NSF WELCOMES MINISTER MANAMELA’S COMMITMENT TO REFORM, STRONGER GOVERNANCE AND LEARNER SUPPORT

PRETORIA, 2 October 2026 — The National Skills Fund has welcomed the Minister of Higher Education and Training, Mr Buti Manamela’s commitment to strengthening the National Skills Fund (NSF), improving governance and project management, and ensuring that the Fund delivers measurable outcomes for South Africa’s skills development priorities.

The Minister was delivering opening remarks on Wednesday, 30 September 2026, during the NSF’s appearance before the Portfolio Committee on Higher Education and Training, where the Fund provided an update on its work, ongoing reforms and implementation of its mandate.

The Minister’s remarks were made against the backdrop of President Cyril Ramaphosa’s call for a skills revolution in the higher education and training system, including the need to strengthen the National Skills Fund so that it can respond more effectively to the country’s skills development needs.

Minister Manamela said the reforms being implemented at the NSF are aimed at building a Fund that exercises stronger control over its resources, improves its governance and project management capabilities, and focuses increasingly on the impact and outcomes of the programmes it finances.

“Our responsibility is to establish an NSF that is able to provide proper control on its resources while delivering its mandate effectively.”

NSF moving towards outcome-based financing

A key component of the NSF reform programme is the move towards an outcome-based financing model, which seeks to place greater emphasis on what funded interventions achieve rather than focusing primarily on inputs, expenditure and the number of beneficiaries funded.

Under the model, the NSF will increasingly assess programmes against clearly defined outcomes, including completion, skills acquisition, progression into further learning, employment and other measurable labour-market outcomes, where applicable.

The approach will be tested through recently approved interventions, including the Persons with Disabilities programme and the Artisan Massification programme. These programmes provide an opportunity for the NSF to strengthen its ability to link funding decisions to measurable outcomes and to draw lessons that can inform the broader implementation of the model.

Minister Manamela acknowledged that the NSF has experienced weaknesses, particularly in project management, and emphasised that these areas require sustained attention as the reform programme progresses.

“We aim to ensure, through reforms, that the NSF deals with the challenging issues expeditiously.”

The Minister also acknowledged the contribution of the Special Investigating Unit (SIU) to the work being undertaken at the NSF. He noted that the investigations and processes undertaken have provided important lessons for the Department and the NSF on strengthening controls and responding to governance and operational challenges.

The NSF has been implementing a broader reform programme aimed at strengthening governance, financial and operational controls, project management, accountability and the effectiveness of skills development investments.

Denel apprentices receive attention

The Minister also addressed concerns raised by the Portfolio Committee regarding learners participating in the artisan development programme at the Denel Technical Academy, particularly challenges relating to the payment of stipends and the impact that delays have had on learners.

The programme currently supports 761 learners, comprising 557 apprentices and 204 Work Integrated Learning (WIL) learners.

Minister Manamela assured the Committee that the challenges affecting the learners are receiving the necessary attention and explained the circumstances that led to the current arrangement at Denel.

The programme became a rescue intervention following challenges associated with the previous implementation arrangement with Phila Jordan Capital (PJC). The NSF ultimately terminated the arrangement after challenges arose that affected the implementation of the programme.

To protect the interests of the affected learners and ensure continuity of their training, Denel assumed responsibility for the programme, enabling learners to continue with their training and work towards completing their qualifications.

The Minister acknowledged that the transition has presented a number of challenges, as can be expected in a rescue intervention of this nature. These include the reconciliation of stipend payments, determining the impact of time lost during the transition, assessing learners’ progress and managing the remaining training period to ensure that learners are given an appropriate opportunity to complete their qualifications.

The Department and the NSF recognise that delays in stipend payments have had a significant impact on affected learners and that these matters require urgent and coordinated attention.

The NSF Acting Chief Executive Officer, Ms Melissa Errra reaffirmed that the interests and wellbeing of the affected learners remain a priority and that every effort is being made to ensure that learners are not prejudiced by the challenges experienced during the transition.

“Our immediate priority is to protect the learners and ensure that they are supported through the remainder of their training. We want to assure the affected learners that the NSF is working with Denel and all relevant stakeholders to ensure that they are able to complete their programmes and obtain the qualifications and skills for which they were enrolled,” she said.

The Acting CEO said the NSF is also working to resolve outstanding administrative and financial matters, including the reconciliation of stipend payments and the assessment of training time affected by the transition.

“We recognise the uncertainty and difficulties that the learners have experienced. We are therefore focused on finding practical solutions that will allow them to complete their programmes while ensuring that all outstanding matters are properly accounted for. Learner protection must remain at the centre of this intervention.”

At the same time, the NSF is undertaking processes to establish and recover any public funds that may have been improperly or irregularly expended or otherwise lost in the implementation of the programme. These processes are being undertaken in accordance with the applicable governance, legal and financial procedures.

Where losses are established and recovery is legally and practically possible, the NSF will pursue appropriate measures to recoup public funds and hold responsible parties accountable, in accordance with due process.

The NSF emphasises that the pursuit of financial recovery will not detract from its immediate responsibility to protect learners and ensure continuity of their training.

The objective of the intervention remains to ensure that learners are supported to complete their training and qualifications, thereby improving their prospects of entering employment and creating better opportunities for themselves and their families.

Accountability and consequences

Minister Manamela emphasised that the strengthening of the NSF must also be accompanied by accountability where there is evidence of negligence or failure to perform responsibilities.

He indicated that where negligence is established, there must be consequences for the relevant service providers and, where applicable, officials employed by the NSF.

This approach is consistent with the broader reforms being undertaken to strengthen accountability, improve controls and ensure that public resources are managed responsibly.

The NSF remains committed to cooperating with all relevant oversight and investigative institutions and to implementing measures that strengthen its governance and operational effectiveness.

Minister and Portfolio Committee Chairperson to visit Denel

As part of efforts to gain a first-hand understanding of the challenges facing the learners, the Minister and the Chairperson of the Portfolio Committee on Higher Education and Training, Mr Tebogo Letsie will undertake an oversight visit to the Denel Training Centre.

The visit will provide an opportunity for the Minister, the Portfolio Committee, to engage directly with the affected learners, understand the challenges they are experiencing and assess progress in resolving outstanding matters.

The NSF’s Chief Executive Officer, Ms Melissa Erra and her executive committee will form part of the oversight visit.

The visit will also allow the relevant stakeholders to engage on the measures required to support learners through the remainder of their training and to ensure that the objectives of the rescue intervention are achieved.

Strengthening the NSF for greater impact

The NSF welcomes the Minister’s reaffirmation of the importance of the Fund and its role in supporting South Africa’s skills development priorities. The reforms currently under way are intended to position the NSF as a stronger, more accountable and outcome-focused funding institution, capable of responding to national skills priorities while ensuring that public resources are used effectively.

The Acting CEO of the NSF said, “the NSF will continue working with the Department of Higher Education and Training, Parliament, the Portfolio Committee and other relevant stakeholders to address identified weaknesses, strengthen governance and improve the implementation of funded programmes”.

In closing, Minister Manamela reaffirmed the Department’s commitment to the reform process:

“We remain committed to continue strengthening the NSF and its governance structure, and we will work with this Committee and any relevant party to ensure that we improve the NSF.”

The NSF remains committed to ensuring that the reform process translates into tangible improvements in the management of skills development programmes and, most importantly, better outcomes for the learners, workers and communities who benefit from NSF-funded interventions.