SETAs Are Not Failing; They Are an Investment in South Africa’s Future

In the past few months, Sector Education and Training Authorities (SETAs) have faced significant scrutiny.

Headlines have accused us of corruption, political interference, poor value for money, and limited impact on the job market.

While public institutions must be accountable, it’s crucial that the discussion is rooted in facts.

The truth is more complex than the simplified narrative often presented.

First, let’s tackle the accusation that SETAs are “corrupt to the core.”

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

Cases of irregular expenditure or procurement issues in specific SETAs have understandably raised public concern. However, these instances are the exception, not the norm.

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

When misconduct occurs, it must be addressed decisively; however, it is misleading to characterize the entire system as fundamentally flawed.

Next, there’s the notion that SETA boards are dominated by “cadres” and political appointees.

The Skills Development Act outlines a clear framework for board composition: organized business, organized labor, government, and community interests all participate.

This model of social partnership ensures that decisions reflect the perspectives of both employers and employees in the field.

Our board is not a political appointment venue—it is a stakeholder forum where diverse voices collaborate on the skills requirements of our economy.

Furthermore, much has been said about the figure that SETAs collectively spend approximately R20 billion annually while only reaching 0.6% of the workforce.

This statistic, sourced from the Bureau for Economic Research, needs further context.

SETAs are not intended to train the entire workforce annually. Instead, we focus on targeted interventions such as learnerships, internships, bursaries, and workplace training that prepare unemployed youth for entry into the labor market and foster upskilling in critical professions.

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

More significantly, our tracer studies indicate that most of our graduates secure employment or start their own businesses within a year.

That is a real impact on the lives of young South Africans.

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

It is true that many SETA programs provide stipends above the NSFAS (National Student Financial Aid Scheme) living allowance.

This is because our learners are engaged in full-time workplace training, often incurring transport and meal expenses.

These stipends are not luxuries—they are vital supports allowing young individuals from disadvantaged backgrounds to seize opportunities they otherwise couldn’t afford.

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

That said, we recognize that the system requires reform.

We acknowledge challenges related to delayed grant disbursements, varying quality among training providers, and the necessity to enhance monitoring and evaluation to prevent “ghost learners.”

These are issues we are actively addressing.

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

We are also partnering with retailers to broaden workplace placement opportunities, which are essential for connecting training with employment.

The conversation we should be having isn’t whether SETAs should exist but rather how they can operate more effectively for South Africa.

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

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

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

The system is not broken; it is evolving. And with constructive collaboration from all stakeholders, it can become one of South Africa’s greatest assets.

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