Background This research investigated the dynamics of fee-free higher education in South Africa, aiming to elucidate the complexities surrounding its implementation and impact. By employing a causal loop diagram approach, the study examined the interplay of socioeconomic, political, and institutional factors influencing the provision of fee-free higher education. Method A participatory approach to developing the CLD was used. Through an extensive literature review, the research contextualised fee-free higher education enabling a preliminary CLD to be developed. Discussions were held to improve the preliminary model based on stakeholder and expert opinion. The model was then validated by stakeholders and experts. Results The CLD has explicitly mapped out the causal relationships which play a fundamental role in fee-free higher education in South Africa. Key findings revealed that fee-free higher education initiatives, such as managing funding constraints and administrative complexities, hold promise for fostering inclusivity and socioeconomic development but are hindered by bureaucratic policy establishments and inefficiencies. These challenges underscore the gap between policy formulation and implementation, highlighting the need for comprehensive reforms to streamline administrative processes and enhance financial sustainability within the higher education sector. Conclusion This research thoroughly examined the dynamics of fee-free higher education in South Africa, highlighting both the challenges and opportunities in its implementation. The study emphasized the need for systemic reforms to improve accessibility and effectiveness, while also underscoring the potential of such initiatives to promote social mobility and economic empowerment, aligning with global goals like the SDGs and the African Agenda 2063.