The past year presented significant challenges for many universities and students due to the controversial cancellation of contracts between the National Student Financial Aid Scheme (NSFAS) and four fintech companies appointed to distribute monthly student allowances.
Much uncertainty still surrounds the cancellation of the contracts however, eZaga Holdings (eZaga), one of the affected fintech firms, committed to continue assisting students by paying their monthly grants on time. The company provided round-the-clock support for any funding-related concerns, organised food drives and implemented additional support measures to ensure students received their grants.
Khutso Mamabolo, President of the SRC at the University of Limpopo, commended eZaga’s responsiveness: “Having someone readily available to address our concerns 24/7 was a game changer. It allowed us to efficiently resolve issues and refocus on our studies. Previously, bureaucratic delays often resulted in extended periods without access to funds.”
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eZaga’s strategy focused on stability and efficiency in fund distribution. By working closely with Student Representative Councils (SRC) and students, the company ensured rapid issue resolution. This partnership has been crucial in maintaining consistency and reliability in the distribution of allowances.
Mamabolo added, “Initially, we encountered some minor issues with the system. However, eZaga fixed these glitches quickly to ensure students received their funds on time.”
One major problem with the previous NSFAS disbursement system, before appointing direct payment providers, was its unreliability and lack of payment security measure in place, often leading to delayed or incorrect payments being made.
Most notable was the regular payment of “ghost” students – individuals who didn’t actually exist. The appointment of four fintech companies significantly enhanced payment security and introduced stringent Know Your Customer (KYC) measures. These steps were crucial in ensuring that allowances were disbursed only to the rightful, qualifying students. As a result, there has been a drastic reduction in the incidence of fraud within the National Student Financial Aid Scheme (NSFAS).
Khumalo Siyemukela, last year’s SRC president at the University of Zululand said, “Considering the issues we had with NSFAS previously, eZaga innovated in addressing disbursement challenges and were always available to assist us.”
“eZaga was very good at getting us our money to us on time. As long as NSFAS fulfilled their role, we received our grants on time. What really set eZaga apart was their willingness to go above and beyond just transferring funds. When NSFAS payments were delayed, eZaga often helped needy students with food parcels,” he added.
Twanano Hlongwani president of Vaal University of Technology SRC noted, “A common issue was students’ transactions being declined, yet the funds would still be deducted from their accounts. We reported this to eZaga, who promptly resolved the problem.”
Despite initially facing reluctant adoption at various institutions, eZaga has steadily established strong working relationships with key stakeholders, including Student Representative Councils (SRCs) and institutional management structures showcasing eZaga’s growing influence and acceptance in these environments. eZaga’s success is best measured by the number of students it helped to overcome their challenges, and by this measure, the student body has given them a thumbs up.
