Gauteng needs 200 more schools, says education MEC Chiloane
The increase in learners is exacerbated by people relocating to Gauteng, and private-public partnerships are required to address overcrowding.
File photo
The Gauteng education department is in the process of securing private sector funding to build 200 schools after receiving R2.5 billion from the national treasury for the 2025-26 financial year to build 18 schools, MEC Matome Chiloane has said.
'I would say [we need] about 200 schools — it would make a big difference. We are coming up with different strategies. Amongst those which I do believe will work quicker is the public-private partnership,' Chiloane told journalists at the weekend.
The provincial department said it faced an
The Gauteng department of infrastructure development says it plans to build 20 new schools by 2029, averaging about four schools per year. Gauteng, the country's most populous province, currently has 5 790 public schools.
Infrastructure growth has, however, not kept up with learner enrollments. Between 2014 and 2023, only 28 new schools were built, averaging one school for every 12 035 additional learners.
During the 2023-24 financial year, KwaZulu-Natal recorded the highest number of schools either built or renovated, with three projects completed, followed by Gauteng, Mpumalanga and the Northern Cape, which each
Chilaone said the increase in learners is exacerbated by people relocating to Gauteng and that private-public partnerships are therefore required to address overcrowding.
'The private sector comes on board to work with us to build schools, and then they hand over to us so that we can utilise them, and then we come into some form of agreement. So, that is in the process; we are just tightening the process,' he said.
Chiloane's comments echo those of Basic Education Minister Siviwe Gwarube, who has been actively championing a shift toward stronger
During a basic education lekgotla earlier this year, Gwarube again stressed that private sector partners are not merely financial supporters but 'thinking partners' who can contribute data, insight and innovative solutions to enhance foundational literacy and numeracy outcomes.
'The basic education sector is reeling from budget constraints. In this climate, corporate partnerships are critical in serving our 13.5 million learners across the country, regardless of where they come from. However, in partnering with corporations, we must implement measures to manage branding in schools. Partnerships are key and so is protecting our learners,' she said.
Earlier this year, the basic education department welcomed a McDonald's-led initiative that introduced solar-powered '
In May, Gwarube estimated that R32 billion was needed to provide additional classrooms at more than 8 200 overcrowded schools, while R14 billion would be required to construct over 13 000 toilets to meet minimum norms and standards.
The minister has said that 90% of the country's 22 381 public schools are in
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
4 hours ago
- Daily Maverick
National Treasury secures R26bn World Bank loan in strategic move for infrastructure reforms
South Africa has secured a R26-billion loan from the World Bank to modernise our infrastructure – without adding to sovereign guarantee burdens. But favourable terms mean little without delivery. Can South Africa finally convert reform pledges into real power, rail, and fiscal performance? In a bid to shift our faltering economy out of low gear, the National Treasury and the World Bank have inked a $1.5-billion (R26.5-billion) Development Policy Loan agreement aimed at unlocking long-promised, but long-delayed, structural reforms across the country's infrastructure backbone. Sweet deal, soft start The loan, which was finalised on Monday, 23 June 2025, comes with some pretty good terms — definitely better than if South Africa had just gone to the open market: We have 16 years to pay it back. So, it's a long-term plan, not a quick smash-and-grab. We don't have to start paying anything back for the first three years. This is a 'grace period' that gives us some breathing room to get things in order before the first instalment is due. The interest rate isn't fixed. It's a 'floating rate', which means it will change over time. It's tied to something called the six-month SOFR, which is a very stable and trusted international benchmark rate for US dollars. On top of that, we pay an extra 1.49%. 'If the borrowing is associated with capital investment, then there's the opportunity to generate a return that will help service the debt,' Old Mutual Wealth strategist Izak Odendaal told Daily Maverick. 'Borrowing to fund recurrent expenditure is much harder to justify.' Spreading the spending power Political and economic analyst Daniel Silke said the real issue is how it will be spent. 'Will it be spent credibly, efficiently, and without graft and corruption? We've gone through a decade or two where we have not invested in domestic capital formation. The backlog in infrastructure… now ultimately has to be funded, certainly in part, by external loans like this.' According to the National Treasury, the deal is designed to 'enhance the efficiency, resilience, and sustainability' of South Africa's public infrastructure services. The main focus: policy reforms in the energy and freight transport sectors that can enable broader infrastructure modernisation and private investment. 'This agreement reinforces the strong and constructive collaboration between the World Bank and the government of South Africa,' the National Treasury noted in the release announcing the loan's approval. Show me the money It's important to distinguish the loan's structure and purpose. This is a Development Policy Loan, meaning the funds are not project-specific. Instead, they are general budget support disbursed in tranches conditional upon meeting agreed reform milestones. The Treasury says these reforms centre on: Improving energy security. Boosting freight transport competitiveness. Advancing the just energy transition. Unlike project loans, this money won't directly pay for power stations or rail upgrades, but is aimed at incentivising reform across state institutions like Eskom and Transnet — and unlocking further capital by stabilising policy conditions. Disbursements are tied to measurable regulatory or governance benchmarks — such as unbundling electricity transmission or enabling third-party rail access — designed to unlock future private capital inflows. Reform or rewind The loan lands at a time of acute public finance strain: sluggish growth, surging debt service costs, and deep political gridlock following the collapse of a proposed VAT hike. With fiscal consolidation plans fraying under coalition tensions, the Development Policy Loan becomes not just a financial tool but a litmus test of South Africa's political capacity to implement reform. South Africa's history with reform-tied financing is mixed. From unbundling Eskom to fixing port backlogs, targets are often missed, deferred, or diluted. The Treasury insists this loan aligns with its broader fiscal strategy: to avoid contingent liabilities, limit market borrowing and crowd in private capital. Transmission tangle — another $500-million While the Development Policy Loan grabs headlines, it is part of a broader ecosystem of multilateral support. Reuters reports that the World Bank Group is also weighing a $500-million contribution to a proposed credit guarantee vehicle meant to underwrite South Africa's planned $25-billion transmission build-out. This facility would be a stand-alone fund, absorbing project risk and unlocking private sector participation without drawing on sovereign guarantees. The goal: unlock up to 20GW of stalled renewable energy capacity, particularly in remote provinces like the Northern and Eastern Cape. The Treasury plans to contribute $100-million in junior capital (first-loss tranche), eventually scaling to $500-million. Discussions are under way with partners including Miga, the International Finance Corporation, DBSA, AfDB, KfW, and British International Investment. While discussions remain at the proposal stage, the Treasury expects to finalise initial commitments before the 2026 Budget, contingent on co-financier alignment. Can we afford this? On paper, the Development Policy Loan offers low-cost, flexible financing. But it's still dollar-denominated debt in a fiscus under pressure. Repayments begin after three years (on principal), but interest accrues and must be made in hard currency, exposing the Treasury to forex volatility. With a floating rate (SOFR +1.49%), repayments will rise if global interest rates increase. The Treasury already spends over 20% of its main budget on debt service, and gross loan debt is projected to exceed 75% of GDP. Odendaal notes that this loan remains within the Treasury's foreign borrowing limits, but South Africa must tread carefully: most debt is rand-denominated for a reason. Odendaal notes this loan remains within Treasury's foreign borrowing limits, but South Africa must tread carefully: most debt is rand-denominated for a reason. Reform isn't optional While the World Bank does offer oversight and monitoring, Odendaal warns that no loan is immune to governance risk. 'There's no guarantee that the money is going to be allocated 100% efficiently,' he said. 'But it's probably a better option than trying to raise money in the market.' For now, the $1.5-billion is a breath of fresh air that, with luck, will offset short-term fiscal pressure and offer credible support to reformists inside the Treasury. The key to whether it will be maximised effectively, however, will have to come squarely from State-Owned Enterprises and Prasa and Eskom will benefit financially, but in order for South Africa to do so, governance will need to improve correspondingly to make the loan less a windfall, and more a structural change. DM
IOL News
8 hours ago
- IOL News
Deputy finance minister defends US$1. 5bn World Bank loan amid EFF concerns
Deputy Finance Minister Dr David Masondo has defended the government's decision to borrow US$1.5 billion (about R27bn) from the World Bank. Image: Timothy Bernard / Independent Newspapers The government's decision to borrow US$1.5 billion (about R27bn) from the World Bank will help grow the economy and not undermine South Africa's sovereignty. Deputy Finance Minister Dr David Masondo on Tuesday defended the loan, assuring the country that borrowing in itself is not bad. 'The question is, what are you borrowing for? (We are) Borrowing for infrastructure to grow the economy. The second issue is whether you will be able to service your debt,' he said. On Monday, the National Treasury announced that the loan will help unlock key infrastructure bottlenecks, particularly in the energy and freight transport sectors, and also enable inclusive economic growth and foster job creation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The EFF expressed serious concerns that the National Treasury has borrowed billions in the name of economic reform and stability but failed to ensure that this debt translates into jobs, industrial growth, or public infrastructure benefits. The party complained about the rising trend of foreign-denominated loans, particularly when there is sufficient liquidity in the domestic financial market and alternative monetary policy interventions that remain unexplored. 'These loans appear politically motivated and are designed to entrench long-term conditions that will bind future governments and constrain sovereign policy space,' the EFF stated. However, Masondo maintained that the loan sought from the World Bank is consistent with the government's intention to grow the economy and there is nothing in the agreement that undermines the country's sovereignty. 'We have always said, and that is what the RDP (Reconstruction and Development Programme) said, which is the founding policy document of the ANC and the (tripartite) alliance as a whole, which said that go and borrow money anywhere in the world as long as it's cheap, does not undermine our national sovereignty,' he explained. Masondo added that if the government borrows to aid economic growth, that is sustainable borrowing and debt. Addressing fears that the Iran-Israel conflict could adversely affect the South African economy through increases in fuel prices, Masondo said the government was observing the events with serious concern. 'If there is going to be, as we have already seen, disruption of supply chains, the supply of oil, it will definitely reduce the amount of oil that is required by the world, including South Africa,' he explained. Masondo said the government was very worried about the impact of the war that is going on in the Middle East and its consequence and impact on the supply chains. 'We know the laws of economics, where there is poor supply, under supply and the demand is high you will have the tendency of prices going up,' he said. Masondo was speaking on the sidelines of the Supreme Audit Institutions Summit of G20 member states at Melrose Arch, Johannesburg. He described the G20 as a crucial platform. 'If you have observed a number of decisions that are taken by the G20 become world decisions. They become decisions of the World Bank, IMF (International Monetary Fund) and other international institutions,' he said. According to Masondo, if the country does not participate in such platforms it could mean being governed through policies and decisions in which it played no part in formulating. 'So our participation in the G20 provides a great opportunity for Africa, global south and developing countries to shape how we are governed in the world in order to avoid powerful countries dictating what Africa and other developing countries should do,' he added. Masondo insisted that Africa and developing countries' voices were very critical.
Mail & Guardian
8 hours ago
- Mail & Guardian
Irish business leaders: Africa key to increasing agriculture, food production
Many African countries have doubled the importation of agricultural food crops from outside the continent, even after the ratification of the African Continental Free Trade Area. (Halden Krog/Bloomberg via Getty Images) Irish business leaders whose enterprises operate in Africa have appealed to other businesses to empower Africans, including young people, to increase agriculture and food production on the continent. Promoting education in Africa's food sector, and bringing those individuals forward to lead projects, is key to unlocking the continent's full potential, Chris Teeger of the Kerry Group — which owns the largest and most advanced taste facility in Africa — told a panel discussion at the Africa Ireland Trade Horizons conference in Dublin on Tuesday. Many African countries have doubled the importation of agricultural food crops from outside the continent, even after the ratification of the 'We need to see the value in African people. The youth are the key. The spirit they bring to everything is everything. We need to take those local people and youth, educate them, unskill them and let them lead the future of the food production sector in Africa,' Teeger said. 'We have employed many young people who are graduates from a vast number of universities and they have just grown and grown.' He noted that there is no shortage of resources in Africa and that South Africa, Egypt and Nigeria are leading producers of rice, maize and wheat, adding: 'We need to stop shipping commodities to Africa that are already available in Africa.' Ivor Queally, the chief executive officer of QK Group South Africa, backed Teeger's assessment of food production in the country. The QK group entered South Africa in 2005 and is now a key role player in the cold storage market, boasting one of the leading meat packing facilities in the country. Queally recalled that the company had discovered early on that the process of starting operations in South Africa would not be easy. 'We realised early that there was a gap in terms of education and skills. We therefore had to set up schools to educate our employees. We then noticed a lot of absenteeism in schools and found out that The investment in people, rather than products, had proved a success, Queally added. 'When we entered South Africa, we brought in Irish people to train our employees. Now, we have no Irish employees in South Africa and we bring Africans to Europe to do training on this side.' Africa needs to be promoted in Europe to allow investment that can help the continent reach its full potential, both Queally and Teeger told the forum, adding that Europeans need to understand that opportunities in the food production sector are plenty and that the relationship between the two regions can be equal and mutually beneficial. The journalist's trip to Ireland was sponsored by the Embassy of Ireland in South Africa.
