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22 April 2025 | Story Terrance Molobela | Photo Supplied
Terrance Molobela
Terrance Molobela is a Lecturer in the UFS Department of Public Administration and Management.

Opinion article by Terrance Molobela, Lecturer in the Department of Public Administration and Management, University of the Free State.

 


 

Despite fierce opposition of the already passed National Fiscal Framework, the African National Congress (ANC) convened several meetings within and outside the Government of National Unity (GNU) mostly pioneered by its Secretary-General Fikile Mbalula who recently stated: “We are not trickers; we do not trick people. We engaged with ActionSA, and they said they do not want VAT; that’s not tricking anyone.”

One thing is clear, there is nothing binding on the GNU that after receiving additional budget proposals to raise revenue from ActionSA and Building One South Africa (BOSA), the VAT hike will be dropped. In fact, on 16 April 2025 in an interview with Newzroom Afrika the Minister of Finance Enoch Godongwana said: “I am not married to any increase or percentages”. The minister pointed out that the initial budget without VAT hikes was still on the table, however, he further highlighted that VAT increases remain Parliamentary policy issues. His advice is: “If you remove the 0.5% VAT increase, you must find an equivalent amount on the expenditure side to ensure the fiscal framework remains balanced.”

As the budget impasse stands, people need to understand that once the budget is passed by Parliament, the minister cannot unilaterally reverse the VAT increase. This is cemented by Section 12 of the Public Finance Management Act and Section 7(4) of the VAT Act. This ball is in Parliament’s court to reverse the budget and revenue proposal once alternative revenue generation proposal have been brought forward.

With 1 May 2025 looming, South Africans have a bitter pill to swallow as they will be charged R15.50% for every R100 spent. The media covered the VAT increase with rage and concerns from various communities across the country. The people feel punished by the GNU, while facing deep-rooted socio-economic problems like inequality, high unemployment, and poverty.

Despite the GNU deadlock and its fiscal crisis, several members within the ANC have unanimously admitted that the party has grossly failed to reach an amicable consensus within the GNU to freely support the VAT hike, hence it is vehemently opposed from all sides. Some critics suggest that the ANC-led government is poised to drop the VAT hike, but it’s unclear as to where and how the minister of finance would find the money to plug the fiscal gap.

 

Marriage may be sweet, but divorce is bitter

Both the ANC and DA knew ahead of time that forming the GNU with other parties was what is commonly known as “a marriage of inconvenience”. Before and on the wedding day, you both blind yourselves because of the sweet cake, joy, guests, and presents that long-lost friends will bring along. You create this beautiful picture that only exists in your head and hope that the other party shares a similar picture. But after you have entered the marriage, you then realise that you each functions on different levels and do not have complementary ideologies.

The DA’s ideologies on governance and policy is far the opposite of the ANC, and although it could work, the ANC have demonstrated their thirst for power and control, hence, their ability to share power equally remains a foreign language. DA leader John Steenhuisen has made it clear that they will not sacrifice citizens’ votes for a piece of cake but would rather fight and support a budget that caters for economic growth and job creation. This they have demonstrated by challenging the legality of the budget process in court, with hopes of blocking the implementation of a VAT increase, which has led to widening the rift within the fragile GNU.

 

The authenticity of the parliament – flawed budget process?

Amid mounting tensions created by the budget impasse, the National Assembly narrowly facilitated the national budget process, the DA, Economic Freedom Fighters (EFF), and uMkhonto weSizwe (MK) party rejected the budget, whilst the ANC-led government through coalescing outside GNU with parties like Action SA, secured majority support for the approval of the fiscal framework.

Parliament passed the 2025 National Fiscal Framework without the formal amendment of the mounting VAT and tax hikes. This was approved without binding recommendations, although budget committees suggested that the VAT and tax hikes be reconsidered at a later stage. As 1 May 2025 approaches for the VAT hike to kick in, reversing the VAT increase would be a lengthy process because it appears untenable.

The DA leader raised concerns that the Finance Committee acted ultra vires of the standing rules of Parliament, meaning the budget was not properly presented to the committee to reject or approve it, and that only a single proposal from the ANC was prioritised, whilst neglecting the DA proposal. This legal anomaly occurred under the watch of the National Assembly on the 2 April 2025. Hence, the DA have been challenging the budget.

One would ponder – “if the tables were turned, and the DA was in the position of the ANC and visa-versa, would the National Assembly opted to approve the budget framework?” I guess we would never know.

 

Where does the road lead now?

GNU: the ANC has already held several talks and meetings indirectly citing that the DA should hand over their divorce papers. But the president of the ANC needs the DA to remain in the coalition because of further economic shocks, which saw R1 trillion wiped out on the Johannesburg Stock Exchange (JSE). Investor confidence in the economy has hit rock-bottom, and the current trade wars have put pressure on multiple businesses to tighten their investment belts until it is safe to continue investing. The DA has not yet declared whether they want a divorce, but critics suggest that the Deputy President, Paul Mashatile, would be delighted if the DA left since they rejected the very same budget that they expect to reap from. As for ActionSA, it is unclear whether they have decided to join the GNU, but its leader Herman Mashaba has shown interest in joining the GNU, which most critics have weighed as a betrayal to the people of South Africa.

Ordinary citizens: It is time for South Africa’s citizens to brace themselves for the oncoming VAT hike. As much as the minister of finance has argued that it was necessary to stretch the already deeply embedded financial distress of citizens grappling with over-taxation of income, the bitter pill remains theirs to swallow. The 0.5% in VAT carries an underestimated distress for households who will be left alone to deal with increased prices of goods, services, and essentials.

 

What should be done thus far?

More tax on the people, goods and services kills jobs, which results in reducing revenue generation by government. To avoid further inflationary hikes, the government needs to approach the problem in an unusual way – this means placing strict rules and regulations on any government transaction that takes effect, deal with corruption and mismanagement at every sphere of government. Monies lost and stolen through unfinished projects should be recovered and ensuring that all state projects remain frequently monitored.

The government needs to change its ways of approaching industries, companies, and businesses to create jobs, and transfer some of their skills to the people of South Africa. The youth is yearning to be seen, supported, trained, and placed into the real world to unleash their potential, which might be something the economy needs to re-establish and position itself in the right direction to stir desired economic growth.

 

News Archive

Financial and registration information for UFS students (including international students)
2017-02-22


Update: 7 February 2017


The management of the University of the Free State (UFS)
is aware of a misleading post on social media this
past weekend.

The correct facts are:

1) In December 2016, the UFS received information of a
total allocation of R189 239 000 from the National Student
Financial Aid Scheme (NSFAS) for 2017.

2) NSFAS provisionally funded 453 first-time entering
students in January 2017.

3) During 2016, 3 868 students received NSFAS funding.
Should these students qualify according to the academic
requirements of NSFAS, they will qualify to receive the
same funding again in 2017. In the meantime, due to the
current backlog at NSFAS, the UFS assisted 2 573 of
these students who qualify for funding academically.
This will enable the students to register for 2017 while
waiting for NSFAS to make the necessary allocations.
Information as on 6 February 2017 indicated that 2 330
of these students already made use of the opportunity
and have registered for 2017.

4) On 6 February 2017, the UFS received communication
from NSFAS regarding an additional amount of
R66 513 252 which is available for first-time
entering students. Approximately 875 students
will benefit from this allocation. Financial Aid will soon
finalise this process and successful students will be
notified of the allocations.

5) The UFS is in the process of resolving the
classification of the quintile schools so that more
students could be assisted.

The above-mentioned is not final and will change
on a daily basis.

There is an understandable and shared concern among students of the University of the Free State (UFS) around the cost of higher education. This has been a topic of discussion not only on national level, but it has also been a priority for the university’s senior leadership in discussions with student leaders.

The following are ways in which students receive assistance to register for the 2017 academic year:

1.    Students receiving assistance from the National Student Financial Aid Scheme (NSFAS)

1.1    Senior students

1.    Senior students who received NSFAS assistance in 2016.

a.    This group of students will receive a NSFAS allocation in 2017, subject to the following terms and conditions:
i.    If they satisfied the 50% module pass requirement for the 2016 academic year.
ii.    If they satisfied the n+2 completion requirement.

b.    Students who conform to these requirements can register as from 31 January 2017.
c.    These students’ placement in residences can also be confirmed.
d.    These students will receive an allocation for books and meals subject to the prioritisation as prescribed by NSFAS.

2.    Senior students who received confirmation of a NSFAS allocation in 2017 with outstanding debt of not more than R20 000.

a.    These students must please visit the Student Finance desk in the different registration venues to make acceptable arrangements for payment of the outstanding monies.
b.    Acceptable arrangements refer to the payment of 50% of these outstanding monies by 30 June 2017 and the remainder by 31 October 2017.
c.    These students will be allowed to continue with their registration after the above process has been complied with.
d.    These students’ placement in residences can also be confirmed.
e.    These students will receive an allocation for books and meals subject to the prioritisation as prescribed by NSFAS.

3.    Senior students who applied for NSFAS assistance in 2017 for the first time or applied previously, but did not meet the qualifying criteria, may only register with the assistance of a NSFAS allocation once confirmed by NSFAS. In the absence thereof, these students may only register after payment of the required prepayments for full registration, or they may register provisionally.

1.2     First-time entering students
The university’s Department of Finance is dealing with this group collectively based on the confirmed financial assistance by NSFAS for the group as a whole.

1.    First-time entering students to whom an allocation have been confirmed by NSFAS will receive an allocation and will be able to continue with their registration. Their placement in residences can also be confirmed. They will receive an allocation for books and meals subject to the prioritisation as prescribed by NSFAS.

2.    First-time entering students who applied at NSFAS before the cut-off dates and matriculated at schools in the quintile 1 to 3 categories will be allowed to register on providing proof of submission of their application. Their placement in residences can also be confirmed. They will receive an allocation for books and meals subject to the prioritisation as prescribed by NSFAS. Confirmation of the students who matriculated at schools in the quintiles 1 to 3 (as per the data collected with the assistance of the university’s ICT Services) will serve as sufficient evidence of the NSFAS allocation still to be made to them.

3.    First-time entering students who can provide proof that the family income is dependent on a grant from the South African Social Security Agency (SASSA)  has also been confirmed to receive a NSFAS allocation.  Their placement in residences can also be confirmed. They will receive an allocation for books and meals subject to the prioritisation as prescribed by NSFAS.

4.    Please note that the above process only caters for applicants who applied in time and who are admitted in programmes for 2017.

1.3 NSFAS prescriptions towards the allocation of funds

NSFAS determined a priority order that must be used to distribute the NSFAS allocation. The priority order is as follows:

1.    Tuition fees
2.    Books
3.    Accommodation
4.    Meals
5.    Travel

The amount awarded must be allocated according to the above priority order until it is depleted. It thus means that all tuition fees must first be paid before an allocation may be made for books, accommodation, meals, and travel.

NSFAS also prescribes that no allowance may be paid until the student has signed his or her contract. Due to the backlog with allocations to students by NSFAS, contracts for these allocations are also not made available yet.

The UFS is fully aware of the predicament the above circumstances create for students with regard to the allocations for books and meals. To assist students as a transitional arrangement, the university took it upon itself to advance an amount of R750 for meals to all registered NSFAS recipients. This advancement will be paid by the students’ NSFAS allocation after they have signed the contract. All other payments, as per the priority order, can unfortunately only be made after students signed the NSFAS contracts. Signing of contracts will be done electronically.  

The advance for meals has been available since Monday 6 February 2017. Students  are reminded that they must be registered before the amount of R750 may be advanced. Students should visit the Financial Aid Offices for enquiries.

Students are requested to support the effort of the UFS by availing themselves to sign contracts as soon as it becomes available.

Students should also note that all universities were informed this week of the backlogs that has developed at NSFAS in the processing of financial aid applications made by first-time entering students and returning students. NSFAS is giving urgent attention to the matter. The UFS is monitoring the progress closely and will communicate with the affected students, if necessary.

2.    Senior students with outstanding debt who do not receive NSFAS funding

Students may register provisionally, subject to the following terms and conditions approved by the UFS Council on 2 December 2016.

1.    Students must be South African citizens. (International students may not register provisionally because of the Immigration Act.)
2.    Students must have been previously registered at the UFS.
3.    Students must be enrolled for full-time studies and must attend lectures on one of the three campuses (open-learning students, e-learning students, and students registered with Varsity College do not qualify for provisional registration).  
4.    Outstanding balances on an applicant’s tuition fees account for 2016 must be less than R20 000.

The minimum pre-payment to register provisionally in 2017 is:
R1 900 for non-residential students; and
R6 750 for residential students.

3.    Department of Higher Education Fees Adjustment Grant for 2017

The Department of Higher Education and Training will pay the fee increase capped at 8% for all qualifying registered students with a gross combined family income of up to R600 000 per annum in 2017. This is a grant and will not have to be repaid by qualifying students. The grant will only cover tuition fees and accommodation provided by universities. Students who are recipients of bursaries and scholarships that cover their full cost of study will have to pay the percentage fee adjustment.

The following students qualify:

1.    Only South African citizens and citizens with permanent South African residence studying towards an undergraduate or postgraduate qualification in 2017.
2.    The applicant and direct family (mother, father, spouse or legal guardians) must have a GROSS combined family income of R600 000 or less per annum before tax deductions.

The following students will not have to apply for the grant as they will automatically be considered:

1.    Applicants who applied for NSFAS funding.
2.    All students who attended quintile 1, 2, and 3 schools in Grade 12.

All other students will have to apply for the fee adjustment grant. The application form is available on www.ufs.ac.za. Incomplete applications will not be considered. More information can be obtained from the Financial Aid Office.

Students who are unsuccessful in their application may appeal within 14 days of the outcome of the decision by completing an appeal form which will also be available on the university's website at http://www.ufs.ac.za/kovsielife/unlisted-pages/bursaries/financial-aid.

The closing date for applications is 15 February 2017.

4.    International students

The prepayments for 2017 as approved by the UFS Council on 2 December 2016 are:
1.    Non-resident students: R28 160
2.    Resident students: R43 160

The following concessions were made to assist international students to meet the financial requirements for 2017 as approved by the UFS Council on 2 December 2016:

1.    Students who are unable to pay the full amount must visit Student Finance in registration venues.
2.    All outstanding monies of the previous year must be paid in full.

3.    The prepayment amount for 2017 will be calculated for each student based on the following:
a.    A minimum payment of R12 820 for non-resident students and R22 725 for resident students is payable before registration can be considered.
b.    A quotation will be prepared based on the academic advice for 2017.
c.    A payment agreement for the balance of the pre-payment or the first semester’s fees is signed by the student.
d.    This amount is payable not later than 31 March 2017.
e.    The registration of these students are subject to the on-time payment of the agreed amounts.    
The current position of the Department of Home Affairs is that all students who have pending applications should be allowed to register on condition that they produce their study visas by 31 March 2017 (Refer to the Minister’s Dispensation Immigration Directive 26 of 2016).

International students may apply for an emergency travel document at their respective Embassies/Consulates, as this will allow for cross-border travelling and will give the student an opportunity to register on site.

Students should bring or email a copy of their receipts as proof that they have applied for their study visa and a certified copy of their passport (issued by the South African Embassy or Consulate), confirmation of their medical aid (a SA medical aid registered under the SA Medical Schemes Act 131 of 1998). Students will have up until 31 March to submit their study visas to Mrs Niemann at the Office for International Affairs, located in the Mabaleng A Building on the Bloemfontein Campus; email: niemannaja@ufs.ac.za. Failure of which will result in deregistration of students.

Zimbabwe: Because Zimbabwe no longer issues emergency travel documents,  students from Zimbabwe must email a certified copy of their passport and receipt (issued by the South African Embassy or Consulate), and confirmation letter of the medical aid to Ms Jeanne Niemann from the Office for International Affairs on the following email address: niemannaja@ufs.ac.za. In doing so, students will be able to register online provided that their finances and their admission requirements are in order.

International students should note that the blanket concession was only for final-year students that could not complete their studies due to exams being written at the beginning of the next academic year.  If a student returned home in December 2016, this concession expired and the student had to re-apply for a study visa or apply for a visitor’s visa. The relaxed requirements will apply only to final-year students who were not meant to return and continue studies in 2017.

Please see the following explanation of the Blanket Concession:

CLARIFICATION – BLANKET STUDY VISA EXTENSION TO 31 MARCH 2017

Circular 31 of 2016 has reference.

The International Education Association of South Africa (IEASA) has brought to our attention that there may be some confusion regarding the blanket administrative extension to 31 March 2017 of study visas with an expiry date of or prior to 31 December 2016 granted by the Department of Home Affairs in Immigration Directive No. 25 of 2016.

The Department of Home Affairs has confirmed that the Directive does not serve as a replacement visa for students travelling home in December 2016. This Directive serves as an extension of current visas for students who need to complete their academic programmes in 2017. The DHA has advised that should any final-year students be travelling to their home countries in December 2016, they would need to return in January 2017 with a visitor’s visa.

5.    Enquiries

Bloemfontein and South Campuses:

Undergraduate and honours students: +27 51 401 3003 / 2806 / 9090 / 9670 / 2817 / 9669

Postgraduate students (Master’s and Doctoral): +27 51 401 9537

Refunds: +27 51 401 7050

Student cards (meals and books): +27 51 401 2799 / 3337

Collections: +27 51 401 3643 / 3448; Fax: +27 51 401 3579

Email: tuitionfees@ufs.ac.za  

Qwaqwa Campus:

Client Services: +27 58 718 5024 / 5119 / 5262

Student cards (meals and books): +27 58 718 5026

Cashiers: 058 718 5028; Fax: +27 58 718 5118

Email: nchapiem@qwa.ufs.ac.za

International Office:  

+27 51 401 3219

 

Released by:
Lacea Loader (Director: Communication and Brand Management)
Telephone: +27 51 401 2584 | +27 83 645 2454
Email: news@ufs.ac.za | loaderl@ufs.ac.za
Fax: +27 51 444 6393















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