EC Provincial Government
The Eastern Cape Provincial Government, in partnership with the Manufacturing, Engineering, and Related Services Sector Education and Training Authority (MerSETA), has launched a R70 million debt relief initiative to assist unemployed graduates burdened by historical student debt.
Bhisho spokesperson, Khuselwa Rantjie, says the initiative targets young people aged 18-35 who have completed undergraduate qualifications in MerSETA-related fields.
She says the aim is to eliminate financial barriers that prevent graduates from accessing job opportunities and contributing to the economy.
“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," Rantjie says.
She adds that between 2019 and 2024, the province cleared over R100 million in student debt from its resources, benefiting nearly 5 000 graduates across its four universities.
In recent years, 13 SETAs have trained over 29,000 young people in high-demand fields such as automotive assembly, renewable energy, digital forensics, and cloud computing. Additionally, more than 8,000 youth have been trained in other skills, including animal and vegetable production, cellphone repairs, and early childhood development, with 700 young people with disabilities.
Rantjie says the MerSETA Mega Skills Project has also provided essential training to over 10,000 youth, further strengthening the province’s efforts to create employment opportunities.
She says the R70 million debt relief initiative will benefit graduates from Nelson Mandela University, Rhodes University, the University of Fort Hare, and the province’s eight TVET colleges. Walter Sisulu University’s historical debt is being addressed separately through direct funding from MerSETA.
According to Rantjie, eligible graduates must have completed undergraduate qualifications in fields such as Operations Management, Financial Accounting, Electrical Engineering, Mechanical Engineering, Computer Sciences, Electronic Engineering, Industrial Engineering, Mechatronics, Process Engineering, Metallurgy, Human Resources, Supply Chain Management, and Information Technology.
She said in 2023, historical student debt at the University of Fort Hare alone reached R151 million, affecting approximately 2,383 students. This financial burden prompted the provincial government to seek strategic partnerships to support young people.
Rantjie says the historical debt initiative underscores the Eastern Cape Government’s commitment to equipping youth with the necessary tools to succeed in today’s economy.
"By addressing student debt and providing high-demand skills training, the province is creating pathways to meaningful employment and long-term economic growth." She concluded.
