The Skills Development Act (No 97 of 1998) was passed to develop and improve the skills of people in the workplace. The Act does the following:

• Provides a framework for the development of skills of people at work
• Builds these development plans/strategies into the national qualifications framework
• Provides for learnerships that lead to recognised occupational qualifications
• Provides for the financing of skills development using a levy-grant scheme and a National Skills Fund

The following institutions are established in terms of the Act:

• National Skills Authority
• National Skills Fund
• Skills Development levy-grant scheme
• SETAs
• Labour Centres
• Skills Development Planning Unit

Sector Education and Training Authorities (SETAs) have been established for all the sectors in South Africa for example, for agriculture, construction, wholesale/retail, etc. SETAs are required to develop sector skills plans for a specific sector and to implement the plans by establishing learnerships, allocating grants, and monitoring education and training in the sector. Learnerships can lead to a qualification registered by the South African Qualifications Authority (SAQA).