Over the past decade, FEMEF has 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 & empowered learners, successful graduates, growing enterprises and new economic opportunities.

After a decade of investment in education, the lesson has become increasingly clear: lasting change cannot be achieved through isolated, short-term interventions. Instead, it requires sustained investment across the entire education continuum, encompassing early and foundational learning (ECD, literacy & numeracy), teacher development, school leadership development, higher education, and entrepreneurship. FEMEF has made a contribution to each of these areas over the past ten years.

South Africa’s education system remains a vital tool for social mobility, inclusive economic development, and nation-building. However, ongoing inequality, weak early and foundational learning outcomes, and very high youth unemployment continue to limit opportunities for millions of young South Africans.

The World Bank’s 2024 Learning Poverty Brief estimates that 82% of South African children at late-primary age are unable to read with comprehension, with adjustments for those out of school.  The evidence underscores why learning interventions aimed at addressing these foundational challenges are crucial at the early stages of learning. Economist and Nobel laureate James Heckman’s research shows that the highest returns to investment in human capital come from investing early in children, particularly from birth to age five, when the foundations for cognitive and socio-emotional skills are being developed.  On 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. This makes early learning particularly important: the earlier the foundations for learning and development are strengthened, the greater the potential to influence outcomes across the education journey and ultimately into adulthood and economic participation.

These challenges cannot be viewed in isolation. Learners who do not develop strong literacy and numeracy foundations are likely to struggle as they progress through the education system. Those who complete school may face financial and social barriers to further study. At the same time, graduates and technically skilled young people can still encounter considerable difficulty securing employment or establishing sustainable businesses.  Addressing these challenges at different points in the education continuum is therefore critical, because progress at one stage depends, in part, on the foundations laid at earlier stages.

“Education is not a series of disconnected interventions; it is a continuum,” says Nazeer Hoosen, Chief Executive Officer of FEM.

A Decade of Strategic Investment

The Federated Employers Mutual Education Foundation (FEMEF) was established in 2016 by FEM and its policyholders to contribute to meaningful and sustainable improvements in education and leadership in South Africa. Over the past ten years, the Foundation has invested more than R1.2 billion in furthering education and leadership. The significance of this contribution lies not only in the amount invested but also in the long-term thinking that has shaped how the funding has been directed.

Over time, this investment has supported interventions across the education continuum from early learning and foundational education through to higher education, and entrepreneurship, with a focus on strengthening the conditions that enable people to learn, progress and participate meaningfully in society and the economy.

FEMEF recognises that an interconnected set of factors shapes educational outcomes. A learner’s prospects are shaped by the quality of foundational education, the capabilities and support available to teachers, access to tertiary education, psychosocial and academic support, and the pathways into employment or entrepreneurship.

The Foundation works through strategic partnerships with organisations capable of delivering measurable outcomes through building interventions that can be strengthened and sustained over time. This means looking beyond individual activities or beneficiaries, but to the conditions that enable better outcomes: capable organisations, stronger programmes, sustained support and partnerships that can adapt and grow.

The programmes supported by FEMEF may operate at different points along the education journey. However, they are united by a common purpose: 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, with early learning laying the foundation for a child to thrive at school and beyond. Foundational literacy and numeracy are not merely classroom outcomes, they form the basis for future learning, problem-solving, further education and employability.

When children do not develop these competencies early, the effects 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. The latest data from the 2025 Funda Uphumelele National Survey further 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 have difficulty accessing knowledge in other subjects. Teachers are equally central to this, a capable, well-supported teacher can identify learning gaps and create an environment where learners progress, with the impact extending across successive groups.

FEMEF’s partnership with SmartStart, supported since 2021, shows what this longer-term view looks like in practice. Having spent a decade proving its early learning model, reaching more than 380,000 children and supporting over 26,000 practitioners across all nine provinces, with children on track for their age rising from 45% to 65% and the equity gap between learners narrowing from 25 to 6 percentage points.

For FEMEF, this partnership reflects why investing in the earliest years of a child's life sits at the heart of its strategy. The progress SmartStart has achieved, from the children reached to the outcomes achieved, shows what sustained investment in those earliest years can achieve.

Beyond the classroom, the model carries a triple economic dividend: women practitioners build and own their own ECD businesses; mothers of the children in their care are freed to work, study or earn, knowing their children are safe and learning; and the children themselves gain the early foundations that shape their future prospects.

Following on Early Childhood Development (ECD), the next critical step in a child's education is learning how to read and calculate with confidence. FEMEF has made a significant contribution through investing in the development of Foundational Literacy and Numeracy (FLN) through organizations such as Funda Wande, and other organizations to progress teacher development, classroom practice and upgrade learning materials.

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 or transitioning successfully from education into working life.

FEMEF’s partnership with the Make A Difference (MAD) Leadership Foundation, supported since 2017, illustrates how sustained investment can help turn educational access into progression and opportunity. MAD’s model integrates financial aid with mentorship, academic support, psychosocial services, and leadership advancement. To date, FEMEF has funded 297 students 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 illustrate the potential of comprehensive support to help young people progress from education into employment.   Young individuals may require ongoing support throughout the transitional phases that ultimately influence whether access leads to completion, employment, and substantive participation.

The advantages can also extend beyond individual beneficiaries. Graduates who enter the workforce, support their families, mentor peers, or contribute to their communities generate a broader ripple effect. Their development becomes part of a cycle whereby educational opportunities foster leadership, social contributions, and additional prospects.

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.”

Transforming Technical Skills into Sustainable Livelihoods

The economic future of South Africa relies on more than just equipping young individuals to compete for a limited number of formal employment opportunities. It is equally important to facilitate the ability of technically skilled individuals to establish enterprises, generate income, and create opportunities for others. Artisans play a vital role in the economy; however, possessing technical skills alone does not necessarily guarantee a business's sustainability. Many qualified artisans have strong practical abilities but lack the necessary business systems, financial expertise, professional networks, market access, and mentorship required to transition from informal work to the growth of their enterprises.

Through collaboration with Allan Gray Makers, FEMEF has promoted artisan entrepreneurship by integrating practical expertise with business development, mentorship, and industry exposure. This initiative has supported 667 individuals from 2024 to H1 2026, including artisans entering through StartUp Academy and established entrepreneurs supported through the Grow programme. Of these, StartUp Academy participants have established 281 businesses within their communities across the 2024 and 2025 cohorts. Among the StartUp Academy-originating businesses that have since progressed into Build or Grow, jobs are now being created at an average of 3.4 new jobs per business.

The significance of these outcomes extends beyond numerical data. When an artisan is empowered to formalise and expand a business, the investment has the potential to provide a livelihood for the entrepreneur, bolster the local provision of essential services, and foster further economic opportunities.

Moses Ndlovu, a qualified electrician from Pretoria illustrates this progression. Moses previously operated informally without a registered business, 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 participation in the StartUp Academy, he successfully registered and formalised his business operations, enhanced his customer acquisition strategies, obtained relevant certifications, expanded his enterprise into solar installation, and cultivated the entrepreneurial skills necessary for sustainable management.

Moses Ndlovu’s electrical services business now generates a sustainable income and supports three additional income-generating opportunities. His experience demonstrates how combining technical capability with business development, mentorship and market access can help an individual move from informal economic activity towards a more sustainable enterprise.

FEMEF’s contribution to this work, therefore, extends beyond funding. The foundation carefully selects and funds initiatives and partners that support positive systemic change in the public education and skills development in South Africa.

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 possess distinct capabilities and responsibilities. Therefore, sustainable progress relies on how these different strengths are brought together around shared goals.

FEMEF’s experience over the past decade indicates that sustained partnerships are more effective than fragmented funding focused on one-time projects. Continuous support provides organisations the opportunity to strengthen programme quality, build internal capacity, learn from implementation, and adapt their models in response to changing circumstances.

FEMEF’s partnerships extend beyond providing financial support. The Foundation works alongside partners to contribute to programme development, strengthen organisational capacity, support monitoring and evaluation, and share expertise. The relationship is therefore one of collaboration, with the Foundation bringing funding with strategic input and system-level perspective alongside the implementation expertise of its partners.

This approach recognises that sustainable impact depends not only on what a programme delivers, but also on the strength and resilience of the organisation delivering it. Investing in both programme execution and organisational capability can enable effective partners to strengthen, sustain and potentially extend their impact over time.

For the Foundation, the value of a long-term partnership is therefore not simply in funding a programme, but in working with partners to strengthen what works, learning what does not, and building the conditions for better outcomes to be sustained.

A Decade of Investment, a Generation of Impact

Investment in education generates benefits that extend well beyond the individual learner. It cultivates teachers who impact future generations of children, graduates who enhance the economy, artisans who deliver vital services, entrepreneurs who generate income and employment, and leaders who reinforce their organisations and communities.

Reflecting on the Foundation's purpose, Ndivhuwo Manyonga, Chairperson of the FEM Education Foundation (FEMEF), says: “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.”

As FEMEF commemorates its first decade, the R1.2 billion invested exemplifies a significant and lasting dedication to education. The true impact of this investment, however, resides in what it has facilitated: more robust organisations, enhanced educational trajectories, successful graduates, expanding enterprises, and opportunities that extend into families and communities.

The Foundation’s experience demonstrates that meaningful impact is built over time. It requires strategic focus, capable partners and the patience to support people through the different stages of learning, development and economic participation.

As FEMEF enters its second decade, the opportunity is to build on these foundations: deepening partnerships, strengthening what works and focusing investment where it can help catalyse greater and system-level impact. Education is not a collection of isolated interventions, but a continuum. Strengthening that continuum is an investment in South Africa’s capacity to develop a more skilled, inclusive and productive future.