By Johnathan Paoli
The Higher Education and Training Department has unveiled its 2025/26 budget vote, reaffirming its commitment to building an inclusive, equitable and responsive post-school education and training (PSET) system tailored to the needs of South Africa’s youth and national development.
Minister Nobuhle Nkabane presented the R142.7 billion allocation amid a challenging funding environment, following the abrupt cessation of the United States support to South African universities and researchers, which affected half of the country’s 26 public universities.
The department’s budget has increased by an average of 4.4% annually in nominal terms for the Medium-Term Expenditure Framework (MTEF) period.
“Our commitment remains steadfast: to build a post-school education and training system that is inclusive, equitable and responsive to the needs of our young people and our nation,” Nkabane said.
The minister highlighted ongoing infrastructure projects, including the completion of phase one of the University of North-West’s Mining Campus by 2030 and the refurbishment of the former Giyani College of Education into a state-of-the-art Tshwane University of Technology campus, set to welcome its first students in 2026.
She praised the government’s efforts to expand access and modernise facilities, particularly in underserved regions.
Technical and Vocational Education and Training (TVET) Colleges received a boosted budget of R14 billion for 2025/26, up from R13.1 billion the previous year, with projections of R14.7 billion next year.
The government is committed to repositioning TVET as a first-choice pathway, combating long-standing perceptions of vocational training as a “backup plan.”
The National Skills Fund (NSF) and Sector Education and Training Authorities (SETAs) have a combined budget of R26 billion this year, rising to R27.8 billion to accelerate artisan development.
The National Apprenticeship and Artisan Development Strategy aims to produce 30,000 qualified artisans annually by 2030, with 20,000 targeted in 2025/26.
The National Student Financial Aid Scheme (NSFAS) budget increases from R48.7 billion in 2024/25 to R51 billion in 2025/26, further rising to R53.4 billion in 2027.
NSFAS currently supports over 811,000 students, including 580,000 university and 231,000 TVET learners.
Nkabane stressed the appointment of a new NSFAS board led by Karen Stender, emphasising a zero-tolerance approach to corruption and maladministration.
Key reform priorities include organisational redesign, loan management, sustainable funding models, student accommodation policies and digital transformation initiatives to harmonise ICT infrastructure across institutions.
In response to court rulings requiring termination of contracts with fintech intermediaries and costly lease agreements, NSFAS is decentralising operations to improve accessibility and financial efficiency. The department is also investigating student accommodation intermediaries charging excessive fees.
Recognising high youth unemployment, the department has set ambitious targets for workplace-based learning – 90,000 opportunities for 2025/26, and 500,000 over the medium term.
These include learnerships, internships and work-integrated learning.
The National Skills Fund will also fund 1000 beneficiaries under Just Energy Transition skills programmes, covering a broad range of occupations to support South Africa’s transition to a greener economy.
South Africa’s assumption of the 2025 G20 Presidency places the department at the forefront of international education collaboration.
It is leading the G20 Education Working Group alongside Basic Education, hosting key meetings in KwaZulu-Natal and Mpumalanga provinces.
Priority areas include foundational learning, mutual recognition of qualifications and professional development for changing global contexts.
To adapt to evolving higher education challenges, the department is reviewing and amending key statutes including the Higher Education and Training Act, Continuing Education and Training Act, NSFAS Act, and Skills Development Act.
These reforms aim to improve system efficiency, coordination and responsiveness to 21st-century demands.
Mpumalanga education MEC Cathy Dlamini endorsed the budget, calling it “progressive” and essential for expanding vocational training and higher education access in her province.
She linked the budget to the Youth Month theme, emphasising skills development for meaningful economic participation and applauded the province’s efforts to boost technical schools and improve matric results.
ANC Limpopo MP Malesela Mokwele described the R142.7 billion allocation as a “moral imperative,” focusing on skills development, job creation and transformation of rural and historically disadvantaged institutions.
He highlighted efforts to increase university lecturers with doctoral degrees and boost research capacity.
In a robust response to opposition criticism, Nkabane asserted that rejecting the budget was tantamount to opposing transformation in the PSET sector.
She emphasised the department’s commitment to rooting out corruption and maladministration, clarifying financial management details and NSFAS reforms.
INSIDE EDUCATION
