This working paper examines the financial and regulatory dynamics of South Africa’s early childhood care and education (ECCE) sector, with a focus on the impact of compliance with norms and standards on affordability and quality. Using updated data from the 2021 ECD Census and Thrive by Five Index 2021, the paper reveals that meeting regulatory requirements significantly contributesontribute to cost barriers to access for low-income households, exacerbating inequalities in early learningc opportunities. It highlights the need for a sustainable financing model that ensures equitable access to quality early childhood services while maintaining regulatory integrity.