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Cisco acts on SA investment

By Text 100
Johannesburg, 20 Jun 2000

Cisco Systems Southern Africa has committed to roll-out 20 Academies over the next 18 months in Africa to develop the local IT skills base. This follows a recent meeting to discuss international investment in Africa between Department of Trade and Industry Minister Alec Erwin, Cisco board chairman, John Morgridge and Bill Weber, general manager for Cisco Systems Southern Africa.

In addition to the 20 regional Academies to be rolled out, Cisco`s longterm goal is to set up ten local Academies attached to each regional centre. These Academies jointly have the potential to create up to 8 000 thousands jobs a year and are a hothouse for growing local IT skills. They provide students with the required knowledge, as well as practical hands-on experience, which exposes them to the reality of running networks in the workplace today. Cisco currently has eight Networking Academies in South Africa.

Bill Weber believes that IT is the way forward for job creation in South Africa. "IT is a key growth industry for South Africa but we face an acute shortage of skills that unless rectified, may result in South Africa being left behind in the economy," says Weber. "The signs are that if South Africa is to become a competitive global player, technology will be one of the contributing reasons for success."

The SA Information Technology Industry (Saitis) project recently launched a report which found that in 1997 the SA IT sector, broadly defined, was worth R27.2 billion, R37.7 billion in 1999 and is expected to reach R47.5 billion by 2001, which is an average growth rate of 12 percent per annum compounded. "This presents South Africa with both an opportunity and a challenge, since the skilled labour pool is not big enough to grow the market," says Weber.

Cisco believes that the answer lies in joint participation between local Government and the private sector. "We have recognised that there are two levels with which to address the challenge - through a global and local strategy," says John Morgridge. "The skills shortage is not unique to South Africa and Cisco will use its international experience to assist in developing the local skills base."

Cisco is already working with the South African government to undertake effective action in addressing the local networking skills shortage through the Networking Academy Programme. Additionally, it has donated a training lab to the Houwteq project, which aims to increase the availability of networking skills by targeting historically disadvantaged students who show science, engineering and technology potential.

"The skills shortage is a key opportunity for black economic empowerment to fill the gap left by the `brain drain` from the local skills pool," says Weber. "The goal of Cisco`s local Networking Academy Programme is to build a pool of resources which can supply empowered companies in South Africa with employees who possess the right level of knowledge and skills. The private sector has a role to play in making South Africa a good choice for investment and Cisco has taken up this challenge to work with the Government."

The Department of Trade and Industry has indicated that it will demonstrate its commitment to IT investment in South Africa, by upgrading its existing technology infrastructure to enable telephony and television over the Internet as its networking platform.

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Cisco Systems

Cisco Systems (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. The South African office was started in late 1994, with a single office in Johannesburg and two members of staff. Growing significantly year-on-year, Cisco is now represented in all major South African centres by local offices and/or partner organisations.

The South African team offers support in sales, pre-sales, marketing and promotions as well as a pre-sales helpdesk. By breaking the team into these segments, it allows Cisco to focus on the unique requirements of each target market, so that it can ensure that it is providing its individual customers with products and services that meet their needs.

Cisco news and information are available at http://www.cisco.com.