Siviwe Gwarube Sounds Alarm as SA Education Finances Reach Crisis Point

Basic Education Minister Siviwe Gwarube has issued a stern warning that South Africa’s education system is on the brink of financial collapse, calling on all nine provincial education departments to submit urgent recovery plans ahead of the Council of Education Ministers meeting on 21 July 2025.

Decade of Underinvestment

Initiating a comprehensive financial review late last year, Gwarube concluded that a decade of chronic under-investment, CEO funding for state-owned enterprises, and provincial mismanagement has strained the sector. She’s now directing provincial treasuries and departments to develop actionable plans to protect fundamental education services like school nutrition, water, electricity, transport, and educator appointments.

Risk of Insolvency

Multiple provinces, including KwaZulu‑Natal, risk insolvency before the financial year-end, she warned. Gwarube convened urgent high-level talks with KZN’s Education MEC Sipho Nhlamuka and Finance MEC Francois Rodgers, supported by the provincial premier’s office.

Recovery Plan Requirements

Key priorities to be addressed in recovery plans include:

• Disbursement of statutory school allocations
• Restoration of essential services (e.g. electricity, water, security)
• Filling funded educator and manager vacancies
• Elimination of ghost employees draining payroll funds

National Emergency

Trending

Mpondo Royal Family Officially Announces New King After Years of Uncertainty

Citing a Gauteng.net report, Gwarube highlighted that the current underfunding issue constitutes a “national emergency” calling for immediate, coordinated government intervention.

Eyes on the 21 July CEM

“We must submit completed recovery plans before the 21 July CEM meeting,” the minister reiterated. The Department of Basic Education will play a supporting role in overseeing and guiding provincial compliance.

Towards Fiscal Discipline

She emphasised that though the path ahead may be “difficult and at times painful”, it’s essential to preserve the integrity of the public education system.

Implications for Learners & Educators

Delayed payments, infrastructure decay, advertisements missing staff, and risks of ghost payroll expenses threaten the learning environment of millions of pupils across the country. The vulnerability is especially stark in provinces like Eastern Cape and KZN, where underfunding and resource shortages are most pronounced.

What Happens Next?

• Provincial teams must finalise and submit recovery plans to the Department of Basic Education
• The DBE will monitor implementation and provide technical assistance
• Findings will be reviewed at the 21 July CEM meeting
• Provincial finance MECs and National Treasury must align budgets to protect essential services