The 21 Setas covering all sectors are responsible for creating opportunities in the form of internships, skills training and apprenticeships.
They are funded by a skills levy on all employers with more than 50 workers.
They receive more than R14bn in ring-fenced funds annually and are governed by boards made up of labour and employer representatives.
However, Setas have been accused of corruption and enrolling ghost students and criticised for inefficiency and failing to address SA's skills deficit.
Department of Higher Education and Training officials told MPs on Wednesday that, as part of plans to improve efficiency and avoid duplication, there was a proposal to merge Setas.
Business and labour have proposed that a National Skills and Employment Council be established to steer the strategic policy and monitoring of the skills system. The council would determine all strategic priorities and funding allocations. A separate National Skills Agency would administer the funds.
Source: Business Day
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