From SETA to QCTO : Understanding the Transition
The South African skills development landscape, as we know it, has undergone major change. Is your BEE plan ready?
The South African skills development landscape, as we knew it, underwent significant changes effective 30 June 2024. These changes not only impacted how companies plan and report skills development to the SETA, but also had a notable effect on BEE scorecards.
With the Quality Council for Trades and Occupations (QCTO) now overseeing the accreditation, implementation, and certification of all occupational qualifications previously managed by SETAs, it became critical for companies to understand the full scope of the transition. The aim? To safeguard existing skills development efforts and reduce any risks to both Skills Development and overall BEE scorecard performance.
The transition from SETA (Sector Education and Training Authority) to QCTO qualifications formed part of government’s drive to streamline and enhance South Africa’s education and training systems.
These changes have affected:
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The validity and structure of current accredited training
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The process of registering new qualifications
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The delivery of learnerships — including costs, timelines, and absorption models
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Workplace Skills Plans (WSPs) and reporting requirements
What is the QCTO?
The Quality Council for Trades and Occupations (QCTO) is a Quality Council established in 2010 in terms of the Skills Development Act (Act 97 of 1998) as amended in 2008.
The purpose of the QCTO is to offer guidance to skills development providers (private and public) and assessment centres who must be accredited by the QCTO in order to implement occupational qualifications. The council is responsible for quality assurance and the oversight of the design, accreditation, implementation, assessment and certification of occupational qualifications, part-qualifications as well as skills programmes.
The differences between the QCTO and SETA
One of the key differences between SETA and QCTO qualifications is that QCTO qualifications are standardised across all sectors. This means that a qualification obtained in one sector is recognised in all other sectors. Other key differences include:
SETA Learnerships
Learnerships comprised of two components:
- 30% classroom time + 70% on the job experience
- Assessments conducted by accredited Training Service Providers following the completion of each learning programme (LP) throughout the duration of the learnership (typically 12 months).
Duration: SETA learnerships are mostly 12 months long.
QCTO Learnerships
Learnerships are comprised of three components.
- Knowledge component – classroom sessions exploring theory.
- Practical component – includes workplace training subject to assessment by accredited workplace assessors.
- External Integrated Summative Assessment – a final exam written at an Accredited Assessment centre.
Duration: The duration of QCTO learnerships will depend on the number of credits for specific qualifications.
What does this mean for your business?
As of 1 July 2024 companies needed to follow a new process to register both employed and unemployed learners for full qualifications, part qualifications, and skills programmes. Below are the steps to follow:
QCTO & Your B-BEEE Scorecard: What's at Stake?
The shift from SETA to QCTO-accredited qualifications has a direct impact on your B-BBEE compliance — particularly under the Skills Development element of the scorecard. Here’s how:
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B-BBEE points ARE still claimable under QCTO programmes — as long as:
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The provider is QCTO-registered
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The qualification is registered on the NQF
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The delivery meets all new QCTO registration and reporting requirements
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Workplace-based learning remains essential — with the QCTO model formalising this through practical training components and external assessments (EISA).
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Incorrect or outdated implementation (e.g. using phased-out SETA qualifications after June 2024) could place points at risk.
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WSP/ATR planning must shift — to reflect QCTO-aligned qualifications and accredited providers.
Don’t risk non-compliance because of outdated learning models! At iLearn, we help you transition with clarity and maintain alignment with B-BBEE compliance requirements.
If you’d like more information to help you successfully navigate this transitional period, feel free to leave your details or email us info@ilearn.co.za. Someone from our team will reach out to you and find out exactly how we can assist and help you reach new heights in your business.