AS South Africa stands at a critical crossroads – grappling with soaring youth unemployment, economic stagnation, and a deepening skills crisis – one question demands urgent attention: Are SA’s soaring debt costs threatening education?
South Africa’s debt servicing costs are climbing at a pace that threatens to overshadow critical developmental spending – most notably in education.
After years of relative stability, debt-servicing as a share of consolidated government spending jumped from 11.1% in 2018/19 to 13.1% in 2021/22 and is forecast to reach 16.5% by 2025/26, according to data from Investec and the Kutlwanong Centre for Maths, Science and Technology.
That means that more than one in every six Rands spent by the government will go toward interest payments, not public services. This growing imbalance points to a clear budgetary trade-off: funding debt over development.
“The 2024/25 Budget allocates R329.2 billion to basic education, a modest 4.9% increase. But this growth is being overshadowed by rising interest costs.
In 2021/22, for every R100 spent on debt servicing, government allocated R154 to learning and culture. By 2025/26, that drops to R119 – a stark indicator of shrinking headroom for education,” says Setlogane Manchidi, Head of CSI at Investec.
As global benchmarks recommend allocating 20% of national budgets or 6% of GDP to education, public education investment in low-income countries is falling, from 14.4% in 2015 to just 13.1% by 2024.
In many cases, debt service now triples education spending and South Africa’s experience mirrors this trend.
“Yet despite this fiscal squeeze, South Africa remains one of the world’s biggest spenders on education, ranked 4th globally in education spending as a percentage share of GDP.
But spending more isn’t translating into better outcomes,” adds Manchidi. “In fact, the issue isn’t just how much is spent – it’s how efficiently it’s spent. Despite the massive allocation, South Africa’s education outcomes remain poor, undermining the long-term benefits of such investment.”
“In a landscape where access to quality maths and science education is directly tied to economic opportunity, we need powerful engines for change – ones that open doors to university, scarce skills careers, and meaningful economic participation for thousands of young people who might otherwise have been left behind.
With just five years left to meet the National Development Plan’s target of 450,000 learners eligible to study Maths and Science, time is running out.
Current pass rates aren’t keeping pace with what the economy needs. Moreover, we need programmes that create a multiplier effect, ones not just for learners, but entire communities.”
The warning signs are clear. The skills gap is no longer just a challenge – it’s a threat to South Africa’s economic future.
Basic Education Minister Siviwe Gwarube has called for urgent collaboration, saying; ‘we need an education system that is fully aligned with the economic needs of the continent. This means that the private sector has a vital role to play, both as an investor in education and as a partner in curriculum development, training, and skills-building programs.’
One programme quietly exemplifying this kind of public-private collaboration – delivering measurable results at scale – is Promaths, now celebrating its 20 years of partnership between Investec and Kutlwanong Centre for Maths, Science and Technology.
Promaths isn’t just an academic support programme – it’s a blueprint for how the private sector can help build a skilled, competitive South Africa. Proof that these partnerships work.
“A quality Maths and Science education is not just about academic success – it’s about access to the economy. It’s about building engineers, coders, data scientists, doctors, entrepreneurs, innovators. It’s about powering the industries that will define South Africa’s next chapter,” says Tumelo Mabitsela, CEO of Kutlwanong.
Since 2005, Promaths has supported over 28 000 learners from underserved communities through quality extra tuition in maths and science – resulting in a remarkable 45,278 quality passes (above 50%) in both maths and science and 13,896 distinctions (above 80%).
In 2024 alone, Promaths learners – who made up just 1% of the national cohort – contributed a staggering 9.8% of the national Maths distinctions and 11.3% of the national Science distinctions, according to the organisation.
However, these centres don’t just tutor learners – they also identify and train teachers from surrounding schools, equipping them with proven, high-impact teaching methods.
These educators return to their classrooms and share their skills, elevate performance, and unlock potential across schools and communities.
In provinces like the Free State, where Promaths partners with the Department of Education, this model has boosted results in surrounding schools, creating a ripple effect that extends far beyond any one classroom.
Promaths alumni are also securing placements in high-demand sectors such as engineering, medicine, IT and finance – evidence that quality STEM education leads directly to economic participation and skills transformation.
“Every rand used to pay interest is a rand taken away from investing in teachers, learning materials, and schools.
South Africa faces a critical fiscal turning point. We need to be deeply invested in education, not just financially but as a national imperative. Without decisive reforms and a clear recommitment to making education a top development priority, the rising debt burden could severely undermine the nation’s future – and jeopardise opportunities for an entire generation,” concludes Manchidi.
Image (Investec Head of CSI-Setlogane Manchidi).
