The government is exploring alternate ways to fund higher education as it seeks to expand university and college enrolments despite acknowledging the current funding model is under increasing financial strain.Responding to a parliamentary question by DA MP Delmaine Christians, higher education minister Buti Manamela said the rapid growth in demand for financial aid had placed “severe financial constraints” on NSFAS and the national fiscus, despite the scheme’s budget increasing to R55.4bn to support about 700,000 students. He said a funding gap remained.To address the shortfall, the department is considering diversifying the funding model for fee-free higher education through greater use of Seta funding and public-private partnerships.“This approach is intended to alleviate the pressures on the fiscus and simultaneously ensure that deserving students acquire education and skills for the job market,” Manamela said.The acknowledgement comes as the government presses ahead with plans to expand South Africa’s higher education system over the next five years.Manamela said the cabinet had approved a student enrolment plan that targets 1.18-million students at public universities by 2030, representing annual enrolment growth of about 1.5%. First-time undergraduate enrolments are expected to increase by 1.8% a year, alongside improvements in graduation rates, postgraduate output and the qualifications of academic staff.The government also plans to increase enrolments at technical and vocational education and training (TVET) colleges and community education and training (CET) colleges to more than 600,000 students by 2030, signalling a continued policy shift towards vocational and occupational education.The plans come despite longstanding challenges in the higher education sector, including infrastructure backlogs, rising student debt and pressure on student accommodation.In her parliamentary question, Christians asked what intervention plan had been put in place to ensure the higher education system, already facing infrastructure backlogs and rising student debt, could accommodate expanding enrolment targets while providing adequate support and funding to students.Manamela said the government was investing in infrastructure through the infrastructure and efficiency grant for public universities, the capital infrastructure efficiency grant for TVET and CET colleges, and the student housing infrastructure programme, which aims to expand student accommodation capacity.He said diversifying funding sources would help reduce pressure on the fiscus while ensuring that qualifying students continue to access higher education and acquire skills for the labour market.Business Day
Government seeks new funds as NSFAS shortfall grows
The government is seeking alternative funding sources to support the expansion of higher education as the NSFAS faces growing financial constraints despite increased budgets









