PIC pushes for public-private partnership strategy to transform TVET sector

SOUTH Africa’s struggling Technical and Vocational Education and Training (TVET) sector is being repositioned as a cornerstone of inclusive growth, with a new policy proposal placing public-private partnerships (PPPs) at the heart of a sweeping reform agenda aimed at tackling youth unemployment and unlocking long-term investment.

- SIPHELELE DLUDLA

AROUND 60% of young people (15–24) are unemployed, driven by skills mismatches, poor education quality, and a stagnant economy, impacting nearly 9 million young people not in education, employment, or training. HENK KRUGER Independent Newspapers

(HENK KRUGER Independent Newspapers)

A research paper, compiled by sector specialists and published by the Public Investment Corporation (PIC) on Tuesday, argues that the country’s persistent mismatch between high unemployment and scarce technical skills is not a failure of concept, but of institutional design and funding structure.

The paper proposes a fundamental shift: transforming TVET colleges into investable social infrastructure through coordinated partnerships between government, private operators, industry, and institutional investors.

At the core of the proposal is a blended PPP model in which government retains ownership of land and infrastructure while conceding operations to private sector partners. These operators would be responsible for managing institutions, upgrading facilities, aligning curricula with labour market needs, and delivering measurable employment outcomes.

Industry, meanwhile, would play a direct role in co-designing training programmes and providing workplace-based learning, while long-term investors would finance infrastructure upgrades and expansion through structured, risk-mitigated vehicles.