MBA Applicants from Africa and the Middle East: 2009 vs 2013

MBA Applicants from Africa and the Middle East: 2009 vs 2013 main image

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The Great Recession has inevitably affected the study preferences, aspirations and demographics of MBA applicants across the world.

We take data from the 2009 and 2013 editions of the QS TopMBA.com Applicant Survey to see what has changed in the Africa and Middle East region.

2009 and 2013 overview

2009

2013

MBA Program LengthA majority (50%) of African applicants preferred 10-18 month MBA programs, while Middle Eastern MBA applicants were split between 10-18 month and 19-24 month MBA programs (44% each).40% of MBA applicants in both regions preferred 10-18 month MBA programs, while 38% of applicants opted for 19-24 months.MBA Destinations

1. US (71.1%)

2. UK (59.3%)

3. Canada (32.1%)

1. US (54.3%)

2. UK (44.1%)

3. Canada (27.8%)

MBA Financing Options

• 68% of African applicants planned on getting scholarships compared to 44.45% of Middle Eastern MBA applicants.

• Company sponsorship was the least popular method of funding, accounting for 4% of Middle Eastern applicants and 3% of African.

• More Middle Eastern and African MBA applicants expect to finance their MBA through scholarships (72%).

• Sponsorship is now the intended mode of finance for 12% of candidates, with parents/family (3%) and loans (3%) now the least popular options.

MBA Salary Expectations

• Nigeria: Expected salary $79,300 (an increase of 203% – the fifth highest target salary).

• South Africa: Expected salary $100,000 (an 84% increase – the fourth least confident applicants).

• Nigeria: Expected salary $80,000 (an expected increase of 381%).

• South Africa: Expected salary $122,000 (387% increase)

Gender31% of respondents were female.Percentage of female applicants has dropped slightly to 30.2%.

Preferred MBA Program Length

Though they are around 10% less popular in 2013 than they were in 2009, programs that last a year and a half or less have remained the most popular.

Duncan Ochieng, a 2009 QS Scholarship winner from Kenya, attributes the popularity of one-year MBA programs to the fact that students spend less time away from the workforce.

“Two years is a long time to stay out of the market.” In a time of continuing economic uncertainty, for many candidates, the opportunity cost of a longer program is simply too high.

We can ascribe the drop in popularity of the one year program to the reduced work experience of applicants. In 2009, 53% of applicants had over 4 years work experience, while in 2013 the figure stands at 48%. With one year programs generally requiring candidates to have more experience, it follows that a less experienced cohort spells an increase in popularity for longer programs.

Preferred MBA Destinations

The US, UK and Canada are still the three most popular MBA destinations in both 2009 and 2013, although reflecting a worldwide trend, their lead is far les commanding than it was in 2009.

Indeed, with the exception of Germany and Italy, there has been a drop in popularity across the world’s most popular destinations, suggesting that applicants in the region are considering a more diverse range.

Funding issues seem to be behind the diversification of preferred destinations. Though, as it is in 2013, the availability of scholarships and financial aid was the most cited reason for choosing a destination in 2009, affordability has since overtaken accreditation status to take third place in 2013. Quality of staff remains second though, so this should be not be taken as a sign the region’s applicants are foregoing quality for affordability.

Of course, we should not lose sight of the fact that the US is still well ahead of the pack. Ochieng believes this is down to “simple economics” – the high availability of MBA jobs in the region, and, of course, the salaries (only Australia and Switzerland offer higher, according to the 2012/13 QS TopMBA.com Jobs & Salary Trends Report).

While applicant interest may have dropped in destinations like the US and UK, it does not necessarily follow that fewer candidates from the region are actually enrolling in UK and US schools. Steve Cousins, MBA recruitment and admissions director at the UK’s Cass Business School, has observed “a big increase in interest from these regions and a steady increase in actual students on the course.”

Cass offers a Dubai-based executive MBA program and, indeed, offering a local option may be a wise move to corner this market. Notably, 18% of the region’s applicants are looking to business schools in the United Arab Emirates – the region’s only representation in the 20 most-popular destinations list. The applicants with whom the UAE is next most popular are Western Europeans, only 4.5% of whom are looking to the oil-rich Gulf state.

Preferred MBA Financing Options

Scholarships are overwhelmingly the most popular financing option, and the figure of 71.8% who intend to use scholarships to fund their study represents an increase over the 2009 figures for the two respective parts of this region. No other is as reliant of financial aid.

Loans are now the least popular financing option, as opposed to four years ago when it was company sponsorship. The decrease in the number of business school loan programs since the recession began in 2008 is likely to have played its part in this, while the increase of interest company sponsorship (the previous least popular option) reflects the increased availability of such opportunities as companies recover confidence from the dark days of 2009.

Naturally, the high costs of MBA study can be entirely justified in terms of ROI for candidates in this developing region. Ochieng says that even though college loans were a gamble for him, he understood that applicants must invest in themselves. He himseld is a case in point; after completing his MBA at CEU Business School, he found work as a finance manager with petroleum company Engen.

Pre-MBA Salary & Salary Expectations

South African applicants were responsible for the world’s fourth largest one-year drop in salary expectations, which fell from US$162,000 to US$122,000 in 2012 (101.8%). This cannot be ascribed to lower current salaries, as the drop of US$1,000 to US$32,000 hardly seems significant enough to warrant this.

However, it should be noted that South African MBA applicants still expect a salary increase of 387%. In 2009, despite earning higher salaries, they only expected an 84% increase to US$100,000. This is indicative of an increased faith in the MBA to increase salary, and growing confidence in recovery, despite the single year drop. It should be noted that 2012 saw a record high in terms of salary expectations.

Nigerian candidates were among the world’s most bullish in 2009, expecting a 203% increase to US$79,305. They retain this characteristic in 2013, being one a handful of countries which actually expected a greater premium (381%) than in 2012 (319%). However, the actual salary targeted is lower than in 2012, as candidates are earning a significantly lower current salary - US$21,000 as compared to US$32,000.

Gender

Africa and the Middle East remains one of the most unequal regions in terms of female representation, with the proportion of female applicants dropping slightly as compared to 2009 (from 31% to 30.2%).

Read the full 2013 QS TopMBA.com Applicant Survey for more findings and expert analysis >

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