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ICT gets minimum mention by Zuma

Paul Vecchiatto
By Paul Vecchiatto
Cape Town, 03 Jun 2009

The rollout of digital broadcasting infrastructure and reducing the cost of telecommunications, through projects under way to expand broadband capacity, were the only two direct ICT references made by president Jacob Zuma today.

In his state of the nation address, delivered for the first sitting of Parliament following the April general elections, Zuma outlined his administration's plans for the coming year.

As expected, these plans appear to be a continuation of those put in place by his predecessor Thabo Mbeki's administration, especially when it comes to using ICT as a cross-cutting sector or enabler, rather than a focus in its own right.

Zuma said one of the developments “...which should boost the World Cup is the rollout of the digital broadcasting infrastructure and signal distribution transmitters”.

He noted: “Overall, we will ensure the cost of telecommunications is reduced through the projects under way to expand broadband capacity.”

No specific reference was made to any particular broadband project that should help reduce the cost of telecommunications; however, government has identified this as a key business inhibitor for a number of years.

Reducing the cost of telecommunications was a key issue under the Accelerated Shared Growth Initiative for SA, the macro-economic plan adopted by Mbeki's administration. This was to stimulate the business process outsourcing industry, especially contact centres, which have been a key creator of new jobs throughout the country.

Priority areas

Zuma takes office during a particularly difficult economic time, with the country having slipped into a recession and the global meltdown finally beginning to be felt. He said government had identified 10 priority areas, which form part of its medium-term strategic framework for 2009 to 2014.

“The programme is being introduced under difficult economic conditions. The past year has seen the global economy enter a period of crisis unprecedented in recent decades. While SA has not been affected to the extent that a number of other countries have, its effects are now being clearly seen in our economy. We have entered a recession,” he said.

The priority areas include the minimising of job losses, improving the education system, the use of the Industrial Development Corporation to fund companies in distress, and that government buys more goods and services locally.

Industrial policy interventions will be increased through a scaled-up industrial policy action plan. The lead sectors already identified are automobile, chemicals, metal fabrication, tourism, clothing and textiles, as well as forestry.

“In addition, attention will be paid to services, light manufacturing and construction, among others, in the quest to create decent jobs,” Zuma said.

He also hinted that government will increase spending on health, social services and overhauling the criminal justice system as part of its overall poverty alleviation programme. These will all include increased spending on ICT services and products.