Minister Confirms When New NSFAS Board Will Be Appointed. The National Student Financial Aid Scheme (NSFAS), a critical institution in South Africa’s higher education landscape, has been under administration since April 2024. The transition period of administration may soon conclude, as Higher Education Minister Nobuhle Nkabane is taking steps to appoint a new NSFAS board. This transition marks a pivotal development in NSFAS’s governance and promises renewed focus on fulfilling its mission to support South African students in their academic journeys.
NSFAS Role and Financial Backing
NSFAS plays an essential role in supporting students in South Africa’s higher education system, enabling them to access quality education through financial assistance. Each year, NSFAS receives more than R50 billion from the National Treasury. This substantial funding allows NSFAS to provide comprehensive bursaries and student loans to eligible learners in approved courses across universities and Technical and Vocational Education and Training (TVET) colleges. However, recent administrative and operational challenges have raised questions about NSFAS’s ability to fulfill its mandate effectively.
No Advisory Council for NSFAS Oversight
In response to inquiries from Democratic Alliance (DA) MP Letta Mathlodi Maseko, Minister Nkabane confirmed that she does not plan to establish an advisory council to assist NSFAS in its responsibilities. An advisory council is not stipulated by the NSFAS Act, and such an arrangement could duplicate functions already overseen by the NSFAS board. Instead, the department emphasizes reliance on the board to review NSFAS operations and ensure they align with the scheme’s primary goal of supporting students.
Why NSFAS was Placed Under Oversight
To address longstanding issues, Former Higher Education Minister Blade Nzimande dissolved the NSFAS board and placed it under administration in April 2024. Freeman Nomvalo was appointed as the administrator, tasked with addressing key challenges within a 12-month timeframe. The administration term is renewable for an additional 12 months if necessary, based on the progress made toward resolving the identified problems.
During this administration period, NSFAS’s focus has been on addressing critical issues related to fund disbursement, system inefficiencies, and student outreach. Now, as the administration period nears its end, Minister Nkabane is preparing to appoint a new board that will assume oversight and ensure the institution operates in alignment with its mandate.
New Terms and Requirements for NSFAS Board Appointment
In August 2024, Minister Nkabane issued an amendment to the terms of reference of the NSFAS administration, indicating that the administration period could end sooner than initially expected. This adjustment led to a public call for applications for positions on the new board, emphasizing transparency and inclusivity in the appointment process.
The call for board member nominations, advertised in the government gazette on 13 August 2024 and again on 1 September 2024, specifies that candidates must hold at least a master’s degree and have relevant experience in fields like finance, law, ethics, economics, science, public administration, governance, engineering, or higher education. This requirement ensures that only individuals with substantial expertise will be considered, aligning with NSFAS’s complex and far-reaching responsibilities.
Requirements for NSFAS Board Members
| Requirement | Description |
|---|---|
| Educational Qualification | Minimum of a Master’s degree in a relevant field |
| Experience | Proven expertise in finance, law, ethics, economics, science, public administration, governance, engineering, or higher education |
| Roles and Responsibilities | Oversee NSFAS operations, provide advisory input, ensure mandate alignment |
| Additional Requirements | Shortlisted candidates will be screened per Section 5 of the NSFAS Act |
The candidates’ qualifications and experience will be assessed according to categories outlined in Section 5 of the NSFAS Act. Upon selection, board members will receive induction materials and administrative support to facilitate their onboarding process. Their performance will also be regularly evaluated through quarterly and annual reports, financial statements, and other key metrics set by the minister.
Minister Nkabane’s Vision for NSFAS
Minister Nkabane has been proactive in ensuring that NSFAS’s new board will be equipped with the necessary knowledge and resources to carry out their roles effectively. Her vision is for NSFAS to function as an accountable and transparent institution that prioritizes student support and aligns with South Africa’s broader educational goals.
The department’s reliance on the board, rather than establishing an advisory council, underscores the minister’s focus on streamlining oversight responsibilities. Nkabane has clarified that the NSFAS board will advise her on matters related to student financial aid and will bear the responsibility of overseeing NSFAS operations.
Responsibilities and Authority of the New NSFAS Board
The incoming NSFAS board will have substantial authority and responsibilities, including the appointment of professionals to manage NSFAS affairs under the board’s supervision. They may also establish committees to address specific operational areas and provide advisory input on complex matters. This structural approach allows NSFAS to leverage expert knowledge across multiple fields, enhancing its operational efficiency.
| Responsibility | Description |
|---|---|
| Operational Oversight | Regularly review NSFAS’s operations to ensure alignment with its student support mandate |
| Professional Appointments | Appoint qualified professionals to manage and administer NSFAS affairs |
| Committee Establishment | Form committees as needed to provide advisory support on specialized operational matters |
| Reporting and Evaluation | Submit quarterly reports, financial statements, and annual reports to the minister for evaluation |
Minister Nkabane expects the newly appointed board to work collaboratively to address past challenges while focusing on developing innovative solutions to streamline NSFAS processes and enhance service delivery to students.
Transition from Administrator to New Board
Freeman Nomvalo, who has been serving as NSFAS administrator since April 2024, is expected to provide a comprehensive handover report to the new board. This report will cover key insights and improvements made during the administration period and outline any remaining challenges for the incoming board to address. The handover process is designed to ensure a smooth transition, allowing the board to build on recent progress while focusing on sustainable, long-term strategies for student financial aid management.
Nomvalo’s work has been instrumental in stabilizing NSFAS operations and implementing foundational improvements, and his insights will be invaluable in guiding the new board as they assume oversight responsibilities.
Expected Appointment Timeline
Minister Nkabane has indicated that the new NSFAS board will likely be appointed between December 2024 and January 2025. This timeline aligns with the department’s goals of minimizing administrative delays and enabling NSFAS to resume normal operations under the leadership of an experienced and dedicated board.
Board Appointment Timeline
| Event | Date |
|---|---|
| Public Call for Nominations | 13 August 2024 and 1 September 2024 |
| Board Member Shortlisting | October – November 2024 |
| Expected Appointment | December 2024 – January 2025 |
By adhering to this timeline, the department aims to ensure that NSFAS’s transition from administration to board oversight is efficient, minimizing disruptions to student funding.
Implications for South African Students and Higher Education
The anticipated appointment of a new NSFAS board represents a positive step toward restoring accountability and efficiency within NSFAS. For South African students, this transition promises improved access to financial aid and a more streamlined funding process that will better support their academic ambitions. By establishing a qualified and experienced board, the government is prioritizing the quality and accessibility of student financial aid, which is essential for South Africa’s broader educational and economic development.
Conclusion
Minister Nkabane’s announcement regarding the new NSFAS board reflects a commitment to strengthening the governance and operational efficiency of the National Student Financial Aid Scheme. With a clearly defined timeline, rigorous qualifications for board members, and a structured handover from the current administrator, NSFAS is positioned for a revitalized approach to fulfilling its mission.
