SETAs

SETAs, or Sector Education and Training Authorities, are South African statutory bodies established under the Skills Development Act of 1998. They administer sector-specific skills development programs and funding, working to align training with the needs of industry and the national economy. SETAs are public entities that operate within designated economic sectors, and their activities are overseen by the Department of Higher Education and Training (DHET).

Each SETA conducts a Sector Skills Plan (SSP) to identify skills gaps, critical occupations, and training priorities for its sector. They work with employers, worker representatives, training providers, and other stakeholders to develop and fund training initiatives, apprenticeships, and learnerships. The primary funding mechanism is the Skills Development Levy, a mandatory 1% levy on the payroll of qualifying employers, collected by SARS, and allocated to SETAs to fund mandatory and discretionary grants for employers and training providers.

SETAs administer grant funding that supports workplace-based training and skills development. Mandatory grants are available for employers who implement learnerships and other qualifying training, while discretionary grants fund a broader range of training initiatives and capacity-building within the sector. SETAs also monitor training providers and assess outcomes to ensure alignment with SSPs and national skills priorities.

Governance and oversight: SETAs are governed by boards with representation from employers, employees, and government, and they report to the Minister of Higher Education and Training. They publish Sector Skills Plans, annual reports, and performance plans, and coordinate with the QCTO for trades qualification standards.

Reform and status: The SETA system has undergone reforms and restructuring to improve efficiency and alignment with national skills strategies. The number and structure of SETAs have changed over time, with ongoing reforms aimed at streamlining governance and funding arrangements.