Minister Nobuhle Nkabane: Higher Education and Training Budget Vote Debate, NCOP

Chairperson of the Select Committee on Education, Technology, Sports, Arts and Culture,
Minister of Basic Education Hon Gwarube,
Deputy Minister of Higher Education and Training, Hon Buti Manamela,
Deputy Minister of Higher Education and Training, Hon Dr. Mimmy Gondwe,
Deputy Minister of Basic Education Hon Dr Mhaule, Hon Premiers; MECs and,
Honourable Members,

The Department of Higher Education and Training has its footprint in all provinces through our institutions of higher learning consisting of public universities; TVET Colleges and Community Education and Training colleges as well as SETA’s aiming to develop a skilled and capable workforce to support economic growth path.

Before I present our substantive submission to the policy debate, allow me to clear some of the housekeeping matters that are making news headlines pertaining to higher education and training.

Firstly: The headline that says higher education department returns R580 million to National Treasury. This is indeed true, however; the headline does not provide the context. Today I am standing before you to account and provide clarity in this regard’ This amount is cumulative savings from two financial years against the final appropriation.

The amount arises from personnel attrition which the department could not fill due to Covid and delays in capital assets receipts in procurement processes. Our system makes provision for such unspent funds to be returned to the National Revenue Fund. Even as the department surrenders this amount, I am happy to announce that it has achieved 99% performance against its targets.

Secondly: In the same vein, the department will surrender an additional R115 million over this financial year. This is the residual amount from Vista University Trust that was meant to settle claims of former employees who were forced into early retirement when the university was merged. The last claim was processed in 2021 and the remaining funds must be surrendered to the National Revenue Fund.

Thirdly: Is the ongoing litigation between NSFAS and eZAGA Holdings which is of public interest as the fund benefits over a million students.

For now, while we respectfully wait for our courts to adjudicate, our primary consideration is to ensure uninterrupted payment of benefits to students; to universities; to TVET Colleges; and to auxiliary service providers such as accommodation landlords.

Fourthly: Is the so-called alleged appointment of the Services SETA CEO. What we should understand is that - Appointments and terms of office of SETA CEOs are aligned with the terms of office of SETA Boards or Accounting Authorities. We are not going to violate our own statute. So, in the interim we will make provision as to ensure that there is no vacuum in the Services SETA.

For accountability purposes; I wish to bring to the attention of Honorable Members that the terms of office for all SETA Boards are coming to an end in March 2025. We will call for nominations – and I wish to assure this House that we will seek quality Board Members and we will prioritize their induction with a premium on their fiduciary responsibilities.
 

Honourable Members,

In this current financial year, our work will be supported by a budget amounting to R137.5 billion, with an annual average increase of 4.8% from R130.5 billion in 2023/24 to R150.2 billion in 2026/27.

Through our District Development Model, we aim to promote integrated planning and coordination for sustainable development.

We will therefore continue to collaborate with Offices of the Premiers to ensure that all our skills and training interventions provided through our institutions respond to provincial economic development and industry demands within specific districts.

Through HIGHER HEALTH, we will continue to seek closer collaboration with provincial governments in fighting the scourge of Gender-Based Violence and Femicide in our universities, TVET and CET colleges. Gender based violence requires all of us to harness our collective efforts with shared responsibilities.

In 2020, my predecessor launched the GBV Policy Framework, and we have put systems and capacity in all our institutions to respond to Gender- Based Violence. We will further ramp-up our efforts to ensure that we further reduce incidences of Gender-Based Violence in our institutions.
Honourable Members,

As I said in our 2024 budget vote presentation last week, we have listened attentively to the voices from within and outside the PSET sector agitating for transformation for efficiencies at the National Student Financial Aid Scheme. I must mention that I am personally receiving a number of queries with reference numbers following up on their appeals from students and we are attending to those appeals.

I can assure this house today that we are dealing with all the concerns raised by all stakeholders.

We will further do so in recognition of our first democratically elected President, Nelson Rolihlahla Mandela whose vision it was to establish a government-funded national student financial aid model.

We are working hard to address the current inefficiencies at NSFAS. However, we must also celebrate the successes of the scheme. From its humble beginnings in the early 1990s, NSFAS has grown from a budget of R33 million in 1991 serving 7, 240 students, to about R47.6 billion in 2023 supporting 1.1 million students.

Since its inception, NSFAS has supported more than five million beneficiaries, producing hundreds of thousands of skilled professionals and the middle class, especially from within the poor and working-class sections of our society.

At a basic level, NSFAS represents the government’s deliberate intervention to broaden access to those sections of our communities who had no access to post school education and training. Certainly, this is one of the most important achievements of this government over the past 30 years of our democracy.

Earlier this year, we committed R3.8billion initial capitalisation fund to support “missing middle” students effective this financial year. This is the category of students who come from families with total income of more than R350, 000, but not more than R600, 000 per annum. At least 31, 884 prospective learners stand to benefit from this investment.

As we gradually implement the Comprehensive Funding Model, we will continue to work with all funding stakeholders to ensure that multiple bursary schemes are consolidated.

Honourable Members,

In April this year, my predecessor, Dr Blade Nzimande appointed NSFAS Administrator and simultaneously dissolved the Board. As the Administrator takes over the governance, management, and administration of NSFAS for a period of 12-months; his task also involves resolving misalignment of data between NSFAS and institutions resulting in the unreliability of data as a matter of urgency, in order to ensure finalizing all the necessary funding decisions and outstanding payments including student accommodation, and overseeing the opening of the 2025 online applications process.

I will closely monitor the work of NSFAS in addressing all challenges raised by stakeholders including rooting out corruption; and maladministration on the NSFAS grant payment system. We are working overtime to ensure that NSFAS systems are ready for the commencement of the 2025 application season – which is scheduled to start in September this year.

Honourable Members,

We remain resolute to change the size and shape of our Post Secondary Education and Training system, particularly to expand the college sector.

The National Plan for Post-School Education and Training directs that we should drastically increase intake in TVET and Community Education and Training colleges. We are therefore targeting one million enrolments in Community Education and Training colleges and 2.5 million in TVET colleges by 2030.

Equally, we will continue to diversify our public universities based on their strengths and the needs of the communities in which they are located by targeting 1.6 million enrolments by 2030.

In improving the responsiveness of our Post-School Education and Training sector to the world of work, we have significantly reduced the waiting period to issue certificates to qualifying candidates at our colleges. On average, certificates were released within two (2) months during 2022/23 financial year, against the target of three (3) months.

We are investing in research and development and advancing in skills revolution to identify emerging skills gaps and trends in the labour market to ensure our artisans are equipped with relevant skills for the job market. It remains our target to produce 30, 000 artisans per annum. In this regard, in 2022/23 we produced 19, 461 artisans – and our target for 2024/25 is to produce 26, 500 artisans.

The placement of unemployed TVET graduates into Work-integrated Learning opportunities remains one of our priorities. With support from the SETAs, we encourage our colleges to seek placement opportunities with both public and private sector institutions and with nongovernmental organizations.

The Centres of Specialization at public TVET Colleges have increased from 26 in 2019 to 53 in 2024. We have so far invested R238 million to upgrade the infrastructure at these centres. These centres play a critical role in producing more artisans required to grow our economy.

Honourable Members,

In the current financial year our total investment in infrastructure is R4.3 billion. We have completed the feasibility studies for the establishment of the University of Science and Innovation in Ekurhuleni – and the University of Policing and Crime Detection in Hammanskraal. We intend to commence the construction of these two new universities in 2025. Furthermore, we have concluded a feasibility study for the establishment of a campus for the Tshwane University of Technology.

The Imbali precinct led by the Durban University of Technology is taking shape with targeted completion of the Engineering Building in the current financial year. Lastly, planning for the Ulundi Campus of the University of Zululand is also at an advanced stage.

We are building and refurbishing our TVET colleges with modern facilities, updating the curriculum to align with industry needs and fostering partnerships with industry and business.

We have increased our financial investment in TVET college education by allocating R2.6 billion to build twelve (12) new college campuses. We have further identified 10 TVET colleges which have been allocated funding for improved ICT infrastructure in the current financial year.

Student accommodation has also received added attention in the last five years to increase access, success and safety for students. In this regard, the planning of new student accommodation in seven institutions including TVET colleges is at an advanced stage.

So far – 9 ,721 beds have been completed in the past two years to the value of R2,5 billion. Overall, through the lease-to-own scheme we intend to complete 300, 000 beds by 2031.

We have also commenced the planning for the construction of Community Education and Training Colleges and allocated R1 billion over three years for this commitment.

In conclusion, gratitude goes to my staff in the Ministry – the Director General and his team – the Boards and Executives of our Entities, and everybody who continues to be part of this journey.

I call upon members of the NCOP to support our initiatives as we traverse the length and breadth of our country to change the lives of ordinary South Africans, particularly the young people.

Thank you