Services SETA 2026 Grant Funding Update: Discretionary Grants, Learnership EOIs and Governance Reforms Explained

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Services SETA 2026 Grant Funding: Services SETA invites accredited Skills Development Providers to apply for 2025/26 Discretionary Grant Funding and Learnership EOIs. Get the latest 2026 updates, deadlines, governance changes, and the PowerX² Internship Initiative.


As of February 2026, the Services SETA has officially opened applications for the 2025/26 Discretionary Grant Funding window, including calls for Learnership Expressions of Interest (EOIs).

At the same time, the organisation is undergoing administrative restructuring following governance interventions in 2025. With new Accounting Authorities appointed and oversight strengthened, the focus for 2026 is stability, compliance, and improved delivery of skills development programmes.

If you are a Skills Development Provider (SDP), employer, or graduate seeking opportunity, this guide explains what these updates mean for you.


2026 Discretionary Grant Funding Now Open

The Services SETA has confirmed that applications for 2025/26 Discretionary Grants are open to accredited Skills Development Providers.

What Are Discretionary Grants?

Discretionary Grants are funding allocations used to:

  • Support priority sector skills programmes
  • Fund learnerships, internships, and bursaries
  • Address scarce and critical skills gaps
  • Strengthen occupational qualifications

Unlike Mandatory Grants, which reimburse levy-paying employers, Discretionary Grants are allocated based on sector needs and strategic priorities.

Who Can Apply?

Eligible applicants typically include:

  • Accredited Skills Development Providers
  • Employers registered with the SETA
  • Organisations aligned with sector skills plans
  • Training institutions offering occupational qualifications

Providers must ensure compliance with accreditation requirements and submit complete documentation before the deadline.

Opportunities & Resources:


Learnership Expressions of Interest (EOI)

Alongside grant funding, the Services SETA has issued calls for Learnership Expressions of Interest (EOI).

EOIs allow providers and employers to:

  • Indicate capacity to deliver funded learnerships
  • Align training to sector priorities
  • Prepare for formal funding allocations

For training providers, responding to EOIs early improves positioning for full grant applications.


PowerX² – 20 000 Internships Initiative

One of the most notable 2026 developments is the PowerX² – 20 000 Internships Initiative.

This initiative aims to:

  • Create 20,000 internship opportunities
  • Connect employers with unemployed graduates
  • Accelerate workplace exposure for young professionals
  • Strengthen sector employability outcomes

The programme invites:

  • Employers willing to host interns
  • Unemployed graduates seeking practical experience

Large-scale internship initiatives like this are part of broader national efforts to reduce youth unemployment and improve work readiness.

Services SETA

Governance and Administrative Reforms

The Services SETA is currently operating within a strengthened governance framework following interventions in 2025.

Appointment of Administrators

In August 2025, administrators were appointed to:

  • Services SETA
  • Construction Education and Training Authority (CETA)
  • Local Government Sector Education and Training Authority (LGSETA)

These appointments were made to address governance concerns and stabilise operations.

New Accounting Authorities

In September 2025, new Accounting Authorities were appointed across affected SETAs. The objective was to:

  • Strengthen financial oversight
  • Improve governance systems
  • Restore stakeholder confidence
  • Ensure compliance with public finance regulations

A key 2026 focus is the appointment of permanent Chief Executive Officers to provide long-term leadership.


Increased Oversight and Public Scrutiny

Governance reforms have followed reports of alleged wasteful expenditure. One widely reported matter involved scrutiny from the Organisation Undoing Tax Abuse (OUTA) regarding spending on items such as USB devices and promotional materials.

As a result:

  • Financial controls are being reinforced
  • Procurement processes are under review
  • Grant allocations face tighter compliance checks

For Skills Development Providers, this means stricter documentation requirements and greater accountability.


Transition to Occupational Qualifications

Another important development is the Services SETA’s transition from legacy qualifications to occupational qualifications.

What Does This Mean?

  • Alignment with national qualification reform
  • Phasing out older, outdated programmes
  • Increased focus on industry-aligned training
  • Stronger employer involvement in curriculum design

National stakeholder engagement sessions have been conducted to guide providers through this transition.

For accredited SDPs, updating scope, accreditation, and programme offerings is now critical.


AGM 2025: Setting the Tone for 2026

The Services SETA held its Annual General Meeting (AGM) on 29 November 2025 in Durban.

The AGM focused on:

  • Governance accountability
  • Financial reporting
  • Skills delivery performance
  • Sector strategy alignment

The 2026 funding cycle reflects commitments made during this meeting to improve transparency and programme impact.


What This Means for Skills Development Providers

If you are an accredited provider, 2026 presents both opportunity and responsibility.

Opportunities

  • Access to Discretionary Grant funding
  • Participation in large-scale internship initiatives
  • Alignment with occupational qualification reforms
  • Increased demand for compliant providers

Responsibilities

  • Full compliance with funding criteria
  • Updated accreditation and qualification alignment
  • Strict adherence to reporting standards
  • Transparent financial management

Non-compliance could result in funding rejection or audit findings.


What Employers Should Know

Employers who partner with Services SETA can:

  • Apply for funded learnerships and internships
  • Participate in PowerX² placements
  • Support occupational qualification rollouts
  • Contribute to sector skills planning

Engagement must align with sector skills priorities and approved funding frameworks.


FAQs: Services SETA 2026 Updates

Are 2025/26 Discretionary Grants officially open?

Yes, applications and EOIs are open with deadlines scheduled for early 2026.

Who qualifies to apply?

Accredited Skills Development Providers and compliant employers aligned with sector priorities.

What is PowerX²?

A large-scale internship initiative targeting 20,000 placements for unemployed graduates.

Why were administrators appointed in 2025?

Administrators were appointed to stabilise governance and address compliance concerns.

Are legacy qualifications still funded?

The focus is shifting toward occupational qualifications. Providers must align accordingly.


Final Insight: A Year of Reform and Opportunity

The 2026 Services SETA landscape reflects two major themes:

  1. Expanded funding opportunities
  2. Strengthened governance and accountability

For compliant and forward-thinking providers, this funding cycle offers significant potential. However, success will depend on strict compliance, accurate documentation, and alignment with occupational qualification reforms.

Whether you are a provider, employer, or graduate, staying informed and prepared will position you to benefit from the evolving skills development environment in 2026.

Careful planning, early application submission, and regulatory compliance will be essential in navigating this funding cycle successfully.