WeeklySA_AdminSPOTLIGHT: The institutions have a critical role to play in spite of public criticism levelled against them, argues the writer and W&RSETA boss…
By Tom Mkhwanazi
In recent months, Sector Education and Training Authorities (SETAs) have been the subject of intense scrutiny.
Headlines have accused us of corruption, political interference, poor value for money and limited impact on the labour market. While public institutions should always be held to account, it is equally important that the debate is informed by facts. The reality is more nuanced than the caricature often painted.
First, let us address the claim that SETAs are “corrupt to the core.”
Like all public entities, SETAs are subject to oversight by the Auditor-General of South Africa, the Department of Higher Education and Training and the Parliamentary Portfolio Committee.
Cases of irregular expenditure or procurement lapses in certain SETAs have rightly attracted public concern. However, these are exceptions, not the rule.
At the Wholesale & Retail SETA (W&RSETA), for example, we have received unqualified audits in successive years and have tightened controls to ensure procurement integrity. Where wrongdoing occurs, it must be confronted firmly but it is misleading to portray the entire system as rotten.
Second, there is the suggestion that SETA boards are dominated by “cadres” and political appointees.
The Skills Development Act sets out a clear framework for board composition: organised business, organised labour, government and community interests all have a seat at the table. This social-partnership model ensures that decisions reflect the perspectives of employers and workers on the ground. Our board is not a political deployment agency – it is a stakeholder forum where diverse voices negotiate the skills needed for our economy.
Third, much has been made of the figure that SETAs collectively spend around R20 billion a year, yet reach only 0.6% of the workforce. This statistic, drawn from the Bureau for Economic Research, deserves context.
SETAs are not designed to train the entire workforce every year. Instead, we focus on targeted interventions – learnerships, internships, bursaries and workplace training – that prepare unemployed youth for entry into the labour market and support upskilling in scarce occupations.
In the Wholesale & Retail SETA space, over 20 000 learners benefited from our programmes last year alone, with completion rates above 70%. More importantly, our tracer studies show that the majority of our graduates secure employment or start their own businesses within 12 months. That’s real impact in the lives of young South Africans.
Another claim is that “SETA learners receive more than university students and have little to show for it.”
It is true that many SETA programmes offer stipends above the NSFAS (National Student Financial Aid Scheme) living allowance. But this is because our learners are expected to participate in full-time workplace training, often incurring transport and meal costs. These stipends are not luxuries – they are enablers that allow young people from poor households to access opportunities they could otherwise never afford. And the suggestion that there is “little to show for it” ignores the countless success stories of young people who have transitioned into stable jobs through SETA-funded programmes.
None of this is to say that the system does not require reform. We acknowledge challenges with delayed grant payments, uneven quality among training providers and the need to strengthen monitoring and evaluation to prevent “ghost learners”. These are issues we are tackling head-on.
At W&RSETA, we have introduced real-time verification of learner attendance, stricter provider accreditation audits and faster turnaround times for mandatory grant disbursements. We are also collaborating with retailers to expand workplace placement opportunities, which are the true bridge between training and employment.
The debate we should be having is not whether SETAs should exist but how they can work better for South Africa. Skills development is not a “nice-to-have” – it is the engine of our future competitiveness and economic growth. With unemployment at record levels, especially among youth, dismantling SETAs would be reckless. Instead, we should double down on accountability, transparency and innovation.
As W&RSETA, we are committed to proving through results that every rand invested in skills development yields a return in jobs, productivity and dignity. The system is not broken, it is evolving. And with constructive engagement from all stakeholders, it can be one of South Africa’s greatest assets.
· Mkhwanazi is Wholesale & Retail SETA CEO
