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Rural connectivity dearth as SMEs envision the future

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 16 Sept 2022
Darryl Dennis, CEO of Nelson Mandela Bay iHub.
Darryl Dennis, CEO of Nelson Mandela Bay iHub.

Rural internet access came into sharp focus yesterday in Cape Town at the Tech Entrepreneurship Xperience conference.

Participants deliberated on equalising opportunities for small businesses in outlying areas and those in urban settings.

There were strong calls for government to take action and play a meaningful role in assisting small businesses to embrace digital inclusion, especially in rural communities.

This, as advocacy urging an expedited approach in providing universal connectivity in SA has been growing on the back of government plans to connect all South Africans by 2024.

With SA’s unemployment rate now reportedly among the highest in the world, government wants more people to participate in the ballooning digital economy, hence the need to accelerate affordable connectivity.

Leading the charge yesterday was Darryl Dennis, CEO of Nelson Mandela Bay iHub, who, during a panel discussion, expressed concerns at the slow pace of rural connectivity, which he said is disadvantaging small business in outlying areas.

The iHub focuses on technologies that have the potential for disrupting existing value chains to facilitate market access while contributing to social development.

This is done through a focus on educational technology, smart agriculture, automation and robotics, big data analytics, cloud computing and blockchain technologies.

Contributing to the equitable internet discussion, Dennis said: “Connectivity is critical” and an awareness campaign to broadly demonstrate the power of technology needs to be rolled out.

“In the absence of understanding technology first and foremost, you can’t appreciate the benefits that come with it.

“When you look at the urban versus township economy, it’s very difficult to see how there will be a meeting point because of the disparities.”

Dennis solicited for increased passion from government and the private sector to support small business and ensure internet access, which will give the start-ups a firm footing to compete.

According to Dennis, the country needs “a ministry that just talks ICT” because at some point “we are not speaking from the same hymn sheet”.

“The challenge we have is that no one is really talking to everyone around the table and saying: ‘guys, this is what we want to do and this is the role you will play’. Right now, Stella Ndabeni-Abrahams, the minister of small business pushing township economy, and Khumbudzo Ntshavheni, minister of communications and digital technologies, have a different mindset.

“The other challenge we have is that we look too much to the East and the West to drive what we do locally, which in most instances is not a fit for everyone and I think that’s South Africa’s challenge; we look at China and America. We really have to change our mindset.”

In his submission to the panel, Dennis took exception to what he deemed lack of support from government and corporate SA in supporting start-ups.

“Once again, I say this, with respect. Look at how many ICT companies came out of Stellenbosch. Fundamentally, the question is, if they can be successful, why then can’t we be successful?

“I don’t think corporate SA or government have necessarily created a conducive and enabling environment for SMEs to become active participants [in the economy]. It’s unfortunate but it’s very true.”

The Tech Entrepreneurship Xperience conference was hosted by ICT entrepreneurship training facilitator The Innovator Trust, with the aim of charting the path for the entrepreneur of the future.

Tech entrepreneurs, small businesses, academia and leading tech executives took part in the one-day event, exploring the impact of technology on small businesses, and attempting to discover what the entrepreneur of the future will look like.

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