Client or partnering organisation:
- Economic Research Southern Africa (ERSA) and Bureau for Economic Research (BER).
Overview and impact:
This research project represents the most comprehensive, influential, and impactful evaluation of South Africa’s Sector Education and Training Authority (SETA) system in two decades, directly influencing and shaping the national debate on the SETA system. Arguably a primary driving force behind the President of South Africa’s announcement calling for an urgent overhaul of the SETA system, this project has redefined the conversation around vocational training and state-led skill interventions. Co-authored by Tregathen Consulting in partnership with the Bureau for Economic Research (BER) and Economic Research Southern Africa (ERSA), it serves as the definitive evidence base for a fundamental overhaul of how the nation develops its human capital.
The report provides an exhaustive analysis of the system’s performance, identifying a “leaky pipeline” where over 630,000 registrations failed to lead to certification despite the allocation of R164 billion via the Skills Development Levy. By demonstrating that the costs per beneficiary often exceed traditional university education without resolving the core skills shortage, the study advocates for a strategic shift toward firm-level incentives and decentralised training. This work provides the necessary framework to move toward a demand-driven system that prioritises industrial growth and addresses the binding constraints on the South African economy.
Time to rethink skills development an independent review of the Sector Education and Training Authority system
Time for a skills rethink: A review of the SETA system.
Selected Print and Online Media Coverage of the project:
Financial Mail (Cover page): How to plug South Africa’s leaky skills pipeline
In this Financial Mail cover story, Claire Bisseker unpacked our research on South Africa’s Sector Education Training Authorities (SETA) system. The research paper, co-authored with Roy Havemann, examines the systemic failures of the SETA system, which has seen a R165 billion investment over the last decade yield disappointing results for the national labour market. The article underscores our call for a fundamental reform of SETAs and restructuring of vocational training to prioritise high-demand skills and measurable employment outcomes over mere enrolment numbers.
Interview available here.
HOT Business: Interview with Jeremy Maggs
In this interview with Jeremy Maggs on HOT Business, we discuss the findings of our recent research paper co-authored with Roy Havemann, which takes a critical look at South Africa’s SETA system. We explore how the current framework drains approximately R20 billion annually without effectively closing the national skills gap, and we outline our proposed shift toward a more efficient, growth-oriented model for skills development.
SAfm Market Update: Interview with Jimmy Moyaha
Featured on SAfm Market Update, we joined Jimmy Moyaha to discuss our research for the Bureau for Economic Research, which reveals that R165 billion has been spent on South Africa’s SETA system over the last decade with troubling results. The interview highlights our findings on the “leaky pipeline” of skills development—where high enrolment costs and low job absorption rates persist—and underscores the urgent need for a more accountable, results-oriented vocational training framework.
Interview and transcript available here.
News24 – Opinion Piece: SETA reform requires decisive action – not another promise
In an opinion piece for News24 on the need for structural SETA reform, Wayne Duvenage (CEO of Organisation Undoing Tax Abuse) draws on the data from our policy paper co-authored with Roy Havemann. While focusing on the lack of government action, Duvenage highlights our analysis of the system’s inefficiencies as a clear indicator of why the current model is failing. This recognition demonstrates how our research provides a rigorous evidence base for leaders across civil society to advocate for meaningful policy change.
Daily Investor: South Africa flushing R20 billion down the drain
Daily Investor featured our report on the crisis within South Africa’s skills development sector. The article examines our analysis of how the SETA system has failed to deliver the promised “skills revolution, despite receiving more funding than the government makes through bracket creep. Highlighting our proposed solutions—ranging from a market-driven Research and Development style incentive to a total phase-out of the current levy—the coverage demonstrates how our work provides a roadmap for reducing the cost of employment and closing the national skills gap.
The Citizen: SETA not resolving skills shortage, just eating our tax money
In a feature titled “Setas not resolving skills shortage, just eating our tax money,” The Citizen highlights our research co-authored with the BER’s Roy Havemann and Claire Bisseker. The article amplifies our findings that R165 billion has been spent on the SETA system over the last decade with little to show for it, and underscores the calls to replace the current levy with a more efficient, firm-led tax incentive for skills development.
Daily Investor: South Africa’s forgotten R164 billion tax
Daily Investor highlighted our research regarding the profound inefficiencies of South Africa’s SETA system. The article, covering our work with BER’s Roy Havemann and Claire Bisseker, unpacks the forgotten R164 billion tax burden placed on employers through the Skills Development Levy over a 13-year period. Detailing our findings on the system’s massive operational leakages—including over 630,000 uncertified program registrations and a bloated wage bill—the coverage reinforces our argument that this vital taxpayer funding must be urgently reformed to address the national skills crisis.
