FUNDISA RETAIL FUND: THE QUIET EXIT OF A BOLD EDUCATION SAVINGS EXPERIMENT
The closure of the Fundisa Retail Fund in 2023 marked the end of one of South Africa’s most thoughtful and quietly impactful education finance initiatives. Launched in 2007 to help low-income families save toward tertiary education, Fundisa was a pioneering effort that combined accessibility, public interest, and B-BBEE policy alignment in a single savings product.
Fundisa was built on a simple yet impactful idea which was to encourage families to save small amounts regularly for a child’s university education, and reward that effort with a government and industry-backed bonus. Investors contributing as little as R40 per month could receive a 25% annual bonus, up to R600, provided the beneficiary came from a household earning under R180 000 per year.
Furthermore, the Fundisa Retail Fund was recognised as a Socio-Economic Development vehicle under the Financial Services Sector codes, which allowed companies to obtain up to 2 bonus points on their scorecard if they invested 0.2% of their Net Profit After Tax towards the fund.
The Fundisa Retail Fund provided a model for truly inclusive transformation. Savings were ring-fenced for use at public universities or TVET colleges, ensuring that the fund supported formal, accredited education pathways, thus empowering its ultimate beneficiaries. Administered by ASISA in partnership with Nedgroup Investments and the Department of Higher Education and Training, the fund attracted over 21 000 investors at its height and helped fund education for more than 25 000 learners.
Throughout its life, Fundisa consistently exceeded the 75% black beneficiary threshold required for full Socio-Economic Development recognition on the FSC Scorecard. As a result, it became a strategic, low-administration option for firms looking to align their Corporate Social Investment (CSI) efforts with B-BBEE compliance and drive inclusive transformation.
The closure of the fund begs two main questions, “Where to from here?” and “What will happen to the Bonus points on the FSC Scorecard?”. The closure of the Fundisa Fund reflects a broader shift in education funding strategy in South Africa, from household savings support to fully subsidised bursaries. The bonus points remain available as the FSC Codes allow for similar initiatives to be recognised on the scorecard.
At Okiru Consulting, we help organisations design and implement education-linked initiatives that align with both social impact goals and B-BBEE compliance. To learn more about our Bursary Management offering and how we can help you structure a similar initiative, click on the contact us button below or email us on contact@okiru.co.za
