Minister Nkabane emphasised the need for a cultural shift at the government bursary scheme when addressing board members during their induction and orientation.
The new NSFAS board, appointed in February 2025, replaces its predecessor, which was dismissed by former Higher Education Minister Blade Nzimande. The previous board faced mounting criticism over administrative inefficiencies, delayed student allowance payments, and concerns about corruption.
The previous NSFAS board was dissolved due to its inability to carry out and implement some of the most basic responsibilities allocated to it
A key failure was the board’s reluctance to implement recommendations from the Werksmans Report, which called for terminating direct payment service providers who had been irregularly appointed. The persistent failure to ensure timely student allowance disbursements also led to distress among students and instability at some TVET colleges and universities.
Minister Prioritises NSFAS Reform
Since her appointment as Higher Education Minister in 2024, Nkabane has been tasked with ensuring NSFAS meets its mandate.
“When I was appointed for this position… someone said to me, even if other things are additional, what I want you to do is clean the system, is to make NSFAS, is to ensure it meets the mandate,” she said.
With an annual budget of approximately R50 billion, NSFAS provides bursaries and student loans to support students from poor and working-class backgrounds in obtaining tertiary education.
New Board to Overhaul NSFAS Operations
Nkabane stressed that board members were appointed based on their expertise, with over 200 nominations received, including 60 candidates holding PhD qualifications. She called on them to transform NSFAS by improving its culture, reviewing strategies, and ensuring no student is left behind.
“When you get into that organisation, turn around that organisation, review the culture, review the strategy and make sure it works, and make sure that it does not leave anyone behind,” she urged.
Restoring ethical leadership, financial accountability, and operational efficiency is key to regaining public trust in NSFAS. Corruption concerns were a major factor in the dismissal of the previous board and service providers.
Whatever steps and decisions you take, you must understand that it is going to compromise your career, if you are not going to be ethical in whatever decisions you take
Addressing the Missing Middle and Financial Challenges
One of the most pressing tasks for the new board is implementing a funding mechanism for the "missing middle" students. While NSFAS has introduced student loans for this group, a structured approach has yet to be developed.
Additionally, the board must improve financial management, as NSFAS has consistently received qualified audits from the Auditor-General of South Africa.
Minister Nkabane highlighted that three board members have Chartered Accounting backgrounds. Along with acting NSFAS CEO Wassiem Carrim, also a Chartered Accountant, they are expected to stabilise the organisation’s finances.
Operational Improvements on the Agenda
Beyond financial management, the board is tasked with filling key vacancies, ensuring timely allowance payments, and re-establishing the NSFAS call centre to improve student support.
“The responsibility to resolve all these challenges rests on our shoulders,” Nkabane concluded.
