South Africa faces a major challenge when it comes to unemployment and skills shortages. Many young people struggle to find jobs because they lack experience or industry-relevant training. To help solve this problem, the government created Sector Education and Training Authorities, commonly known as SETAs.

SETAs play a huge role in funding training programmes across different industries. They help companies train workers, support unemployed youth through learnerships and internships, and promote skills development in sectors such as engineering, banking, construction, retail, transport, agriculture, and information technology.

If you have ever wondered how learnerships, apprenticeships, internships, and skills programmes are funded in South Africa, this guide explains how SETAs work and where the funding comes from.

What Is a SETA?

A SETA is a Sector Education and Training Authority established under the Skills Development Act. Each SETA focuses on a specific industry or economic sector. Their main responsibility is to improve skills development within that sector.

South Africa has several SETAs, including:

  • MICT SETA (Media, Information and Communication Technologies)
  • merSETA (Manufacturing, Engineering and Related Services)
  • BANKSETA (Banking sector)
  • SERVICES SETA
  • AGRISETA
  • TETA (Transport Education Training Authority)

Each SETA identifies scarce and critical skills within its industry and funds programmes that help address those shortages.

Where Does SETA Funding Come From?

SETA funding mainly comes from the Skills Development Levy (SDL). This is a mandatory levy that qualifying employers pay to the government every month. The levy equals 1% of a company’s payroll.

Companies with an annual payroll above the required threshold must pay this levy to SARS along with PAYE and UIF contributions. The collected funds are then distributed between SETAs and the National Skills Fund.

The money is used to fund:

  • Learnerships
  • Apprenticeships
  • Internships
  • Skills programmes
  • Workplace training
  • Bursaries
  • Artisan development
  • Graduate programmes

This system allows industries to contribute toward developing skilled workers for the economy.

The Two Main Types of SETA Grants

SETAs usually distribute funding through two main types of grants:

Mandatory Grants

Mandatory grants are designed to encourage employers to train their staff. Companies that pay the Skills Development Levy can claim back a portion of their contributions if they meet certain requirements.

To qualify, employers usually need to submit:

  • A Workplace Skills Plan (WSP)
  • An Annual Training Report (ATR)

These documents show the company’s training plans and the skills development activities completed during the year. According to several SETA sources, employers may reclaim around 20% of their levy contributions through mandatory grants if they comply with the requirements

Discretionary Grants

Discretionary grants are one of the biggest sources of funding for training programmes in South Africa. These grants are awarded by SETAs to support specific training initiatives that align with industry needs.

Unlike mandatory grants, discretionary grants are competitive and not automatically guaranteed.

SETAs use discretionary funding to support:

  • Unemployed learnerships
  • Internships
  • Apprenticeships
  • Graduate programmes
  • TVET college partnerships
  • Artisan training
  • Bursaries
  • Skills programmes

Many youth training opportunities advertised online are funded through discretionary grants.

How Learnerships Are Funded

Learnerships are among the most common SETA-funded programmes in South Africa.

A learnership combines classroom learning with workplace experience. Learners usually receive a monthly stipend while completing the programme. Most learnerships lead to nationally recognised qualifications registered on the National Qualifications Framework (NQF).

SETAs fund learnerships by providing grants to employers and training providers. The funding may cover:

  • Learner stipends
  • Tuition fees
  • Assessment costs
  • Training materials
  • Administration costs

Employers benefit because they receive financial assistance for training workers, while learners gain valuable experience and qualifications.

How Apprenticeships Are Funded

Apprenticeships focus mainly on technical and artisan skills such as:

  • Electrical work
  • Plumbing
  • Welding
  • Mechanical engineering
  • Automotive trades

These programmes usually take longer than learnerships because they involve intensive practical training.

SETAs fund apprenticeships by partnering with employers, TVET colleges, and training centres. The funding may include:

  • Trade training costs
  • Stipends
  • Workplace training support
  • Trade test preparation

Industries such as manufacturing and engineering rely heavily on SETA-funded apprenticeships to develop qualified artisans.

How Internships Are Funded

Graduate unemployment remains a serious problem in South Africa. Many graduates struggle to find jobs because employers want work experience.

SETAs help address this issue by funding internships. These programmes give graduates workplace exposure for a fixed period, usually between 6 and 24 months.

SETA internship funding may include:

  • Monthly stipends
  • Training support
  • Workplace mentorship
  • Administrative costs

Internships are especially common in sectors like finance, IT, public administration, and business services.

Who Can Apply for SETA Funding?

Different groups can benefit from SETA funding, including:

  • Employers
  • Training providers
  • TVET colleges
  • Universities
  • NGOs
  • Community organisations
  • Unemployed youth
  • Graduates

Each SETA has its own funding rules and application processes. Funding windows are usually announced on official SETA websites during specific periods of the year.

Benefits of SETA-Funded Programmes

SETA-funded programmes offer many advantages for both employers and learners.

Benefits for Learners

Learners can:

  • Gain practical workplace experience
  • Receive accredited qualifications
  • Earn monthly stipends
  • Improve employability
  • Build industry connections

For many young people, SETA programmes provide a stepping stone into the job market.

Benefits for Employers

Employers benefit by:

  • Recovering part of their levy contributions
  • Building a skilled workforce
  • Reducing recruitment costs
  • Improving employee productivity
  • Meeting BBBEE skills development targets

Some companies also use SETA funding to create long-term talent pipelines.

Challenges Facing SETA Funding

Although SETAs provide important opportunities, the system also faces criticism.

Some employers complain about:

  • Complicated paperwork
  • Slow approval processes
  • Administrative delays
  • Difficult reporting requirements

Online discussions show that while some businesses successfully benefit from SETA funding, others feel the process can be frustrating and time-consuming.

However, many companies and learners continue to benefit from SETA-funded programmes every year.

Final Thoughts

SETAs play a critical role in funding skills development and training programmes in South Africa. Through the Skills Development Levy system, billions of rand are directed toward learnerships, internships, apprenticeships, bursaries, and workplace training initiatives.

These programmes help young people gain experience, improve employability, and develop industry-relevant skills. They also help employers build stronger and more skilled workforces.

If you are searching for opportunities, it is worth checking official SETA websites regularly for new funding windows, learnerships, internships, and apprenticeship programmes. SETA-funded training can open doors to qualifications, experience, and future employment opportunities.