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Can Ramaphosa revive SA's ICT industry?

By , Journalist
South Africa , 19 Feb 2018

Can Ramaphosa revive SA's ICT industry?

South Africans can expect greater clarity on policy issues including the country's broadband plan, digital migration and increased impetus on implementation plans for its ICT white paper.

This is according to industry analysts who have commented after Cyril Ramaphosa was officially sworn in as President of the country following Jacob Zuma's resignation in mid-February.

Ramaphosa has received the backing of business and industry, however analysts believe he will need to act quickly to sort out pressing economic challenges, including alleged corruption scandals and state capture.

Ben Payton, the head of research for Africa at Verisk Maplecroft, said on Friday that Ramaphosa's "first major test will be the budget, due to be presented on Wednesday. The numbers are likely to make grim reading" as the new administration gets down to business.

Although South Africa's ICT and telecom industry is considered one of the most advanced in Africa, experts believe fresh impetus will enable businesses, companies and the greater economy to benefit from the expected boom in cloud computing, big data and IOT, among others.

Naila Govan-Vassen, senior ICT industry analyst at Frost & Sullivan told ITWeb Africa that "the implications (of a new administration headed by Ramaphosa) for the ICT industry will be huge" going forward.

Rating agency, Moody's has already said it is watching the developments in SA with keen interest as it gets ready to review the country's rating next month.

"There will be better clarity on the national broadband plan, ICT white paper implementation plans and the digital migration," said Govan-Vassen.

There is a general expectation of "increased investment opportunities in the ICT infrastructure to ensure universal connectivity in South Africa" with an increasing demand for technologies such as fibre, mobile towers and satellites expected to witness higher demand.

"There will be increased collaboration between the public and private ICT service providers, with the government's key role being around enabling ICT development via policies and regulations. There is also likely to be faster deployment of digital migration so that spectrum released can be appropriately used to rapidly bridge the digital divide in South Africa," explained Govan-Vassen.

"This would allow for the introduction of information systems and technology curriculum at all education institutions to enhance learners' exposure to IT "at early years of their schooling," Govan-Vassen continued.

Ramaphosa, who is seen as an industry and business champion, is expected to further create incentives to get the youth to be involved more in IT engineering, "programming and coding so that South Africa can built up" its technology skills and avail experts in the sector to boost economic and business transition and embracing of IT and digital platforms.

"In the long term (the new government) is expected to implement an eGovernment plan by digitalising most government processes to improve service delivery and encourage citizen and businesses participation in decision-making processes, and making government more accountable, transparent and effective. Government needs to benchmark form eFilling success to launch other services like eDocuments, eTransportation, and eSecurity amongst others," added Govan-Vassen.

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