Cape Chamber welcomes strategic pivot towards growth infrastructure investment and Market-led skill development
The Cape Chamber of Commerce and Industry (CCCI) welcomes the announcement by the Minister of Finance that the State will fundamentally reorganise the labour market pipeline. The Minister’s admission that the National Skills Fund (NSF) and Sector Education and Training Authorities (SETAs) have “not yielded expected outcomes” is a significant acknowledgment of a system in crisis.
For years, private sector stakeholders have raised alarms regarding the systemic failure of the R26 billion skills ecosystem. The funding for this “ecosystem” comes from the 1% Skills Development Levy (SDL) paid by South African employers. The media has also consistently flagged the NSF’s chronic mismanagement—highlighted by repeated adverse audit findings—and the SETAs’ inability to bridge the gap between theoretical schooling and industry requirements.
“We are encouraged by the Minister’s commitment to a dual-training skills acquisition system,” says Cape Chamber President Jacques Moolman. “For too long, the private sector has paid a Skills Development Levy into a ‘black hole’ of bureaucracy. Shifting toward a model that prioritises artisanal skills and workplace-based learning is the only way to address the Western Cape’s critical skills deficit in sectors like boatbuilding, green energy, and manufacturing.”
The Chamber looks forward to working closely with the government to realise a market-led skills development model that is responsive to the needs of the modern economy. It is essential that we free ourselves from cronies feeding on these funds, and rather ensure every cent of the levy is directed toward genuine capacity building. We maintain that skills training is most effective when led by the industries that actually create the jobs, and we look forward to ensuring this transition results in a measurable return on investment for both businesses and job-seekers.
The Chamber also notes a policy shift embedded in the Finance Minister’s Budget speech – that Government will pursue infrastructure investment that specifically promotes economic growth. We view this as a significant strategic pivot.
The scale of this “return on investment” mindset is reflected in the R1.07-trillion public-sector infrastructure estimate over the medium term. The Minister specifically noted that:
- Transport and logistics receive the “lion’s share” of expenditure to unblock the freight and rail bottlenecks that have throttled our exports.
- In a major policy shift, R27.7 billion has been allocated as a performance-linked grant for municipalities. If a metro cannot show it is reinvesting service revenue back into the grid (water/electricity), its budget will be redirected to more capable agencies.
This “profound shift” moves the needle from spending to investing. By focusing on growth-enhancing infrastructure, the government will help lower the cost of doing business.
