SETAs: A Strategic Investment in South Africa’s Future

In recent months, Sector Education and Training Authorities (SETAs) have come under intense scrutiny.

Recent headlines have accused us of corruption, political interference, inadequate value for money, and a minimal impact on the job market.

While it is essential for public institutions to be held accountable, it is crucial that this discussion is rooted in facts.

The reality is more nuanced than the oversimplified narratives often presented.

First, let’s address the claim that SETAs are “corrupt to the core.”

Like all public entities, SETAs are monitored by the Auditor-General of South Africa, the Department of Higher Education and Training, and the Parliamentary Portfolio Committee.

Instances of irregular spending or procurement issues in certain SETAs have understandably raised public concern. However, these cases are exceptions rather than the rule.

For example, the Wholesale & Retail SETA (W&RSETA) has received unqualified audits for several consecutive years and has implemented enhanced controls to ensure procurement integrity.

When misconduct occurs, it must be addressed without hesitation; however, it is misleading to label the entire system as fundamentally flawed.

Next, there is the perception that SETA boards are filled with “cadres” and political appointments.

The Skills Development Act sets forth a clear framework for board composition: organized business, organized labor, government, and community interests all have a role.

This model of social partnership ensures that decision-making reflects the viewpoints of both employers and employees in the sector.

Our board is not a venue for political appointments; it serves as a stakeholder forum where diverse voices collaborate on the skills requirements of our economy.

Moreover, there has been much discussion about the claim that SETAs collectively spend around R20 billion annually, reaching only 0.6% of the workforce.

This statistic, sourced from the Bureau for Economic Research, requires additional context.

SETAs are not designed to train the entire workforce each year. Instead, we focus on targeted strategies such as learnerships, internships, bursaries, and workplace training that equip unemployed youth for entry into the labor market and promote upskilling in critical sectors.

In the W&RSETA sector, over 20,000 learners benefited from our programs last year, achieving completion rates exceeding 70%.

Importantly, our tracer studies indicate that most of our graduates find employment or start their own businesses within a year.

This signifies a genuine impact on the lives of young South Africans.

Another claim is that “SETA learners receive more than university students and have little to show for it.”

While it is true that many SETA programs offer stipends higher than the NSFAS (National Student Financial Aid Scheme) living allowance, this is because our learners are engaged in full-time workplace training, often incurring expenses for transport and meals.

These stipends are not luxuries; they are essential supports that enable young individuals from disadvantaged backgrounds to seize opportunities they could not otherwise afford.

The assertion of “little to show for it” disregards the numerous success stories of young people who have transitioned into stable employment through SETA-funded initiatives.

That said, we recognize the need for reform within the system.

We acknowledge challenges related to delayed grant disbursements, inconsistencies in training provider quality, and the need to enhance monitoring and evaluation to prevent “ghost learners.”

These are issues we are actively working to resolve.

At W&RSETA, we have implemented real-time verification of learner attendance, stricter audits for provider accreditation, and quicker turnaround times for mandatory grant distributions.

We are also collaborating with retailers to expand workplace placement opportunities, which are vital for linking training with employment.

The discussion we should be engaging in is not whether SETAs should exist but how they can operate more effectively for South Africa.

Skills development is not a “nice-to-have”—it is essential for our future competitiveness and economic growth.

With unemployment at unprecedented levels, especially among youth, dismantling SETAs would be irresponsible. Instead, we must bolster accountability, transparency, and innovation.

As W&RSETA, we are committed to demonstrating through tangible outcomes that every rand invested in skills development translates into returns in jobs, productivity, and dignity.

The system is not broken; it is evolving. With constructive collaboration from all stakeholders, it has the potential to become one of South Africa’s greatest assets.

*The author of this article is Tom Mkhwanazi, CEO of Wholesale & Retail SETA. The opinions expressed by Tom Mkhwanazi are not necessarily those of The Bulrushes.