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Regulator constrains SA growth ambitions

ICASA may be unwittingly hampering the country`s aims of growing economic output.
Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 26 Jul 2006

SA`s broadcast regulator, the Independent Communications Authority of SA (ICASA), may be unwittingly hampering the country`s aims of growing economic output.

SA`s latest growth plan - Accelerated and Shared Growth Initiative of SA - aims to have the economy growing by 6% a year by 2010.

Asgisa, as it is commonly known, seeks to do this by removing barriers to growth. Among barriers to this magic growth rate is the cost of doing business in SA. High telecommunications costs have born the brunt of this criticism.

Where information and communications technology enters the picture is in government`s drives to attract business process outsourcing and offshoring entities to the country.

This sector, along with tourism, has been specifically identified as an initiative that can boost growth and lower unemployment. It is particularly attractive in that - assuming infrastructure is in place - such centres can be located in rural areas, bringing relief to marginalised communities.

However, in order to achieve these aims, SA needs skills. Enter the Joint Initiative on Priority Skills Acquisition, or Jipsa. This initiative is a collaboration between government, labour and business, and seeks to address urgent gaps in the knowledge economy as quickly as possible.

Gaps in SA`s skills base that have been identified by Jipsa`s committees include a shortage of ICT skills, a shortage that could become more acute if ICASA prevents councillors who have completed their term from joining the sector.

Conflict of interest

ICASA chairman Paris Mashile has stated that these councillors could provide their new employees with "insider" knowledge.

Nicola Mawson, senior journalist, ITWeb

ICASA chairman Paris Mashile has stated that these councillors could provide their new employees with "insider" knowledge, which could give private companies a competitive advantage over the regulator.

His concerns over a conflict of interest are justified, especially if one considers Mashile`s comments that interference could also come from the private sector, with companies using information gained from former ICASA councillors.

His alternative to unleashing these councillors into the private sector is to re-deploy them within government.

But Mashile`s suggestions that ex-councillors be sent to Rwanda to avoid any conflicts could come back as 0.5% growth lost to Rwanda`s ICT sector, such as it is.

Related stories:
Call for ICASA council nominations
ICASA fears information leaks

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