South Africa: Getting South Africa's Skills Needs Right Requires the Right Incentives and Accurate Data (Part One)

analysis

The clumsy rules for employers to get training money back actually encourages them to give poor data. Continually tweaking behaviour via incentives, rules, and tools has led to a system that is simply too complex for its own good. Part one in a three-part series.

Dear Minister Nobuhle Nkabane,

As academics who have worked closely with your department over many years, we welcome your appointment to lead higher education and training, convinced that you will bring renewed energy and fresh insights to an area critical to the future of our country's young people and its economic success.

It is often said that South Africa has a skills crisis, and that our education system doesn't meet the needs of the economy. But we have an elaborate national system that asks employers every year what skills they need.

So, why is training not meeting the country's needs?

Simply put, the rules and tools set up over the years to consult employers and fund their training requirements are too complex. Well-intentioned policymakers have added unnecessary complexity time and again, creating too many tools to do too many things.

They end up doing none of them well and sometimes incentivise negative outcomes. Clumsy and tedious funding processes and complex, overly elaborate regulatory oversight complete the picture. The result is little coherent direction from the state in priority areas, and an inability by employers to prioritise the training they need.

Effective leadership

As the new minister, you could provide refreshed...

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