This premier event on the arts calendar in South Africa was established in 1974 with Standard Bank becoming its title sponsor in 1984. As of 2001 the bank relinquished its title sponsorship and is now one of four main sponsors.

The Festival objectives are to deliver excellence; encourage innovation and development in the arts by providing a platform for both established and emerging South African artists; create opportunities for collaboration with international artists; and build new audiences. The Festival showcases new talent every year, in particular through the Standard Bank Young Artist Award winners. Standard Bank believes the awards play a vital role in nurturing and promoting South African talent. The winners feature on the main programme of the National Arts Festival and receive financial support for their Festival participation, be it the mounting of an exhibition or the staging of a production, as well as a cash prize.

Statistics show that the Festival brings in an excess of R35.5 million to Grahamstown each year giving a welcome boost to the local economy. More than 170 000 attendees visited the various events on offer at the 2009 Festival.