Benita Williams & Tara Polzer-Ngwato
In the novel “Welcome to Our Hillbrow”, Phaswane Mpe paints a world where progress and crisis constantly intertwine—where systemic problems persist, and yet, against all odds, people keep pushing forward. South Africa’s education system is much the same. The data tells a bleak story 81% of Grade 4s can’t read for meaning—but beneath the surface, there is a small but determined ecosystem of educators, NGOs, and researchers working to change this reality.
Now, just as small signs of improvement were emerging, an external shock threatens to undo years of effort. USAID’s abrupt funding freeze, and subsequent cancellation, has blindsided organisations, leaving projects unfinished, salaries unpaid, and the most vulnerable learners without crucial support. This is not just a bureaucratic hiccup—it is a systemic rupture that could set back progress for years. The question now is: Will we let it?
USAID in Support of Education, and then…
USAID funding up to 2024 made various early-grade reading experiments possible and assisted the government of South Africa in developing and publishing reading benchmarks (that help teachers know how many words per minute a competent reader should read in each of the 11 South African official languages). In the period starting in 2025, USAID had committed to funding various reading improvement initiatives implemented by South African NGOs. Importantly, a repository of research, data and tools from all over the world was accessible through the USAID online development experience clearinghouse, ensuring that we do not try to reinvent the wheel, every time.
On January 28, USAID abruptly issued a stop-work order to all its implementing partners. They were advised to “Take immediate action to pause implementation of USAID program-funded activities and otherwise refrain from further commitments or expenditures of USAID funding, until further notice.” Shortly after, the web address for the USAID Development Experience Clearinghouse served a notice:. “The resource you are trying to access is temporarily unavailable.” On February 7, USAID.gov posted a notice stating that all USAID staff were on administrative leave, with international staff recalled to the U.S.” And in other correspondence from USAID, partners and staff were admonished not to communicate with beneficiaries or the media.
It was soon clear that the original US government communications about a ‘pause’ in funding, with the possibility of some activities receiving ‘exemptions’ and continuing, was, in practice, a shock that preceded the eventual cancellation of virtually all contracted funding agreements by USAID.
The disturbing early effects
As evaluators working in this sector, we are seeing first-hand how this funding freeze is pushing education programmes to the brink.
The abrupt USAID decision has blindsided organisations, leaving projects unfinished, salaries unpaid, and learners without the extra support they have come to rely on. This is not just a bureaucratic delay—it’s a systemic rupture that could set back progress for years. The question now is: Will we let it?
A rapid survey conducted between 13 and 22 February 2025, led by Social Impact Insights Africa, in collaboration with the South African National Association for Social Change Entities in Education (NASCEE) and other research organisations, provides a preliminary glimpse at the immediate effects of the USAID funding freeze. The data is stark: nearly half of the 111 education organisations surveyed reported direct or indirect financial losses. Some organisations have lost funding not just for future activities, but for expenses they had already incurred.
As a result, NGOs have been forced to draw down on meagre savings, break contractual commitments with staff and sub-contractors, or, in some cases, shut down altogether. The early numbers paint a grim picture:
- 178 core staff members have already been retrenched, with more likely to follow.
- A further 397 associates and partners—who work as trainers, curriculum developers, coordinators and researchers—are at immediate risk of losing funding.
This is not an abstract budget reshuffle. These numbers represent people—educators, literacy specialists, mentors—who have dedicated their careers to improving early-grade reading and now find themselves without jobs. These are projects that were working, now abandoned midstream.
A view from the ground
The impact isn’t just seen in spreadsheets; it’s playing out in real lives and real communities. An example shared on LinkedIn by Nal’ibali, a leading literacy NGO, described the devastating ripple effect of having their USAID funding frozen. The Siyafunda Community Leadership Hubs, which were wholly funded by USAID, lost their funding. 47 staff members were left in the lurch, and resources that support children, caregivers, and early childhood development (ECD) centres in low-income and rural areas around Msunduzi Municipality in KZN have suddenly disappeared.
According to Nal’ibali’s website, the organisation still receives funding from a range of donors, meaning its institutional capacity isn’t lost. However, for the communities, ECD practitioners, researchers, and local partners who saw hope in the Siyafunda initiative, the loss is immediate and irreversible.
Long-term systemic effects on resilience and democracy
South Africans are resilient. We have seen this before—when the COVID-19 crisis disrupted education, it was the network of NGOs, development practitioners, and grassroots organisations that mobilised quickly, ensuring children had access to learning materials and that vulnerable households received food relief.
But resilience has limits. Research by Tshikululu Social Investments (2020) showed that many NGOs saw their funding decline during COVID-19. Now, just a few years later, this USAID funding freeze represents a second systemic shock in quick succession. The consequences could be long-lasting unless new partners step in to fill the gap.
Compared to many other countries, USAID funding is a relatively small proportion of South Africa’s overall education budget, and basic services will not be disrupted. But what will be stymied is the systemic research, innovation, and targeted interventions that have helped us learn how to turn things around. We cannot afford to let important evidence, disappear between the cracks.
South Africa does not shy away from its challenges. We acknowledge them, debate them, and work to address them. It is the networks of researchers, development practitioners and data collectors working in and with government that allow our frank and open discussions about shortcomings. As the 2030 National Development Plan so poetically states, “We, the people… create rather than eliminate”—and we know that “value arises from improving through creativity that which we inherited.”
The question now is: Will we allow this funding freeze to derail the momentum toward better learning outcomes? Or will new funders and partners step up to ensure that this ecosystem of innovators remains strong?
If we truly value education, the answer should be clear.
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Ms. Benita Williams is the principal consultant at Benita Williams Evaluation and has worked as an independent evaluator of education programmes for more than 20 years.
Dr Tara Polzer Ngwato is a Director of Social Impact Insight Africa, and an experienced education evaluator and systems change strategist and facilitator.