eZaga vs NSFAS
By Thabo Mosia
Cape Town, South Africa – 17 July 2024 – The Western Cape High Court has ruled in favour of eZaga Holdings (eZaga) in its case against the National Student Financial Aid Scheme (NSFAS). This victory reinstates eZaga as a direct payment provider for NSFAS student allowances, allowing the company to continue its mission of enhancing financial inclusion and providing seamless payment experiences for students, institutions, and stakeholders.
Court Ruling and Immediate Reinstatement
The judgement, delivered on 15 July 2024, highlights eZaga’s compliance with the highest standards of service and financial integrity. The High Court’s decision ensures that eZaga can resume its role in distributing student allowances, which had been abruptly terminated following the controversial Werksmans Report.
In its judgement, the court recognised that the tender awarded to eZaga by NSFAS met the constitutional requirements and that eZaga should have been allowed to present its case before any contract termination. The ruling restores eZaga’s contractual position with NSFAS, enabling the company to support students without interruption.
eZaga’s Commitment to Excellence
Saud Ally, CEO of eZaga Holdings, expressed relief and satisfaction with the court’s decision. “We are relieved with the court’s decision to reinstate eZaga as a trusted payment provider for universities and TVETs. This judgement is a testament to our commitment to integrity and excellence. We look forward to continuing our work with educational institutions, providing solutions that enhance financial inclusion and streamline payment processes.”
eZaga has consistently adhered to rigorous financial standards, implementing robust checks and balances to ensure the proper management of funds. The company remains committed to transparency and accountability, countering recent media allegations of corruption related to the NSFAS contract.
NSFAS’s Response and Future Actions
In response to the court’s decision, NSFAS acknowledged the judgement but emphasised that it pertains only to actions taken following the Werksmans Report. NSFAS has stated its intention to appeal the judgement and continues to support the recommendations of the Werksmans Report, which called for the termination of eZaga’s contract due to alleged procurement irregularities.
The Special Investigations Unit (SIU) and NSFAS’s application to set aside the contract remains pending at the Special Tribunal. NSFAS reiterated its commitment to implementing the report’s recommendations and maintaining transparency in the management of student funds.
Political Reactions and Implications
The Economic Freedom Fighters Students’ Command (EFFSC) has welcomed the termination of contracts with service providers like eZaga, calling for corruption-free management of student aid. The EFFSC highlighted inefficiencies and financial burdens imposed on students by these providers and reiterated its call for a state-owned bank to manage and distribute student allowances directly.
Julius Malema, leader of the Economic Freedom Fighters (EFF), has also voiced his support for scrapping NSFAS and paying institutions and students directly to eliminate corruption and improve efficiency.
Moving Forward
eZaga is determined to continue its efforts in enhancing financial inclusion and providing secure, transparent, and efficient payment services. The company extends its gratitude to its partners, clients, and stakeholders for their support during this challenging time.
“We extend our gratitude to our partners, clients, and stakeholders for their ongoing support and confidence in us during this challenging time. Together, we look forward to a future of continued growth and positive impact in the education sector,” concluded Saud Ally.

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