2025 private school fees warning in South Africa

A recent research bulletin indicates that, on average, schools in South Africa have raised their fees by CPI plus 2.6% since 2012, and there are already signs that this will continue in 2025, which could be a tough pill to swallow for some parents.

South African parents with children in private schools should brace for yet another year of fee hikes exceeding inflation, as 2025 tuition increases are expected to follow a decade-long trend.

According to recent reports, school fees have consistently risen above inflation, with annual hikes averaging CPI plus 2.6% since 2012.

Forecasts indicate this trend will continue despite an estimated inflation rate of 5.1% for 2024, per the South African Reserve Bank (SARB).

As a result, parents are likely to face fee increases ranging from 6% to 10%, marking another substantial financial burden in an already challenging economy.

This pattern is not new. A SARB economic bulletin highlights that, while inflation has crept upward over the past decade, school fees have risen even more steeply, creating a widening gap between these costs and other consumer expenses.

If the Consumer Price Index (CPI) and school fees had matched rates in 2011, school fees would now be 22.8% higher than the CPI alone.

This above-inflation rise is especially significant given the already high fees at South Africa’s most prestigious private schools.

The SARB estimates an increase of around 7.7% in 2025 school fees, a figure that aligns closely with some schools’ early announcements.

For example, Roedean School for Girls recently published its fees for 2025, revealing a 7.5% rise, pushing the cost of tuition and boarding from R360,087 to R387,093.

Similar increases are expected across other leading institutions, cementing the upward trajectory of private education costs in South Africa.

Although private schooling has traditionally been a privilege of the wealthy, these ongoing increases are putting pressure even on high-income families.

While South Africa’s low- and middle-income households have grappled with rising living costs, record-high interest rates, and escalating fuel prices, wealthier households have also been stretched.

This financial strain is exacerbated by limited growth in disposable income.

Data shows that South African salaries have increased by a mere 1% over the past seven years, while inflation has surged by 40%, significantly reducing real purchasing power.

As school fees outpace both inflation and wage growth, many high-income parents are facing difficult financial choices.

The effects of these economic pressures are evident across the private school sector.

Curro Holdings, one of South Africa’s largest private education groups, reported concerning trends in its 2024 trading statement, suggesting that rising costs are affecting enrollment.

While overall enrollment increased slightly—from 71,809 learners in November 2023 to 73,159 in February 2024—the numbers have remained stagnant compared to the 73,047 learners registered in February 2023.

This levelling off in enrollment figures, particularly among younger grades, signals that some families may be reconsidering or postponing private education for their children due to financial pressures.

Curro noted that while high school enrollments have seen expected growth, early-grade enrollments have struggled under the strain of rising living costs and interest rates.

This shift is particularly pronounced among young families, who are often balancing school fees alongside other escalating expenses.

For these families, the cumulative impact of South Africa’s challenging economic climate has made private school affordability a growing concern, even for those who previously had the financial means to provide private education for their children.

This situation underscores a broader trend of financial stress extending into traditionally higher-income sectors of the South African economy.

Many middle- and high-income industries are showing signs of distress as households across the spectrum confront the reality of an enduringly high cost of living.

Private school tuition—once a relatively predictable expense—has become an increasingly heavy burden, raising questions about the future affordability of private education in South Africa.

As 2025 approaches, parents and educators alike face the difficult prospect of sustaining quality education amidst a tough economic environment.

Private schools will continue to be vital in offering specialised and enriched learning experiences, but as costs rise faster than incomes, more families may be forced to evaluate their educational priorities.

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