Despite substantial investments in skills development over the years, the training system in South Africa remains dysfunctional and misaligned with labour market requirements. A 21st-century ministry of manpower could correct this critical imbalance.
Youth unemployment in South Africa is a huge, entrenched challenge. Despite policies being implemented to address this issue, as well as billions spent on training and learnerships, the disconnect between the education and training systems and the labour market has continued.
A recent attempt to address the dysfunctional system of sector education and training authorities (Setas) includes plans to reduce their number. While it may lead to greater administrative efficiency, it will not address the fact that South Africa’s education, training and skills development system is highly fragmented and poorly co-ordinated, with insufficient attention to the needs of employers and to the broader economic development strategy.
Phasing out the Setas would address a symptom rather than the cause of South Africa’s challenge. Our country needs fundamental change and we advocate for the creation of a modern, 21st-century ministry of manpower, responsible for human capital development policy, linked to industrial policy and labour market planning.
Setas and the co-ordination gap
The Setas were established through the Skills Development Act of 1998 to ensure that training and learning are relevant to the world of work, to manage the skills levy and to promote and support learning in the workplace. All of this happened more than 20 years ago!
Unfortunately, there has been little improvement in the alignment of Setas, colleges and employers in support of learning outcomes, as attested to by various reports — for example, by Wedekind and Allais (2016), and the department of higher education & training white paper of 2013.
The bulk of South Africa’s vocational training falls on technical & vocational education and training (Tvet and community education and training (CET) colleges. In reality, the latter receive little direct support from Setas despite the fact that they train thousands of learners for the labour market each year.
Access to discretionary grants is limited and a large share of Setas funding is delivered through programmes not embedded within the college system. As noted, the present system is delivering certificates but not jobs, so the National Development Plan has set a 2030 target.
Lessons from industrial planning
The programme is also drawing on lessons from previous experiences. South Africa has successfully linked skills development to industrial policy before. So we know from previous experience that the department of manpower once trained people in ways co-ordinated with the industrial development of each region.
In the case of the Babelegi Industrial Area in what used to be the Bophuthatswana homeland near Pretoria, numerous textile, electronics and metal fabrication firms were established, creating employment opportunities for thousands of local people who had to be trained for specific jobs.
Similarly, locations that were part of the homelands, such as Ha Ramasaga in the Vhavenda region, Butterworth in the Transkei, Isithebe in KwaZulu-Natal and Phuthaditjhaba in QwaQwa, had establishments that provided factory work associated with training (Wedekind, 2016).
Once dynamic production regions, these economic development zones have largely fallen into decline due to the pressures of global competition, factory closures and a lack of effective industrial policy. These regions are a valuable lesson for skills training — that vocational training is most effective when it is closely linked to the labour market.
Why workforce development needs economic leadership
The skills development function falls within the department of higher education & training, which is primarily concerned with education policy. Workforce development is an economic activity. Most countries with strong vocational education and training (VET) systems have well co-ordinated systems between training providers, industry and the government to ensure the training provided is aligned to the economic needs of a country to develop programmes that support economic growth and productivity. South Africa’s fragmented system makes it difficult to do so (Wedekind & Allais, 2016).
We are suggesting a modern ministry of manpower that can manage the system by ensuring that the Setas, colleges and industry all work towards a national workforce development strategy. The idea is to develop skills in specific fields, address the shortage of artisans and technicians in the economy, and develop the manufacturing sector in all regions.
A moment for structural reform
Changing the Setas is only one part of a far more fundamental transformation required in the way our economy is shaped and how skills are developed. It is critical that workforce development be a core component of economic policy and that the relationship between labour market development agencies and Tvet colleges be significantly strengthened, all while ensuring that the training offered meets labour market needs.
There is an urgent need for a new ministry of manpower to promote vocational training, implement industrial policy and harmonise employment policy. Such a ministry would enable the country to undertake the structural reforms it urgently needs.
The present labour market training system is characterised by the absence of an overall co-ordinating authority, ad hoc training programmes with short validity and a chaotic labour market. Without a ministry to act as a co-ordinator, the present ineffective vocational training system, which trains workers and awards certificates but does not create jobs, will continue.
The challenge is obvious — it’s not just about changing the Setas but the whole skills development governance system in South Africa.
• Ratshilumela, a curriculum manager in a TVET college, is national organiser at trade union Nehawu responsible for TVET and CET colleges, and a board member of the Finance & Accounting Services Seta.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.