By Akani Nkuna
President Cyril Ramaphosa has called for a sweeping overhaul of South Africa’s Sector Education and Training Authority (SETA) system, describing it as ineffective and unfit for purpose.
Ramaphosa said the current framework should be replaced with a dual model that integrates academic learning with skills development and workplace-based training.
He added that South Africa’s advanced financial sector could position the country as a global hub for financial services.
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“The SETA system has not served us well at all, it must now be changed. We must build from our strength as a country to create jobs for the economy of the future. We have one of the most sophisticated financial systems in the world, we can position SA as a destination for financial services,” he said.
Ramaphosa was speaking at the News24 Record Summit at the Cape Town International Convention Centre.
The summit is aimed to find practical solutions that will help create five million jobs in 10 years.
The summit has brought together local and international experts to explore strategies for economic growth and job creation, and to support the objectives of the National Dialogue.
His remarks come amid mounting criticism of SETAs over governance failures, poor performance and high administrative costs.
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Several SETAs have been placed under administration due to financial mismanagement.
The Department of Higher Education and Training (DHET) has recently begun a process to merge some SETAs in a bid to improve efficiency, address skills shortages and reduce operational costs.
Ramaphosa said South Africa’s high unemployment rate is rooted in structural factors linked to apartheid-era spatial planning and economic exclusion, which continue to disproportionately affect Black youth.
He stressed, however, that historical injustice should not be used to excuse government shortcomings, calling for intensified efforts to expand economic opportunities, particularly for young people.
“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 overtime. To understand it properly, you have to look at it more holistically and that means we have got to look back at where it originates from,” said Ramaphosa, adding that the ambition to create five million jobs over the next decade represents a defining moment for the country.
“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.”
Ramaphosa also called for stronger coordination across government, saying improved intergovernmental cooperation is critical to boosting economic efficiency and inclusivity.
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He said the government is examining international models to restructure the energy sector, describing it as a key driver of future growth.
“And it is when we all work together that we will be able to build a very strong platform for growth in a wide range of sectors, from green, steel to new energy vehicles. We have a thriving agricultural sector that can create a million and more jobs, and we will be focusing on that very, very closely,” said Ramaphosa.
