Liza Eustace: Head of Healthcare, Hospitality and Services at RMB. 
Yet, while global discussions at the G20 and B20 spotlight higher education and workforce reskilling, a quieter revolution is gaining momentum: early childhood development (ECD).
I believe that investing in ECD is not just a moral imperative but a strategic necessity for sustainable economic growth, social equity, and human capital development. By positioning ECD as the foundation of the education ecosystem, upskilling teachers and leveraging private capital and technology like AI, we can unlock transformative outcomes for South Africa’s youngest learners—and the nation as a whole.
The case for ECD is compelling
Research shows that 90% of foundational brain development occurs before age five, shaping neural pathways that influence lifelong learning, behavior, and health. Yet, only 70% of South African children aged two to six are enrolled in Early Childhood Care and Education (ECCE), leaving a critical gap that threatens long-term outcomes.
Studies, including those from the African Development Bank (AfDB), highlight that 50% of African youth face unemployment or underemployment due to skills mismatches. This crisis begins early: without a strong ECD foundation, children struggle to develop the cognitive and social skills needed for future academic and professional success. ECD isn’t just about daycare—it’s about building the scaffolding for economic productivity, social mobility, and national development.
The benefits of robust ECD programs are far-reaching
First, they drive long-term educational outcomes by fostering literacy, numeracy, and critical thinking skills from an early age. Economically, the impact is profound: effective ECD interventions can boost GDP by nearly 5% by improving workforce readiness and reducing social costs like crime and welfare dependency.
Socially, ECD promotes equity and inclusion, particularly for underserved communities, by leveling the playing field before disparities widen. Health and wellbeing improve, as early interventions reduce risks of chronic diseases linked to childhood stress. For working parents, access to quality ECCE enhances workforce participation, particularly for women, who often bear childcare burdens. Collectively, these outcomes strengthen South Africa’s human capital, a critical driver of investment stability and growth.
So, how do we bridge the ECD gap?
The answer lies in a multi-pronged approach. First, we need sustainable financing models. Blended finance—combining grants, commercial funding, and outcome-based incentives—can mobilise capital while sharing risks. RMB, as a leader in education financing, is pioneering such models to support ECD providers with infrastructure funding, working capital, and innovative student financing solutions. Second, mixed delivery systems blending public and private sectors are essential. Community- and home-based ECCE programs can reach rural and underserved areas, but they require recognition and investment. Third, infrastructure development—classrooms, safe play areas, and digital tools—is critical to accommodate growing demand. Finally, parental awareness campaigns are vital to underscore ECCE’s benefits, countering misconceptions that it’s merely a government or paid service.
At the heart of this transformation is teacher upskilling
With an average class size of 33 children, and retirement age set at 60 years, a teacher has the capacity to enrich the lives of 1,155 children in his/her career. But many South African teachers sadly lack the necessary curriculum, content and pedagogical knowledge required for effective teaching. The ECD workforce needs higher minimum qualifications and professional development to deliver quality education. Raising practitioner standards ensures teachers are equipped to nurture young minds, integrating nutrition programs—crucial for cognitive growth—and fostering inclusive environments.
RMB is committed to supporting educators through funding and partnerships, recognising that well-prepared teachers are the linchpin of effective ECD. Increasing teacher preparedness, accompanied by good nutrition is critical. A 2014 study by Mcaba, revealed that over 70% of foundation phase teachers enrolled in Advanced Certificate of Teaching (ACT) struggled to identify essential language skills required for effective teaching. Therefore, creating awareness of the platforms now available to empower teachers through innovative, accessible and self-paced professional development is paramount for the future of our children.
Technology, particularly AI, could change this space
While risks like digital divides and over-reliance on screens must be managed—especially given South Africa’s uneven internet access—AI’s potential is immense. Adaptive learning platforms personalise content, bridging gaps for diverse learners at a fraction of the cost of traditional tutoring. Real-time feedback tools empower teachers with insights to refine their methods, while translations into local languages like isiZulu or Sesotho enhance accessibility in a multilingual nation.
AI can also streamline administrative tasks, from grading to attendance tracking, freeing educators to focus on teaching and mentoring. By introducing children to technology early in a controlled, productive way, we prepare them for a digital economy without sacrificing critical thinking or social skills. AI can personalize education, upskill teachers, and leave more time for meaningful interaction with children.
Private capital and institutions like RMB play a pivotal role in this ecosystem
Beyond funding, they connect investors to high-impact projects and funds focused on education across Africa. RMB has facilitated major deals addressing the AfDB’s identified skills mismatch.
But ECD is where we see untapped potential. By supporting infrastructure, student financing, and blended finance models, we align incentives to deliver measurable outcomes, such as improved enrollment or literacy rates. For example, outcome-based financing ties returns to successes like increased ECCE access, ensuring accountability and impact.
South Africa’s education sector is buoyant, with corporate activity thriving and innovative financing gaining traction. Yet, the focus on ECD sets us apart. By prioritising the youngest learners, we address the root causes of unemployment and inequality, fostering a workforce ready for the demands of a rapidly evolving economy. The G20 and B20 may emphasise higher education, but ECD offers a more comprehensive approach to workforce development, starting where it matters most.
To lead globally, South Africa must act decisively
Policymakers should incentivise private-public partnerships, streamline regulations for community-based ECCE, and invest in digital infrastructure to democratise AI tools. Businesses must champion teacher upskilling and parental awareness, ensuring ECD isn’t seen as a luxury but a necessity. At RMB, we’re committed to driving this vision, leveraging our financial expertise to build an education ecosystem that delivers for all South Africans.
As we navigate technological disruption and economic challenges, ECD remains our greatest opportunity. By investing in our children’s earliest years, we’re not just shaping individuals—we’re building a nation that’s resilient, inclusive, and ready for the future.
Let’s seize this moment to redefine education as a lifelong journey that begins at birth. DM
Author: Liza Eustace: Head of Healthcare, Hospitality and Services at RMB