Delivering his state of the nation address last month, President Cyril Ramaphosa promised to “reform and reduce the number of sector education and training authorities [Setas] to improve governance, strengthen industry participation, raise the quality of training and better align skills development with the needs of the economy”.
These reforms, he said, would ensure that various government training programmes were “a door to opportunity, not a dead end”.
We welcome the president’s commitment to overhauling the skills development system and implementing a model that integrates education with practical workplace experience.
Setas have faced criticism since their inception, mainly due to:
- poor performance;
- inadequate financial management;
- instances of fraud;
- procedural irregularities;
- excessive bureaucracy;
- strained stakeholder relationships; and
- prolonged turnaround times.
An improved model can deliver tangible, measurable results that drive economic growth, strengthen employability, reinforce institutional capabilities and directly address existing deficiencies. Achieving this requires an immediate review of all relevant skills development legislation.
Setas were established under the Skills Development Act (SDA) of 1998 — amended in 2008 and 2011 — to:
- address workforce shortages;
- broaden training access for previously disadvantaged groups;
- improve employability; and
- encourage greater investment in education and training.
Reducing the number of Setas will decrease duplication and enhance co-ordination. For instance, merging Setas that have parallel sectoral orientations and skill requirements could promote a unified strategic approach to national skills development
The SDA also led to the creation of the National Skills Authority (NSA) and the National Skills Fund (NSF), tasked with facilitating skills acquisition, promoting industry engagement and executing the National Skills Development Strategy (NSDS). The NSDS was superseded by the National Skills Development Plan (NSDP) of 2018–2030, which aligns more closely with the ambitions of the National Development Plan (NDP) 2030, particularly its focus on measurable impact.
Initially 25 Setas were created, each aligned to a sector. In 2010 the number was reduced to 21 to streamline operations, with oversight shifted to the department of higher education and training. Currently each Seta operates sector specifically, helping identify and address the industry skills needed. The 21 Setas operate independently, creating potential duplication in administrative functions, wasting resources and reducing efficiency. They are crucial for addressing skills mismatches by investing in workforce development, conducting skills assessments and fostering a culture of continuous learning.
Skills mismatches appear as horizontal mismatches — those that occur when employees have qualifications but lack role-specific skills — as well as vertical mismatches and skills obsolescence. A shrinking pool of highly skilled workers, limited career opportunities and a brain drain compound the problem.
The government can draw lessons from Brazil’s employer-led apprenticeship model and Australia’s advanced data intelligence and quality assurance systems. These can offer guidance on transforming proposals into practical measures.
The main Seta challenges — among them skills mismatches and a silo mentality — will form the foundation for reform discussions. In this regard, reducing the number of Setas will decrease duplication and enhance co-ordination. For instance, merging Setas that have parallel sectoral orientations and skill requirements could promote a unified strategic approach to national skills development.
This reduction in numbers must be accompanied by a strengthening of post-school education and training institutions, including the NSA, the Quality Council for Trades & Occupations and the National Artisan Moderation Body, which play an important role in governance and training quality. This may be achieved by:
- establishing comprehensive guidelines;
- frameworks promoting inter-institutional co-operation; and
- structures to encourage Setas to engage collaboratively; also by
- strengthening accountability mechanisms to ensure Setas deliver effective skills development initiatives and use their funding efficiently.
This may require more rigorous reporting requirements, conducting systematic evaluations, quality assurance audits and assessments and establishing clear consequences for Setas that do not achieve their performance targets.
Establishing a consolidated platform for all Setas would allow strategic non-core activities to be managed more effectively, leading to cost reductions and minimised duplication
Strengthening governance structures is essential for the effective functioning of Setas, which must focus on building professional and ethical internal environments, starting with their boards and leadership. Professional boards and chairpersons are responsible for providing strategic leadership, upholding accountability standards and fostering transparency. Recruiting professional CEOs with proven track records in public sector transformation and skills development is also crucial to the success of Setas. Their role is vital and the candidate must have extensive industry knowledge, exceptional leadership abilities and a strong commitment to the Seta’s mandate.
A framework of consequence management should be clearly articulated and consistently implemented to ensure individuals are held responsible for their actions and that consequences are administered equitably.
It is recommended that Setas put in place a shared services model that centralises administrative functions, realises economies of scale and standardises processes to optimise both costs and operational efficiency. Establishing a consolidated platform for all Setas would allow strategic non-core activities to be managed more effectively, leading to cost reductions and minimised duplication.
Adopting a shared services model for human resources (HR) would facilitate centralised talent management and development, allowing Setas to draw on collective expertise and established best practices. This would promote streamlined, efficient and pragmatic HR operations, supporting Setas in attracting, developing and retaining high-calibre talent.
A unified digital platform for information communication technology would establish a secure and resilient infrastructure to facilitate the operational management of Setas. This could be anchored by blockchain technology that ensures integration and industry-unique solutions.
This transformative approach would promote seamless system integration, strengthen data analytics capabilities and enhance cybersecurity measures, thereby supporting the effective delivery of high-quality education and training programmes.
Reforming the Setas will help bridge the gap between education and employment — resulting in higher productivity and increased employability.
• Yende is chair of the Association of Seta CEOs, and CEO of the fibre processing and manufacturing (FP&M) Seta
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