24 July 2024
In her budget vote speech, the honourable Minister, Dr Hlengiwe Nkabane, emphasized that the primary objective for the 7th Administration is the development of a skilled and capable workforce, along with the expansion of the country’s skills base to support inclusive growth. She stressed the significance of sharing a vision for the future and establishing evidence-based research-guided priorities to steer the direction of the national higher education and training portfolio. Honourable chair of the session, the African National Congress strongly aligns with the minister’s outlined sentiments. The remarks are fully cognisant of the fact that effectively and sustainably building an economy involves equipping individuals with the requisite skills and expertise. Accordingly, there is considerable interest in observing collaborative efforts between the government and the minister to fortify the correlation between the skills developed and the requisites of the workplace. It is their firm belief that the attainment of governmental targets demands the empowerment of all individuals through quality education and skills training. This, in turn, facilitates active engagement of citizens in the democratic process and ensures the production of skilled workers essential for the economy.
Honourable members, in the current administration, we maintain an unyielding dedication to the youth of our nation. We aspire to participate in a committee advocating for skills training directly linked to economic policy, forming an integral component of economic restructuring. Notably, a significant number of young South Africans are currently not engaged in employment, education, or training. Subsequently, it is imperative that our government continues to prioritise the employment of young individuals across all strategic initiatives. This entails expanding initiatives that provide young people with work experience, as well as affording support, financial resources, and market opportunities for aspiring young entrepreneurs. Moreover, there is a need to harmonise the provision of grants with pathways into employment, self-employment, training, and other facets of economic development. Our overarching objective is to broaden access to higher education and training opportunities, whilst enhancing the quality, responsiveness, and efficacy of the post-school education and training system. Enhanced skills development is pivotal in preserving our national competitiveness in confronting societal challenges.
The African National Congress is steadfast in its commitment to addressing educational inequalities and ensuring equal opportunities for all students in higher education and learners in schools. We firmly assert that access to education and knowledge is a fundamental human right, irrespective of race, class, gender, creed, age, sexual orientation, and physical or mental disability. Our dedication to addressing issues related to higher education across all sectors remains unwavering. We express confidence in the government’s remarkable progress since 1994 in expanding access to post-school education and training. Furthermore, we advocate for the fostering of positive mental health and the cultivation of healthy relationships to create a supportive and inclusive campus community that values and understands its students.
The serious administrative failures of NSFAS in the last administration have also been a key breach of trust in the system. We therefore welcome the various proposals of a turn around strategy by the Ministry. Furthermore, we urge the minister to ensure that the scheme is meeting its principal commitments and collaborating with institutions. It must work together with and within the higher education and training ecosystem where shared accountability is possible. An effective, efficient and trusted financial aid scheme would be a powerful glue for systemic trust in higher education.
Honourable Chairperson, ensuring the removal of financial barriers to accessing higher education and knowledge in post-secondary institutions has been an enduring and focused priority in our democratic state since 1994. We emphasize the critical importance of funding opportunities for students in higher learning institutions. The ministry has pledged to undertake significant efforts to ensure the National Student Financial Aid Scheme (NSFAS) systems are prepared for the upcoming 2025 application season, slated to commence in September of this year. The Minister underscored the essential nature of this preparation, as NSFAS experienced a substantial increase in bursary applications, totalling approximately two million in the current financial year. Despite this surge, a significant number of applications were successfully processed and approved, providing financial aid to a historically high number of students. Of the total volume, 419,447 were returning students, with 297,809 being first-time entry students. Given these figures, all necessary measures are being taken to ensure the readiness of NSFAS systems.
Over the medium term, the bursary scheme is poised to benefit a significant number of university and TVET students from disadvantaged backgrounds, totalling 1.5 million and 1 million respectively, across 76 public higher education institutions. The anticipated cost for the implementation of this substantial initiative is estimated at R168.9 billion over the forthcoming period. The department’s transfers are expected to constitute approximately 90.4 percent (R146.9 billion) of the scheme’s total revenue over the medium term, with allocations projected to increase at an average annual rate of 3.6 percent, escalating from R45.9 billion in 2023/24 to R51.1 billion in 2026/27.
A foremost priority of the past administration involved finalising the Comprehensive Student Funding Model for tertiary education, especially targeting students falling outside the existing NSFAS criteria, often referred to as the ‘missing middle’. The introduction of the comprehensive student funding model is a significant achievement, and we trust that the responsible departments will administer it effectively.
It is essential to recognise the substantial transformation of the scheme, transitioning from a loan-based system to a bursary that comprehensively caters to students’ requirements without imposing repayment obligations. This comprehensive support encompasses the complete study cost, including tuition and accommodation, and furnishes monthly living allowances for student well-being. Additionally, students not residing in on-campus premises, specifically those residing in private accommodations or off-campus, qualify for transport allowances, which are disbursed to them.
Finally, with regards to funding, there is an urgent need to establish a framework for more sustainable funding models to address the high virements for student funding. Several challenges persist in the higher education sector concerning student funding, which not only impedes students’ timely completion of studies but also jeopardizes their livelihoods. It is imperative for us to advocate for and ensure the implementation of sustainable funding models. Failing to do so could precipitate an enduring crisis, particularly for students not covered by NSFAS.
Over the next five years, our objective is to take a leading role in advancing high-quality education and training that is pertinent to the requirements of our economy. To effectively advocate for high-calibre science, technology, engineering, and mathematics (STEM) education and training, we seek your collaboration. The contributions of educators, policymakers, industry leaders, and communities are of paramount importance. We call for increased funding from the department to strengthen this collective endeavour. By working together, we can ensure the alignment of educational programs with industry needs, the efficient allocation of resources, and the equitable expansion of STEM education opportunities across all sectors of society. Your input is indispensable in shaping the future landscape of STEM education.
The department is steadfast in its commitment to ensuring the quality of higher education curriculum across all provinces and carefully reviewing qualifications. It is important to emphasize that our focus extends beyond merely increasing the quantity of education, encompassing a dedicated effort to enrich its quality. This dedication is underscored by our comprehensive plans to ensure the provision of adequate basic resources, enhance teacher training and development, and improve the teacher-pupil ratio.
The South African Qualification Authority must play a role in being able to reduce the certification backlog and have uniform standardisation in the process of issuing certificates. There will be a need of reviewing TVET college programmes and qualifications to make them more responsive to and aligned with government priorities, as the Minister has raised this as well.
In adherence to the budgetary framework over the Medium-Term Expenditure Period, the entity intends to prioritise operational efficiency by rationalising and mechanising its procedural workflows. This objective will be pursued through the enhancement of its IT infrastructure to facilitate the automation of validation processes for both national learner records and foreign qualifications. Moreover, the entity endeavours to advance awareness and understanding of the national qualification’s framework among stakeholders, elucidating its purpose and benefits. This strategic endeavour is anticipated to necessitate an estimated expenditure of R45 million over the forthcoming three years.
We support the budget honourable chairperson.