Research presented the total skills development legislative landscape in South Africa with a business perspective on funding allocation. The Skills Initiative For Africa (SIFA) in partnership with Business Unity South Africa (BUSA) hosted a workshop on the 15 July 2021 to reflect on the SETA Grant Funding regulations and the business position on the proposed allocation of grants to stakeholders. The workshop was attended by a notable number of representatives from AUDA-NEPAD, GAN, GIZ projects, BBC members, BUSA member organizations and most importantly the SETA Business Board representatives from all industry sectors.
The workshop was facilitated by Jahni de Villiers from Labour Amplified. She also presented an overview of the “ILO Review of Skills Levy Systems in Countries of the Southern African Development Community 2020”. Dr Florus Prinsloo, Synaptic Mentor, presented the funding findings from the “Technical policy analysis of the National Skills Development Plan 2030: Towards a pragmatic approach for Business 2021”, a research report conducted by SIFA for BUSA on t Sino Moabalobelo, BUSA Social Policy Director, also presented the current BUSA member mandated position on the funding allocations.
These presentations paved the way for in depth and robust discussions on the business view to how they believed the skills development levy grants should be allocated in South Africa. Whilst it was agreed by the majority of the participants that the Mandatory Grant should be 50% of the levy amount the importance of recognizing the challenges that SMMEs face in meeting the application process requirements was highlighted. Business reiterated the call for user friendly and appropriate reporting structures to ensure increased participation by SMMEs.
The meeting also agreed that Discretionary Grants should be allocated to both employed and unemployed learners, for both formally registered qualifications as well as short courses, for workplace based learning programmes, bursaries and to support work readiness programmes that assist learners in transitioning from education to the world of work. The need to support demand led skills development programmes was also strongly supported to ensure that the supply and demand sides of all skills development initiatives were emphasized and supported through the limited funding available.
The outcomes of the workshop would provide the private sector with a unified view on the comments called for by government when the regulations are published for public comment.
SIFA and BUSA continues to engage with the SETA Board Representatives and Private Sector Representatives to maintain a unified platform for private sector engagement on policy and implementation practice. Additional workshops will be held during the course of the year with the next topic having been identified as apprenticeships and their adoption by business as a vehicle for addressing skills shortages experienced by the private sector.
