THE ICT CHARTER Hasmukh Gajjar Member: ICT Charter Working Group 16 th September 2003

1. THE ICT CHARTERHasmukh GajjarMember: ICT Charter Working Group16th September 2003

2. Background – Why a Charter? • BEEcom Report Feb 2001 • Despite the implementation of transformative policies and sound fiscal management by Government, South Africa’s economic growth performance remains disappointing. Continued high levels of unemployment and poverty undermine the stability of our new democracy. The country still has one of the most unequal distributions of income in the world. This is a reflection of the extremely low levels of black participation in the economy.

3. Background – Why a Charter? • BEEcom Report Feb 2001 • The country cannot therefore sustain high levels of economic growth in the absence of deliberate measures by the State to facilitate the meaningful participation of black people in the economy. The state has an integral role to play, in the policy and regulatory environment and in the provision of services itself.

4. Background – Why a Charter? • The socio-economic landscape has structural deficiencies consequent to a policy of artificial engineering based on race • Accelerated economic growth can be achieved through re-engineering legacy • The ICT Charter is our Business Plan

5. Background – Why a Charter? • Pale male complexion of IT must change'THE uncompromisingly white male profile of information technology companies has been blasted by Andile Ngcaba, the director-general of the communications department, with a stern message that the industry must be overhauled, writes Lesley Stones... Sep 13 2002 12:00:00:000AM Business Day 1st Edition

6. Background – Why a Charter? • Government softens its approach to IT industry reformsPlans to impose black empowerment criteria on the high-tech sector appear to have been withdrawn, with the communications department saying it trusts industry leaders to introduce their own reforms. The retreat has been welcomed by industry leaders, who feared that strict targets similar to those in the mining charter would be imposed although doubts linger about how quickly reform will happen if government does not force the direction and pace of change. Feb 27 2003 06:50:28:000AM Lesley Stones Business Day 1st Edition

7. dti policy document is platform • Objectives of BEE • A substantial increase in the number of black people who have ownership and control of existing and new enterprises. • Above in priority sectors of the economy • A significant increase in the number of newblack enterprises, black-empowered enterprises and black-engendered enterprises • A significant increase in the number of black people in the executive and senior management of enterprises • Others . . . . .

8. dti policy document is platform • Charters • Definitions • Targets • Timelines

9. Some key issues to deal with! • Definitions • Sector ( what is ICT ) • Segmentation • H/w, software, SI, Manufacturer, • high value versus “holes and poles” • Enterprise (Listed, Private, Multinational, SOE) • SMME • Black enterprise • PDI’s, HDI’s, HDG’s PAI’s, HAI’s • White women = ? PDI’s • Black empowered enterprise Achieve clarity, standard, consistency

10. Some key issues to deal with! • Targets • % of black ownership • % of black control • % of black management • % black skills base • ? Black owned large enterprises • Or is BEE for SMME’s only • Blackness in cutting edge, leading edge technologies, products and services • Cabling versus Strategic engagements

11. Some key issues to deal with! • Targets • % of black ownership • Beauty parades • Investment versus operational • Joint ventures • FRONTING ! • Funding • % of black management • List all multinationals – 4 black CEO’s • List all listed company - ? Black CEO • List all SOE - ? Black CEO

12. Some key issues to deal with! • Targets % of black management Management ? CEO CFO COO Sales Director ?? HR Executive ?? BEE Executive

13. Some key issues to deal with! • Timelines • ? Five years • ? Ten years • ? Fifteen years • ? Twenty years

14. Some key issues to deal with! • Segmentation • Broadcasting • Media • Telecomms • IT • Electronics

15. Some key issues to deal with! • Stakeholders • Consulting • Multinationals • Distribution • Enterprise Resellers • Resellers • Customers / Consumers

16. Some key issues to deal with! • Multinationals • Ownership ? • Current scene • Empowering employees • Developing channel partners (WEIGHTING) • Investing in skills development (WEIGHTING)

17. Some key issues to deal with! • Large Enterprises • Will take longer • Short gains “rewarded” ?

18. Some key issues to deal with! • Customers • Consistency between public and private • Balancing business needs, yet drive internal and external transformation • Is Telkom black owned • Is arrivia black owned • Role of SITA • Accountability of SOE’s

19. Some key issues to deal with! • Finance • Cost to BEE and Transformation • Where will the money come from

20. Some key issues to deal with! • Monitoring • Voluntary compliance • Punitive measures • Accreditation • Government • Commercial providers • Ombudsman

21. Some key issues to deal with! • Governance • Transparency • Accountability • Corruption • Entitlement • Community Impact • Digital Divide • Poverty Alleviation • Job Creation

22. Some key issues to deal with! WE WISH YOU WELL IN YOUR DELIBERATIONS AND INETRACTIONS FOR THESE TWO DAYS. MAY IT BE ROBUST, MAY IT BE PASSIONATE, BUT IT SHOULD BE OPEN, CONSTRUCTIVE AND THOROUGH. THIS IS OUR PROBLEM, WE OWN IT TOGETHER. IT IS NOT A WHITE PROBLEM, OR A BLACK PROBLEM – IT IS THE FUTURE OF OUR CHILDREN, OUR COUNTRY, OUR CONTINENT – AFRICA !