WHY OPENING FURTHER EDUCATION AND TRAINING (FET) COLLEGES FOCUSED ON NCV QUALIFICATIONS IS A MAJOR BUSINESS OPPORTUNITY IN SOUTH AFRICA

South Africa's education system is at a critical juncture, and with the rapid rise of unemployment and skills shortages, there has never been a better time to seize the opportunities presented by the National Certificate (Vocational) (NCV). As the demand for practical, hands-on education continues to grow, Further Education and Training (FET) colleges focused on vocational qualifications are emerging as key players in bridging the gap between traditional academic paths and the modern workforce.

While modern fields like coding, robotics, and artificial intelligence are undeniably crucial for the future workforce, it is important to recognize that without a solid foundation in further education or vocational education during Grades 10, 11, and 12, many youth may struggle to progress in these advanced fields.

Vocational education through NCV qualifications ensures that learners acquire the essential practical skills and industry knowledge needed to excel in technical areas and engage in lifelong learning. This foundation not only prepares them for immediate employment but also opens pathways for continuous growth in the ever-evolving technological landscape.

For entrepreneurs and education professionals, looking for niche areas within the private education sector in South Africa, opening an FET college with a pure focus on vocational (profession, trade, job function) qualifications like NCV qualifications offers not only the potential for significant business growth but also the chance to contribute meaningfully to South Africa's socio-economic development.

In this article, we explore why this sector, despite being somewhat ignored by providers due to red tape and stringent accreditation requirements,  holds such promise, the business opportunities it presents, and how to garner support from the South African government and schools sector.

1.      THE GROWING DEMAND FOR SKILLS-BASED EDUCATION

South Africa’s education landscape has long been dominated by the National Senior Certificate (NSC), but an increasing number of learners and employers are recognizing the need for skills-based, vocational education. The National Certificate (Vocational) (NCV) offers a solution by equipping students with industry-relevant skills, preparing them for immediate entry into the workforce.

Why is this important?

• Skills Shortages: Many industries, including construction, engineering, IT, and hospitality, are experiencing skills shortages. Businesses are looking for employees with practical, job-ready skills rather than purely academic qualifications.

• High Dropout Rates: With over 33% of South African learners dropping out of the traditional academic system before completing Grade 12, the NCV provides an alternative route for students who are more inclined toward practical learning.

• Youth Unemployment: South Africa’s youth unemployment rate is one of the highest in the world. By offering NCV qualifications that align with industry needs, FET colleges can provide young people with the tools to find sustainable employment.

2.      BUSINESS OPPORTUNITIES IN OPENING FET COLLEGES FOCUSED ON NCV

Opening an FET college presents a unique and lucrative business opportunity. Here’s why:

a. GROWING MARKET DEMAND

As more learners and parents recognize the value of vocational education, the demand for NCV qualifications, will likely to increase going forward. The simple reason is that there is no meaningful equivalent, and the high failure and dropout rate of the NSC, will force a major market shift, if we are going to resolve our current throughput rates. FET colleges offering NCV programs in fields like safety in society, education and development, business management, electrical engineering, information technology, hospitality, and office administration are perfectly positioned to capitalize on this educational shift.

b. GOVERNMENT SUPPORT FOR VOCATIONAL TRAINING

The South African government is actively promoting vocational education to address unemployment and boost economic development. The Department of Higher Education and Training (DHET) has made substantial investments in Technical and Vocational Education and Training (TVET) institutions. Entrepreneurs entering this space can align with national goals and receive support from various government initiatives focused on improving vocational education. The progression and articulation challenges presented by the former Sector Education and Training Authorities (SETA’s) based qualifications and its expiry of qualifications on 30 June 2023, leave a trail of uncertainty, even though migration and update of qualifications has been commenced by the Quality Council for Trades and Occupations (QCTO).  Here again, the NCV offers a viable alternative.

c. PARTNERSHIP OPPORTUNITIES WITH INDUSTRY

Businesses in sectors like construction, automotive engineering, and manufacturing are increasingly seeking partnerships with FET colleges to train their future workforce. By developing programs tailored to industry needs, FET colleges can forge valuable partnerships, opening doors to apprenticeship programs, internships, and direct employment opportunities for graduates. In fact, FET Colleges could literally source all its learners from local schools, where they are underperforming on the NSC.

d. POTENTIAL FOR EXPANSION

With the success of an initial FET college, there is enormous potential for growth through expanding the college’s reach across South Africa. With a scalable model, multiple campuses can be established to serve different regions, especially underserved areas where access to vocational education is limited. Worth of mention is that the FET model would suit both urban and rural areas, although the need is more urgent in rural areas.

e. THE NATIONAL SENIOR CERTIFICATE FOR ADULTS (NASCA)

The National Senior Certificate for Adults (NASCA) is a South African qualification designed to provide adults who did not complete their formal schooling with an opportunity to obtain a matric-equivalent certificate. Accredited by Umalusi, NASCA caters to adults who wish to enhance their educational qualifications, either for career advancement or further studies. The program focuses on providing foundational knowledge across key subjects, offering flexibility for adult learners to balance education with work or personal commitments. NASCA serves as an important pathway for lifelong learning and upskilling in South Africa. This market alone according to 2019 statistics, confirms that more than 19 million South Africans have no formal matric, and would benefit from a qualification such as the NASCA. FET providers that are already accredited by Umalusi, may apply for an extension of scope shortly when private providers are given the permission to offer these by Umalusi, scheduled for 2025.

3.      HOW TO GARNER SUPPORT FROM THE SOUTH AFRICAN GOVERNMENT

The South African government recognizes the importance of FET and vocational education in solving the country’s skills crisis and reducing unemployment. To tap into this support, potential FET college owners should:

a. ALIGN WITH GOVERNMENT PRIORITIES

Entrepreneurs should ensure their FET college offerings align with the National Development Plan (NDP) and the Department of Higher Education and Training's (DHET) strategy to boost technical skills in South Africa. This can include offering NCV programs in priority sectors like construction, IT, and engineering, where the demand for skilled workers is greatest. Furthermore, FET providers should become providers of choice with high-quality pass rates, to make themselves more attractive to public-private partnerships.

b. LEVERAGE GOVERNMENT FUNDING AND INCENTIVES

The South African government offers various funding and incentive programs for entrepreneurs and institutions involved in vocational education. FET colleges can apply for funding through programs like the National Skills Fund (NSF), Sector Education and Training Authorities (SETAs), and other government-driven initiatives aimed at vocational training.

c. BUILD PARTNERSHIPS WITH TVET INSTITUTIONS AND UNIVERSITIES

Collaborating with existing TVET institutions and universities, or government programs allows for greater legitimacy and can lead to access to government grants and support. This collaboration can also ensure that your college’s curriculum meets national standards and is accredited by Umalusi or the Quality Council for Trades and Occupations (QCTO), and most importantly promotes progression into the higher education sector.

4.      GARNERING SUPPORT FROM SCHOOLS AND THE EDUCATION SECTOR

To build a successful FET college, gaining support from local schools and the broader education sector is crucial. Here’s how:

a. ENGAGE WITH HIGH SCHOOLS

Building relationships with high schools, especially those that experience high dropout rates, can provide a steady stream of students interested in pursuing vocational education. Schools can refer learners who are more suited to practical, skills-based learning to your FET college.

b. CREATE AWARENESS ABOUT NCV OPPORTUNITIES

Many learners, parents, and even educators are unaware of the opportunities that NCV qualifications offer. This is probably the largest single factor that has seen many NCV potentials opting for the arduous NSC. Hosting workshops, open days, and career guidance events in collaboration with schools can raise awareness about the advantages of pursuing an NCV qualification.

c. OFFER SCHOLARSHIPS AND FINANCIAL AID

Partnering with businesses to offer scholarships or financial aid to deserving students can enhance your college’s reputation and attract more learners. Businesses that benefit from having a skilled workforce are often willing to fund the education of future employees through such initiatives.

5.      THE ROAD AHEAD: TAPPING INTO SOUTH AFRICA’S SKILLS REVOLUTION

The global economy is increasingly driven by practical skills, and South Africa is no exception. As industries continue to evolve, there is a growing need for vocationally trained professionals who can meet the demands of the modern workplace. By establishing a FET college that focuses on NCV qualifications, entrepreneurs can help address the country’s pressing skills shortage, create employment opportunities, and contribute to national development.

The combination of rising demand for vocational education, government backing, and the opportunity to fill critical skills gaps makes opening a FET college a highly attractive business prospect. By aligning with national priorities, building strong partnerships with industry, and actively engaging with schools, entrepreneurs can make a lasting impact on South Africa’s education landscape.

6.      ACCREDITATION AND REGISTRATION

Typically FET Colleges would need to be accredited by the Umalusi Council, registered by the Department of Higher Education and Training (DHET), and registered as an exam centre with the National Department of Education.

New entrants wanting to enter this sector, but lack the technical knowledge, may engage the writer, where the entire process in terms of compliance is achieved within 3 months. Now is the time to seize the opportunity, invest in the future of South Africa’s workforce, and build a business that empowers the youth through skills development.

#BusinessOpportunities #FETColleges #NCVQualifications #VocationalTraining #SouthAfricaSkillsDevelopment #EntrepreneurshipInEducation

DISCLAIMER FROM KAYSON NAIDU, CEO OF I WAS I IS I AM (PTY) LTD

The information and opinions expressed by Kayson Naidu, CEO of I Was I Is I Am (Pty) Ltd, and are for informational purposes only. While every effort has been made to ensure the accuracy of the information provided, neither Kayson Naidu nor I Was I Is I Am (Pty) Ltd accepts any responsibility or liability for any errors, omissions, or outcomes resulting from the use of this information.