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SA must shift to knowledge economy


Johannesburg, 01 Nov 2006

SA's transformation from a commodity-based economy into a knowledge-based economy needs to be expedited, public service and administration minister Geraldine Fraser-Moleketi told delegates at the GovTech conference, at Sun City this week.

"The much-needed generation of jobs and the creation of wealth can only be bolstered through structural changes in what underpins the economy. The status afforded to knowledge should be on par with that afforded to capital and labour."

She added that innovation should be innate in South African society. "The sustainability of a competitive advantage lies in our ability to analyse and innovate. The more this capability is ingrained in our society, the more exponential the potential gains can become."

Fraser-Moleketi noted that education and the digital divide are some of the issues that hamper SA's transformation into a knowledge economy.

In her letter to delegates at GovTech, as read by the minister, deputy president Phumzile Mlambo-Ngcuka highlighted issues regarding the availability of skills and education for effective application of ICT.

"We need to make sure adult basic education and training is the bridge to the labour market and adult learners can use ICT to survive in the market," she said.

Mlambo-Ngcuka added that connecting people in the rural divide has to be the first concern for the public sector.

"Now is the time for great strides in SA for ICT. We need to take action in order to grow our economy, be it our infrastructure, energy, transportation and other key sectors."

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