The government bursary scheme has faced significant ICT challenges, including outdated systems, poor data management, and a lack of skilled personnel. These issues have caused delays in application processing and allowance disbursements.
A recent audit also revealed major financial discrepancies, with billions owed to and by institutions, further highlighting the scheme’s operational shortcomings. These problems have undermined the credibility and effectiveness of NSFAS.
NSFAS unveiled its digital transformation strategy in Parliament. The strategy aims to serve the digital needs of students and other NSFAS stakeholders by improving ICT and business capabilities, digitally transforming its workforce, optimising and innovating across digital front and back stages, while pivoting towards becoming a data-driven organisation.
This strategy includes enhancements to existing systems to eliminate inefficiencies and the development of an Enterprise Resource Planning (ERP) Terms of Reference, with the goal of full implementation before the start of the 2027 academic year.
Key digital initiatives underway include the rollout of a Customer Relationship Management (CRM) system, regular cybersecurity measures such as penetration testing and ethical hacking, and strict compliance with the Protection of Personal Information Act (POPIA). NSFAS is also investing in employee cybersecurity awareness training and exploring cloud storage options to support data security and accessibility.
The scheme aims to strengthen its data management practices by establishing a comprehensive data policy and improving both software and hardware for data recovery and business continuity. System uptime targets are being set, and efforts to digitise historical NSFAS records are underway. Additionally, the organisation is exploring automation technologies and the use of Artificial Intelligence (AI) to further streamline operations.
The NSFAS Board has recommended approaching the National Treasury for structured support to execute its digital transformation strategy. They have also proposed the temporary inclusion of two experienced Chief Technology Officers from listed companies on the ICT Committee to assist with implementing the digital strategy.
Rectifying Current ICT Challenges
The Democratic Alliance’s (DA) Matlhodi Maseko says NSFAS's core mandate should be to rectify its ICT systems to ensure accurate and timely data from universities. This data is critical for verifying student enrolment and addressing broader operational inefficiencies.
Maseko suggested that NSFAS should study the University of the Western Cape's (UWC) successful partnership with the Department of Human Settlements (now Infrastructure) and the Social Housing Regulatory Authority (SHRA). This collaboration leveraged SHRA's social housing grant for student accommodation, with SHRA maintaining responsibility for security, thus easing the burden on universities.
Maseko urged NSFAS to demonstrate how SHRA's model could serve as a "startup pack."
The DA MP also questioned NSFAS Acting CFO Luhle Tshangela on the allocation of ICT funds. Tshangela confirmed that NSFAS had received R119 million for ICT, split between 2022 and 2023, with approximately R30 million remaining.
These funds are being used to update the NSFAS application system and enhance the ICT department's capacity through a "co-sourced arrangement" with external service providers.
Maseko further wanted to know what short-term solutions are being implemented in the ICT department.
NSFAS CEO Waseem Carrim said that NSFAS is actively consulting with internal teams and external stakeholders, including universities, SAPCO, and students, to identify challenges from the 2025 cycle.
The goal is to implement crucial system enhancements before the academic cycle commences in September. He cautioned against rushing a new system implementation, as it could lead to further disruptions, and committed to providing a detailed breakdown of these short-term enhancements in future reports.
The Special Investigating Unit (SIU) is currently reviewing all ICT contracts within NSFAS.
He added that the long-term vision for NSFAS is to implement a fully integrated enterprise resource planning (ERP) and customer relationship management (CRM) system by July-August 2026. This system aims to streamline application and allowance payment processes.
This will enable seamless communication with universities and allow students to easily access their academic and allowance data through the NSFAS portal.
