Eastern Cape to pay off R70 million student debt

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By Anita Dangazele

  • Eastern Cape government partners with MerSETA to clear R70 million in student debt for manufacturing and engineering graduates.
  • The plan aims to help over 2,000 students get their certificates and find jobs, with a focus on youth aged 18 to 35.

The Eastern Cape government will spend R70 million to clear student debt and help graduates without jobs find work.

Students who have finished studying manufacturing and engineering disciplines are set to benefit the most.

The money comes from a partnership with the Manufacturing, Engineering and Related Services Sector Education and Training Authority (MerSETA).

The aim is to remove financial barriers that prevent graduates from securing jobs.

Provincial government spokesperson Khuselwa Rantjie said the funding is for graduates aged 18 to 35 who completed studies in manufacturing and engineering disciplines.

“This groundbreaking initiative is part of the government’s broader commitment to youth empowerment and skills development, particularly for the unemployed youth of the province,” she said.

Rantjie said the plan was introduced after it was revealed that student debt at the University of Fort Hare alone had reached R151 million in 2023. This affected more than 2,000 students.

The R70 million will assist graduates from Nelson Mandela University, Rhodes University, the University of Fort Hare, and eight TVET colleges in the province.

Walter Sisulu University’s debt is being addressed separately, with funding coming directly from MerSETA.

In recent years, Rantjie said, 13 SETAs have trained over 29,000 young people in skills needed for jobs such as car assembly, renewable energy, digital forensics, and cloud computing.

More than 8,000 young people, including 700 with disabilities, have also received training in other fields, including farming, cellphone repairs, and early childhood development.

Rantjie said assisting with student debt and skills development will make it easier for young people to find jobs and contribute to economic growth.

Meanwhile, the latest Stats SA Labour Force Survey, released on Tuesday, showed that unemployment in the Eastern Cape has declined.

Pictured above: Eastern Cape premier Oscar Mabuyane.

Image source: Eastern Cape office of the premier.