Overview of CSI spend on education in 2023

Trialogue conducts annual research into CSI spend on each development sector in South Africa. In 2023, 68 large companies participated in Trialogue’s primary research survey. According to the research, education was supported by 78% of companies and received 48% of average CSI expenditure.

National context of education in South Africa

• Government’s budget for education, learning and culture in 2023/24 is R457 billion, up from R441 billion in 2022/23, and constituting 20.4% of the consolidated government expenditure of R2.24 trillion. World Bank data for 2022 shows that this percentage is the fourth highest in Africa, with Namibia allocating the most – 24.7% of total expenditure to education – and Angola the least at only 6.8%.
• The Department of Basic Education (DBE) took over the responsibility for early childhood development (ECD) from the Department of Social Development (DSD) on 1 April 2022. Additional funding will be provided to facilitate an increase in the number of children receiving the ECD subsidy, the provision of pre-registration support packages and the launch of a pilot programme for nutrition support.
• The 2021 ECD census commissioned by the DBE and funded by the Lego Foundation, found that on average there are 6.2 ECD programmes per 1 000 children between the ages of zero and five nationwide. The census counted 42 420 early learning programmes (ELPs) which collectively enrolled 1 660 316 children. Only 33% of ELPs received a subsidy from the DSD.
• The Department of Higher Education and Training’s (DHET) expenditure is expected to reach R135.6 billion in 2023/24. Of this, at least R50 billion will be allocated to the National Student Financial Aid Scheme (NSFAS). According to NSFAS, 941 491 students were approved for student funding pending registration at their chosen public university and technical vocational education and training (TVET) college for the 2023 academic year (an increase from 691 432 students in 2022). Over 1.6 million applications were received.
• According to the Progress in International Reading Literacy Study (PIRLS) 2021 SA Report (released in May 2023), 81% of grade 4 learners could not read for meaning in any language, an increase from 78% in 2016. All 11 South African languages were assessed.
• According to the DBE, 1.1 million learners enrolled for grade 1 in 2010, yet only 725 146 full-time candidates – 66%, an increase from 52% in 2021 – sat for the 2022 National Senior Certificate examination. They achieved a pass rate of 80%, also an increase from the 76% pass rate achieved in 2021.
• The Teacher Demographic Dividend project conducted by Research on Socio-Economic Policy (RESEP) at Stellenbosch University, predicts that the public education system will see a massive wave of teacher retirements in 2030, as 49% of publicly employed teachers were aged 50+ in 2021 and 25% were at least 55 years old. By 2030, annual graduate output would have to be between 6 000 and 13 000 higher than it currently is to address this exodus.
• Phase 4 of the Presidential Youth Employment Initiative (PYEI) began in February 2023. It is targeting 255 000 job opportunities for youths aged 18–34 as educator assistants and general education assistants. To date, the PYEI has created more than 850 000 job opportunities, having placed youths in more than 20 000 schools across the country.

Overview of CSI spend

Education was supported by 78% of companies and received 48% of average CSI expenditure.

26%

Early childhood development

Level of education

Average % CSI education spend 2023 n=50

20%

General education

23%

Further education and training

27%

Tertiary education

1%

Adult education

3%

Other

• Early childhood development received just over a quarter (26%) of education spend on average, in line with 2022.
• School-level education (general education plus further education and training) increased from 38% of education spend in 2022 to 43% in 2023.
• Tertiary education received 27% of education spend, marginally lower than 30% in 2022.

2%

Other

Type of intervention

Average % CSI education spend 2023 n=38

1%

Special needs interventions

3%

School governance, leadership and functionality

6%

Curriculum development

6%

ICT infrastructure

8%

Whole school development

10%

Infrastructure, facilities and equipment

16%

Teacher development

22%

Learner development

26%

Bursaries, scholarships and university chair

• Bursaries, scholarships and university chairs received the most support, an average of 26% of education spend in 2023, in line with 2022.
• Learner development and teacher development received the next highest spend at 22% and 16% respectively of education spend.

2%

Other

Subject area

Average % CSI education spend 2023 n=43

1%

Financial literacy

3%

Vocational and technical education

6%

Information technology

6%

Life skills

9%

Specialised subjects

13%

Language and literacy

27%

Maths and science

33%

Not subject specific

• The largest portion of CSI spend in the education sector was not subject specific (33%).
• Maths and science, which for more than a decade received the largest portion of average CSI education spend, received the second highest portion (27%) in 2023, slightly lower than the 30% received in 2022.
• Language and literacy received an average of 13% of CSI education spend.
• Vocational and technical education (3% of CSI education spend) and financial literacy (1%) continue to receive the smallest share of average CSI education spend.

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Source: The original version of this article was published in the Trialogue Business in Society Handbook 2023 (26th edition).