Issued by Ismail Joosub on behalf of the FW de Klerk Foundation on 22/01/2025

Last week, the Class of 2024 celebrated a milestone—87,3% of matriculants passed their National Senior Certificate (“NSC”), a record high for South Africa. On the surface, this seems like a victory. However, a deeper dive into the challenges facing the South African youth reveals a stark reality: While the country’s education system has made some strides, the future remains precarious. Three interconnected issues need urgent attention: The crisis of insufficient university spaces, the dysfunction within the National Student Financial Aid Scheme (“NSFAS’) and the questions surrounding the “real” matric pass rate.

The University Space Crisis: A Bottleneck in Higher Education

The success of the Class of 2024 in passing matric represents hope and promise for a new generation. However, it also exposes the severe limitations of our higher education system. While over 337 000 matriculants have qualified for university admission, only 202 000 first-year places are available across South Africa’s 26 public universities. The University of Johannesburg, for example, received over 118 000 applications for just 772 spots in the Bachelor of Education programme. Similar stories unfold at other institutions, particularly in competitive fields such as medicine. Wits University, for instance, had 16 214 applicants for only 257 spots in its medical school.

This crisis is rooted in years of underinvestment in the higher education sector. The Constitution, in its Bill of Rights, guarantees the right to basic education (section 29). While it does so in terms of access to education up until the completion of Grade 9, section 29 also lays the foundation for a progressively realised right to further education, which the state must make available and accessible to all (section 29(1)(b)). Yet, this promise seems increasingly out of reach for many. As universities turn away students due to capacity limits, the government is left grappling with a paradox: How can it expand access to higher education while ensuring quality?

The scale of the crisis is compounded by the failure of the Department of Higher Education to adequately fund the sector. In 2024, the department returned a staggering R580 million to the National Treasury—funds that could have gone toward addressing the dire infrastructure and resource shortages at universities and colleges. This under-expenditure is a clear example of mismanagement and it comes at a time when universities struggle with overcrowded classrooms, limited staff and inadequate teaching materials. Technical and Vocational Education and Training (“TVET”) colleges, in particular, face shortages of essential equipment like textbooks, computers and furniture, which severely hinder the learning experience. Worse still, the funds could have alleviated the financial burden on students, many of whom remain excluded from higher education due to a lack of financial aid. In essence, the government’s failure to allocate resources effectively is directly contributing to the growing gap between the promise of universal access to education and the reality of systemic exclusion and underperformance in South Africa’s educational institutions.

The solution lies in significantly increasing the capacity of both universities and TVET colleges. These institutions, if properly funded and supported, could play a crucial role in absorbing the growing number of students seeking higher education. However, TVET colleges, in particular, remain underfunded and overlooked, with many facing severe shortages of essential resources such as textbooks, computers and proper facilities. If the government is truly committed to fulfilling the constitutional right to education, it must invest holistically in both sectors—ensuring that universities and TVET colleges can not only accommodate more students, but also offer high-quality education that prepares them for a rapidly changing job market.

NSFAS: Dysfunction in Funding

NSFAS, which aims to make higher education accessible to low-income students, has faced persistent issues in recent years. While it is commendable that over 936 000 applications were received for the 2025 academic year, only 668 000 were provisionally funded. Even more concerning still, is the issue of students being defunded mid-year due to administrative errors. Such disruptions have led to severe mental health challenges among students and undermined the stability of their academic careers.

NSFAS has been plagued by governance issues, mismanagement and a lack of transparency. As highlighted in recent parliamentary reports, the need for due diligence in processing applications is critical to prevent a repeat of past failures. Furthermore, NSFAS’s loan scheme for “missing middle” students—those whose household incomes are too high to qualify for full funding, but too low to afford tuition—has also faced criticism for its inefficiency and delayed disbursements. This is especially troubling given that over 659 000 NSFAS applicants are recipients of social grants (“SASSA”), highlighting the growing demand for a more functional and responsive funding system.

To truly turn things around at NSFAS, we need more than just a new board—we need a clear, decisive commitment to making the system work for students. With the new board expected between December 2024 and January 2025, there’s a real chance to restore trust and accountability. However, it’s not just about filling seats, the right people need to be appointed, individuals who understand the urgency of fixing these issues. Additionally, modernising NSFAS’s systems, especially its outdated ICT infrastructure, is key to preventing the errors and delays that have plagued students. By focusing on transparency, better communication and greater efficiency, NSFAS can finally become the reliable lifeline it was meant to be for students working to build a better future.

The “Real” Matric Pass Rate: A Misleading Success?

While the government’s announcement of a record matric pass rate of 87,3% is cause for celebration, there is a troubling caveat. Critics, including the DA and Build One South Africa (“BOSA”), point to a stark reality that the “real” matric pass rate is much lower. When considering the number of students who began Grade 1 in 2013—1,22 million—only 614 562 students eventually passed matric, leading to a “real” pass rate of 50%. This disheartening statistic highlights the mass dropout rate across the educational system, with many students either failing to progress or falling through the cracks of an overburdened system.

The “real” pass rate also paints a much bleaker picture than the government’s figures suggest. While the 30% pass mark may technically allow for students to pass, many experts argue that this threshold is far too low and contributes to the normalisation of subpar educational outcomes. With South Africa’s youth ranked 107th out of 141 countries in terms of future workforce skills, it is clear that our education system is failing to adequately prepare young people for both higher education and the job market.

The solution here is multifaceted. First, the government must address the quality of education at all levels. This includes revisiting the pass requirements to ensure that a passing grade reflects a sufficient level of competence. Second, a more transparent and supportive system for students who fail to progress to matric is essential, including stronger alternative pathways in TVET colleges, apprenticeships and entrepreneurial initiatives.

A Way Forward: A Unified Strategy

South Africa’s education system is under pressure, but it is not beyond repair. To address the issues of overcrowding in universities, inadequate funding through NSFAS and the misleading “real” matric pass rate, we need a coordinated approach that includes all sectors of society.

First, the government must significantly increase investment in higher education, not just in universities, but also in TVET colleges, which offer critical skills training for South Africa’s youth. It must ensure that there are enough spaces available for all students who meet the minimum entrance requirements, with a specific focus on expanding institutions’ capacity to absorb students in critical fields like medicine, engineering and education.

Second, NSFAS must be reformed to become a more efficient, transparent and supportive system. Streamlining processes, increasing accountability and ensuring that funds are disbursed in a timely and reliable manner will help alleviate the anxiety many students face when seeking financial support for their studies.

Finally, the broader education system must address the root causes of high dropout rates, which include under-resourced schools, overcrowded classrooms and poorly trained teachers. By investing in the foundational phase of education and offering better support systems for at-risk students, the government can ensure that more students not only reach matric, but are prepared to succeed beyond it.

The youth of this country represent the promise of our future. We must, as a nation, ensure that we honour that promise by equipping them with the skills and opportunities they need to thrive. The time to act is now, before the crisis becomes irreversible.