National Skills Fund

National Skills Fund
Name	National Skills Fund
Formation	2010s
Type	fund
Purpose	skills development
Headquarters	Pretoria
Region served	South Africa
Leader title	CEO
Parent organization	Department of Higher Education and Training (South Africa)

National Skills Fund The National Skills Fund is a South African public fund focused on vocational training and workforce development with links to national labor policy and post-apartheid reconstruction programs. It operates alongside agencies such as the Sector Education and Training Authorities, the National Qualifications Framework, and interacts with institutions like the University of Cape Town, University of the Witwatersrand, Durban University of Technology, and University of Johannesburg. The Fund coordinates with ministries including the Department of Higher Education and Training (South Africa), the National Treasury (South Africa), and provincial offices in Gauteng, Western Cape, and KwaZulu-Natal.

Overview

The Fund functions as a financing mechanism connected to statutory levies established under the Skills Development Act, 1998 and is administered to support initiatives involving the Sector Education and Training Authorities, the Independent Development Trust, and civil society partners such as Business Unity South Africa, Congress of South African Trade Unions, and the National Youth Development Agency. It provides grants to technical institutions such as Tshwane University of Technology, Cape Peninsula University of Technology, and private providers including Damelin and Inscape Education Group. The Fund aligns its operations with national frameworks like the National Skills Development Strategy III and engages with international organizations such as the International Labour Organization, the World Bank, and the African Development Bank.

History and Establishment

The concept emerged during post-apartheid policy reforms influenced by commissions and reports including the Taylor Committee (South Africa), the Nzimande Reports, and analyses from think tanks like the Human Sciences Research Council, Development Bank of Southern Africa, and the Centre for Development and Enterprise. Early pilots referenced models in United Kingdom, Germany, and Australia and drew comparisons with initiatives from the European Social Fund and USAID projects in South Africa. Legislative groundwork was shaped by stakeholders including the South African Institute of Chartered Accountants, the Federation of Unions of South Africa, and members of the National Assembly of South Africa.

Objectives and Funding

Primary objectives include upgrading artisan pathways tied to colleges such as Border Technikon and Central University of Technology, supporting learnerships associated with corporations like Eskom, Sasol, Anglo American plc, and Transnet, and funding community programs run by organizations such as Christel House South Africa and Afrika Tikkun. Funding streams derive from the Skills Development Levy, allocations by the National Treasury (South Africa), donor partnerships with entities such as the European Union, and project-specific grants from foundations like the Ford Foundation and the Open Society Foundations. The Fund prioritizes interventions in sectors represented by associations including the South African Nursing Council, the South African Institute of Electrical Engineers, and the Engineering Council of South Africa.

Programs and Initiatives

Initiatives include bursaries for institutions like University of Pretoria and Stellenbosch University, training programs for trades recognized by the MerSETA, FASSET, CHDA, and SERVICES SETA, and bespoke projects with state-owned enterprises such as South African Airways and PetroSA. Programs aim at increasing participation from communities linked to historical sites like Soweto and rural districts in the Eastern Cape and Limpopo, and collaborate with NGOs such as Tshimologong Innovation Precinct and South African Youth Council. Pilot schemes have drawn interest from researchers at Human Sciences Research Council and evaluators from Statistics South Africa and National Treasury (South Africa).

Governance and Administration

The Fund is overseen by a board appointed through processes involving the Minister of Higher Education and Training (South Africa) and is subject to oversight by parliamentary committees such as the Portfolio Committee on Higher Education and Training. Administrative arrangements involve audits by the Auditor-General of South Africa and compliance reporting to institutions like the Public Service Commission and the Independent Regulatory Board for Auditors. Collaboration with training regulators including the Quality Council for Trades and Occupations and the South African Qualifications Authority ensures alignment with accreditation bodies such as the Council on Higher Education.

Impact and Evaluation

Evaluations reference metrics reported by the Department of Higher Education and Training (South Africa), impact assessments by the Human Sciences Research Council, and economic analyses by the National Treasury (South Africa) and Development Bank of Southern Africa. Outcomes noted include increased enrollment in artisan training at campuses like Tshwane South College, expanded workplace-based learning with employers such as Sappi and ArcelorMittal South Africa, and partnerships with innovation hubs like Bandwidth Barn and Silicon Cape. Independent reviewers from universities including University of Cape Town and Rhodes University have published case studies comparing results against international benchmarks such as OECD programs and ILO frameworks.

Criticisms and Controversies

Critiques have come from academic commentators at Wits School of Governance, trade unions like National Union of Metalworkers of South Africa, and investigative journalism outlets including Mail & Guardian, Daily Maverick, and City Press. Issues raised involve procurement disputes involving providers such as ETDP SETA partners, debates about allocation priorities between sectors represented by MERSETA and Energy and Water SETA, and concerns over monitoring raised by civil society networks like Equal Education and Corruption Watch. Parliamentary inquiries and reports by the Special Investigating Unit (South Africa) and audits by the Auditor-General of South Africa have examined project irregularities and governance lapses.

Category:Public funds of South Africa