Friday, December 22, 2006

Limping into 2007

A year ago, I analysed the state of representation in the South African ICT sector. What has (not) happened since then?

Sadly, not much has changed, although there is a glimmer or two on the horizon. We never made the bid to host the 2010 World Congress, in spite of the potential synergy with the 2010 FIFA World Cup, which will be staged in South Africa. In fact, our membership of the World Information Technology & Services Alliance has been suspended, since we could not raise the dues for 2006. The baton to lead the African presence at WITSA has been passed to Kenya.

Towards the latter part of 2006, another small group of concerned individuals revived the process to consolidate the industry associations and met a few times to chart a new way forward. I sincerely hope they achieve the goal in 2007 and will do all I can to facilitate same. In parallel (so far), there is another initiative led by the SACF to achieve the same objective, built on a MoU with the Finnish development body, TIEKE. Obviously these two initiatives must get together and work together as soon as possible.

On the government side, the approach to the ICT sector remains fragmented, although I am happy to observe that there are some new research activities which will help to focus attention on the use of ICTs in government and in developing a knowledge-based society. Let us hope that the reports become tools for the creation of an holistic approach within a coordinated national ICT strategy, encompassing e-Government as well as sectoral development.

Another of 2005's potential drivers of change in the ICT sector has also gathered dust on the shelf for a year - the BEE Charter for the ICT sector. At long last, the Codes of Good Practice have been approved by Cabinet and will be published in final form in January 2007. A last-minute alignment of the Charter should not take long, and then the sector will be able to get on with transformation within guidelines. There will continue to be debate about the more lenient approach to BEE in the latest version but at least there will be clarity on targets and scorecards. I am personally delighted that there now seems to be room for self-evaluation, as I always thought the creation of a new breed of (expensive) specialist assessors was a retrograde move.

We may have dragged our feet in 2006 - let's pick up the pace again in the New Year!

Monday, February 13, 2006

ICT Industry Representation in South Africa

ICT Industry Representation in South Africa

By Adrian Schofield, President, Information Industry South Africa

20 years – a potted history

In the mid-1980’s there were a limited number of IT industry associations in South Africa. The Business Equipment Association (BEA) traced its origins back to 1934 and was focused on office equipment distributors and dealers. It had formed the IT Industry Training Board (ITITB) in terms of the Manpower Act and was a registered employer association. The Computing Services Association (CSA) was formed in 1968 to counter the perception that the computer service bureaux were “cowboys”.

The CSA and the BEA agreed to merge in 1995, forming the Information Technology Association (ITA). Funds held by the ITITB were loaned to the ITA to enable it to expand its premises in Randburg with the addition of a Conference/Training Centre. (This loan has been converted to a bond in favour of ISETT SETA to be redeemed when the ITA sells its premises in 2007.)

A number of other associations existed at this time – some had long histories, such as the Computer Society of South Africa (CSSA), others had been formed in response to the changing political and economic environment. Examples of the latter are the South African Value Added Network Services Association (SAVA) and the Black IT Forum (BITF). It is probably true that most of these groupings had their origins in a “defensive” need, to protect their members from some negative influence. Exceptions, like the IT Users’ Council (ITUC) were promoting improved standards, supporting the development of programmers.

At the end of the 90’s, some of the association Presidents met and agreed there was a need for a coordinating, umbrella association that would promote the interests of the entire ICT sector and encourage consolidation of the association activities. With the participation of the ITA, CSSA, ITUC, EIF (Electronic Industries Federation), BITF, NITF (National IT Forum) and ITITB, Information Industry South Africa (IISA) was formed and commenced operation in January 2000.

IISA was nominated to take over the country’s membership of the World Information Technology & Services Alliance (WITSA) from the ITA, which had been accepted as the WITSA member for South Africa following the World Congress on IT 1998.

The commitment of a small number of individuals is largely responsible for the continuation of some of the activities and initiatives that are attempting to contribute to the growth of the South African ICT Sector.

However, their isolation leads to problems that inhibit delivery on the good ideas and good intentions. One example is the hosting of the WITSA Steering Committee and Global Public Policy Committee meetings in South Africa in September 2004. To win the right to host the meetings was a major coup for South Africa and the initial promise of funding from the dti was encouraging. In the end, the promise was halved and the industry associations were left holding the baby – a debt of +/- R50 000 that has yet to be settled.

The WITSA meetings generated an enormous amount of goodwill towards the South African ICT sector and would give us a solid platform from which to bid to host the World Congress on IT in 2010 (WCIT2010), which would attract 2 000 international delegates. However, a “bid committee” needs to gain commitment from government (mainly) and industry (significantly) to fund the bid process and the preparation for what will ultimately be a $10 million event.

Some players explained
Apart from the associations previously mentioned, the following have played various roles in the sector:
Electronic Industries Federation (EIF) – long-standing small group of companies in the electronics field. Difficult to differentiate from the ITA and not well funded. Dali Mpofu’s launch pad!
Internet Service Providers Association (ISPA) – niche body, not interested in any issues except their own.
Internet Society (ISOC) – part of the global body defending the independence of the Internet.
SA Cellular Service Providers Association (SACSPA) – dealt with blacklisting issues before the current decision to centralise the database of stolen mobile phones.
Communications Users Association of SA (CUASA) – formed to tackle issues (mainly legal) arising from the Telkom monopoly, overlapping the SAVA mandate.
Electronic Commerce Association of SA (ECASA) – formed to deal with issues arising from the ECT Bill, now dormant.
Women in ICT (WICT) – seeking to promote the gender equality of the sector.
Telecommunications Skills Development Forum (TSDF) – formed to participate in the ISETT SETA Board, which required separate representation from employers in the IT, Electronics and Telecommunications sub-sectors. The ITA and the EIF claimed the first two slots.
The SMME Forum – driven by Tebogo Khaas in response to perceived lack of support for SMME interests during the BEE Charter process.
South African Contact Centre Community (SACCCOM) – motivated by Mfanu Mfayela to unify the BPO and Call Centre sector. Achieving good profile with government and media but may not have full support of the constituency.
National Association of Broadcasters (NAB) – effective representation of licence holders.
IEEE Computer Section – academic representation of engineers in the ICT sector.
South African Council on Automation and Computation (SACAC) – another body focused on niche interests, also fairly academic in approach.
South African Institute for Computer Scientists and Information Technologists (SAICSIT) – focused on research & development in the computer science and IT fields, primarily academic in approach and membership.
Southern African Communications Forum (SACF) – set up to replace the discredited African Telecommunications Forum (ATF) . Eddie Funde retains his position as President of the SACF since moving into chairmanship of the SABC.

Major activities and initiatives
It is the normal role of industry associations to represent the interests of their members in those forums where matters of common benefit or common threat are discussed and acted upon. Frequently, the associations will stage events in support of their promotional and fund-raising requirements, such as conferences, seminars, trade shows and exhibitions. A prime example, often used to illustrate a successful national ICT association is NASSCOM, in India. Others are ITAA in the US, AIIA in Australia and INTELLECT in the UK (this latter has a staff of 70 employees!).

There have been a number of activities in recent years that have intended to influence the growth and development of the South African ICT sector. The most significant have been:
The Foresight Study, in 1999, under the auspices of the (then) Department of Arts, Culture, Science & Technology (DACST), intended to produce a 15 to 25-year timeline of likely technology direction. Based on (largely) academic and some industry input. A large number of recommendations were made, mostly urging investment in R&D, but it is difficult to see if any person/department accepted responsibility for their implementation.
The South African IT Industry Strategy Project (SAITIS), which was a partnership between Department of Trade & Industry (the dti) and the Canadian Industrial Development Agency, although it was initiated by the Department of Communications. At a cost of R10 million (mostly spent on Canadian consultants), this was the first (only?) genuine attempt to quantify the ICT sector and show its potential. The major industry associations were members of the Steering Committee. Although now in need of serious updating, the research continues to be quoted. Although intended to develop a strategy for the sector, the divisions between the relevant departments meant that no responsibility for implementation has been allocated nor adopted within Government.
Statutory Council for the IT sector, which was motivated through the ITA by PQ Africa and failed to achieve sufficient “buy-in” from other employers, after a lengthy period of discussion. This failure may have opened the door to a Bargaining Council, which has been requested by the Communication Workers Union (CWU) at NEDLAC. However, the CWU appears to be in financial difficulty and may not be able to pursue this activity. Even if they do, they will have considerable difficulty in justifying their position in respect of the entire ICT sector.
ISETT SETA, which was formed as part of the Skills Development Act requirements and identified 3 sub-sectors with 3 employer bodies, plus special interest groups. The first 5 years of SETA activity has been characterised by limited contribution to meaningful skills development, poor linkages to job creation and over-bureaucratic approach, involving SAQA and the Departments of Education and Labour. The levies take about R200 million per year from the ICT sector. The SETA is dogged by poor management practices and weak financial control.
The ICT Development Council, initiated by Alec Erwin as Minister for Trade & Industry. His idea was that it would replicate the success of the Motor Industry Development Programme but it was probably defeated by the fragmentation of the industry and lack of government funding. It did, however, give rise to the SAVANT initiative. The Development Council has fallen away. We believe the new Minister is considering reviving the Council and a “push” from industry would certainly help.
SAVANT, the “South African Vanguard of Technology”, was a public-private partnership which drew together the leading figures in the ICT sector and developed some themes for marketing the ICT sector, building on the perceived strengths. It continues to seek a coherent marketing message and the funds to implement an effective marketing plan. It has a web site, a database of member companies and some marketing collateral. Government decided that it did not need co-funding from industry beyond the first phase, which has led to a marked decline in interest in the programme. DTI presented a new marketing strategy and business plan to its management in mid-June 2005, intended to release more funding and give the project a new lease of life. An amount of R1,7 million has been allocated so far, about one-tenth of the amount requested.
ICT Roadmap is a follow-on from the Foresight Study, now in the Department of Science and Technology (DST). The intention is to focus research and development in technology along certain lines, identified as the most opportune and beneficial for South Africa. Examples are: human-computer interfaces, high-speed computing, geospatial information systems. As with the Foresight Study, a lack of motivation (and funding) from DST means that industry has no significant interest in moving along the directions identified.
ICT Sector Jobs Summit. This NEDLAC process was initiated by the Dept of Communications. A draft agreement was presented at a “Jobs Summit” in June 2002, which was refined through negotiations and signed by the social partners in December 2003. Attempts to move into implementation mode during 2004/5 have largely proved futile. This is because NEDLAC is not an implementation environment and the sector is so fragmented that no mandate exists for a partner to take the lead. There are two routes for business to follow – either continue to ignore the Summit altogether, or use the accumulated goodwill to work with Government on the key issues, outside of the NEDLAC environment. To a certain extent, the Summit objectives have been overtaken by the ICT BEE Charter and this situation is under discussion at NEDLAC. The ICT Business group at NEDLAC has been led by IISA and variously included (sporadically) ITA, EIF, NAB.
ICT BEE Charter. This was also developed at the instigation of Dept of Communications, when separate initiatives by SACOB/IISA and the EIF were drawn together in what became the ICT Empowerment Charter Working Group. This was a major opportunity to see consolidation and cooperation between the various associations representing the ICT sector, but this has not happened to any significant degree. Sub-sectoral, personal and political interests continue to divide the business constituency in the ICT sector. The Charter may be published in the Government Gazette shortly and is intended to be accepted as the Codes Of Good Practice in the ICT sector later in 2005.
Other activities – there have been many other activities where the ICT sector has responded, usually with the same fragmented approach as mentioned above. Examples are responses to draft legislation (the Telecommunications Act, The Electronic Commerce & Transactions Act and the Convergence Bill) and linkages to the President’s National Commission on Information Society & Development (PNConISAD) and NEPAD’s e-Africa Commission. There has also been sporadic input into the African Advanced Institute for ICT (now launched as the Meraka Institute, on the CSIR campus) and the Innovation Hub. In the Western Cape, a more successful partnership has been the Cape IT Initiative (CITI). The launch in May 2005 of the Joburg Centre for Software Engineering (JCSE) will hopefully presage another successful partnership between industry, academia and Government.

Some major issues
The following are key issues affecting the development of South Africa’s ICT sector:
Fragmentation – in the approach of the industry and of government to this critically enabling sector of the economy. Even when Andile Ngcaba was D-G of Communications (probably the most focused official in the ANC government), they chose to “cherry pick” opinions from niche interest groups, rather than seek consensus opinion from the broad business forum. In fact, DoC actively participated in setting up niche associations when it suited them (e.g. SACF). This fragmentation results in diluted resources, under-funded associations and weak representation from the industry side, with a lack of focus, duplication of activities and poor strategy and planning on the government side.
Weak initiatives arise from the foregoing lack of focus, together with a lack of commitment to this essential sector. Too many activities that should play a positive role in the sector’s growth are hampered by operating in a silo, having almost no funding and not being supported at senior level in government or business. Examples are the South African Electrotechnical Export Council (SAEEC), the SAVANT programme at Trade and Industry South Africa (TISA, part of the dti) and the NEDLAC Jobs Summit.
Over the last two or three years, the “empowerment versus enrichment” phenomenon has risen to the surface in the ICT sector. Part of the problem arises from the perception that the sector is one where any entrepreneur can “get rich quick” (as was often true pre-Dot Bomb), fuelled by the BEE examples of certain high profile figures who have achieved massive wealth in a short period. The development of the ICT BEE Charter probably did more to highlight the aspirations of those wishing to take over the assets of existing enterprises than to address growth in the sector. It remains to be seen if the watered-down Charter (a vast improvement on the extremist versions 3 to 5 published by the Working Group) can address the reality of Broad-Based Black Economic Empowerment in the face of the blatant enrichment that has occurred so far.
NEDLAC has proved to be a minimal contributor to the ICT sector. This is partly due to the fragmentation mentioned above, partly due to the inappropriateness of the role of NEDLAC to a post-Summit Agreement stage and partly due to the inherent weakness of the NEDLAC Secretariat in motivating action among the social partners.
There is a dearth of coordinated thought leadership by and for the industry. There are no flagship conferences organised by the industry, no round-table discussions between industry and government and there is very weak national representation of the sector on the international stage.

IISA’s potential role
The opportunities for an effective representative body, led by a committed and effective executive team, are enormous.
Relationship with SA Government at National, Provincial and municipal level, to guide strategy, develop solutions and promote local suppliers.
Contribution to regional development throughout Africa, through AFICTA, NEPAD, the African Union and Pan African Parliament, creating a strong business network and effective infrastructure.
Promotion of South African ICTs in the global market, through leadership of WITSA, representation and WSIS and WTO and support of trade promotion and export initiatives.
Resolution of domestic issues arising from “agreements” such as the Jobs Summit and the ICT BEE Charter.

To achieve this potential requires a winning team, with a united vision, led by a strong driver.
Members – IISA must have a valid membership, operating as a partnership, moving towards a consolidated (business) sector.
Message – IISA must have message that “sells”, identifying the strengths and value proposition of the sector, reaching the target audience.
Motivation – IISA must be motivated by the passion of its members for a singular vision, overcoming differences and focusing on winning for the sector through growth of the market.
Money – IISA needs to find a solution to the funding issue. The current structure of ICT industry bodies is wasteful, as demonstrated in duplicated premises, support systems and executives.

Business – the opportunity
For the leading players in the South African ICT sector, it is entirely appropriate that they should combine forces to have a positive influence on the representation of their interests. There are a couple of routes to achieving this influence:
To take a dominant role in the ITA, promoting the value of the association and its consolidation with the EIF and business members of the BITF, etc. Past experience shows that this will require a considerable number of hours to be devoted to meetings, briefings, etc.
To retain a lobbyist who will attend all relevant meetings, conferences and workshops and provide briefs to management.
To motivate a strengthened role for IISA, perhaps within the concept of a National ICT Council (refer to the research reports commissioned by NEDLAC), to formalise IISA’s position in the various discussion and policy environments and as the ambassador organisation for the sector. Funding is a key requirement, as IISA must have an executive to be able to meet its objectives and serve the needs of its members.

Adrian Schofield
August 2005

Subsequent note:
In the period since the above was written, some things have changed and many have not. An update will be available early in 2007.

Wednesday, February 08, 2006

Unity is Strength


Since I wrote the Leaping into 2006 post, I have talked to many of the stakeholders in the South African ICT sector, and I am even more convinced that this country needs a top-level, energetic, passionate and credible driver to unite the constituents and develop a strong and growing industry.

We have all the elements - we just fail dismally to synergise them and achieve critical mass. There is a vicious and downward spiralling circle, where business fails to present itself as world-class and capable, and government does not understand the economic value of a united ICT sector. Our government has set itself the target of meeting and beating a 6% growth on a sustainable basis. Think how easily that target could be exceeded if the full potential of the enabling effects of ICTs could be realised!


In September 2004, South Africa hosted the regular half-yearly meeting of the WITSA Steering & Public Policy Committees - and witnessed the initial agreement to form the African Federation of ICT Associations (AFICTA). Here are the optimistic statements made at the time - first, on behalf of the Minister for Trade & Industry:

MINISTER OF TRADE & INDUSTRY SPEECH TO WITSA DELEGATES, SEPTEMBER 27 2004, BAKUBUNG LODGE.

South Africa is delighted to be hosting the first gathering of WITSA members in Africa. It is indeed a pleasure to look around this room and see the number and variety of countries represented here. Most of you have travelled long distances to get here and we hope you have a suitably rewarding visit that will encourage you to return. Even our African colleagues, who have such attractions back home, will agree that the setting here in the Pilanesberg National Park is a delightful example of what this continent has to offer its visitors.

We understand that WITSA is an alliance of ICT industry associations from over 60 countries. Such industry associations serve a vital purpose in strengthening relationships and improving dialogue between the business sector and other stakeholders, particularly with government. They allow representative opinion to be developed and shared through agreement on shared principles and they provide a forum for debate of the issues of the day.

At the global level, you add value to the industry’s interaction with world-scale events, such as the World Summit on Information Society, the World Trade Organisation negotiations and the International Telecommunications Union. There is no doubt that the role of ICTs is a vital one in the development of the global economy and there must be an equivalent globalised supporting network of informed opinion helping to shape our usage of technology in the most beneficial manner.

In the developing economies, such as predominate in Africa, we have recognised that “bridging the digital divide” is an essential ingredient if we are to lift our societies from the legacy of poverty and ignorance. The provision of affordable access to ICTs through broadcasting, telecommunications and energy is the first step to giving people the knowledge they require to become economically active and to provide food and shelter for themselves instead of depending on handouts. The need to roll out infrastructure in ways that bring sustainable benefits is paramount in countries such as make up the African continent and a good proportion of the rest of the world.

First making this possible, then making it happen, in ways that promote good business and good governance is the result of effective partnerships between industry and government, and it is the industry associations that form a strong bond in these relationships.

Across this region, we are doing everything we can to realise the benefits, both economically and politically, of creating regional structures that synergise the resources of neighbouring territories and speed the process of development. Our African Union alliance has led to the New Economic Partnership for Africa Development (NEPAD), and just a few days ago, we opened the Pan African Parliament in Midrand, near Johannesburg. Against that background, we are pleased to hear of the formation of the African Federation of ICT Associations (AFICTA) yesterday. This regional association will improve cooperation between the countries contributing to the NEPAD initiatives and promote the collective capacity of African ICT enterprises to develop and implement solutions.

That Africa has this capacity is not in doubt. This continent is experiencing rapid growth in mobile telephony, has pioneered the use of satellite pay TV and the use of pre-payment systems for the supply of electricity and water. In South Africa, we have shown our ability to match the best in the world in the manufacture of motor vehicles, defence systems and digital security. We have become the home of a growing number of call centre seats and have harnessed local talent to support our technologically advanced gambling and leisure industry.

In seeking solutions to our development challenges, we have created a number of initiatives. Our State President has an International Advisory Council, made up of top executives from multinational technology companies, and a National Commission on Information Society and Development, which brings together the top local figures from the sector. Within my own Department, we have set up a marketing programme called SAVANT – South Africa’s Technology Vanguard, promoting our ICT potential in markets that may be more familiar with us as a source of minerals, wines and fruit than of decoders, avionics and systems engineers. We are also addressing the issues of transforming our society into a true economic democracy as well as a political one, through the implementation of black economic empowerment measures.

Where possible, such initiatives are a partnership between the public and private sectors. The last ten years have taught us the value of negotiation and of listening to the opinions of our stakeholders before embarking on new courses, or introducing new legislation. Success is not always guaranteed, of course, but there is no doubt of the value of having the right representatives at the table and of sharing the resources and responsibilities of government and industry.

Finally, we have heard about the World Congress on Information Technology that WITSA organises every two years. South Africa has participated in them since 1998, when Zeth Malele was our first delegate to Fairfax County, Virginia. We have excellent facilities for large-scale conferences and have successfully hosted the World Summit on Sustainable Development as well as several of the World Cup sporting events. In 2010, we will be the home of the World Cup of Football and it is no coincidence that the 2010 World Congress will be held in the region that includes Africa. Be sure that our interest in bidding to be the hosts is a serious one. By the time you leave, we are sure you will be convinced that we can do it!

The dti is delighted to support this meeting and we thank WITSA and its members for coming to South Africa for their deliberations. We offer you a warm welcome and wish you well in your discussions. Enjoy your stay with us and return soon.

Next up, the Minister for Communications:

MINISTER IVY MATSEPE-CASABURRI’S SPEECH AT WITSA DINNER, SANDTON CONVENTION CENTRE, SEPTEMBER 29, 2004

Welcome to international delegates from over 30 countries, attending the first World Information Technology & Services Alliance (WITSA) meeting to be held in Africa. We hope that we have lived up to and beyond your expectations in providing a unique experience of life in our country – from the delights of our national park to the history of our famous township. We are also pleased to be able to show off a little of our facilities in this Convention Centre and its surrounding business, shopping and leisure environment.

We are encouraged to hear of the formation of the African Federation of ICT Associations (AFICTA) and look forward to interacting with it and its members. Our regional activities can only benefit from a more coordinated voice of the industry. With NEPAD and the e-Africa initiatives taking shape, this coordination will help us towards more effective implementation.

Effective dialogue between industry and government is essential to the development of enabling regulation and to harnessing the resources required in providing affordable access to ICTs for all our people.

We hope that you have enjoyed your visit and look forward to welcoming you again soon. We have endeavoured to show you just a little of South Africa’s capacity to host a World Congress on Information Technology in our excellent conference facilities and hotels, with the supporting infrastructure to offer exciting tourism and shopping opportunities. We will be supporting the bid to host the 2010 World Congress and hope that you will, too.

And finally, the press release:

AFRICAN FEDERATION OF INFORMATION AND COMMUNICATIONS TECHNOLOGY ASSOCIATIONS (AFICTA) ESTABLISHED

Savant Steering committee member and President of Information Industry South Africa (IISA), Adrian Schofield, has been elected convenor of the African Federation of Information and Communications Technology Associations (AFICTA) Steering Committee.

Delegates at the recent WITSA meeting agreed to establish AFICTA, with South Africa as the initial host country. The Steering Committee includes representatives of national ICT associations from Tunisia, Algeria, Senegal, Kenya, Uganda, Tanzania, Zimbabwe and South Africa. This committee has three months to prepare a budget, structure, constitution and detailed objectives for AFICTA.

Commenting on the establishment of AFICTA, Adrian said, ‘We have learned from the experience of the Asia-Pacific region that synergising the resources of national associations brings benefits for all the members and supports the growth of the ICT sector in ways relevant to the needs of the region. AFICTA will build on the network of African associations brought together by WITSA.’

AFICTA will be an alliance of African ICT industry associations, committed to the development of information and communications technologies in Africa. Among its objectives will be advocacy with African governments and regional organisations, representing African ICT issues in international fora, promoting information and communications technologies into African economies and governments and support for ICT research and development in Africa.

AFICTA will be associated with WITSA, a global grouping of 65 national ICT industry associations. The decision to establish AFICTA was taken at WITSA’s recent Public Policy and Steering Committee meetings, held in South Africa.

-------------------------------------------------------

Against that background, it is disappointing to note the tone of the next piece:

ICT Sector Summit Steering Committee
Comment on the process for 2005 from Business

We have to ask ourselves if the ICT Sector Summit process as implemented in 2004 has been successful. Whilst the NEDLAC environment is conducive to negotiation of issues between the parties to reach consensus, it does not appear to be suited to the implementation of agreements reached.

The inherent problem is the basic structure of the ICT sector. There is no single (or even dual) employer body that dominates, nor is there broad union membership among the workforce. The willingness of individuals to give up their own or their company’s time to this process has diminished in relation to the time since the ICT Sector Summit was launched. In spite of the expected focus of the sector arising from the Summit and from other activities such as the Charter, the SAVANT initiative – even the SAITIS project – there has been no real consolidation of the ICT sector. It continues to be made up of several industry associations (which, in total, do not represent a significant number of enterprises, although they may cover about 50% of the turnover) which see little reason to cooperate with each other. Government also has several departments involved in the sector, again with little coordination.

This fragmentation dilutes the resources (people, funds, energy and time) that should be harnessed to address sectoral issues. Instead, small groups of people, largely un(der)funded, work in silos on narrow issues and achieve little for the greater good. The bottom line is that, although a broad spectrum within the constituencies has an interest in the sector’s future, no-one really has a mandate to act on behalf of a significant proportion of the constituents. There is a vicious circle – the Sector Summit process (in the ICT sector) has no resources, which means it does not have the attention of senior executives across the sector, which means that no resources are allocated to its activities.

In addition, many of the objectives of the Summit are being pursued by other initiatives – sometimes in different directions. For example, the BEE Charter process demanded the time and resources of many of the people who were or could be involved here. Another example is the SAVANT initiative at the dti, which is intended to promote the growth of the sector, thereby creating jobs. Many see this Summit activity as a duplication of effort, carrying less importance.

Every endeavour needs a driver. Frankly, there is none for the ICT Sector Summit. Rather than review all the thoughts we have about how to correct that situation, I would refer the Steering Committee to the as yet unpublished report from ForgeAhead that proposes the formation of the National ICT Council. That proposal will (if implemented) address the problems experienced in 2004 and provide a professional environment in which to take forward the Sector Summit Agreement.

Adrian Schofield: April 13, 2005

Wednesday, January 04, 2006

Leaping into 2006

A quick introduction - you can find out more about me from www.adrian.co.za - I have been involved in South Africa's ICT sector for over 20 years. In that time, I have learned a couple of things - the more grey hair (or lack thereof) you have, the more respect you get from people raised with traditional family values; and the more one tries to unite the local ICT community, the harder it becomes.

Is that because the typical ICT sector decision-maker does not have traditional family values, and therefore rejects the wisdom of the older generation? That's a question that can be debated in the larger context of the challenges that I want to address.

The core issue that I want to debate is why our ICT industry has not created effective representation structures, to benefit the entire sector and the South African economy. Back in 1999/2000, the Canadians and our Departments of Communications and Trade & Industry spent a few million Rand on the South Africa IT Industry Strategy Project (SAITIS). the project conducted an enormous amount of original research and provided some good pointers for opportunities into the future.

5 or more years on, the only visible remnant of the project is the SAVANT programme at the dti (www.savant.org.za), which started as a partnership between government and private sector to promote South Africa's capacity as a source of ICT products and services, intended to reduce the trade deficit of some R20 billion in the sector. Now without the private sector contribution, the SAVANT programme is little more than a web site and a newsletter.

Back in 2002, through NEDLAC, an ICT Sector Jobs Summit process was started and the end of 2004 saw the ICT Sector Summit Agreement signed by the four social partners (business, labour, government and civil society). It contains many laudable intentions about the retention and creation of jobs in the sector but absolutely nothing has been done to turn those intentions into action. Why? Because the sector is fragmented and no mandated leadership exists in any of the partners to drive the agreement forward. The key recommendation of the Summit process is that a National ICT Council (NICTC) be formed, to overcome the divisions, but (so far) nothing has been done to create such a body.

From 2003 through 2005, the ICT Empowerment Charter Working Group (ICTECWG) and its related Task Team laboured long and hard to develop and agree the BEE Charter for the sector (see www.ictcharter.org.za). Insofar as it was possible to do so, they called together the opinions of every available stakeholder on many occasions, to arrive at a reasonable consensus. The final draft was amended (watered down?) to comply with the guidelines of government but has since been stalled, as government has yet to finalise the ruling Codes of Good Practice. The delay means that whatever goodwill and common purpose was shared by the stakeholders over that 2-year period has now dissipated, as the parties have no reason to remain united in this particular goal.

In all these initiatives, the lack of a driving force to take effective action means that events overtake the purpose, leaving a trail of wasted effort and resources and a resistance to further participation. I can go on giving examples of good ideas going to waste. They are all affected by the same root cause - fragmentation.

We talk about the ICT sector as though it is an homogenous entity - perhaps like mining, or oil, or agriculture. In practice, though, it covers an enormous range of entities, from Telkom/Vodacom to one-person operators offering technical services. It stretches from broadcasting (SABC, Multichoice), through telecommunications (satellite, broadband, mobile) to programming, networks, hardware and software supply...and more. And, of course, convergence of technologies is blurring the distinction between the various products and services. That influence alone should be pushing us towards consolidation of strategy and policy - convergence, if you will.

How to achieve it? Form the NICTC - driven by the President's Office, mandated to have executive power to coordinate the various government departments that have a stake in the use of ICTs to lubricate the economy and enable serive delivery. Use that executive power to call together the myriad industry bodies and facilitate their consolidation into as few in number as possible. That will prevent the dilution of resources that has prevented any one of the bodies from becoming a dominant force. Need an example? Look to India and the effectiveness of NASSCOM (www.nasscom.org)...

South Africa has the opportunity to host the World Congress on Information Technology in 2010. However, the bid for this US$10m exercise must be submitted by February 28 2006 - and we have not even got the funding to cover the bid preparation!

Can we achieve a result? Can we prove that "unity is strength"? Or do we go on looking after Number One and turning our backs on the enormous opportunities for this wonderful country that would flow from a vibrant and coordinated technology sector?