The link between the funding of higher education and the attainment of higher education transformation goals in South Africa, especially access by students from previously under-represented communities, is the main focus of this paper. Specifically, the paper examines three questions: (a) How does public funding of higher education encourage (or discourage) the attainment of higher education transformation goals in South Africa? (b) What challenges do frequent tuition fee increases pose to the attainment of higher education transformation goals? (c) How can South Africa's higher education be made affordable for indigent (mostly black) students? The paper concludes that although South Africa's higher education funding formula is generally geared towards attaining the goals of transformation, several of its aspects are inimical to the achievement of these goals. Further, declining public funding of higher education and frequent tuition fee increases by public universities vis-a-vis higher education's natural inclination to reproduce, and even to exacerbate, existing social disparities and inequalities do not bode well for the attainment of transformation in South Africa's higher education. This is aggravated by existing high levels of poverty and inequality mostly affecting the majority of the communities that were marginalised during apartheid. (Contains 3 figures, 1 table and 1 note.)