UCT’s financial performance for 2024

Dear colleagues and students

I write to provide you with an overview of the University of Cape Town’s (UCT) financial position, performance and cash flow for the year ended 31 December 2024. The Annual Report, which includes the annual financial statements, was considered and approved by Council on 28 June 2025.

I am pleased to report that the university received an unqualified audit report for 2024, reflecting our commitment to enhancing the control environment, sound governance and safeguarding the university’s assets.

Statement of financial position

The university's total assets increased by 5.0% in 2024, reaching R17.62 billion (2023: R16.79 billion), which reflects a sound financial position.

Student debt levels, which continue to be a significant financial challenge, stood at R836 million (2023: R593 million). We are proactively managing this through rigorous debt recovery, repayment arrangements and financial partnerships.

Our total liabilities are at R3.26 billion (2023: R3.27 billion) against total assets of R17.62 billion (2023: R16.79 billion), resulting in a healthy gearing ratio of 0.19 (2023: 0.19).

Financial performance

The university's financial performance in 2024 saw total revenue increase slightly by 0.6% to R8.68 billion, up from R8.63 billion in 2023. This growth was primarily driven by increased income from contracts (e.g research contracts) and tuition and other fee income.

After accounting for bursaries, scholarships and financial aid adjustments, tuition and other fee income was R2.31 billion in 2024 (2023: R2.03 billion). Income from contracts was R1.82 billion (2023: R1.78 billion).

Conversely, income from the state experienced a slight decline of 0.1%, amounting to R2.166 billion in 2024 (2023: R2.167 billion).

On the expenditure side, including personnel costs and other operating expenditure, the total was R8.53 billion (2023: R8.28 billion).

Financial support to undergraduate students amounted to R1.75 billion (2023: R1.80 billion), sourced from corporate bursaries, NSFAS grants and Council-controlled funds.

Cash flow planning and the statement of cash flows

Effective cash flow planning is critical for UCT. While cash flow is cyclical, with a low point in March and a peak in July/August, careful planning and management are in place through our cash management committee, chaired by me as the chief financial officer, which meets monthly and reports to the University Finance Committee (UFC).

Our cash reserves decreased largely due to a substantial increase in personnel costs, a decrease in donations and gifts received due to a challenging fundraising landscape, and an increase in working capital due to rising student debt.

2025 and beyond

Looking ahead, we face continued challenges, including the uncertain economic outlook and anticipated changes in the state subsidy and tuition fee model by the Department of Higher Education and Training, which could significantly impact our financial results.

The three key variables impacting UCT's financial sustainability are state subsidy, tuition fees and human resources planning/staffing models. The decline in NSFAS allocations and increased qualifying students also pose a challenge due to reduced per capita funding.

To address these, UCT initiated a Financial Sustainability Plan, with the first phase approved by Council in June 2022. A Financial Sustainability Project, supported by an external consultancy partner to drive its implementation, is under way.

Through these measures, we aim to uphold our commitment to excellence in teaching and research, ensuring that UCT remains at the forefront of academic achievement.

• Read the annual report.

Sincerely

Vincent Motholo, CA (SA)
Chief Financial Officer

Read previous communications:

• From the UCT Executive
• Campus Announcements