SA's ICT sector is being directly impacted by the schism between two factions in the African National Congress (ANC).
This is according to Tony Leon, former leader of the Democratic Alliance, speaking during a keynote address at the opening of Microsoft's Partner Summit, in Durban, yesterday.
He said the local ICT sector faces four challenges: the skills drain; lengthy sales cycles, especially when tendering for government contracts; high inflation rates; and the lack of bandwidth.
Leon noted that each of these can be solved if the ruling party comes together and creates a united front against the causes of the challenges. "If we, as a country, can solve those issues, then SA will become an economic powerhouse."
He said creating a strong economy has little to do with the size of the country, or even the levels of natural resources, but rather the implementation of good laws that make a country grow and prosper.
Leon used the difference between North and South Korea, and East and West Germany to illustrate his point. South Korea prospered, where North Korea lived under oppressive laws, he said.
"Until the ruling party has converged into a single centre of power, SA will be paralysed," he pointed out.
Liberate us!
According to Leon, government has a report on how the ICT sector can be boosted, which essentially states there is too much regulation and not enough liberalisation. "The report also shows that almost all the problems faced by telecommunications in the country can be attributed to Telkom's dominance."
Leon reminded delegates at the summit that technology is a powerful economic and social driver. "Barak Obama managed to raise enough money to fund his campaign by using e-mail to see how many people he could touch. He raised over $500 million in donations electronically."
Another example of the power of technology is China, which, added Leon, has become an economic power through technology. "Because of technology, the country will graduate 30 000 MBAs this year, where in 2006 the figure was in single digits."
He said the country, and the ANC, need to take the future in hand and start solving the challenges in ICT to boost the local economy.
"Do we have the courage and leadership to do it?"
He noted there is yet more scope for growth in SA. The inclusion of the coming undersea cables and the many companies laying fibre in various metros will help alleviate the economic stresses SA faces, Leon concluded.
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