‘SETA Has Not Served Us Well’: Ramaphosa Calls for Overhaul to Create Jobs

President Cyril Ramaphosa has called for an overhaul of South Africa’s Sector Education and Training Authority (SETA) system, saying it is no longer fit for purpose and must be replaced with a more effective model aligned with the country’s economic needs.

The Problem

The SETA system has been criticised for:

• Governance failures

• Poor performance

• Inefficiencies

• A persistent mismatch between training programmes and labour market demands

Concerns have grown that it has not consistently delivered job-ready skills or effectively absorbed learners into employment.

The Speech

Speaking at the News24 Record Summit at the Cape Town International Convention Centre, Ramaphosa said the current system should be restructured to better integrate education and practical workplace training.

He said he had examined international models, noting that countries such as Germany and Switzerland operate dual systems combining academic and workplace-based learningwhich South Africa should consider adopting.

“The SETA system has not served us well at all, it must now be changed.”

The Bigger Picture

Ramaphosa framed South Africa’s unemployment crisis as a structural challenge rooted in historical inequalities and compounded by policy and institutional shortcomings.

“South Africa’s high unemployment is not a result of a single failure. It is the outcome of deep historical, and policy linked factors interacting over time.”

He said job creation remains government’s top priority.

“Creating jobs is the most and foremost priority of our government. Our single greatest challenge is to translate positive economic momentum into jobs for millions of South Africans who today remain unemployed.”

“A job is more than just an income, it is about dignity, confidence, a sense belonging and an ability to contribute to our society.”

Key Sectors

Ramaphosa highlighted:

• Renewable energy: South Africa has “among the best solar and wind resources”

• Agriculture: A sector that “can create a million and more jobs”

• Financial services: “We can position SA as a destination for financial services”

The YES Initiative

Through a partnership with business, the Youth Employment Service (YES) has provided work experience opportunities to more than 220,000 young people.

“We need more companies to use SAYouth to hire young people, making use of the cutting-edge technology which the network has built to set them up for success.”

“I call on all companies to be part of the YES drive, to enable more and more young people to take their first step into the work environment.”

Infrastructure and Reform

Ramaphosa pointed to ongoing structural reforms in:

• Energy: Diversifying electricity generation to improve reliability

• Water: Warning that water insecurity and municipal inefficiencies are limiting investment

• Visa processes: Improving to attract investment

He also acknowledged the impact of governance failures, including corruption and state capture, which weakened key institutions and slowed economic progress.

The Bottom Line

The SETA system is broken. Ramaphosa wants it fixedand fast.

He’s looking to Germany and Switzerland for models. He’s pushing agriculture, energy, and financial services. He’s calling on business to step up.

The message is clear: training must lead to jobs. And the system that’s supposed to make that happen is failing.

{Source: IOL}

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