Youth chamber calls for SETAs’ reform amid skills mismatch in South Africa

The Youth Chamber of Commerce and Industry SA (YCCI) is demanding urgent reform of the country’s Sector Education and Training Authorities (SETAs) and the involvement of small businesses and youth-led organisations in course development from the outset, not as an afterthought. 

The 21 SETAs primarily function as facilitators of sector-based skills development, ensuring alignment between workplace learning and labour market demands. 

Denise Rapitsi, chief executive of the YCCI, said that most small businesses avoid SETA training because it is either outdated, overly generic, or overly complicated due to excessive administration.

“Much of the content is based on qualifications that are no longer relevant to the modern economy. For example, small businesses are still being offered basic admin or safety courses when what they urgently need is digital upskilling, e-commerce training, and support to innovate in today’s economy. 

“What makes the problem worse is that SETAs are still using old implementation organisations that are completely out of touch; they lack an understanding of today’s business realities and have no commitment to permanent employment for youth. If programmes like the Youth Employment Service (YES) had truly worked, we would have seen a national shift by now, but we haven’t. The system is long overdue for disruption,” Rapitsi said.

She added that sectors like manufacturing, digital, retail, hospitality, and agriculture are hardest hit, as these industries evolve quickly and depend heavily on tech and service delivery, yet they can’t find workers with the right, up-to-date skills. 

“A local manufacturing business can’t find staff trained in digital machinery. A township bakery can’t hire people who understand basic inventory apps or customer service tools. A rural B&B can’t find someone with sustainability or online booking knowledge.

“The result? These businesses waste money retraining staff, lose time, and often lose workers altogether. It slows down growth, discourages hiring, and makes job creation nearly impossible in spaces that need it most,” Rapitsi said.

She said that reforms must include simplifying the grant application process, removing unnecessary red tape, and ensuring training is current, tech-forward, and aligned with entrepreneurship.

“Training must be practical, short-form, and designed to get people working or building sustainable businesses fast. Most importantly, SETAs must stop relying on outdated networks. Working with organisations like YCCI gives them real-time access to the people doing the work and creating jobs today. It’s time to stop funding irrelevant training that sits on paper and start investing in skills that build futures,” Rapitsi said.

Camagwini Mavova, spokesperson for the Department of Higher Education and Training, said each SETA is governed by an Accounting Authority (AA) comprising 14 members, drawn from social partners in the relevant economic sector.

“As the department, we are not naïve to some challenges in the system as they point out to some gaps hence, we continue to improve our skills planning system, much progress has been achieved since the approval of the White Paper for Post School Education and Training which directs the entire post school system towards responsiveness and quality provisioning. 

“On an annual basis, employers submit Workplace Skills Plans to SETAs indicating the skills needs in their workplaces. The department’s Annual Performance Plan has also included the target of credible Sector Skills Plans (SPPs),” Mavova said.

The department has developed a comprehensive SSP Framework, which guides the SETAs in developing their Sector Skills Plans. This framework enables SETAs to systematically identify and analyse sectoral change drivers, which are drawn from employer engagements, research, and a range of data sources, and to interpret their skills implications.

These implications directly inform the prioritisation and design of learning programmes and skills interventions that SETAs support or implement within each financial year, she said.

To maintain relevance and alignment with the evolving labour market and national policy priorities, Mavova said, the SSP Framework is reviewed and updated annually by the department. This ensures that the planning process remains responsive to shifts in the labour market and the broader strategic direction of government.

Furthermore, the department, in collaboration with SETAs, is actively exploring advanced skills forecasting methodologies to enhance the accuracy and robustness of skills planning. This includes efforts to strengthen how SETAs identify future occupational demands and align learning programmes accordingly.

However, Rapitsi said while SETAs are legally accountable under the Public Finance Management Act and must report to Parliament and the Auditor-General and are supposed to deliver annual Sector Skills Plans, in practice, many are just ticking boxes. 

“They focus on audits, not outcomes, and there is often no feedback loop to track if the training helped someone get a job or start a business. Accountability needs to move beyond paperwork and into communities. Training programmes should be judged by their impact, how many people were placed, how many businesses grew, how many jobs were actually created,” Rapitsi said.

She added that the Youth Chamber of Commerce and Industry is actively bridging this gap. 

“We are calling for programmes that focus on tech, business innovation, digital skills, and job-readiness, not outdated content. We also bring solutions, youth-led, agile implementation partners who know how to engage today’s workforce. We are on the ground daily, and we understand what young entrepreneurs and growing businesses need to succeed. Through our model, SETAs could access real talent pipelines, not just compliance reports.”

It is not enough for training and opportunities to reach only urban areas and townships. We must ensure that skills programmes are accessible to every young person, from rural villages to informal settlements.

Programmes like YES, Harambe, NYDA, and all SETAs must work with organisations like YCCI if they truly want to transform the economy. The reality is that many of these institutions are still ticking boxes instead of changing lives, Rapitsi added.

“The SETAs are using outdated partners who have no stake in building permanent employment or long-term growth. That must end. As a country, we can no longer allow public programmes to function in silos or serve only surface-level Key Performance Indicators. We, as in the people, business owners, youth leaders, and civil society, must call them out, hold them accountable, and demand inclusion. If we don’t, nothing will ever change,” she said.

Mavova said the Department, through the Quality Council for Trades and Occupations (QCTO), has initiated a structured process to involve industry stakeholders in the development of new occupational qualifications that are responsive to the dynamic and evolving needs of the economy.

She added that over the past five years, South Africa has produced more than 95,000 qualified artisans through programmes facilitated by SETAs. 

Among the leading trades in the 2023/24 financial year were electricians, diesel mechanics, plumbers, boilermakers, welders, fitters, and turners. These artisanal occupations play a critical role in supporting inclusive economic growth, infrastructure development, and industrial productivity, she said.

“According to the last Artisan Tracer Study conducted by the Department of Higher Education and Training, approximately 79% of artisans who completed their apprenticeship transitioned into formal employment, with an additional 2% becoming self-employed. These outcomes demonstrate the strong absorption capacity of artisan programmes and their relevance to labour market needs,” Mavova said.

However, this tracer study was conducted six years ago, between April 2018 and March 2019.

Mavova highlighted that over the past three years, SETAs have facilitated 266,000 workplace-based learning opportunities, including the placement of TVET graduates, work-integrated learning, internships, and learnerships, for the majority of young people under the age of 35.

She added that SETAs have supported over 187,000 skills development opportunities, with a strong emphasis on skilling youth and women, in the past three years.

Professor William Gumede from the Wits School of Governance said skills training at SETAs is outdated and irrelevant to the economy because a lot of employment now happens in the tertiary sector, which requires high technical skills.

gcwalisile.khanyile@inl.co.za