How Smart Businesses Are Using SETA Discretionary Grants to Fund Growth in 2026

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Most South African businesses pay their Skills Development Levy every month, yet recover less than or only 20% of the funding potentially available to them.

Why?

Because many organisations stop at the basics.

They submit their Workplace Skills Plan (WSP) and Annual Training Report (ATR), claim their Mandatory Grant, and move on. But the businesses creating real workforce transformation are going further. They are tapping into SETA discretionary grants to support Learnerships, Internships, Skills programmes, and long-term talent development.

The difference is significant.

For some organisations, skills development is still treated as a compliance exercise. For others, it has become a strategic tool for growth, transformation, and cost-effective workforce planning.

What Are Discretionary Grants?

Discretionary Grants (DGs) are funding opportunities made available by South Africa’s Sector Education and Training Authorities (SETAs) to support priority skills development initiatives.

Unlike Mandatory Grants, which are linked to Work Skills Plan (WSP) and Actual Training Report(ATR) submissions, Discretionary Grants are not automatic. Businesses must apply during specific funding windows, and approval depends on whether the proposed training aligns with the SETAs sector skills plan.

Different industries fall under different SETAs.

So why do so many mid-sized companies miss out on valuable skills funding opportunities?

In most cases, it comes down to awareness and perceived complexity. Many employers assume discretionary grants are only for large corporates with dedicated compliance teams. Others simply do not know what funding is available or how to apply correctly.

What Do Discretionary Grants Fund?

This is where many businesses realise they have been overlooking a major opportunity.

Discretionary Grants can fund a wide range of training and development initiatives, including:

1.    Learnerships

Learnerships remain one of the most impactful discretionary grant funding opportunities available to businesses. Learnerships are occupationally directed programmes leading to full NQF qualifications, combining theoretical learning with workplace experience. Typically implemented over 12–18 months, they require formal SETA registration and workplace agreements while supporting skills development, youth employment, and transformation objectives.

2.    Skills Programmes and Short Courses

SETAs often fund accredited short courses designed to address industry shortages or improve workplace capability. These are credit bearing courses on the NQF

3.    Bursaries and Apprenticeships

Funding may support students or employees pursuing scarce and critical skills qualifications, especially in technical and professional sectors.

4.    Internship and Workplace Experience Programmes

Many SETAs prioritise graduate internships and workplace-based learning programmes aimed at improving youth employability.

5.    Recognition of Prior Learning (RPL)

Recognition of Prior Learning allows experienced employees to gain formal recognition for skills already acquired through workplace experience.

6.    Adult Education and Training (AET)

Some discretionary grant streams also support literacy, numeracy, and foundational adult learning initiatives.

For businesses already investing in employee development, discretionary funding can significantly reduce training costs while strengthening workforce capability and transformation objectives.

Who Qualifies?

One of the biggest myths around SETA discretionary grants is that only large companies qualify.

That is not the case.

In general, qualifying organisations include:

• Registered levy-paying employers in good standing

• Businesses with compliant Workplace Skills Plan (WSP) submissions where required

• Employers whose proposed training aligns with the SETA’s Sector Skills Plan

• Organisations using accredited training providers

  
  

Some funding streams are also available to:

• Non-profit organisations (NPOs)

• Public entities

• Educational institutions

• Industry associations

  
  

Importantly, each SETA has its own rules, priorities, and funding thresholds. There is no universal formula, which is why understanding the specific requirements of your SETA matters.

How to Apply for Discretionary Grants

The process sounds intimidating to many businesses, but it becomes much simpler when broken down into practical steps.

1.     Identify Your SETA and Funding Window

Start by confirming which SETA your business falls under and whether their current discretionary grant window is open.

2.     Review the Sector Skills Plan

Before applying, review the SETA sector skills plan carefully. Your training proposal should directly address identified scarce or critical skills priorities.

3.     Prepare Your Application

Most applications require:

• A training implementation plan

• Learner information

• Accredited provider details

• Supporting compliance documentation

  
  

4.     Submit and Await Evaluation

SETA evaluation timelines vary, but assessments typically take between 4–12 weeks.

5.     Implement and Claim

If approved, the organisation implements the training programme and claims funding against agreed milestones and reporting requirements.

This is where working with a specialist partner such as Sange SA can make a meaningful difference. Businesses that approach the process strategically generally improve both compliance quality and funding success rates.

Common Mistakes That Get Applications Rejected

Even businesses with strong training intentions can lose out on funding because of avoidable mistakes such as:

1.     Misalignment With the Sector Skills Plan

Applications that do not clearly support SETA priority skills areas are unlikely to succeed.

2.     Using Non-Accredited Providers

Training providers must hold the correct accreditation status. This is one of the most common reasons for rejection.

3.     Incomplete or Late Documentation

Missing annexures, incorrect learner details, or late submissions can immediately disqualify an application.

4.     No Learner Employment or Absorption Plan

SETAs increasingly want to see how learners will gain meaningful workplace exposure or long-term employment opportunities after training.

From Compliance to Metamorphosis

Many businesses still see skills development as an annual administrative requirement linked to the skills development levy.

But organisations that think differently are using discretionary grants to create something much bigger, workforce metamorphosis.

They are building future talent pipelines, supporting youth employment, improving B-BBEE outcomes, and reducing training costs at the same time.

The opportunity is real, but timing matters. Discretionary grant windows do not stay open for long, and successful applications require planning well before deadlines arrive.

At Sange SA, we help organisations simplify the process, align training strategies with SETA priorities, and unlock funding opportunities without unnecessary complexity.

With funding windows such as the current Services SETA DG closing on 27 May 2026, businesses that prepare early are far better positioned to access available funding and avoid last-minute submission challenges.

The businesses that move beyond compliance today will be the ones leading workforce transformation tomorrow.

Book a free funding strategy session with our team at Sange SA; Email us at info@sangesa.co.za