South Africa’s higher education institutions experienced a collective cash deficit of R832 million in the 2024 financial year, according to Stats SA’s newly released data detailing the sector’s sources and uses of cash. The findings offer a detailed look at how universities and other tertiary institutions managed their financial flows amid ongoing economic and operational pressures.

The report provides insights into both the operating and investment activities of higher education institutions, painting a picture of strong revenue performance offset by significant capital and financing outflows.

Revenue cash flows from operating activities totalled R111.9 billion, while expense cash flows for operating activities stood at R97.4 billion. This produced a net cash inflow of R14.5 billion from operating activities — evidence of sound operational management and consistent revenue streams from tuition, grants, and related income sources.

However, this operational surplus was counterbalanced by substantial outflows in investment and financing activities. Transactions in non-financial assets — such as infrastructure, property, and equipment — resulted in a net cash outflow of R9.6 billion, reflecting continued investment in academic and administrative facilities.

When combined, these movements resulted in a cash surplus of R4.9 billion before financing activities. Yet, financing operations placed additional strain on liquidity. The net acquisition of financial assets other than cash reached R4.6 billion, while the net incurrence of liabilities accounted for a further R1.2 billion in outflows. Together, these led to a net cash outflow of R5.8 billion from financing activities.

The overall cash deficit of R832 million reveals the financial challenges facing South Africa’s higher education sector. While strong operating inflows suggest that institutions remain effective in generating revenue, the growing cost of maintaining and expanding physical and digital infrastructure continues to pressure cash reserves.

These findings arrive at a time when universities are balancing multiple priorities — from expanding access and modernising facilities to maintaining academic excellence amid budget constraints and fluctuating government funding. The figures also highlight the sector’s dependency on consistent funding flows to sustain capital projects and research programs.

Moving forward, higher education institutions will need to place greater emphasis on financial sustainability, particularly in managing long-term assets and liabilities. Enhancing cash flow efficiency, optimising capital investment timing, and diversifying revenue sources could help mitigate future deficits.

In an environment where education remains a cornerstone of economic growth, the financial health of universities is critical not only for institutional stability but also for national development objectives. The 2024 cash deficit suggests that the sector must reassess how it balances operational performance with strategic investment.