Nazeer Hoosen | CEO | Federated Employers Mutual Assurance Company (FEM) | mail me |
Over the past decade, we have invested more than R1.2 billion in education, but the significance of that investment is not measured by funding alone. It is measured by what that investment has enabled: ensuring stronger education-focused NGOs, better-resourced early learning centres, more equipped and empowered learners, successful graduates, growing enterprises and new economic opportunities.
Over the past decade, we have learnt that investing in education requires more than financial resources. It requires understanding what enables people to learn, develop and participate meaningfully in society. The value of an investment ultimately lies in the opportunities it creates, the organisations it strengthens and the lives it helps transform.
What education teaches us about long-term investment
One lesson has become increasingly clear: lasting educational change cannot come from isolated, short-term interventions. Instead, it requires sustained investment across the entire education continuum. This includes early and foundational learning, such as Early Childhood Development (ECD), literacy and numeracy, teacher development, school leadership development, higher education, and entrepreneurship.
Our experience over the past ten years has reinforced the importance of connecting these different stages. South Africa’s education system remains a vital instrument for social mobility, inclusive economic development and nation-building. However, persistent inequality, weak early and foundational learning outcomes and very high youth unemployment continue to restrict opportunities for millions of young South Africans.
The scale of the education crisis becomes particularly evident when we consider the available evidence. The World Bank’s 2024 Learning Poverty Brief estimates that 82% of South African children at late-primary age cannot read with comprehension, with adjustments for those out of school.
This evidence highlights why we must address foundational learning challenges during the earliest stages of childhood. Economist and Nobel laureate James Heckman’s research shows that investments in human capital generate their highest returns when directed towards young children. This is particularly important from birth to age five, when children develop the foundations for cognitive and socio-emotional skills.
At the other end of the education continuum, Statistics South Africa reported an official unemployment rate of 46.1% among young people aged 15–34 in the first quarter of 2025. These figures demonstrate why early learning matters. The earlier we strengthen the foundations for learning and development, the greater the potential to influence outcomes throughout education. Ultimately, these foundations also shape adulthood and economic participation.
We cannot view these challenges in isolation. Learners who fail to develop strong literacy and numeracy foundations are more likely to struggle as they progress through the education system. Those who complete school may encounter financial and social barriers when pursuing further studies. Similarly, graduates and technically skilled young people can still struggle to secure employment or establish sustainable businesses.
Addressing these challenges at different points along the education continuum is therefore critical. Progress at one stage depends, in part, on the foundations established earlier. This is an important consideration when developing education policies, allocating resources and assessing the long-term value of interventions. Education is not a series of disconnected interventions; it is a continuum.
A decade of strategic investment
Over the past ten years, we have invested more than R1.2 billion in furthering education and leadership. However, the significance of this contribution extends beyond the amount invested. It also offers an opportunity to examine how sustained funding, strategic partnerships and long-term planning can support educational development.
Our experience has reinforced the importance of directing resources towards interventions across the education continuum. These range from early learning and foundational education to higher education and entrepreneurship. The underlying objective is to strengthen the conditions that enable people to learn, progress and participate meaningfully in society and the economy.
We have also learnt that educational outcomes depend on an interconnected set of factors. A learner’s prospects are shaped by the quality of foundational education, teachers’ capabilities and available support. Access to tertiary education, psychosocial assistance and academic support also matters. Equally important are the pathways that connect education to employment and entrepreneurship.
This understanding has influenced how we approach partnerships. Rather than focusing exclusively on individual activities or beneficiaries, we work with organisations that can deliver measurable outcomes. We also consider whether their interventions can strengthen and remain sustainable over time.
This means looking beyond immediate programme outputs. We must consider the conditions that enable better outcomes. These include capable organisations, stronger programmes, sustained support and partnerships that can adapt and grow.
Although the programmes we support operate at different points along the education journey, they share an important purpose. They seek to strengthen the pathways through which people learn, develop their skills & leadership and participate meaningfully in society and the economy.
Building the foundations for future learning
Every learner’s educational journey begins before formal schooling. Early learning establishes the foundation for children to thrive at school and beyond. Foundational literacy and numeracy are therefore more than classroom outcomes. They underpin future learning, problem-solving, further education and employability.
When children fail to develop these competencies early, the consequences tend to accumulate as the curriculum becomes more demanding. According to the 2021 Progress in International Reading Literacy Study (PIRLS), 81% of South African Grade 4 learners cannot read for meaning in any language.
More recent evidence reinforces this concern. The 2025 Funda Uphumelele National Survey found that only about 30% of Grade 3 learners met the home language reading benchmark.
Learners who struggle to read for meaning are also likely to experience difficulties accessing knowledge in other subjects. Teachers are equally important in addressing these challenges. A capable and well-supported teacher can identify learning gaps and create an environment where learners progress. This impact can extend across successive groups of learners.
Our partnership with SmartStart, which we have supported since 2021, illustrates what sustained investment in early childhood development can involve. Over the past decade, SmartStart has demonstrated its early learning model’s reach and potential. It has reached more than 380,000 children and supported over 26,000 practitioners across all nine provinces.
The organisation has also reported an increase in children on track for their age, from 45% to 65%. Meanwhile, the equity gap between learners has narrowed from 25 to 6 percentage points.
These developments highlight an important lesson about early childhood investment. We must consider not only how many children programmes reach, but also whether those children develop the competencies they need. Measuring progress requires attention to both participation and learning outcomes.
There is also an economic dimension to early childhood development. The model carries a triple economic dividend. Women practitioners build and own their own ECD businesses. Mothers of children in their care gain opportunities to work, study or earn, knowing their children are safe and learning. Meanwhile, children develop the early foundations that shape their future prospects.
Beyond ECD, the next critical stage involves helping children read and calculate with confidence. Foundational Literacy and Numeracy (FLN) therefore requires continued attention from education stakeholders. We have contributed to this area through investments in organisations such as Funda Wande. We have also supported other organisations working to advance teacher development, improve classroom practice and upgrade learning materials.
The broader lesson is that improving literacy and numeracy requires more than placing additional resources in schools. It demands capable teachers, appropriate learning materials, effective classroom practices and consistent support. Without these elements, the education crisis will continue to affect learners long after their early schooling years.
Creating pathways from potential to opportunity
Access to education alone does not guarantee success. Many talented young South Africans must navigate financial hardship, family responsibilities, psychosocial pressures and limited access to professional networks.
Without appropriate support, these challenges can prevent capable learners from completing their studies. They can also make the transition from education into working life considerably more difficult.
Our partnership with the Make A Difference (MAD) Leadership Foundation, which we have supported since 2017, illustrates why educational access must go hand in hand with sustained support. MAD’s model integrates financial aid with mentorship, academic support, psychosocial services and leadership advancement.
To date, we have funded 297 students through this partnership to enable their access to education. The organisation publicly reports a 100% matric pass rate, an 85% graduation rate since inception and a 96% employment rate following post-secondary education.
These outcomes provide an opportunity to consider the importance of comprehensive student support. Financial assistance can open the door to education, but students may need considerably more to complete their studies and enter the workforce.
Mentorship, academic guidance, psychosocial support and leadership development can help address challenges that financial assistance alone cannot resolve. Young people may require continued support throughout the transitional phases that influence whether educational access leads to completion, employment and meaningful participation.
The benefits can also extend beyond individual beneficiaries. Graduates who enter the workforce, support their families, mentor their peers or contribute to their communities create a broader ripple effect. Their development becomes part of a cycle in which educational opportunities encourage leadership, social contributions and additional opportunities for others.
As one MAD graduate reflected:
MAD has taught me to lead with integrity and to work hard no matter what. These principles continue to guide my career and my decisions every day.
This experience reinforces an important consideration for education funders and institutions. We should not measure educational success solely by enrolment figures or the number of bursaries awarded. We must also examine whether learners complete their qualifications, secure employment and develop the capacity to contribute meaningfully to society.
Transforming technical skills into sustainable livelihoods
South Africa’s economic future depends on more than preparing young people to compete for a limited number of formal employment opportunities. We must also create pathways that enable technically skilled individuals to establish enterprises, generate income and create opportunities for others.
Artisans play a vital role in the economy. However, technical expertise alone does not guarantee business sustainability. Many qualified artisans possess strong practical abilities but lack the business systems, financial expertise, professional networks, market access and mentorship needed to grow their enterprises.
Our collaboration with Allan Gray Makers has focused on the relationship between technical skills and entrepreneurship. Through this partnership, we have supported artisan entrepreneurship by combining practical expertise with business development, mentorship and industry exposure.
Between 2024 and the first half of 2026, the initiative supported 667 individuals. These included artisans entering through StartUp Academy and established entrepreneurs receiving support through the Grow programme.
StartUp Academy participants established 281 businesses within their communities across the 2024 and 2025 cohorts. Furthermore, businesses originating from StartUp Academy that have progressed into Build or Grow now create an average of 3.4 new jobs per business.
These figures highlight an important lesson about skills development. Training individuals to perform a technical task is only one part of preparing them for economic participation. We must also consider whether they can turn those skills into viable economic activities.
When artisans formalise and expand their businesses, the benefits can extend beyond the entrepreneurs themselves. Their enterprises can provide livelihoods, strengthen the local supply of essential services and create additional economic opportunities.
The experience of Moses Ndlovu, a qualified electrician from Pretoria, illustrates this progression. Moses previously operated informally without a registered business, a dedicated bank account or structured financial systems. Although he possessed the necessary technical skills, limited commercial knowledge and market access restricted his ability to grow.
Through his participation in StartUp Academy, he registered and formalised his business operations. He also improved his customer acquisition strategies, obtained relevant certifications and expanded into solar installation. In addition, he developed the entrepreneurial skills needed to manage his business sustainably.
Today, Moses Ndlovu’s electrical services business generates a sustainable income and supports three additional income-generating opportunities. His experience demonstrates how technical capability, business development, mentorship and market access can help individuals move beyond informal economic activity. It also shows why entrepreneurship support should form part of broader skills development strategies.
Our contribution to this work extends beyond providing funding. We select and fund initiatives and partners that support positive systemic change in public education and skills development in South Africa. However, the wider lesson applies beyond any single funding organisation. Education and skills development must connect to realistic economic opportunities. Otherwise, we risk preparing people for an economy that cannot adequately accommodate their skills and aspirations.
The significance of long-term partnerships
No single organisation can overhaul South Africa’s education system. Government, educational institutions, civil society, funders and the private sector each have distinct capabilities and responsibilities.
Sustainable progress therefore depends on how these different strengths come together around shared goals. Collaboration is essential because educational challenges often extend beyond the capacity and resources of individual institutions.
Our experience over the past decade has reinforced the value of sustained partnerships. Fragmented funding focused on once-off projects rarely provides the same opportunities for organisational development and programme improvement.
Continuous support allows organisations to strengthen programme quality, build internal capacity and learn from implementation. It also gives them room to adapt their models in response to changing circumstances. We have also learnt that effective partnerships require more than financial support. Our work alongside partners includes contributing to programme development, strengthening organisational capacity, supporting monitoring and evaluation, and sharing expertise.
The relationship is therefore collaborative. We bring funding, strategic input and a broader system-level perspective. Our partners contribute their implementation expertise and understanding of the communities they serve.
This approach recognises that sustainable impact depends not only on what a programme delivers, but also on the strength and resilience of the organisation responsible for its delivery. Investing in programme execution and organisational capability can help effective partners strengthen and sustain their work. It can also create opportunities to extend their impact over time.
For us, the value of a long-term partnership is therefore not simply about funding a programme. It involves working with partners to strengthen what works, learning from what does not and building the conditions needed to sustain better outcomes.
This is particularly relevant when considering the education crisis. Short-term interventions may address immediate needs, but lasting improvements require institutions that can maintain progress and respond to emerging challenges. Funders, therefore, need to consider the long-term organisational implications of their decisions. They should ask whether their investments strengthen the capacity of institutions to continue delivering results beyond individual funding cycles.
A decade of investment, a generation of impact
Investment in education generates benefits that extend well beyond individual learners. It develops teachers who influence future generations of children, graduates who contribute to the economy and artisans who deliver essential services. It also supports entrepreneurs who generate income and employment, alongside leaders who strengthen their organisations and communities.
We founded the FEM Education Foundation because we believe education is the most powerful lever for sustainable social and economic development in South Africa. Investing in high-impact organisations that strengthen public education is an investment not only in learners, but in the future workforce, leadership and prosperity of our nation.
– Ndivhuwo Manyonga, Chairperson of the Federated Employers Mutual Education Foundation (FEMEF)
The real significance of the investment lies in what it has helped facilitate. These include stronger organisations, improved educational pathways, successful graduates, growing enterprises and opportunities that extend into families and communities.
Our experience demonstrates that meaningful impact takes time to build. It requires strategic focus, capable partners and a willingness to support people through the different stages of learning, development and economic participation.
It also reinforces the importance of measuring more than financial contributions or programme activities. We must examine whether interventions strengthen institutions, improve learning outcomes, expand opportunities and contribute to sustainable livelihoods.
Ultimately, education is not a collection of isolated interventions. It is a continuum in which each stage influences the next. Strengthening that continuum is essential to addressing the education crisis and improving South Africa’s capacity to develop a more skilled, inclusive and productive future.