EPWP vs. SETA Learnerships in South Africa: A Comprehensive Comparison

South Africa’s high unemployment rate, particularly among youth, has led the government to implement various initiatives aimed at skills development and job creation.

Two prominent programs in this effort are the Expanded Public Works Programme (EPWP) and the Sector Education and Training Authority (SETA) Learnerships.

While both aim to address unemployment and skills shortages, they operate differently and serve distinct purposes within South Africa’s broader employment strategy.

Overview of EPWP

The Expanded Public Works Programme (EPWP) is a nationwide government initiative launched in 2004 as part of the government’s strategy to reduce unemployment. The program provides short to medium-term employment opportunities to unskilled and semi-skilled individuals through labor-intensive projects.

Key Features of EPWP

1. Objective: Create temporary work opportunities for the unemployed while delivering essential public services and infrastructure.
2. Implementation: Implemented across four sectors:
   • Infrastructure (construction and maintenance of public infrastructure)
   • Non-State (NGO and community-based activities)
   • Environment and Culture (environmental protection and cultural initiatives)
   • Social (community care and development services)
3. Duration: Typically short-term employment ranging from 4 months to 2 years.
4. Target Beneficiaries: Primarily targets unemployed, unskilled, and marginalized individuals, with emphasis on women, youth, and people with disabilities.
5. Training Component: Includes basic skills training related to the work being performed, though this is often limited in scope compared to formal learnerships.
6. Compensation: Participants receive a stipend based on the Ministerial Determination for EPWP workers, which sets minimum wages.
7. Certification: Participants may receive certificates of participation, but these are generally not formal qualifications recognized within the National Qualifications Framework (NQF).

Overview of SETA Learnerships

SETA Learnerships are structured learning programs that combine theoretical training with practical workplace experience. They fall under the jurisdiction of the 21 Sector Education and Training Authorities (SETAs), which were established under the Skills Development Act of 1998.

Key Features of SETA Learnerships

1. Objective: Provide comprehensive skills development leading to recognized qualifications while addressing specific industry skills shortages.
2. Implementation: Implemented through partnerships between SETAs, employers, and training providers across various economic sectors.
3. Duration: Typically ranges from 12 to 36 months, depending on the complexity and level of the qualification.
4. Target Beneficiaries: Both unemployed individuals seeking to enter the workforce (18.1 learnerships) and employed individuals looking to upskill (18.2 learnerships).
5. Training Component: Structured program comprising 30% theoretical training at accredited training institutions and 70% practical workplace experience.
6. Compensation: Learners receive a stipend determined by the relevant SETA, often based on qualification level and industry standards.
7. Certification: Upon successful completion, learners receive nationally recognized qualifications registered on the National Qualifications Framework (NQF).

Comparative Analysis

Funding and Governance

EPWP:

• Primarily funded through government budgets, with national allocations to provincial and municipal governments.
• Coordinated by the Department of Public Works and Infrastructure (DPWI) through the EPWP Unit.
• Governed by the EPWP Ministerial Determination, which sets conditions of employment.

SETA Learnerships:

• Funded primarily through the Skills Development Levy (SDL), a 1% tax paid by employers with annual payrolls exceeding R500,000.
• Each industry sector has its dedicated SETA, which manages and distributes funds for skills development initiatives.
• Governed by the Skills Development Act and regulated by the Quality Council for Trades and Occupations (QCTO).

Skills Development Focus

EPWP:

• Emphasizes immediate job creation and income generation over comprehensive skills development.
• Training tends to be basic, on-the-job, and specific to the task at hand.
• Limited formal theoretical component, with emphasis on practical experience.

SETA Learnerships:

• Prioritizes structured skills development aligned with industry needs and national qualifications.
• Comprehensive curriculum with both theoretical and practical components.
• Designed to address specific skills gaps within economic sectors.

Employment Outcomes

EPWP:

• Primarily provides temporary relief from unemployment rather than sustainable long-term employment.
• The Department of Public Works reports that approximately 5-10% of EPWP participants find permanent employment after completing the program.
• Limited impact on long-term employability due to the narrow scope of skills acquired.

SETA Learnerships:

• Focused on sustainable employment and career development.
• Higher employment rates post-completion, with studies indicating 70-80% of learnership graduates secure employment within their sector.
• Recognized qualifications enhance long-term employability and career progression.

Accessibility and Eligibility

EPWP:

• More accessible to individuals with minimal education and skills.
• Lower entry requirements, often requiring only basic literacy and numeracy.
• Particularly accessible in rural areas and communities with limited economic opportunities.

SETA Learnerships:

• Typically require a minimum of Grade 10-12 education, depending on the specific learnership.
• More competitive selection processes, particularly for popular learnerships.
• Concentrated in urban and economically active regions, potentially limiting access for rural populations.

Incentives for Employers

EPWP:

• Limited direct incentives for private sector employers, as most projects are government-initiated.
• Some tax incentives exist for contractors who adopt labor-intensive methods in EPWP projects.

SETA Learnerships:

• Substantial tax incentives: employers can claim up to R60,000 per learner in tax rebates.
• B-BBEE (Broad-Based Black Economic Empowerment) scorecard points for skills development.
• Mandatory grants of up to 20% of SDL contributions for implementing approved training programs.

Strengths and Limitations

EPWP Strengths:

1. Rapid deployment of employment opportunities during economic downturns.
2. Accessibility to highly vulnerable populations with minimal skills and education.
3. Immediate income generation for households in extreme poverty.
4. Direct contribution to community infrastructure and service delivery.
5. Wide geographical reach, including rural and underdeveloped areas.

EPWP Limitations:

1. Temporary nature of employment without sustainable career pathways.
2. Limited skills development that may not significantly enhance employability.
3. Potential for “make-work” projects with limited economic value.
4. Challenges in monitoring quality and impact across diverse projects.
5. Susceptibility to political influence and patronage in participant selection.

SETA Learnership Strengths:

1. Comprehensive skills development aligned with industry needs.
2. Nationally recognized qualifications that enhance employability.
3. Integration of theoretical knowledge with practical workplace experience.
4. Clear career progression pathways within specific sectors.
5. Strong employer involvement ensuring relevance of skills acquired.

SETA Learnership Limitations:

1. Limited reach compared to the scale of unemployment in South Africa.
2. Higher entry requirements potentially excluding the most vulnerable.
3. Uneven quality across different SETAs and training providers.
4. Administrative complexities and bureaucratic processes.
5. Urban concentration limiting accessibility in rural areas.

Impact and Effectiveness

EPWP Impact:

The EPWP has created over 10 million work opportunities since its inception in 2004, providing temporary relief to unemployed individuals. However, its impact on sustainable employment and poverty reduction remains limited. The program has been criticized for its “revolving door” nature, where participants often return to unemployment after their contracts end.

In terms of infrastructure development, the EPWP has contributed to the construction and maintenance of roads, schools, clinics, and community facilities. The social sector component has expanded access to early childhood development services and home-based care.

SETA Learnership Impact:

SETA Learnerships have produced approximately 250,000 qualified individuals annually across various sectors. The impact varies significantly by sector and SETA, with manufacturing, business services, and financial sectors generally showing higher employment outcomes.

Studies indicate that learnership graduates earn 20-40% more than their non-qualified counterparts, demonstrating the economic value of these qualifications. The system has also contributed to workforce transformation, with previously disadvantaged populations gaining access to skilled occupations.

Case Studies and Success Stories

EPWP Success Story: Working on Fire Program

The Working on Fire program, an EPWP initiative under the Department of Environmental Affairs, employs and trains young people in firefighting and prevention. The program has created over 5,000 jobs and developed essential skills while protecting natural resources from wildfires. Participants receive specialized training in firefighting techniques, first aid, and environmental management.

SETA Learnership Success Story: Automotive Sector

The Manufacturing, Engineering and Related Services SETA (MERSETA) has implemented successful learnerships in the automotive sector, partnering with major manufacturers like Toyota and Volkswagen. These learnerships have achieved employment rates of over 85% for graduates, who receive internationally recognized qualifications in automotive manufacturing and maintenance.

Recommendations for Improvement

EPWP Improvement Opportunities:

1. Strengthen the skills development component to enhance long-term employability.
2. Develop clearer pathways from EPWP participation to formal employment or entrepreneurship.
3. Increase integration with SETA programs to allow progressive skills development.
4. Improve monitoring and evaluation systems to measure impact beyond work opportunities created.
5. Enhance targeting mechanisms to reach the most vulnerable populations.

SETA Learnership Improvement Opportunities:

1. Streamline administrative processes to reduce bureaucratic barriers.
2. Expand geographical reach to rural and underdeveloped areas.
3. Develop bridging programs for individuals who do not meet minimum entry requirements.
4. Strengthen quality assurance mechanisms across all SETAs and training providers.
5. Increase support for small businesses to participate in the learnership system.

Integration and Complementarity

Despite their differences, EPWP and SETA Learnerships can function complementarily within South Africa’s skills development and employment strategy. Potential integration points include:

1. Progressive Pathways: Using EPWP as an entry point for unskilled workers, who can then transition to more specialized SETA Learnerships after gaining basic skills and work experience.
2. Sector Alignment: Aligning EPWP projects with SETA-identified skills needs in specific sectors, creating natural progression routes.
3. Recognition of Prior Learning (RPL): Developing systems to recognize skills acquired through EPWP participation toward partial credits in SETA qualifications.
4. Shared Resources: Utilizing SETA training providers to enhance the quality of training within EPWP projects.
5. Coordinated Planning: Joint strategic planning between the Department of Public Works, Department of Higher Education and Training, and SETAs to ensure complementary approaches.

Conclusion

Both EPWP and SETA Learnerships play vital roles in addressing South Africa’s employment and skills development challenges, albeit with different approaches and outcomes. The EPWP serves as an essential safety net, providing immediate income and work experience to vulnerable populations, while SETA Learnerships offer more structured pathways to sustainable employment through recognized qualifications.

The ideal approach would be a coordinated strategy that leverages the strengths of both programs—the accessibility and scale of EPWP combined with the quality skills development and employment outcomes of SETA Learnerships. By creating clearer linkages between these initiatives, South Africa could develop a more coherent and effective response to its persistent unemployment challenges.

As the country continues to grapple with high unemployment rates, particularly among youth, integrating these programs into a comprehensive employment and skills development strategy will be crucial. This would require greater coordination between government departments, improved data sharing, and a focus on creating sustainable employment pathways rather than isolated program outcomes.