The National Student Financial Aid Scheme (NSFAS) has been instrumental in the growth of the student accommodation sector in the past 22 years, allowing investors, construction companies and student housing management companies to expand. But student protests this month over funding shortfalls highlight the risks for the sector.

Ndumiso Davidson, CEO of student housing company South Point, said if students’ demands for expanded government funding are met, demand for housing aimed at NSFAS-funded students will strengthen...

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