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False qualifications damage the South African economy in several ways: they reduce productivity, increase expenditure, damage reputation, undermine confidence in the education system and reduce tax revenues. Governments and businesses need to tackle this problem, particularly by enforcing existing restrictions, improving the quality of education and training, setting up a centralized system for verifying qualifications and applying sanctions against those offering false certificates.

The committee set up in March last year by the Education Minister to investigate racism and sexism in higher education has revealed that discrimination was pervasive despite all the good policies generated by the institutions. The committee believes that the racism persists in higher education mostly because of the weakness of the institutions' information dissemination: it recommended the creation of a transformation compact which will help to oversight the institutions to sensitize staff to the different needs of students from various cultural and economic backgrounds.

People in Kenya, Tanzania and Uganda have been found buying fake degrees of all sorts from diploma mills and other bogus universities. Those universities have no physical existence and operate only through websites. Most diploma mills are operating from Britain or United States where academic standards are presumed to be very high. Recently, the Federal Bureau of Investigations compiled a list of over 10,000 persons who obtained fake degrees from diploma mills in USA. A significant number of them are from South Africa, Kenya and Nigeria. Currently, there are about 80 notorious diploma mills that operate from the United States and the UK.