Real growth is happening in South Africa’s Early Childhood Development (ECD) sector and our numbers prove it. Over three years, IMBE-supported ECDs increased child enrolment by 32% and fee income by 9%, outpacing inflation and strengthening women-owned micro-enterprises across the country. A typical ECD now earns around R11,000 per month from fees.
These gains matter because South Africa’s ECD sector is powered almost entirely by women. They are not only caring for and educating young children, they’re running businesses that enable parents to work, create local jobs and keep communities thriving.
Unlike many initiatives where progress is difficult to track, IMBE has built data measurement into its core model. This year, we conducted our first Annual Business Diagnostics (ABD) survey to assess business performance, sustainability and practitioner feedback. Between late 2021 and mid-2024, we gathered insights from 1,253 practitioners on our Accelerator Programme across six provinces: Gauteng, Eastern Cape, Limpopo, KwaZulu-Natal, Mpumalanga and Free State. Of these, 1,083 completed both baseline and follow-up surveys, enabling comprehensive growth tracking across rural and urban communities.
This approach helps us understand what’s working, where support is most needed and how to unlock even greater impact. This is not measurement for measurement’s sake. It’s how we strengthen a sector that shapes both children’s futures and South Africa’s economy.
Fee Growth Without Losing Families
One of the most persistent fears among ECD practitioners is that raising fees will drive parents away. Yet our data shows the opposite. When centres improved quality and increased fees, more families enrolled. This suggests that when parents see value, including structured learning, quality care and safer spaces, they are willing to invest, even in low-income communities.
The strongest fee gains were recorded by ECDs charging lower rates (R30-R250), where small increases make a big difference to owners’ sustainability without placing undue pressure on families. Growth was particularly strong in KwaZulu-Natal (28%) and the Eastern Cape (15%), where rural centres demonstrate that improvements in safety, service offerings and trust can unlock significant business opportunities. This also points to a growing rural economy, challenging common assumptions about economic potential outside urban centres.
Small Centres, Big Growth
While overall enrolment grew across the board, the most dramatic gains came from smaller ECDs serving between 1-20 and 21-35 children, which saw an increase of 23%. Many of these are early-stage businesses that typically operate below capacity and are highly motivated to grow. Each new enrolment directly boosts their cash flow and increases their ability to cover operating costs, meaning growth is not optional but essential for survival.
This drive is translating into success, with these centres showing the strongest progress as they work to build more sustainable businesses. Larger ECDs, by contrast, often benefit from established reputations and word-of-mouth referrals that keep them consistently full.
What Practitioners Are Telling Us
More than 90% of surveyed practitioners say they would recommend IMBE to other ECD owners, because the changes they make directly improve business performance. Their progress is grounded in IMBE’s Five Pillars of Growth, introduced at Growth Day and forming the foundation of every practitioner’s Accelerator journey:
When asked what support would make the biggest difference going forward, their answers were remarkably consistent: 55% requested stipends to reduce financial pressure while 48% asked for additional training opportunities for themselves and their staff. These needs align directly with IMBE’s strategy of guiding practitioners to achieve registration with the Department of Basic Education (DBE), unlocking access to government subsidies and long-term financial security.
Practitioners themselves recognise that stipends, combined with continued upskilling, create the conditions for sustainability. They’re not asking for handouts, they’re asking for the tools to keep growing.
The Path to Sustainable Growth
The Annual Business Diagnostics survey findings reflect the resilience and capability of women-led micro-enterprises, especially when given the right tools and targeted support. When women gain the knowledge and confidence to run their centres like businesses, real growth follows.
The survey also points to what’s needed to sustain this progress, which includes longer-term business coaching, pathways for teacher development, micro-investments to improve facilities and strong peer networks that provide accountability and shared learning. These are areas where IMBE, together with government, funders and ecosystem partners, is actively scaling support.
Many ECDs may be small in size, but their reach extends far beyond their walls, affecting families, communities and the economy. South Africa’s future relies on the women who run these centres and the systems that back their success. At IMBE, we’re proud to walk alongside them as they build stronger businesses and stronger futures for the children in their care.
