The 2015 Global Information Technology report, released today by the World Economic Forum (WEF), shows SA dropped five places to 75 of 143 countries in the Network Readiness Index (NRI).
SA was ranked 126 for prepaid mobile cellular tariffs, 103 for government success in ICT promotion, 117 for Internet access in schools, 112 for ICT use and government efficiency, and 123 for competition in the telephony and Internet market.
Ovum analyst Richard Hurst says SA's drop in the NRI comes as no surprise. "Last year, the commentators and IT analysts said unless something is done and drastic steps are taken, SA will continue to drop in ranking."
There are simple steps that can be taken by all players to improve the ICT situation in SA, says Hurst, "and it all comes back to government taking ICT seriously".
He notes government first needs to concentrate on education and then on coherent and clearer ICT policies, including freeing up spectrum.
The low ranking in the telephony and Internet competition space is largely due to the confusion created by government in the regulation space, comments Hurst. He says the split communications department created duplication of work and no clarity. "It is easy to blame these companies [service providers] but they are reacting to the market situation."
Hurst believes government is not using anything in its "regulatory toolbox" to free-up the market. This will create a "knock-on effect" for other things such as driving innovation. "SA is not retaining its intellectual property, but basically exporting it. A case in point is Elon Musk, a South African who studied here but is now one of the richest men in the US, and a lot of what he is developing at the moment won't benefit SA."
Business usage is the highest Internet usage in SA, ranked at 34, followed by individual usage, ranked 68, and then government, 105. "What is sad about the situation is that South African businesses are missing the opportunity to compete on a global scale."
African economies
Hurst says government needs to look at other African countries such as Ghana, Kenya and Tanzania, which have realised ICT is a new tool they can use with citizens, which is "cost-effective and more harmonious".
The report states the general ICT performance of Sub-Saharan Africa is "particularly disappointing" with 30 of the 31 countries ranked in the bottom half, with only Mauritius above, ranked 45. Among Africa's larger economies, Nigeria drops seven places to 119, while Kenya moves up six to 86.
One of the report's key messages was: "The low-hanging fruit of policymaking". The study states that for countries to bridge digital divides and revolutionise ICT, they need to develop their ICT ecosystems, which implies long-term, costly investments in infrastructure and education.
However, the WEF says there are things governments can do quickly, such as creating "an enabling environment by promoting competition through sound regulation and liberalisation".
The report singles out Sub-Saharan Africa as a region where countries, including Kenya and Tanzania, have fully liberalised their ICT markets. These countries, the report states, are starting to reap the benefits in the form of increased private investments and the introduction of new business models and services.
Education fail
According to the latest WEF report, SA ranked 139 ? followed by Egypt, Angola, Yemen and Libya ? for the overall quality of its education system, which looks at: "How well does the educational system in your country meet the needs of a competitive economy?"
SA's overall quality of education, when taking all subjects into account, was ranked 146 last year, compared to 140 in 2013, the WEF says. This year, SA was ranked 143 out of 143 countries for the quality of math and science education alone.
ICT commentator Adrian Schofield says teaching of maths and science has not significantly improved since last year, and when it does, it will then take 10 to 12 years for ranking systems to notice. "It is becoming more and more urgent for SA to completely overhaul how we teach maths and science in schools.
"The softer side of education, such as languages and art, is important for a balanced education, but without critical skills such as logic and a curiosity for the way things work (which is taught in maths and science) we have students graduating with no personal productivity and collective competiveness," says Schofield.
Last year, the Department of Basic Education dismissed SA's dismal maths and science education rating, saying it was "not a credible or accurate reflection of the state of education in SA" as it "is based on interviews conducted with business sector executives and reflects nothing more than their personal perceptions".
For the full report, click here.
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