Minister Buti Manamela Pledges to Stabilise NSFAS and Revamp South Africa’s Higher Education Sector

South Africa — Newly appointed Minister of Higher Education and Training, Buti Manamela, has announced a bold plan to restore stability and public trust in the country’s post-school education system, with immediate focus on reforming the National Student Financial Aid Scheme (NSFAS).

Six Core Reform Objectives

During his first media briefing, Minister Manamela outlined six key priorities to overhaul the sector:

1. Establish the PSET Reengineering Task Team to streamline post-school education pathways.
2. Develop a sustainable student funding model ensuring timely allowances and accommodation.
3. Enhance governance of NSFAS and SETAs, filling senior management vacancies and appointing 21 new SETA chairpersons from over 1,000 applicants.
4. Strengthen workplace-based learning to align graduate skills with labor market needs.
5. Expand TVET colleges and integrate community colleges into a unified post-school system.
6. Implement youth and adult skills campaigns, including career guidance, vocational training, and adult literacy initiatives.

"We need to rebuild relations with our social partners and create a single, integrated system where community colleges feed into TVET colleges, universities, and ultimately the labor market," Manamela stated.

READ: NSFAS Faces R10.6-Billion Oversubscription, Leaving Thousands of Students Stranded

Fixing NSFAS and SETAs

The Minister acknowledged serious governance and operational challenges affecting NSFAS and SETAs. Key actions include:

• Ensuring over 800,000 students are funded monthly without delays.
• Enhancing data security and eliminating fraudulent beneficiaries.
• Improving efficiency in third-party payment systems.
• Transparent appointment of SETA chairpersons to ensure collaboration rather than siloed operations.

Manamela emphasized that students, particularly at UNISA and TVET colleges, would see tangible improvements in funding and service delivery within the next three months.

Addressing Skills and Unemployment

Manamela highlighted a major disconnect between graduate skills and labor market needs:

• Nearly 10% of graduates are unemployed.
• 67% of TVET graduates are not placed in jobs.

To bridge this gap, the Ministry plans to:

• Strengthen workplace-based learning programs.
• Transform former technikons into universities of technology.
• Expand TVET college capacity to reach more of the 4 million unemployed or unskilled youth.

The PSET Reengineering Task Team will collaborate with business and labor to identify critical skills needed for economic growth and ensure post-school training aligns with job opportunities.

READ: TVET Colleges to Power South Africa’s Skills Revolution

Campaigns to Empower Youth and Adults

Three major initiatives will be rolled out to support education and employment:

1. Career Guidance – Helping school-leavers choose courses that match industry demand.
2. Youth Skills Training – Connecting young people not in education or employment to practical skills programs.
3. Adult Literacy – Targeting 4 million functionally illiterate adults for skill development.

"By the end of this government’s term, students should not be anxious about funding, universities should not face shutdowns, and society should trust that the sector is delivering on its mandate," said Manamela.