The Eastern Cape ICT Initiative (ECITI) says its 20 incubated businesses recorded a solid set of results for the 2012/13 financial year, hitting a combined turnover of R6.5 million.
The Department of Trade and Industry has committed a total of R11 million over the next three years to ECITI. These funds will aid in the expansion of the business into the rural areas of the Eastern Cape that are underdeveloped, under-resourced and marginalised, it says in a statement.
ECITI head Patricia Dlamini says this is pleasing when measured against total grant funding of R2.4 million from its core funder, the Eastern Cape Development Corporation (ECDC).
The funds will aid in the expansion of the business into the rural areas of the Eastern Cape that are underdeveloped, under-resourced and marginalised, it says.
Starting over
These enterprises operate mainly in software development, film and design. The best performing sectors were infrastructure and networks, followed by communication, media management and film. A total of 60 direct jobs were created by the enterprises during the year, with another 63 indirect jobs established.
While the turnover amount is decidedly lower than the R9 million generated by enterprises in the previous financial year, this is not an indication of decline in the financial performance of the businesses, says ECITI.
The most recent year was the first of a new two-year cycle, says ECITI, noting that turnover increases as the cycle matures.
Dlamini says ECITI, a subsidiary of development financier, the ECDC, supported a total of 20 enterprises of which 60% were part of the virtual incubation programme.
These virtual enterprises are located in areas outside East London, such as Butterworth, Dimbaza, Mthatha, King William's Town, Queenstown and Stutterheim. The increased appetite for incubation from enterprises located away from the main centre has resulted in a decision to establish satellite incubation centres in the OR Tambo and Chris Hani regions. This move should bring ECITI services closer to its clients.
Looking for gaps
Dlamini says the provincial Department of Economic Development and Environmental Affairs and Tourism (DEDEAT) also established an ICT task team led by ECITI and Innovate Eastern Cape.
The task team will identify ICT infrastructure gaps within the province, classify available ICT skills and gaps, find existing ICT projects and programmes within the province run by the public or private sector, as well as develop a comprehensive project proposal as a basis for DEDEAT to engage the national Department of Communications (DOC) around provincial ICT issues.
ECITI has been tasked with championing these initiatives to support economic development initiatives.
It is also collaborating with the DOC and its state-owned companies in the implementation of several projects which have been identified in the Eastern Cape. These projects are related to connectivity initiatives in the rural parts of the province through the establishment of ICT labs in these areas.
"These projects have enabled ECITI enterprises to become the primary implementers locally and to offer post-establishment maintenance and aftercare support. For example, an ECITI incubate, Khula Technologies, was appointed to establish labs and post-establishment aftercare support at Sobantu and Nathaniel Pamla high schools in Peddie.
"The organisation was also tasked with the championing, strategic planning and implementation of the fifth annual ICT Summit. ECITI's role is viewed as the relevant conduit that government can invest funds in to enable the conference," Dlamini adds.
ECITI also formed a partnership with the East London Industrial Development Zone to locate its premises at its ELIDZ Science and Technology Park, as part of the bigger value chain creation in industrial development. ECITI relocated to the park last July.
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