1. Introduction
Skills in South Africa are in demand, in fact, in a country where
4.3 million people are unemployed, they are pretty much all at
rage. Therefore, a Skills Development Act can be a golden ticket
to a prosperous life, jobs and opportunities. By the end of this
assignment, we will be able to describe Sector Education and
Training Authorities and the role it plays in Skills development in
South Africa.
1.1 Sector Education and Training Authorities (SETAs)
National Skills Authority explains that the Sector Education and
Training Authorities (SETAs), was established in terms of Skills
Development Act, 97 of 1998. Their main aim is to deliver towards
achieving a skills revolution in South Africa, to bring skills to the
employed, in their section. This is done by assisting to implement the
National Skills Development Strategy. They have to do this by
ensuring that people learn skills that are necessarily needed by the
employers and the communities. There is no need to train people if
they cannot use the skills they have learnt. Furthermore, training
and skills development is not just for young people to start their first
job, but it is important for them too. And, the skills of the people who
are already working should be enhanced. The National Skills
Authority also explains that training must be agreed standards and
within a national framework wherever possible.
The Excellence in Education & Training (2018) mentions that the act
makes provision for skills development by levy-grant scheme, and
the establishment of 27 SETAs, each focused on a particular section
of the economy, for an example, there is a SETA that deals with the
banking sector and one that deals with the agricultural sector. The
SETAs are responsible for payment of the training levies payable by
all employers. These levies are collected by the South African
Reserve Service through the Department of Labour, which is the
overseeing governing body. Disburse levies are collected from
employers and their sector.
University of South-Africa (2011:31) explains that the SETAs
objective is to ensure that the skill requirements sectors are
1|P ag e
, identified and that the appropriate skills are available. SETAs
improve and enhance the sector skills by achieving a favourable
balance between demand and supply and ensure that education and
training:
are provided subject to validation and quality assurance
meet the standard within a national framework
provide new entrants to the labour market who are adequately
trained
acknowledge and improve the skills of the current work force
There are currently 27 SETAs and each focused on a particular
section of the economy. The 27 SETAs cover all work sectors in
South Africa, including the government sectors. Each of the
organisations has its own offices, staff, procedures and its protocols.
Furthermore, the members of SETAs include trade unions,
government and the bargaining councils from the appropriate
industries. A SETA must develop and implement a sector skills plan,
within the national skills development strategy, be responsible for
quality control and pay out development grants. SETAs must be
accredited as a quality assurance agency to oversee the quality of
both training providers and programmes. It is also responsible to
monitor education and training in the sector, to also support the
development of learning materials. SETAs are also responsible for
the learnership programmes. They have discretionary funds, which
are drawn from their levy income that can be used for projects
designed to assist in the achievement of sector priorities which
includes the design and implementation of learnerships (University of
South-Africa 2011:32).
According to the Westerncape Government, on the 1st of April 2000,
a compulsory skills development levy was introduced, payable by
employers who are registered with the South African Revenue
Service (SARS) for employees tax purposes, also for employers with
an annual payroll in excess of R250 000. As an employer, you are
required to pay skills development levy if you pay over R500 000 a
year in salaries and wages. The collection of funds is administrated
by SARS, and the total levy rate is 1%. The levies which are paid to
SARS are placed in a special fund. The 80% of this fund is
distributed to different SETAs, and the rest of the 20% is paid in to
the National Skills Fund (The Westerncape Government). Then the
SETAs pay the grants to the employers who appoint a skills
2|P ag e
Skills in South Africa are in demand, in fact, in a country where
4.3 million people are unemployed, they are pretty much all at
rage. Therefore, a Skills Development Act can be a golden ticket
to a prosperous life, jobs and opportunities. By the end of this
assignment, we will be able to describe Sector Education and
Training Authorities and the role it plays in Skills development in
South Africa.
1.1 Sector Education and Training Authorities (SETAs)
National Skills Authority explains that the Sector Education and
Training Authorities (SETAs), was established in terms of Skills
Development Act, 97 of 1998. Their main aim is to deliver towards
achieving a skills revolution in South Africa, to bring skills to the
employed, in their section. This is done by assisting to implement the
National Skills Development Strategy. They have to do this by
ensuring that people learn skills that are necessarily needed by the
employers and the communities. There is no need to train people if
they cannot use the skills they have learnt. Furthermore, training
and skills development is not just for young people to start their first
job, but it is important for them too. And, the skills of the people who
are already working should be enhanced. The National Skills
Authority also explains that training must be agreed standards and
within a national framework wherever possible.
The Excellence in Education & Training (2018) mentions that the act
makes provision for skills development by levy-grant scheme, and
the establishment of 27 SETAs, each focused on a particular section
of the economy, for an example, there is a SETA that deals with the
banking sector and one that deals with the agricultural sector. The
SETAs are responsible for payment of the training levies payable by
all employers. These levies are collected by the South African
Reserve Service through the Department of Labour, which is the
overseeing governing body. Disburse levies are collected from
employers and their sector.
University of South-Africa (2011:31) explains that the SETAs
objective is to ensure that the skill requirements sectors are
1|P ag e
, identified and that the appropriate skills are available. SETAs
improve and enhance the sector skills by achieving a favourable
balance between demand and supply and ensure that education and
training:
are provided subject to validation and quality assurance
meet the standard within a national framework
provide new entrants to the labour market who are adequately
trained
acknowledge and improve the skills of the current work force
There are currently 27 SETAs and each focused on a particular
section of the economy. The 27 SETAs cover all work sectors in
South Africa, including the government sectors. Each of the
organisations has its own offices, staff, procedures and its protocols.
Furthermore, the members of SETAs include trade unions,
government and the bargaining councils from the appropriate
industries. A SETA must develop and implement a sector skills plan,
within the national skills development strategy, be responsible for
quality control and pay out development grants. SETAs must be
accredited as a quality assurance agency to oversee the quality of
both training providers and programmes. It is also responsible to
monitor education and training in the sector, to also support the
development of learning materials. SETAs are also responsible for
the learnership programmes. They have discretionary funds, which
are drawn from their levy income that can be used for projects
designed to assist in the achievement of sector priorities which
includes the design and implementation of learnerships (University of
South-Africa 2011:32).
According to the Westerncape Government, on the 1st of April 2000,
a compulsory skills development levy was introduced, payable by
employers who are registered with the South African Revenue
Service (SARS) for employees tax purposes, also for employers with
an annual payroll in excess of R250 000. As an employer, you are
required to pay skills development levy if you pay over R500 000 a
year in salaries and wages. The collection of funds is administrated
by SARS, and the total levy rate is 1%. The levies which are paid to
SARS are placed in a special fund. The 80% of this fund is
distributed to different SETAs, and the rest of the 20% is paid in to
the National Skills Fund (The Westerncape Government). Then the
SETAs pay the grants to the employers who appoint a skills
2|P ag e
