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Calls for black industrialists in ICT sector

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 22 Sept 2015
Minister Siyabonga Cwele wants more black industrialists to participate in the country's ICT sector.
Minister Siyabonga Cwele wants more black industrialists to participate in the country's ICT sector.

The Universal Service and Access Agency of South Africa (USAASA) needs to create opportunities to involve black industrialists in the country's ICT sector.

This is the mandate given to USAASA's new board of directors by Department of Telecommunications and Postal Services (DTPS) minister, Siyabonga Cwele.

The minister has challenged the USAASA board to think about how the ICT sector can contribute to government's goal of facilitating the creation of black industrialists.

Cwele's calls for black industrialists are also in line with government's goals for economic inclusion and placing black industrialists at the forefront of SA's industrialisation efforts.

In May, the Department of Trade of Industry unveiled a support framework for black industrialists, which aims to promote industrialisation, sustainable economic growth and transformation through the support of black-owned entities in the mainstream of SA's manufacturing industry and related manufacturing sectors.

"We would like to see transformation informing your decisions as you allocate your resources. As society increasingly becomes digitally inclusive, localisation of gadgets becomes an important area of development," notes Cwele.

Why USAASA?

Cwele says USAASA must continue to pursue its mandate of increasing access to modern communication tools and services to all citizens. As an industry body, USAASA is able to guide industry obligations and investment on where and how investment needs to be deployed, says the DTPS.

USAASA is also in charge of selecting manufacturers for the production of set-top-boxes (STBs) for the country's digital migration process. USAASA awarded a R4.3 billion tender to manufacture STBs to 26 companies.

The DTPS says USAASA must encourage the participation of black industrialists in the ICT space and production of STBs.

"Entrepreneurship opportunities could be in the establishment and running of local networks and the manufacture of basic gadgets that can be used in the country and the continent," according to the DTPS.

Industry analyst Adrian Schofield says opportunities for black industrialists can be achieved by applying the enterprise development principles enshrined in the BBBEE legislation.

However, industrialists have to earn their place, says Schofield. "It does not come as a gift.

"Should we be focused on a small group of industrialists, or should we rather concentrate on employment opportunities and the development of small businesses?"

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