The National Student Financial Aid Scheme (NSFAS) has outlined a digital transformation strategy aimed at resolving long-standing ICT failures that have disrupted application processing and delayed allowance payments.
The scheme's new plan was presented in Parliament amid mounting concerns about outdated systems, poor data handling, and staff shortages. These issues have severely impacted NSFAS’s ability to operate efficiently and meet its mandate.
A recent audit further exposed the extent of NSFAS’s challenges, revealing billions owed to and by institutions, deepening questions over financial accountability and operational reliability.
Key Features of the Digital Strategy
NSFAS’s strategy seeks to modernise ICT infrastructure, enhance internal capabilities, and become a data-driven organisation. Initiatives include:
- Upgrades to core systems to remove inefficiencies
- Development of a full Enterprise Resource Planning (ERP) system by 2027
- Implementation of a Customer Relationship Management (CRM) platform
- Cybersecurity measures including penetration testing, ethical hacking, and POPIA compliance
- Staff cybersecurity training and cloud storage integration
- Digitisation of historical records and automation using AI
The strategy also includes a dedicated data policy, improved disaster recovery tools, and the establishment of system uptime targets to improve stability and performance.
Leadership and Support
The NSFAS Board has advised seeking structured support from National Treasury to implement the digital plan. It also recommends appointing two experienced Chief Technology Officers from listed companies to guide the ICT Committee.
Addressing Immediate ICT Gaps
Democratic Alliance MP Matlhodi Maseko stressed the importance of repairing core ICT systems to ensure universities supply accurate student enrolment data. She highlighted this as essential to fixing broader inefficiencies within NSFAS.
Maseko urged NSFAS to examine the University of the Western Cape’s partnership with SHRA as a model for easing accommodation pressures. She suggested the collaboration could serve as a “startup pack” for similar projects.
Maseko also questioned how NSFAS is spending its ICT budget. Acting CFO Luhle Tshangela confirmed the agency received R119 million for ICT over 2022 and 2023, with around R30 million still available. These funds are currently being used to improve the application system and strengthen the ICT team through a “co-sourced arrangement” with external providers.
Short-Term System Enhancements
NSFAS CEO Waseem Carrim said the organisation is consulting universities, SAPCO, and student representatives to address lessons from the 2025 application cycle. The goal is to roll out key system upgrades before September.
Carrim warned against rushing the process, noting that a poorly executed rollout could cause more disruption. He committed to delivering a detailed breakdown of short-term enhancements in future updates.
Meanwhile, the Special Investigating Unit (SIU) is reviewing all ICT-related contracts at NSFAS.
Long-Term ICT Vision
NSFAS aims to have a fully integrated ERP and CRM system in place by July–August 2026. This system is expected to streamline application and payment processes while enabling real-time data access for students and improved communication with universities.
