The Department of Basic Education (DBE), in partnership with the Education Outcomes Fund (EOF) and a coalition of South African and international donors and implementing partners, will launch the R496 million ($29 million) Early Childhood Care and Education (ECCE) Outcomes Fund on December 1. This transformative initiative links education funding directly to measurable results for children.

The three-year programme will expand access to quality early learning for more than 115,000 children in the Eastern Cape, KwaZulu-Natal and Limpopo, provinces where access to quality early learning remains among the lowest.

Minister of Basic Education, Siviwe Gwarube said: "This is about ensuring that where you're born doesn't determine whether you're ready for school. Every child in South Africa deserves the best possible start, and this Fund is a major step toward making that a reality." 

Supporting DBE’s Vision

The Fund directly supports the DBE’s 2030 Early Childhood Development (ECD) Strategy and Bana Pele Blueprint, which aim to expand access, improve quality and child development outcomes for underserved children. 

Currently, around 1.3 million children aged three to five are not enrolled in an Early Learning Programme (ELP), and only 42% of those who do attend are developmentally on track. The Fund addresses these gaps by supporting more than 2,000 ELPs through two complementary approaches:

• Building new early learning programmes in communities where none exist, providing safe, stimulating environments where young children can learn through play, develop social skills and build the foundations for school readiness.
• Strengthening existing programmes that are already serving children but need support to meet safety standards, improve quality, register with government to access subsidies and deepen their developmental impact.

“Every child carries a spark of potential. Together with the Department of Basic Education and our South African partners, the ECCE Outcomes Fund is backing 115,000 young children to get the kind of early start that should be normal, not exceptional,” says Dr Amel Karboul, CEO of EOF. “When a country chooses to pay for what really works in its youngest classrooms, it is choosing the future it wants.”

How Outcomes-Based Financing Works

The Fund introduces a more accountable way to finance early education. Instead of paying for activities, it links funding to independently verified results, ensuring every rand invested delivers measurable impact.

An independent evaluator assesses whether pre-defined outcomes are achieved before payments are released. Programmes must demonstrate that children are making developmental progress, that learning environments are safe and that quality standards are consistently maintained.

This model provides practitioners with training, mentorship and pathways to formal DBE registration that unlock government subsidies, making their work sustainable while raising standards.

A Local Ecosystem at Scale

Five South African organisations, SmartStart, The Early Learning Resource Unit (ELRU), The Unlimited Child, Ntataise and Impande, have been selected as implementing partners. All are home-grown, marking a first across EOF’s global portfolio and reflecting the strength and maturity of South Africa’s early learning sector. 

Together, they will deliver tailored solutions that strengthen early learning ecosystems in their respective provinces, working in communities where they have deep knowledge and trust.

A Coalition for Children

The Fund was developed by the Department of Basic Education with support from the EOF and a robust coalition of donors: the LEGO Foundation, Yellowwoods Social Investments, FirstRand Foundations, the Standard Bank Tutuwa Community Foundation and the Oppenheimer Memorial Trust.

As part of EOF's global portfolio, which includes similar programmes in Rwanda and Sierra Leone, the ECCE Outcomes Fund positions South Africa as a continental leader in innovative, outcomes-based financing for education.

The launch on December 1 will bring together government officials, implementing partners and funders to mark the official start of the programme.

Members of the media are invited to attend the launch of the ECCE Outcomes Fund as follows:

Date: Monday, 1 December 2025

Time: 09h00 - 13h00

Venue: Protea Hotel Midrand, 14th Street, Noordwyk Ext 20, 1685, Midrand