A new way to invest in South Africa’s children

South Africa is on a remarkable journey in early childhood education, known as the ‘early years.’ Today, around 60% of four-year-olds are enrolled in early learning programmes, a dramatic rise from just one in ten children under five in 2002. The recent introduction of compulsory Grade R marks a further step forward, placing early learning firmly at the heart of the education system. 

Few countries in Africa have taken such bold steps to institutionalise pre-primary education, positioning SA as a leader in recognising the foundational importance of the early years.

Gaps do remain

This is not to say there aren’t still gaps – there absolutely are and it is critical that we fill them. Progress has not been evenly shared, and access to quality early learning is still deeply unequal. Wealthier children are far more likely to attend ECD than their poorer peers, and in some of the most disadvantaged communities, many young children remain excluded from ECD.  

Even where children are enrolled, outcomes are not where they should be  - only 42% of children enrolled in an early learning programme (ELP) are developmentally on track. 

Children in low-fee centres are half as likely to be on track as those in higher-fee centres. Many ELPs continue to operate without formal registration or adequate funding, limiting their ability to provide quality services. Closing these gaps - on access, equity and quality -  is now the critical next step in South Africa’s early years journey.

Facing the challenges

At the same time, South Africa is emerging as a global leader in its commitment to the early years - well positioned to tackle these challenges head-on. Political will is strong, investment is increasing, and a vibrant ecosystem of government, donors and delivery partners is driving innovation and reform. 

The country has led the way in developing some of the most advanced tools and systems for measurement of quality and outcomes in the early years, such as QASS, the Thrive by Five Index, and the national ECD Census, while innovative initiatives like SmartStart are expanding access at scale. We are also seeing rising public and donor investment, accompanied by signals of prioritisation of the early years at the highest levels of political leadership. 

“We should have realised that to get this country on a much higher plane of development, we should have started with early childhood…. [in South Africa, there is] a unique opportunity to drive a progressive agenda for inclusive and equitable education” - President Cyril Ramaphosa, addressing the G20 in February 2025.

A new way

This is where another initiative to watch in the ECE space comes into the story. The Education Outcomes Fund (EOF) is a global platform that uses outcomes-based financing to link funding directly to results - paying for improvements in access, quality and child development, rather than activities alone. In 2025, EOF partnered with the government of South Africa to launch a flagship innovative outcomes-based financing programme in ECE. Together, the Department of Basic Education (DBE) and EOF are trialling an approach which will link funding directly to results. 

It’s an exciting development: combining South Africa’s strong policy momentum and delivery ecosystem with a model designed to incentivise real improvements in access, quality and child outcomes. This creates a powerful opportunity to test how smarter financing can accelerate progress where it matters most - on the ground, for children.

Genesis is the independent evaluator of this multi-year programme. Over the past few years, we’ve been deeply embedded in the South African ECD landscape. Our teams have contributed to the Thrive by Five Index studies, evaluated the National ECD Policy, and conducted the South African ECD Census on behalf of the LEGO Foundation and DBE. 

At the same time, we have strong expertise in the technical areas which underpin this programme – understanding the nuances of managing high quality data collection, the intricacies of impact evaluations, and how innovative financing approaches can best be leveraged for impact. 

We are privileged to sit at the intersection of this ambitious global initiative and on-the-ground delivery, and are excited to generate robust evidence on what is working in the programme, and why. Part of our work will also involve supporting the learning agenda – we’ll be surfacing practical insights on implementation, from data collection and provider retention to the dynamics between ELPs, training organisations, funders, and government.

This programme has the potential to drive meaningful progress across the areas that matter most - expanding participation, improving equity and inclusion, and strengthening the quality of early learning provision. 

At its core, it is about delivering tangible improvements in children’s development and life chances. It also represents an important opportunity to test how financing can be more effectively linked to outcomes - generating insights that can inform both South Africa’s journey and the global learning agenda on outcomes-based approaches. 

We look forward to sharing what we learn along the way.