Ramaphosa Scraps "Fit-for-Purpose" SETA Model: President Orders Shift to German-Style Dual Training to Fix Skills Gap

President Ramaphosa calls for a German-style dual training model to replace the failing SETA system and tackle South Africa's unemployment crisis.

By: AXL Media

Published: Mar 20, 2026, 5:24 AM EDT

Source: The information in this article was sourced from IOL Politics

The Failure of the Current Skills Framework

President Cyril Ramaphosa has delivered a stinging critique of the Sector Education and Training Authority (SETA) system, labeling it "no longer fit for purpose." Addressing leaders at the News24 Record Summit in Cape Town, the President acknowledged that despite billions in investment, the current framework has failed to provide young South Africans with marketable skills or reliable pathways into the labor market. The system has long been plagued by governance failures, administrative inefficiencies, and a widening mismatch between the training provided and the actual needs of the modern economy. Ramaphosa's declaration signals the beginning of a radical restructuring intended to dismantle these bureaucratic hurdles and prioritize measurable employment outcomes.

Adopting the Dual Training Paradigm

In a move toward international best practices, the President highlighted the vocational models used in Germany and Switzerland as the new blueprint for South African skills development. These "dual systems" function by tightly coupling theoretical classroom learning with extensive, hands-on workplace experience. Ramaphosa argued that South Africa must move away from isolated academic training and toward a model where the private sector is an active partner in the educational process. This shift is designed to ensure that when a learner completes a program, they possess the specific technical competencies required by employers, thereby reducing the "friction" that currently prevents millions of youth from entering the formal workforce.

Strategic Focus on High-Growth Sectors

The proposed reform is not merely structural but also sectoral. The President identified the financial services, renewable energy, and agriculture industries as the primary engines for future job creation. He noted that South Africa possesses some of the world's most sophisticated financial infrastructure and premium wind and solar resources, which can be leveraged to position the country as a global destination for green manufacturing and specialized services. Specifically, Ramaphosa pointed to agriculture as a sector capable of generating over one million new jobs if properly supported by a "job-ready" workforce trained under the new dual system.