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Is sweeping change too little and too late for NSFAS?



Is Sweeping Change Too Little and Too Late for NSFAS?

Is sweeping change too little and too late for NSFAS? The National Student Financial Aid Scheme (NSFAS), a cornerstone of higher education funding in South Africa, is undergoing significant changes. Recently, the entire board of directors was dismissed and the organization was placed under administration, as announced by the Minister of Higher Education, Blade Nzimande.

This drastic step came on the heels of the resignation of the board chairperson, Ernest Khoza, amid ongoing operational crises, financial mismanagement, and corruption allegations that have jeopardized the scheme’s ability to function effectively.

Trigger for Change

Minister Nzimande’s decision to dissolve the NSFAS board and appoint an administrator marks a critical juncture for the embattled scheme. The mismanagement at NSFAS not only squandered millions in taxpayer funds but also significantly disrupted the disbursement of essential payments for student necessities, such as food and accommodation.

Furthermore, the failure to implement key recommendations from the Werksmans Report, which exposed financial malpractices by former CEO Andile Nongogo and controversial fintech partners, underscored the board’s ineffectiveness.

Core Issues at NSFAS

The issues plaguing NSFAS extend beyond financial mismanagement. Key operational failures highlighted include:

  • Delays in student payments, risking the stability of TVET colleges.
  • Inaccuracies in annual reporting to Parliament.
  • Non-functional essential services like call centers.
  • Inefficiencies in handling student inquiries and implementing solutions for financially underserved students (the Missing Middle).

Role of the New Administrator

In response to these multifaceted challenges, Sithembiso Freeman Nomvalo, a respected former Accountant-General of South Africa, has been appointed as the new administrator. Tasked with overseeing NSFAS for the next 12 months, Nomvalo faces the daunting task of rectifying these systemic issues. His responsibilities include streamlining business processes, enhancing IT systems, addressing policy shortcomings, and ensuring the timely execution of all student financial disbursements.

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Implications for the Future

While the removal of the NSFAS board and the appointment of an administrator are promising steps towards reform, questions remain about the timing and sufficiency of these measures. With seven months remaining in the academic year, the effectiveness of these changes will be closely scrutinized. Stakeholders from all sectors, including students, educational institutions, and the general public, are keenly observing how swiftly and effectively Nomvalo can steer NSFAS back on course.


The upheaval at NSFAS serves as a cautionary tale about the importance of governance and accountability in public institutions. As Nomvalo spearheads efforts to reform NSFAS, the broader implications for South Africa’s higher education funding model and its capacity to support the nation’s students are profound.

It is a pivotal moment that could define the future of student financial aid in South Africa, emphasizing the need for transparency, efficiency, and, most importantly, a steadfast commitment to the educational aspirations of its youth.

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