Minister of Higher Education and Technology, Nobuhle Nkabane, announced plans to move the National Student Financial Aid Scheme (NSFAS) out of its current Cape Town office, which costs R2 million per month.
This follows scrutiny from Parliament's Higher Education Portfolio Committee, which questioned the high rental costs amid ongoing financial challenges, including delays in paying student allowances.
In September 2024, Nkabane initially indicated that the NSFAS would move out of its costly office in Cape Town’s Foreshore area.
NSFAS said it had previously relocated from a R600,000 per month office to the more expensive Foreshore building to be closer to stakeholders and to be more accessible to students.
However, despite being centrally located, the office was not on major bus or taxi routes, making it difficult for students to access.
The Chairperson of the Portfolio Committee on Higher Education and Training, Tebogo Letsie, welcomed the minister’s decision to terminate the rental agreement.
Members of the committee questioned why the head office was based in Cape Town rather than Gauteng, where the majority of students were located.
Former NSFAS spokesperson, Slumezi Skosana, defended the initial move, stating that their previous Wynberg office, despite being close to major transport routes, was less accessible to students compared to the current location.
However, MPs pointed out that the current office’s inaccessibility was compounded by its placement in one of Cape Town’s prime office blocks, with a view of the harbour.
Addressing the matter before Parliament’s Standing Committee on Public Accounts (SCOPA) on October 15, Nkabane confirmed that NSFAS would find more cost-effective office spaces by the next academic year.
She outlined plans to regionalise the scheme’s operations, with four provinces set to have regional offices which includes: Eastern Cape, Gauteng, and KwaZulu-Natal, while mobile offices will be stationed at various institutions in other provinces.
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