ICT Industry Representation in South Africa
By Adrian Schofield, President, Information Industry South Africa
20 years – a potted historyIn 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 explainedApart 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 initiativesIt 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 issuesThe 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.