially as my bias was not discovered until later that evening.

The quantitative result was a toss-up, with half agreeing and the other half disagreeing. But the qualitative result was a resounding loss for the motion, particularly as its proponents lacked the data to mow forward with the argument.

I took time to reflect on this conversation and decided to do more research on some of the claims made that evening, along with supporting narratives on the social media scene.

East Africa is home to more than 110 MBA programs offered at 100 schools. This is double what was on offer 10 years ago when approximately 60 MBA programs were offered in the East African region.

Back then, those schools would churn out close to 6,000 graduates annually, a number now just north of 10,000. This is a steep increment over the last decade alone and is a testament to the growing reputation of the program in the region.

The story has not been the same everywhere else in the world. Harvard, one of the world's premier business schools, saw MBA applications fall by more than 15 per cent for the 2024 intake. The Wharton School of the University of Pennsylvania recorded more than a 13 per cent drop in applicant numbers for 2024.

At other elite US institutions - including Yale University's School of Management and the business schools at the University of Chicago and New York University - applications dropped by 10 per cent or more for the class of 2024 (source: The Wall Street Journal).

The Graduate Management Admission Council (GMAC) has indicated a decline of around 25 per cent in GMAT test-taking volumes. (source: Forbes.com).

Jeff Thomas, executive director of Kaplan Test Prep, a company that provides tests and entrance exams for admission to, among others, academic institutions, noted that lower applications are normal amid a strong economy and that an increase in applications tends to happen when the economy eventually softens. But, he cautioned, the cycle could be disrupted.

The story has been significantly different in Europe, compared to America, with the number of MBA applicants witnessing a steady increase in 2024.

AFFORDABILITY

Candidates from the US, Asia, and Africa are increasingly attracted to online MBAs in Europe due to their affordability and shorter duration compared to the two-year MBA, which is a hallmark of American business schools.

Chinese business schools saw significant growth in enrolment to their MBAs, right until the onset of the pandemic. The continued restrictions on traveling have had a huge impact on foreign students studying at top Chinese business schools.

Business schools based in Southeast Asia are starting to offer more face-to-face learning to attract foreign students who cannot travel to China.

Are online MBAs worth the trouble?

East Africa has seen a proliferation of online MBA degrees with the trend particularly noticeable in Kenya.

Purists will still mention that an MBA's biggest advantage is allowing students to network and learn from each other, while sharing experiences, something an online MBA mostly prohibits. Yet, most of the online programs in the region are now boasting similar numbers to the full-time and blended learning programs. The continued rise of the online MBA is certainly one to watch.

BLENDED LEARNING FORMAT

MBA degrees delivered in the blended learning format - the so-called hybrid delivery mode - have helped the MBA maintain its reputation as an irresistible business degree for the modern executive within the region.

The blended learning programs, presented in a mix of both in-person and synchronous online learning, offer the best of both worlds - the flexibility of the online MBA and the collaborative learning and networking possibilities of the on-campus MBA.

The Executive MBA (EMBA) as a "professional" MBA degree has also been well received in East Africa due to the relatively short time needed to complete the degree compared to the two-year MBA.

To answer the question about the appeal of the MBA in East Africa, and after glancing through data coming from other continents, the answer is an emphatic no.

Despite trends elsewhere, and in particular the USA, the MBA remains a compelling value proposition in East Africa, even as the region continues to take a pummeling from the economic downturn with its spiraling inflation and increased cost of living.

If there is anything we have learned from elsewhere around the globe, it is that hard times create a demand for the MBA as people seek to upskill themselves in order to take on more responsibilities, make themselves stand out, and acquire a professional edge in the job market. The MBA will continue to be a sought-after professional business qualification in East Africa, and beyond, for the foreseeable future.

- The writer is the Eastern Africa representative for Africa's first Triple Crown business school, Stellenbosch Business School.