South Africa’s universities are facing a liquidity crisis because of delayed disbursements from the National Student Financial Aid Scheme (NSFAS).
The scheme funds hundreds of thousands of low-income university students through bursaries and loans. According to a report by News24, NSFAS owes:
University of the Free State R1-billion
North West University R1.2-billion
Stellenbosch University: R700-million
Cape Peninsula University of Technology: R634-million
University of Pretoria: R395-million
Walter Sisulu University R315.3-million
University of South Africa: R158.4-million.
NSFAS itself has a funding problem, with a R15-billion shortfall to fund students in both universities and technical colleges.
The scheme has also experienced a leadership crisis following the dissolution of its board in May, and its subsequent temporary reinstatement following a ruling by the Pretoria High Court on Friday, August 14, an interim order with a final ruling on the administrator’s appointment still to come.
But it is not just a board leadership issue; NSFAS has been without a permanent CEO since 2023, when Andile Nongogo was fired over a payment tender scandal. Since his removal, NSFAS has been run by acting CEOs.
