IMAGINE TSIBA

Our second GlobalGiving report for 2026 is shared as we finalise our financial results and audit for the previous year.  While we continue to IMAGINE a TSIBA full of future possibilities and ask partners to imagine with us, we remain cognisant of the necessity to remain financially sound and to give comfort to donors who kindly chose to invest in us. 

Towards this, the financial commentary of our financial status as will be presented in the 2025 audited financial statements is shared below.

We trust that our partners will find this information valuable, insightful and comforting, in particular  against donations already invested in TSIBA and as contemplation to supporting our work in the years to come. 

Resilience in Pursuit of Financial Sustainability

During the 2025 financial year, TSIBA Education NPC continued to navigate a complex and volatile socio-economic landscape, reinforcing its position as a unique, purpose-driven social enterprise. Operating as a private, not-for-profit higher education institution, TSIBA’s primary mandate remains unchanged: transitioning talented young individuals from at-risk communities from potential economic exclusion into active, value-adding economic citizenship.

Financially, 2025 was a year of consolidation and structural adjustment with the integration of TSIBA Ignition Academy. The organisation recorded a net deficit of ZAR4,626,021 for the year (2024:ZA R4,656,061). Crucially, this deficit does not reflect operational inefficiency or an unsustainable cash drain; rather, it is heavily influenced by necessary non-cash adjustments - primarily a ZAR4,050,552 depreciation charge following investments in campus infrastructure and a legacy provision for bad debts of R395,823. Adjusted for these non-cash provisions, TSIBA’s core underlying operating performance showed significant resilience, achieving an adjusted operational deficit of just ZAR179,647. This reflects strict expenditure discipline and steady momentum in diversifying revenue streams to achieve long-term financial independence.

Income and Revenue Generation: Strengthening the Social Enterprise Model

Total revenue and ad hoc inflows for the period reached ZAR27,678,731, up from ZAR27,462,944 in 2024, representing stable growth despite broader macroeconomic headwinds. Total revenue for the year comprised:

• Donor income: Donor income (including South African and International philanthropic grants, individual giving and B-BEE Skills Development and Socio-Economic partnerships)grew by 9.3% to R18,315,388 (from ZAR16,759,999 in the 2024 financial year). This growth demonstrates continued corporate and institutional donor confidence in TSIBA’s mission, especially considering that the prior year included an additional ZAR1,605,597 in non-monetary (in-kind) support.

• Student fee income: Student fee income increased by 19.6% to ZAR7,270,762 (from ZAR6,081,340 in 2024). In alignment with TSIBA’s fees strategy, every student continues to study under a heavily subsidised fee model based on relative household affordability. This increase indicates a healthy growth in student enrollment and successful implementation of the fee-paying model, including a focus on selection of students with relatively higher affordability thresholds, and minimising student debt risk while safeguarding access for the most vulnerable.

• Commercial income: To buffer against funding volatility, TSIBA successfully expanded its internal revenue-generating activities. Income from venue hire grew to R881,496 (from ZAR704,860 in the previous year), while commercial rental income advanced to ZAR885,696 (from ZAR819,764 in the previous year), establishing a consistent operational income baseline.

 Operating Expenditure: Operational Efficiency and Strategic Reinvestment

Total operating expenses were managed down tightly to ZAR32,304,752 from ZAR32,119,005 in 2024, staying essentially flat despite local inflationary pressures. Operating income comprised:

• Human Capital: Employee costs remained the largest operational investment at ZAR18,546,965 (2024: ZAR17,999,764). This modest 3% increase underscored management's commitment to maintaining premium academic faculty and student support services, while enforcing strict institutional cost-containment.
• Credit Risk Management: A major highlight of the financial year was the dramatic stabilisation of bad debt provisions, which plummeted to ZAR395,823 from a legacy high of ZAR2,511,828 in 2024. This 84.2% reduction is direct evidence of improved student debt controls, clearer financial counselling, and better structural execution of the fee-paying model.
• Strategic Overheads: Offsetting the bad debt savings were intentional operational investments to enhance academic delivery and expand market visibility. IT costs increased to R1,240,759 (2024: R930,278) to strengthen digital education infrastructure, while advertising costs rose slightly to ZAR508,971 (2024: ZAR448,988) to drive student recruitment and corporate partnership pipelines.

Balance Sheet and Capital Structure:

TSIBA's financial position remains solid and debt-free, maintaining a total equity (retained funds) base of ZAR51,379,948 (2024: ZAR56,005,969).

• Asset Base: Non-current assets are dominated by land and building, being the campus at 51 Old Mill Road, Ndabeni, valued at a carrying price of well over ZAR 60 000 000. This world-class campus infrastructure continues to serve as the physical foundation for TSIBA's academic community.
• Liquidity and Net Cash Flows: Cash and cash equivalents closed the year at ZAR1,703,247, down from ZAR3,893,261 in 2024. This contraction was primarily driven by working capital shifts, notably a net outward cash flow from operating activities of ZAR2,190,014. The primary driver was the transfer of excess cash to the TSIBA Education Trust where a better interest rate is earned on endowments held by the Trust. At year end, an amount of ZAR1,608,997 was owed by the TSIBA Education Trust and ZAR530,000 by TSIBA Ignition Academy. The latter was settled in February 2026 and the former balance will remain to be offset against any bridging finance needed. Conversely, trade and other payables rose to ZAR4,553,343 (2024: ZAR3,563,308), reflecting optimisation of supplier credit cycles to preserve cash buffers.

Strategic Outlook:

The 2025 financial statements confirm that TSIBA Education NPC remains a going concern, fully capable of meeting its obligations to current and future students as mandated under Section 53(1)(a) of the South African Higher Education Act.

Looking ahead, management remains focused on balancing financial sustainability with maximum societal impact as we imagine a sustainable future. In 2025, TSIBA achieved exceptional operational resilience and financial stability. Through proactive expense management and optimised collections, leadership successfully safeguarded the institution’s cash reserves against ongoing economic headwinds. Having demonstrated strong capability in protecting assets, managing liquidity, and maintaining operational stability during a challenging period, TSIBA is now well positioned to build on its growing digital and future-focused programme areas to support scalable growth and long-term sustainability.

By tightly managing operational overheads, minimising credit risk, and cultivating diversified commercial and philanthropic partnerships, TSIBA is successfully cushioning its academic mission against donor volatility. The organisation enters the next financial period well-positioned to expand its footprint, continuing to transform high-potential under-resourced youth into active, tax-paying professionals who add real, measurable value to the South African economy.