Mbeki, who was forced out of office before his second term ended, was Unisa's pick because his values aligned with the university's vision to create an institution that espoused African knowledge systems. This also comes at a time when students have called for decolonised education.
Mbeki, who pushed for an African Renaissance during his tenure as president, would also help strengthen Unisa's ties with other universities on the continent, management said.
Chancellors fulfil a ceremonial yet strategic role at universities, but Mbeki said he would engage stakeholders and students on the various issues that have plagued higher education.
Unisa has more than 330,000 students, with close to 35,000 obtaining degrees and diplomas annually.
Speaking after his inauguration, Mbeki repeated the sentiments expressed in his famous I Am An African speech, saying the continent needed educated people to improve its dismal socioeconomic conditions.
More research would need to be done to find African solutions to the continent's myriad problems, Mbeki said. He also spoke out against the spate of xenophobic attacks last week, pointing to the need to work together to build the continent.
Mbeki touched on the higher education funding crisis, saying Unisa's leadership, the Department of Higher Education and Training and the Fees Commission had to work togetherto ensure success in the sector.
Higher Education Minister Nzimande made a surprise appearance at Mbeki's inauguration and the two men were seen exchanging friendly gestures during a post-ceremony briefing.
This is in contrast to the frosty nature of their relationship in the past.
Nzimande, as the South African Communist Party boss, was one of Mbeki's fiercest critics when he was in office.
Their relationship was characterised by a back and forth of cutting remarks. Mbeki once labelled Nzimande as showing "extraordinary arrogance" on nuanced political issues.
Nzimande blamed the woes in the tertiary sector on the Growth, Employment and Redistribution policy, which was implemented by Mbeki during his tenure as president.
Unisa was the university of the future and would expand through technology to reach higher numbers of students, Nzimande said.
Unisa was paving the way for co-operation between technical vocational education and training colleges and universities, he said, alluding to the fact that distance learning was a cheaper way of providing education to more people.
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