Understanding how skills development works in South Africa is essential for students, unemployed youth, employers, and training providers. If you have ever applied for a learnership, internship, or skills programme, you have likely come across the term “SETA.”
But what is a SETA and how does it work in South Africa?
This comprehensive guide explains everything you need to know, including how SETAs are funded, what services they provide, how to apply for opportunities, and why they play such a critical role in reducing unemployment and closing the country’s skills gap.
What Is a SETA?
A SETA (Sector Education and Training Authority) is a public body established to promote skills development within a specific sector of the economy in South Africa.
SETAs operate under the legal framework of the Skills Development Act, which was introduced to address the country’s critical skills shortages and improve workforce productivity.
There are 21 SETAs in South Africa, and each one focuses on a particular industry. Their primary role is to:
- Identify scarce and critical skills
- Develop and fund learnerships and skills programmes
- Accredit training providers
- Support workplace training
- Distribute skills development grants
In simple terms, SETAs help bridge the gap between education and employment.
Why Were SETAs Created?
South Africa faces high unemployment, particularly among young people. Many employers report difficulty finding candidates with the right skills, while many graduates struggle to find jobs.
To solve this mismatch, the government introduced reforms under the Skills Development Levies Act, which works together with the Skills Development Act.
The purpose was to:
- Encourage employers to invest in training
- Improve the quality of education and workplace learning
- Increase access to learnerships and apprenticeships
- Promote transformation and economic inclusion
SETAs are therefore central to the country’s human capital development strategy.
How Does a SETA Work in South Africa?
To fully understand what a SETA is and how it works in South Africa, you need to understand its funding model and operational structure.
1. Funding Through the Skills Development Levy
Companies with an annual payroll exceeding a certain threshold are required to pay 1% of their payroll as a Skills Development Levy (SDL).
This levy is collected by the South African Revenue Service and distributed to the relevant SETAs.
A portion of the levy is:
- Paid back to employers as grants (if they comply with training requirements)
- Used to fund learnerships, internships, bursaries, and artisan development
- Allocated for administrative costs
This system ensures that businesses contribute directly to workforce development.
2. Sector-Based Structure
Each SETA focuses on a specific economic sector. For example:
- Services SETA – Covers finance, marketing, property, and more
- HWSETA – Covers health and social development
- MICT SETA – Covers ICT and media
- CETA – Covers construction
Each SETA researches skills shortages within its industry and develops programmes to address them.
3. Workplace Skills Planning
Employers must submit:
- Workplace Skills Plans (WSP)
- Annual Training Reports (ATR)
If approved, employers can claim mandatory and discretionary grants from the SETA.
This encourages companies to actively train their employees instead of seeing skills development as an expense.
4. Accreditation of Training Providers
SETAs are responsible for accrediting training providers to ensure quality and compliance.
Training providers must:
- Meet curriculum standards
- Have qualified facilitators
- Maintain proper assessment systems
- Align with the South African Qualifications Authority
This ensures nationally recognised qualifications and protects learners from fraudulent institutions.
What Opportunities Do SETAs Offer?
If you are a student or unemployed youth, this is the most important part.
SETAs fund and oversee:
Learnerships
Structured programmes combining theory and workplace experience. Learners receive a stipend and earn an NQF qualification.
Internships
Short-term workplace exposure for graduates.
Apprenticeships
Artisan-focused training in trades such as plumbing, electrical work, and welding.
Skills Programmes
Short, targeted courses designed to meet specific industry needs.
Bursaries
Funding for tertiary education in scarce skills fields.
Who Can Apply for SETA Opportunities?
SETA-funded programmes are generally open to:
- Unemployed youth
- Matriculants
- TVET students
- University graduates
- Employed workers needing upskilling
- Persons with disabilities
Eligibility criteria differ depending on the programme and sector.
How to Apply for SETA Learnerships
If you are wondering how a SETA works in South Africa in practical terms, here’s how the application process usually works:
- Identify the correct SETA for your career field.
- Visit the official SETA website.
- Check available learnerships or internships.
- Submit required documents (ID, CV, qualifications).
- Attend interviews or assessments if shortlisted.
Many SETAs also advertise opportunities through companies, TVET colleges, and accredited training providers.
The Role of TVET Colleges
SETAs often partner with public Technical and Vocational Education and Training institutions such as TVET Colleges to deliver skills programmes.
These colleges provide the theoretical component of learnerships while employers offer workplace training.
This partnership strengthens industry alignment.
Governance and Oversight
SETAs are monitored by the Department of Higher Education and Training, which ensures accountability and compliance.
Performance reviews are conducted regularly to:
- Improve efficiency
- Reduce corruption
- Ensure funds are used appropriately
- Enhance programme impact
Challenges Facing SETAs
While SETAs play a critical role, they have faced challenges over the years, including:
- Administrative inefficiencies
- Delays in grant payments
- Allegations of mismanagement
- Limited awareness among youth
However, reforms have been introduced to improve transparency and governance.
Why SETAs Matter for South Africa’s Economy
Understanding what a SETA is and how it works in South Africa is essential because:
- They address youth unemployment
- They close industry skills gaps
- They support economic transformation
- They empower small businesses
- They strengthen productivity
Without SETAs, the connection between education and employment would be much weaker.
How Employers Benefit from SETAs
Employers who engage with SETAs can:
- Claim back a portion of skills levies
- Access discretionary grants
- Improve staff productivity
- Develop succession plans
- Meet BBBEE skills development targets
Skills development is not just compliance — it is strategic growth.
How to Verify Legitimate SETA Opportunities
To protect yourself from scams:
- Only apply through official SETA websites
- Verify accreditation with the South African Qualifications Authority
- Never pay application fees
- Confirm contact details
Fraudulent learnership adverts are common, so due diligence is essential.
The Future of SETAs in 2026 and Beyond
As South Africa moves toward digital transformation, SETAs are increasingly funding programmes in:
- Information Technology
- Renewable Energy
- Artificial Intelligence
- Advanced Manufacturing
- Entrepreneurship
Skills development is evolving to match global trends.
Frequently Asked Questions (FAQs)
1. What is a SETA in simple terms?
A SETA is a government body that funds and manages skills training within a specific industry sector in South Africa.
2. How are SETAs funded?
SETAs are funded through the Skills Development Levy paid by employers and collected by SARS.
3. Are SETA learnerships paid?
Yes. Learners receive a monthly stipend during the programme.
4. Can unemployed youth apply for SETA programmes?
Yes. Most SETA learnerships and internships are targeted at unemployed youth.
5. How do I know which SETA applies to me?
It depends on your career field. For example, ICT falls under MICT SETA, while construction falls under CETA.
6. Are SETA qualifications recognised?
Yes. Qualifications are aligned with SAQA and registered on the National Qualifications Framework.
Final Thoughts
Now that you understand what a SETA is and how it works in South Africa, you can make informed decisions about learnerships, internships, and skills development opportunities.
SETAs are more than just funding bodies. They are a strategic pillar of South Africa’s workforce development system.
Whether you are a job seeker looking for practical experience or an employer aiming to build a skilled workforce, engaging with the right SETA can open doors to growth, opportunity, and long-term success.
For youth across South Africa, understanding how SETAs operate is not just helpful — it is empowering.