Chamber Welcomes Pivot toward Market-Led Skills and Infrastructure

The Cape Chamber of Commerce and Industry (CCCI) welcomes the announcement by the Minister of Finance today that the State will fundamentally reorganise the labour market pipeline. The Minister’s admission that the National Skills Fund (NSF) and Sector Education and Training Authorities (SETAs) have "not yielded expected outcomes" is a significant acknowledgment of a system in crisis.

For years, private sector stakeholders have raised alarms regarding the systemic failure of the R26 billion skills ecosystem. The funding for this "ecosystem" comes from the 1% Skills Development Levy (SDL) paid by South African employers (those with an annual payroll exceeding R500,000). The media has also consistently flagged the NSF’s chronic mismanagement—highlighted by repeated adverse audit findings—and the SETAs’ inability to bridge the gap between theoretical schooling and industry requirements. Furthermore, it is a matter of grave concern that the SETAs were also captured by cronies, diverting critical resources away from the very workers they were designed to empower.

"We are encouraged by the Minister’s commitment to a dual-training skills acquisition system," says Cape Chamber President Jacques Moolman. "For too long, the private sector has paid a Skills Development Levy into a 'black hole' of bureaucracy. Shifting toward a model that prioritises artisanal skills and workplace-based learning is the only way to address the Western Cape’s critical skills deficit in sectors like boatbuilding, green energy, and manufacturing."

The Chamber looks forward to working closely with the government to realise a market-led skills development model that is responsive to the needs of the modern economy. It is essential that we free ourselves from cronies feeding on these funds and instead ensure every cent of the levy is directed toward genuine capacity building. We maintain that skills training is most effective when led by the industries that actually create the jobs, and we look forward to ensuring this transition results in a measurable return on investment for both businesses and job-seekers. ENDS 

Jacques Moolman: Cape Chamber of Commerce and Industry President