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Every year, thousands of young South Africans receive a letter that should change their lives. It confirms their acceptance to a higher education institution. It is the culmination of years of hard work, sacrifice and determination. For many young people, particularly those from poor and working-class households, it represents the promise of a better future. Yet, for too many, that promise remains out of reach.They have earned their place. They have met the admission requirements. They have demonstrated the potential to succeed. Yet when registration day arrives, they face a reality that hard work alone cannot overcome. They simply cannot afford to enrol. In South Africa today, acceptance into higher education does not always translate into access. For thousands of capable young people, the difference between the two is funding.For more than three decades, NSFAS has been the primary vehicle through which South Africa has sought to expand access to higher education, funding more than 5-million students since its inception. Yet the realities of 2026 demand that we think beyond the current student funding architecture. The scale of unmet demand, combined with growing pressure on public finances, makes it clear that government alone cannot fund every deserving student. This means our country needs to start exploring additional funding sources and partnerships to broaden opportunities and accommodate a more diverse student body.This discussion must also recognise the increasingly important contribution of private higher education institutions to South Africa’s post-school education and training system. Accounting for approximately 30% of higher education enrolments, they have become an indispensable partner in expanding access, developing scarce skills, and responding to the evolving needs and demands of the economy.Complementing the work of public universities and colleges, many private institutions have cultivated close relationships with industry, enabling them to deliver programmes that are agile, responsive, and aligned to labour market demand. Our engagements with private higher education institutions have also highlighted another encouraging trend. Many institutions report strong graduate employment outcomes, with some indicating that a significant majority of their graduates secure employment shortly after completing their studies, while others reported that many students receive employment offers even before graduation. This reflects the close alignment many private institutions have developed with industry and labour market needs.Yet despite their contribution, there remains a category of students who continue to fall through the cracks. These are students who have secured admission to higher education institutions but are unable to take up those opportunities because they lack funding. They are not lacking in talent. They are not lacking in aspiration. They simply lack the financial resources and means to continue their education.This should concern all of us. At a time when South Africa faces persistently high youth unemployment, a growing demand for skills and increasing pressure on public resources, we cannot afford to leave talent on the sidelines. Every student who is unable to register represents a lost opportunity not only for themselves but also for our economy and our country. It was against this background that I recently led engagements by the department of higher education and training with some private higher education institutions and their representative bodies. These engagements were not merely about compliance, regulation or administration. They were also about exploring how government and the private higher education sector can work together to expand educational opportunity and support national development.One of the most encouraging proposals to emerge from these discussions was the exploration of the establishment of a private higher education funding scheme for deserving students. This proposal reflects a growing recognition that the challenge of expanding access to higher education cannot be shouldered by government alone. It requires partnerships, innovation and a shared commitment to investing in South Africa’s future. This student fund will not only be funded by them but will also be managed by them.Importantly, such a student fund is not intended in any way to replace any government student fund. Nor is it intended to divert resources away from public institutions. Rather, it is intended to complement the existing student funding architecture by addressing a gap that currently exists within our system. Its purpose is to ensure that deserving students are given an opportunity to gain admission at private higher education institutions regardless of their financial circumstances. One message emerging from our engagements with private higher education institutions and industry is that investing in education and skills development is not merely a corporate social responsibility; it is one of the smartest investments a country can make in its people and future economy.The memoranda of understanding my office has secured with a range of private-sector partners, including Google, Microsoft, Takealot and Old Mutual, demonstrate this willingness. Business understands that economic growth depends on a skilled workforce. Employers understand that South Africa’s competitiveness depends on talent. There is growing recognition that education, skills development and employment are shared responsibilities that require collaborative solutions.Around the world, countries that have successfully expanded educational opportunity have done so through partnerships among government, educational institutions, industry and civil society. South Africa should embrace the same spirit of collaboration. The scale of our challenges demands nothing less.Ultimately, this conversation is not about public versus private institutions. It is not about ideology. It is not even primarily about funding mechanisms. It is about students.It is about a young person who has done everything right, earned a place at an accredited institution and dreams of building a better future, only to find that opportunity ends where funding runs out. We can change that.A private-sector-funded student fund offers an opportunity to unlock talent, expand access and strengthen South Africa’s skills pipeline. More importantly, it offers hope to thousands of young people whose futures should be determined by their potential and hard work, not by their inability to pay.Dr Gondwe is deputy minister of higher education and training. Business Day
