Knowledge Management Solution to Challenges of Higher Education in South Africa competencies, and employee capabilities can be transformed and the performance of the organisa- tion improved. Additionally, a knowledge audit is needed before implementing KM approaches. Such a KM audit would facilitate finding, analys- ing, interpreting, and reporting of a company's in- formation and knowledge policies, its knowledge structure and knowledge flow (Hylton, 2002). Knowledge management can also be enhanced in organisations by motivating staff so as to keep their skills and avoid depletion of the talent pool. Organisations can offer security of long term em- ployment, in order to minimise high staff turnover and costs of knowledge maintenance. Besides, effort should be made to develop a recruitment policy that emphasises research skills, postgradu- ate programmes with student funding schemes, mentorship systems, creating a research culture, improving research infrastructure (such as access to well equipped libraries, offices, classrooms, and technology. Organisations that invest in new technology without understanding their organisa- tion and human patterns of information sharing are bound not to reach their investment potential. Besides, leveraging organisation's know-how and best practices can make a dramatic difference to a university's basic competence, its flexibility, its responsiveness, and its customer relationship. Finally, as universities the world over including those in South Africa contemplate adopting KM practices, Davenport and Prusak (1998) prin- ciples of knowledge management are worthy keeping in mind, namely that: KM is expensive, KM needs both people and technology, KM is highly political; KM needs knowledge managers; KM must be practical and simple; creation and sharing of knowledge is unnatural; knowledge work processes must be promoted and supported through KM; access to knowledge is only the beginning of KM; KM never stops; and KM