Financing for equity in pre-primary education

1. Education resources to subnational governments

3. Education resources to students and families

4. Social policies and family support programmes

Introduction

Key financing indicators (UIS Data)

The official entry age for pre-primary education is 3 years old. In 2023, the net enrolment rate for pre-primary (both sexes) was 18%.

Governance

South Africa’s education system operates within a highly decentralised governance framework comprising national, provincial, and local spheres. The National Department of Basic Education (DBE) is responsible for overall policy development, oversight, and coordination of basic education from pre-primary to grade 12. Implementation, including the financing and direct management of schools, is primarily the responsibility of provincial education departments.

The Early Childhood Development (ECD) Directorate of the DBE encompasses the period from birth to 5 years of age. In 2022, the government officially transferred responsibility for all early childhood education and development functions to the DBE. 

In South Africa, early childhood development (ECD) refers to a broad, comprehensive approach covering holistic care and education from birth to age 7–9. Pre-primary education is a more specialized subset, focusing specifically on structured learning, school readiness, and academic preparation for children aged 3 to 6 (e.g., Grade R). ECD often encompasses birth to 4 or 5 years old (before formal schooling begins). Pre-primary usually targets ages 3–6, specifically bridging home and primary school.

Pre-primary education encompasses a reception programme (Grade R) for children aged 5 to prepare them for entry into Grade 1, which has been officially incorporated within compulsory basic education through the 2024 Basic Education Laws Amendment Act (but with the absence of a corresponding fiscal provision). Early learning programmes for children aged 3-5 remains non-compulsory, with providers charging fees for services not funded by the state or private donors. South Africa’s 2030 Strategy for Early Childhood Development aims towards universal access to quality early childhood development by 2030, further building on the 2015 National Integrated Early Childhood Development Policy.

Tuition-free status

Education in South Africa is not free by law. Families unable to pay school fees may apply for conditional, partial, or full exemptions. These exemptions may also apply for Grade R, but it is not a national requirement and differs by each school.

Grade R for children aged 5 was officially incorporated within compulsory basic education in the 2024 Basic Education Laws Amendment Act; although there is no corresponding fiscal provision.

1. Education resources to subnational governments

Education financing mechanisms are highly decentralised and include the early childhood development grant to provinces (subsidy and infrastructure component).

Transfers to Provinces and Local Government

Transfers are made through two main mechanisms. Equitable shares are unconditional transfers determined by formulas accounting for population size, poverty, and economic activity. The Provincial Equitable Share (PES), introduced in 1997/98, constitutes the main revenue source for provinces. Conditional grants are allocated for specific objectives or programmes and require provinces and municipalities to meet criteria when spending these funds.

Provincial Funding for Education

Basic education services (including Grade R) are almost entirely provided by provincial governments, funded through the PES and DBE-administered conditional grants. Education forms the largest component of the PES formula (48% in 2023/24), with allocations based on the number of school-age children aged 5–17 and learners enrolled in Grades R–12 in public schools. The formula does not account for differences in rural and urban costs, the proportion of schools in poor quintiles, historical underfunding, or the relative burden of poverty, although there is a separate poverty component. Provinces determine their own allocation priorities for education relative to other sectors.

Conditional Grants

Conditional grants, administered through the DBE, supplement the PES and are earmarked for nationally prioritised programmes. The conditional grants in education include the early childhood development grant (5%), which supports the government’s prioritisation of early childhood development. This grant has two components: the infrastructure component (aiming to increase access to quality early childhood development programmes for poor children) and the subsidy component (see section 2).

2. Education resources to institutions

The 2024 Basic Education Laws Amendment Act brought Grade R officially under the basic public school system and the 1996 South African Schools Act. Early learning centres for 3–5-year-olds remain under the Early Childhood Development Subsidy Scheme.

Grade R Funding Allocation

Public schools generally receive per-learner funding based on the Quintile System, as defined in the National Norms and Standards for School Funding. Schools are categorised into five quintiles according to the socio-economic status of the communities they serve. Quintile 1 schools are those schools serving the poorest communities, and quintile 5 schools are those schools serving the least poor communities. Schools in quintiles 1–3 are classified as ‘no-fee schools’ and receive a minimum per-learner allocation for non-personnel costs, known as the ‘no-fee threshold’. Quintile 4–5 schools, in more affluent areas, are fee-paying, with families contributing to school costs, though learners still bear costs for uniforms, stationery, and transportation.

Grade R is funded based on the 2005 National Norms and Standards of Grade R Funding, which allocates per-capita funding to schools based on their quintile, with the poorest schools receiving the most funding. However, the amount is lower than what the government spends on Grade 1 (approximately 70% of that in the other primary grades). Registered community-based early ECD centres that provide Grade R also receive government funding ‘only if the service cannot be offered in a nearby public school, or if the Department believes that the independent school is offering the service in a special and innovative way that the government believes deserves funding’.

Early Childhood Development Subsidy

The early childhood development (ECD) subsidy is form of government financial assistance provided to a registered or conditionally registered ECD centres or programmes (including non-profit organisations) to cover costs such as nutrition, stimulation, practitioner salaries and administration. Subsidies are provided on a means-tested (based on income), per-child basis, directly to providers. To qualify, the child must be eligible for the Child Support Grant.

The government also subsidies private for-profit entities which have been contracted by the state to provide early learning services in under-served areas and to targeted populations, including children with developmental difficulties and/or disabilities, children under the age of two, or children living in poverty. Conditionally registered services may only qualify for state funding if they meet the national norms and standards.

South Africa’s 2030 Strategy for Early Childhood Development aims to develop a new population-based planning method to identify and target vulnerable and under-served communities to ensure all 3-5-year-old children have access to early learning programmes.

3. Education resources to students and families

Education in South Africa is not free by law, and school fees are set annually by school governing bodies, with parents voting on the amount to be paid in schools not classified as no-fee schools. Families unable to pay school fees may apply for conditional, partial, or full exemptions. These exemptions may also apply for Grade R, but it is not a national requirement and differs by each school.

Based on the Norms and Standards for School Funding (NNSSF) policy, schools ranked quintiles 1, 2 and 3 are referred to as no-fee schools. These schools are prohibited from collecting school fees. They receive substantive subsidies (close to 70% of the budget) to be spent of Leaning and Teaching Support Materials (LTSM), repairs and maintenance of schools, and for the payment of services (e.g. electricity).

4. Social policies and family support programmes

Child Support Grant (CSG)

The Child Support Grant (CSG), introduced in 1998 and administered by the South African Social Security Agency, provides ZAR 460 per month to children from poor households up to 18 years of age. While the grant does not have a specific education component, it has been associated with positive educational outcomes, including improved school attendance, completion rates, and learning achievements.

This profile has been reviewed by the Department of Higher Education in South Africa and Professor Rajkumar Mestry, University of Johannesburg.  