The programme was established in 2007 to increase the supply of competent teachers specialising in priority areas.
The Department of Basic Education will also consider the expansion and supplementation of the programme, said Minister in the Presidency responsible for Planning, Monitoring and Evaluation, Jeff Radebe.
He briefed media in Cape Town on Thursday on the outcomes of the Cabinet meeting on 1 March 2017.
The Minister said Cabinet had approved the report on the Implementation Evaluation of the Funza Lushaka Bursary Programme as well as the management response and improvement from the Department of Basic Education.
This was part of the 2014/15 National Evaluation Plan.
“Empirical evidence shows that the design of the programme is relevant in terms of its political, economic and social context. It is also largely appropriate in terms of the complex environment in which it is implemented.
“The programme has implemented continuous improvements in its strategy, including the introduction of a district-based recruitment system in 2012. It has made an important contribution to a substantial increase in enrolment in initial teacher education,” said Minister Radebe.