SETA Landscape 2026: What Training Providers Need to Know About Funding Changes

The SETA Funding Environment Has Changed — Here's the Honest Picture

2026 has brought significant shifts to the funding landscape for training providers operating under SETA accreditation in South Africa. After years of incremental change, a number of developments have converged to reshape how discretionary grants are structured, how AQP registrations work, and what SETAs are prioritising in their sector skills plans. As a training provider with accreditations across multiple SETAs, FPT Academy has had to navigate these changes carefully — and we want to share what we've learned with others in the sector.

This is not a policy summary for its own sake. This is a practical brief for SDFs, training providers, and employers trying to understand what the shifts mean for their programmes in 2026.

Discretionary Grant Windows: What's Changed

Discretionary grant allocation has become more structured across multiple SETAs. Where previously some SETAs ran rolling or open-window applications throughout the year, 2025 and 2026 have seen a tightening to fixed annual windows — typically one or two application periods per year, with hard submission deadlines and no late applications accepted.

The practical implication: training providers and employers who want discretionary grant funding for learnerships starting in the second half of 2026 need to have submitted their applications in the first window, which for most SETAs ran in February–March 2026. Missing this window means waiting for the next application period — or funding the training entirely from employer budgets, which can still recover through the mandatory grant mechanism.

Key SETAs we work with, and their current grant focus areas in 2026:

New AQP Registration Processes and What They Mean

An Assessment Quality Partner (AQP) is the body registered by the QCTO to develop and quality-assure the EISA for each occupational qualification. In practice, most AQPs are SETAs, but the QCTO has been working to expand AQP capacity for occupations that fall across multiple sectors.

In 2026, the QCTO has issued updated guidelines for AQP registration and performance monitoring. Key changes include:

• AQPs are now required to demonstrate annual EISA candidate volume thresholds to maintain registration — AQPs with consistently low candidate numbers face review
• EISA instruments are being reviewed on a two-year cycle rather than a three-year cycle, which means training providers need to stay current with assessment specification updates
• New occupational qualifications being developed will go through a streamlined AQP assignment process, with the QCTO playing a more active role in matching qualifications to the most appropriate AQP

For training providers, the practical impact is that your relationship with your AQP needs to be current and well-managed. If your AQP updates EISA instruments and you're not aware of the changes, your learners may arrive at assessment prepared for a version of the EISA that no longer exists.

Shifts in SETA Priorities: The Bigger Picture

Beyond the grant mechanics, 2026 has brought a shift in what SETAs are actually trying to achieve with their funding. Three themes are emerging consistently:

• Employment linkage: SETAs are increasingly tracking whether learners who complete funded programmes actually enter or advance in employment. Providers and employers whose learners have high absorption rates are being rewarded with priority grant allocation. This is a positive development for quality providers, but it requires that we genuinely follow up on learner outcomes — not just certification rates.
• Sector-critical occupations: Each SETA's Sector Skills Plan (SSP) identifies priority occupations facing skills shortages. Discretionary grant applications that target these occupations receive significantly stronger consideration. SDFs and training providers should align their programme proposals explicitly to the SSP priorities of their relevant SETA.
• Digital and green economy skills: While this is more prominent in some SETAs than others, the broader skills system is beginning to respond to national economic priorities. Providers who can demonstrate alignment between their programmes and these growth areas are better positioned for both grant funding and employer partnerships.

What Training Providers Should Do Now

FPT Academy's Position in This Landscape

At FPT Academy, we have proactively aligned all our active programmes to QCTO-registered qualifications. Our legacy programme teach-out plans are in place and communicated to affected learners and employer-clients. We maintain current accreditation with Services SETA, W&RSETA, and ETDP SETA, and we monitor AQP communications as a standing quality management practice.

For employers and SDFs who are navigating these changes, we are available to advise on programme alignment, grant application support, and learnership structuring. The changes are significant, but they are navigable — provided you engage with them early and with accurate information.