The B-BBEE Learning Programme Matrix Conundrum

The Skills Development component of the Broad-Based Black Economic Empowerment (BBBEE) scorecard represents one of the most complex and challenging—as well as costly—elements with which companies must comply. For large enterprises in the business services sector, defined as those with an annual turnover exceeding R50 million, the target for Skills Development is set at 6% of the total annual payroll.

Over many years of submitting Workplace Skills Plans (WSPs) for organisations of various sizes and industries, we have encountered only a small number of companies that have successfully allocated 3% of their total annual payroll to skills development. ?It is essential to recognize that WSPs include all demographics and types of training, underscoring the challenges companies face in reaching the 6% target, particularly as only African, Coloured, and Indian learners and employees are considered within this framework. Additionally, training initiatives must comply with the Learning Programme Matrix, which assigns different recognition values to various programs.

The Learning Programme Matrix in summary - Category A and E programs receive 100% recognition. These programs are quality-assured or accredited by the Sector Education and Training Authority (SETA) or the Quality Council for Trades and Occupations (QCTO) and must align with the South African Qualifications Authority (SAQA) unit standards. For Categories B, C, and D, companies may claim stipends or salaries for learners or employees engaged in internships, learnerships, and apprenticeships. Training categorized as F and G, typically consisting of internal or non-accredited programs, is capped at 25% recognition on the generic scorecard, with the Information and Communications Technology (ICT) sector facing a more restrictive cap of 15%.

For instance, a telecommunications company may invest heavily in critical and scarce skills training—such as Java, ITIL, Microsoft Azure, Cyber Security, and Data Management. However, these courses are unlikely to be accredited by SETA or QCTO, as the rapidly evolving nature of IT means that such training could become obsolete before implementation. Consequently, the most valuable training within these companies is limited to a mere 15% recognition. While SETA and QCTO accredited courses do offer 100% recognition and serve a significant purpose, they often fail to address the urgent need for evolving technical skills in the industry.

In the financial services sector, it is common practice to employ graduates as interns, providing them with invaluable practical experience over one to two years. Regrettably, the definition of an internship within the Learning Programme Matrix is narrowly defined and does not encompass such programs. Therefore, even if an internship is funded through SETA and formalized by an Internship Agreement, it may not receive recognition from verification agencies. While the Financial Charter has acknowledged this issue by granting 100% recognition for external short courses not aligned with SETA, the ICT sector remains capped at 15%.

The implications of this situation are profound; training in South Africa is being directed towards compliance rather than alignment with global standards and the evolving demands of the economy. In light of substantial Skills Development targets, economic pressures, and the necessity to achieve a certain BBBEE level, companies tend to prioritize training initiatives that offer maximum recognition rather than focusing solely on addressing critical and scarce skills. Although organisations are still pursuing such training, it has undoubtedly influenced how they allocate their Skills Development budgets.

The ICT Council has indicated that plans are underway to amend or at least revise the Learning Programme Matrix for the ICT sector. It is imperative that these changes are realised swiftly, as we face an escalating skills gap that threatens our industry's competitiveness.

Carmen Meyer

Co-Founder

Dot Connectors (Pty) Ltd

Connecting the Dots, Creating Impact & Empowering Others