Minister of Telecommunications and Postal Services Budget speech

Minister of Telecommunications and Postal Services, Mr Siyabonga Cwele, gave his Budget Vote Speech on 21 May 2015.
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Working Together to Connect South Africans

21 May 2015

Honourable House Chairperson,
Ministers and Deputy Ministers,
Honourable Members,
Leaders of the ICT Industry
Distinguished Guests,
Fellow South Africans,

INTRODUCTION

I am pleased to lead Budget Vote 32 on Telecommunications and Postal Services of 1.4 billion rand, for policy debate and adoption by the House during this historic year of the 60th anniversary of the Freedom Charter. The Charter continues to guide our policies as we implement our vision 2030, the National Development Plan. We are part of the revolution that is driven by fast speed internet broadband.

It is against this backdrop that we commend His Excellency President Zuma and the African National Congress for establishing this new department. The Department has a specific mandate which focuses on the radical socio-economic transformation of our society using ICTs to deal with the effects of persistent unemployment, inequality and poverty prolonged by the legacy of apartheid. In line with international trends, the availability and wide use of ICTs is critical for socio-economic development and will make South Africa globally competitive.

House Chairperson,

BROADBAND ROLLOUT – IMPLEMENTATION OF SOUTH AFRICA CONNECT

After much planning and consideration, it was announced by President Zuma that in this financial year we will begin with phase 1 of broadband rollout in eight rural districts which are Vhembe, Dr. Kenneth Kaunda, Pixley ka Seme, Thabo Mofutsanyane, Gert Sibande, UMzinyathi, Umgungundlovu, and OR Tambo. The objective is to roll out scalable broadband infrastructure to connect all government institutions in these districts over the next three (3) years.

At the same time we are finalising the business case and funding plan for Phase 2 of broadband rollout for the rest of the country to be implemented from 2016 until 2020.

In this current financial year, we have been allocated R200 million to begin connectivity in the eight districts.

Distinguished Guests,

We have already visited Vhembe, uMzinyathi, uMgungundlovu and O.R. Tambo. We have been encouraged by the political, traditional and community leaders who enthusiastically welcomed this project in their districts. We will be visiting the remaining districts in the next two weeks.

House Chairperson, I wish to take this opportunity to recognise the Mayor of the OR Tambo District Municipality Councillor Nomakhosazana Meth as well as my special guest Lindelani Malinda a student from Thengwe High School in the Vhembe District.

Honourable Members,

Telkom’s designation as the lead agency for broadband rollout is based on the investment it has made in rolling out an extensive fibre network which accounts for 86% of the existing 170 000 kilometres of national fibre network. The Department will be finalising the business case which will be demonstrating the value for money and the appropriate legal prescripts in designating Telkom as a lead agency in broadband rollout.

It is worth noting that Telkom, on its own, has committed most of its R5 billion capital budget towards reaching more areas and to upgrade the technology as their contribution to the implementation of SA Connect. Broadband rollout is a huge but urgent project which must not be delayed if we are to remain globally competitive.

Honourable Members

Broadband Infraco has allocated R319 million over the next two years to extend its broadband infrastructure by 1 000 kilometres. It plans to establish 41 new points of presence including underserviced towns such as Ulundi and Stanger. However, due to the projected cash flow challenge, the company has scaled down 30 infrastructure upgrade projects to the value of R450 million. In addition, we have advised Broadband Infraco to further scale down non-critical projects for it to continue as a going concern.

Fellow South Africans,

Over the last three years the Universal Service and Access Agency of South Africa (USAASA) has radically changed the lives of the people of uMsinga (KZN), eMalahleni (EC), Joe Morolong (NW) and Ratlou (NC) who previously had little or no access to telephony. USAASA deployed and upgraded mobile networks to offer broadband, benefiting schools, small businesses and community members.

Honourable Members,

I am aware that some of the committee members visited some of these sites. I also had an opportunity to visit uMsinga and eMalahleni recently where I met mayors and councillors who are monitoring the positive impact of these networks and asking for their extension. All of them testify that these technologies are improving service delivery.

We visited a local clinic at Emalahleni which is now connected to fast speed 3G network. The clinic is now online using the internet to improve service delivery. The nurses informed us how ordering medicines online has reduced supply delays from two months to two days. In addition, they no longer experience problems of expiring medicines as they now don’t order in bulk but only order what they need. We also visited an entrepreneur, Vuyiseka Xatoto, who used to sell vegetables on street corners but because of the availability of the network, now operates from home and has expanded to sell high value services such as airtime and electricity. They say these technologies are improving service delivery and people’s lives. BATHI SIYAQHUBA.

This financial year, USAASA will upgrade networks in Mutale and Chief Albert Luthuli Municipalities where they will be connecting 10 schools. The Agency is also planning to connect 3 schools for people with disabilities.

In this year, the department will work with ICASA the regulator, to review the levy for the Universal Service and Access Fund (USAF). The aim is to align ourselves to the 1% charged by developing countries if we are to narrow the digital divide in the underserved areas.

Honourable Members,

On the 06th of March 2015 SENTECH completed its digital network deployment for Digital Migration. The Network is ready and they have R108 million for dual illumination for this year. This entity will also spend R185 million to upgrade its infrastructure. Last year SENTECH through its social corporate responsibility connected community radio broadcasters to the parliamentary channel which means our communities are now able to easily follow the work we do in parliament. I would like to greet all the listeners of the community radio stations who have tuned in to listen to today’s Parliamentary proceedings.

House Chair,

We wish to commend mobile and IT companies that are joining hands with government in rolling out internet connectivity. Last Sunday the community of Qunu benefitted from the upgrade of the network to LTE and received a donation of connected computers in their local library. The librarians, students, farmers, unemployed and ordinary people now have the same access to high speed internet as those in the richer suburbs of Johannesburg and Cape Town. Indeed the people of Qunu such as our visitor Anda August from the Mandela School of Maths and Science can now proudly say that ’the internet is the greatest equaliser in the world.’ SIYAQHUBA NGEMPELA.

Distinguished Guests,

All state owned entities responsible for ICT infrastructure, specifically broadband, are now under the Department to achieve greater coordination and efficiency. During this financial year the Department will finalise a strategy on their rationalisation.

SITA will drive e-government and the security of government networks. NEMISA will drive massification of e-skills. ZADNA will drive the allocation of domain addresses. The Honourable Deputy Minister will elaborate on these programmes.

Sihlalo,

SOUTH AFRICAN POST OFFICE

The Strategic Turnaround Plan of the Post Office has been finalised and will be submitted to Cabinet for approval. Let me take this opportunity to thank the Honourable Deputy President Cyril Ramaphosa for his leadership and wise counsel in this process. The plan has identified and prioritised key strategic interventions to bring stability to the Post Office. We will prioritise the monitoring of the effective implementation of all aspects of the turnaround strategy.

The first and urgent priority is the appointment of the board of directors. The process is already underway. At the same time we will be expecting SAPO to appoint capable management to drive the implementation of the turnaround strategy.

The deployment of efficient ICT infrastructure to enable the delivery of modernised and efficient postal and banking services will be critical to SAPO’s turnaround. In the next two years, the priority will be to connect all post offices to the broadband network and upgrade IT systems.

A new business model has been highlighted as key in the new approach. SAPO will reduce over-reliance on mail business and move towards balanced revenue with a focus on retail, logistics, Postbank and e-services.

We would like to thank the trade union movement which continues to work with us as we stabilise the labour environment at the Post Office. I would like to make a call to all stakeholders to join hands in efforts to regain customer confidence and loyalty.

House Chairperson,

Despite the challenges faced by SAPO, the company rolled out 500 000 new addresses. In addition, SAPO attracted 36 unemployed graduates from poorer communities to participate in its work experience programme. We are pleased to announce that two of those students who benefitted from that programme. Leon Isaacs and Siyanda Qoboza have joined us today as employees of SAPO. The Post Office delivers, whatever it takes.

We will work with ICASA to improve the regulation of the postal industry including that of the Extra Territorial Offices of Exchange.

Honourable Members,

POSTBANK

We remain committed to the programme of financial inclusion through the corporatisation of the Postbank.

We have made progress through the interaction with the South African Reserve bank in the following areas:

We have finalised the assets and liabilities separation between the SAPO and the Postbank
We have provided the five year cash projections
We are currently finalising the fit and proper assessment of prospective candidates for the Postbank board, and
We are finalising the discussions on the bank holding company in line with the Postbank Act.
Honourable Members,

POLICY ISSUES

On the 23rd of April, I received the final report of the National ICT Policy Review process. It is evident that many South Africans participated in the process through public hearings and written submissions. The report represents an overwhelming sense of South Africans working together to bring about the policy environment that will make our task of using ICTs for development a success.

Key policy areas that are included in the recommendations of the report include:

Policy on universal, affordable and equitable access to communication infrastructure by all South Africans.
An open access policy that will reduce duplication, allow infrastructure sharing and direct competition away from infrastructure to services.
A rapid deployment policy to enable the deployment of infrastructure for connectivity at least cost.
Policy on the growth of the sector and local manufacturing in order for small businesses to thrive and to create jobs through ICTs, and
National Policy on Spectrum to deal with the use and allocation of this scarce resource.
Government is studying the recommendations in the report with the aim of finalising a National Integrated ICT White Paper for submission to Cabinet for approval during this financial year.

I would like to thank the panel for the sterling work done. I also want to extend my gratitude to the public for their active participation in providing us with valuable contributions.

House Chair,

ICT SECTOR PARTNESHIPS

I am happy to announce that last Friday, more than 300 individuals from across the spectrum of the ICT sector joined me to launch the National ICT Forum which will assist in the implementation of policy and the development of the ICT sector in South Africa.

The forum has organised itself around four chambers including:

The economy,
Social
Governance and security of digital networks, and
The sector for inclusion of marginalised groupings such as people living with disabilities.
Distinguished Guests,

CYBERSECURITY

As we rollout broadband and increase uptake and use of ICTs, we need to assure confidence in the security of these networks. We have made progress in the establishment of a cybersecurity hub in collaboration with the CSIR. I recently visited the hub and was privileged to experience what it has to offer. We will continue to work together with the public and the private sector to expand the capabilities of the hub as we prepare for its launch in August this year.

INTERNATIONAL

We will continue to participate in multilateral and international fora including the World Radio Conference to be held in November this year. In addition, we will work with BRICS countries to establish an ICT working group and plan of action for collaboration on key ICT issues.

Fellow South Africans,

DEPARTMENTAL MATTERS

I am aware of the ongoing leadership challenges which have negatively impacted on the ability of the Department to execute its functions timeously. I am attending to these challenges as a matter of urgency in order to ensure that the Department delivers on its mandate.

CONCLUSION

In conclusion, I would like to extend my gratitude to all members of the Portfolio Committee under the leadership of the Honourable Kubayi for their excellent oversight work.

Thank you Deputy Minister for your excellent support.

I also would like to thank the Director-General and all the employees of the Department for their assistance and my Ministry staff for their dedication. Let me also thank the support I receive from my wife and family.

I call on the house to endorse this Budget Vote for the Department of Telecommunications and Postal Services.

Ngiyabonga.

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2015 Budget Vote Speech by the Deputy Minister of the Department of Telecommunications and Postal Services, Hon. Prof. Hlengiwe Mkhize

21 May 2015, Parliament of South Africa, Cape Town

Honourable Chairperson of the Session
Honourable Minister Siyabonga Cwele, other Ministers, Deputy Minister and Senior Government Officials
Honourable Members of Parliament
Leaders of Organized Labour
Captains of Industry
Distinguished guests
Ladies and gentlemen

Introduction

According to the United Nations Conference on Trade and Development (UNCTAD)’s Technical Report on Information Economy Report 2010: ICTs, Enterprises and Poverty Alleviation,

“The poor are not just deprived of basic resources. They lack access to information that is vital to their lives and livelihoods: information about market prices for the goods they produce, about health, about the structure and services of public institutions, and about their rights... They lack access to knowledge, education and skills development that could improve their livelihoods… They lack access to, and information about, income-earning opportunities.”

Hence the Department has prioritized access and the use of ICTs as a basic necessity for survival, inclusive service delivery, individual self-respect and development.

The effort of popularizing and taking ICTs to the people started a long time ago, 150 years ago, on the 17th of May when the International Telecommunications Union (ITU) was formed and the first International Telegraph Convention was signed.
Like any commemoration day, the 17th of May which is the World Telecommunications and Information Society Day (WTISD), gives us an opportunity to evaluate progress made, raise awareness of the possibilities that the use of the Internet and other Information and Communication Technologies (ICT) can bring to societies and economies, and give us an opportunity to reposition ourselves and step-up efforts to bridge the digital divide. South Africa as a member state to the ITU also uses the day to assess progress made through Policy Research and Capacity Development. This year the Department has put aside an allocation of R105 million for this exercise.

The department’s strategic Broadband Policy implementation is in line with the ITU’s Broadband Commission’s objectives. The Broadband Commission has set four clear targets for making broadband policy universal and for boosting affordability and broadband uptake:

Target 1: Making broadband policy universal. By 2015, all countries should have a national broadband plan or strategy or include broadband in their Universal Access / Service Definitions.
Target 2: Making broadband affordable. By 2015, entry-level broadband services should be made affordable in developing countries through adequate regulation and market forces (amounting to less than 5% of average monthly income).
Target 3: Connecting homes to broadband. By 2015, 40% of households in developing countries should have Internet access.
Target 4: Getting people online. By 2015, Internet user penetration should reach 60% worldwide, 50% in developing countries and 15% in LDCs.
To fast-track broadband roll-out in the country, the department will this year spend a combined sum of R 200 million towards broadband roll-out and related processes.

Some of the measurable outcomes will shape the following:

Cultural Diversity and Identity - the increased use of ICTs breaks down the communication barriers and positively contributes towards social cohesion
Linguistics Diversity - given the multiple languages which our country has, the use of ICTs helps in the development of ICTs specific to our domestic languages. This in turn challenges developers to be more innovative when it comes to software and program development.
Local Content - The increase use of ICTs will drive the demand for local content, as many people are empowered in making use of ICTs there will then be a need for the creation of more content or data services to further strengthen e-government.
During this debate MPs from the ANC will demonstrate how this ANC led government will use ICTs as a catalysts for shaping the Post Millennium Development Goals.

ICT GLOBAL MONITORING

According to the World Economic Forum 2015 Report, despite having an unchanged score from last year, South Africa has dropped from number 70th to 75th position out of 143 countries this year. Our ranking on general state of ICT readiness remains very low at position 102nd, this is because of the result of the poor quality of ICT-related infrastructure which is ranked at position 85, and notably the limited International Internet bandwidth where we are ranked at 128 position. The cost of ICTs in South Africa has also been noted to be too high with South Africa ranked at 107 position out of 143 countries. Nonetheless, individual usage has improved with an improvement to 10 places to reach 68th position. However, government ICT usage still lags behind with South Africa ranked at position 105th out of 143 countries, earning very low marks in terms of online services provided to the population with South Africa ranked at 82nd positon which highlight that the e-government services need to be further strengthened. Overall, this is an indication that the potential of ICTs has not been fully unlocked. The ICT social impacts have not yet fully materialized, and the government will need to significantly improve access to basic e-services where the country is ranked at 101 or further facilitate citizens’ e-participation which is currently ranked at 88th position.

Irrespective of the challenges we are still rated one of the best countries in Africa. On the whole, the Report has noted that Africa’s overall performance on the index has been “particularly disappointing” as 30 sampled countries from the continent appear in the bottom half of the Network Readiness Index rankings.

It has to be equally noted that our Government subscribes and participates as one of the leading countries in the Universal Postal Union of the 40 member council within 197 member state countries. It has to be noted that our Country was voted the third highest in this body. To sustain our rating we need to support the turn-around strategy for the Post Office, systematically strengthen the postal services sector and expedite our resolve to establish the post bank. Our post office infrastructure is an asset for meeting the universal access objectives within the context of the South Africa Connect agenda. Given the phase in which we are with our partner Ministry of Communication on DTT, the Post Office has been positioned to be the major distributor of the Set-Top-Boxes to reach our people in distant rural household and also we are hard at work working with the reserve bank to ensure that the post bank is realized as soon as possible so that our people realize economic inclusion. This will further strengthen our ICT global standing and positioning.

The adoption of the NDP offers South Africa a good opportunity to turn-around its positioning and global ratings. According to the National Development Plan, South Africa’s Vision 2030, ICT underpin the development of a dynamic information society and knowledge economy that is more inclusive and prosperous by the year 2030. At this time, a seamless information infrastructure will meet the needs of citizens, business and the public sector, providing access to the wide range of services required for effective economic and social participation at a cost and quality equal to South Africa’s competitors. All this initiatives will have a direct impact on the improvement of our international ICT rankings.

Through smart partnerships with social partners and the private sector, we have an opportunity to enhance our connectivity efforts, skill our citizens and consolidate on e-government and the related e-strategies. Our targets in terms of the NDP are to achieve 100% broadband penetration by 2020 as well as transforming 70% of all front-line service to e-Service by 2019.

This will be further strengthened by the recently adopted SA Connect Broadband Policy. The policy rests upon four strategic pillars, which are: digital readiness, digital development, digital future and digital opportunity.

CREATION OF LOCALIZED ICT HUBS AT A DISTRICT LEVEL.

During his State of the Nation Address, the President Jacob Zuma said: “The year 2015 will mark the beginning of the first phase of broadband roll-out. Government will connect offices in eight district municipalities.

These are Dr. Kenneth Kaunda in North West, Gert Sibande in Mpumalanga, O.R. Tambo in the Eastern Cape, Pixley ka Seme in the Northern Cape, Thabo Mofutsanyane in the Free State, Umgungundlovu and Umzinyathi in KwaZulu-Natal, and Vhembe in Limpopo.”

Making use of the former Thusong Centers Model, the Department will in partnership with the municipalities, other social partners and participating companies in the broadband roll-out, create localized ICT Hubs for coordination and integration of the last mile connectivity. Within these localized ICT Hubs the Department will focus on the improvement of e-literacy (e-Skills), e-enterprise, youth inclusion and local economic empowerment.

Adult Citizens Online Programmes

The use of mobile ICT technology has expanded beyond individual use: many South Africans own more than one active cell-phone; most South Africans access the internet through mobile broadband or the semi-mobile and still growing Wi-Fi networks; mobile access technology is being used for machine-to machine applications such as banking and Point-of Sale financial transactions, traffic light control, etc.

The country’s access to information and knowledge via mobile telephony has expanded exponentially since the introduction of the technological application at the dawn of South Africa’s democracy in 1994. Mobile telephone penetration, measured through the quantity of active SIM cards, has exceeded 140% of the population.

The hub will assist in terms of processing on-line services and transactions whilst equipping adults with basics e-skills. e-Services aimed at the adult population will also be delivered through these Localized ICT Hubs. Women in rural areas are mostly engaged in subsistence farming and also in production of art grafts, these can be advertised at the localized ICT Hubs in markets outside their villages.

Youth Digital Inclusion

According to a report released by the International Labour Organization (ILO) earlier this year, South Africa is projected to have the 8th highest unemployment rate in the world. The group seriously affected by the high unemployment rate is the youth whose unemployment rate is now at 52.5%.

SA Connect has identified human capital development as a key success factor in ensuring social and economic inclusion in the Information Society and knowledge-economy. The effective development of the Information Society as well as the application of ICT for an increased efficiency in economic and societal processes requires coordinated efforts from all government institutions, the private sector and civil society. All the efforts for the implementation of the Digital Opportunities programme are underpinned by the multi-stakeholder approach that will be undertaken, to ensure that the Information Society is developed in a coordinated manner through cooperation amongst all stakeholders.

The localized ICT Hubs will be one of the tools which will be used to create digital opportunities which will curb youth unemployment. This can be done through e-skilling programs which will encourage the youth to participate actively in the ICT sector through innovation as well as enterprise development. Once more our skills institute, iKamva National e-Skills Institute (iNeSI), will be linked with these localized ICT Hubs in order to ensure that issues relating to skills shortages are addressed. This financial year a total of over R 36 000 has been allocated to iNeSI to be able to deliver on their programmes. In order to develop human capital, the following interventions will be undertaken

Demand-side skills - this is addressed through e-literacy programmes which will ensure that relevant ICT skills get developed.
Institutional capacity - this is addressed through skilling of staff in the ICT sector/industry.
Supply-side skills - these are high level specialization skills which are acquired at institutions of higher learning. The department therefore calls for a stronger collaboration between Institutions of higher learning and the Government.
It also suffices to say that our SOCs will need to seriously strengthen intake and training programs on learnerships and Internships.

Honourable members, the availability of broadband brings with it lots of entrepreneurial opportunities particularly for the youth who are a very critical sector in communities. In order to harness these opportunities in full, it is critical that all stakeholders must partake in this process. Working in partnership with the Department of Small Business Development, the Programme of Action in this pillar will include the following:

Developing a comprehensive Digital Entrepreneurship programme aimed at supporting all businesses to embrace digital technologies and exploiting social media.
Local manufacturing (identifying niche areas and providing support measures for these enterprises).
Opportunities will be created for young people to innovate. This will ensure uptake and usage of the ICT services.
The localized ICT Hubs will also play a role on enterprise development for small businesses. The importance of small, medium and micro enterprises in the sector cannot be overlooked. Just to show how significant they are, SITA has in the previous financial year spent over R274 million in ICT SMME procurement, thus underlying the immense potential of public entities in SMME development.

Techno-Girl Programme

Out of a total of over 24 000 government schools in the country more than 5000 schools, which is 22% of the total, have been connected for teaching and learning. In all our visits wherein we were launching computer laboratories, one issue kept on popping up, security of the hardware tools i.e. the computers/laptops. We condemn criminal activities which undermines our efforts to improve the quality of education through the use of ICTs. We will work with the South African Police Service to highlight our seriousness of addressing criminal theft and vandalism in schools.

Chairperson, I want to quickly reflect on our experience at Radipeu Primary Farm School, where we celebrated our 150 years of the existence of the International Telecommunications Union and World Telecommunications and Information Society Day, at Emfuleni Municipality outside Vanderbijlpark. The theme for this year is: Telecommunications and ICTs: Drivers of Innovation. The school portrays the realities of the digital divide in our society, it is a stone throwing away from our best Universities, also from one of our most successful multi-national companies, yet the road to the school is untarred. This launch was part of the schools connectivity programme which is one of our key projects aimed at facilitating universal access to ICTs for learning, information and knowledge an objective espoused in our Electronic Communications Act. We work with the private sector and State Owned Companies to aggressively deliver on this objective. We saw firsthand the warm appreciation shown by the school principal, as we unveiled the school computer laboratory affirming our conviction that our teachers and pupils are hungry for advanced knowledge and information. Our effort to build an inclusive, development-oriented information society and knowledge economy requires our dedicated efforts to improve e-learning and internet connectivity. This exciting moment was captured by the joy and up-liftment it brought to the learners, teachers, and the community members who joined us at the school. We sincerely thank Sentech for having made our dream a reality. The former principal at the school gave an emotional appreciation speech saying when the initial assessment visit was made by our SOC, she had thought that it will never be realized at such a poor neighbourhood.

Chairperson, we are hard at work.

On the 15 October 2014 we launched yet another computer laboratory at Joe Slovo Freedom High School in Molteno in the rural Eastern Cape with the assistance from one of our State Owned Companies (SOCs), USAASA. The school is in Chris Hani Region, Inkwanca Municipality. This school’s computer laboratory was opened as part of the school’s twenty years celebration. During the launch the SOCs which were present were challenged to look at ways in which the school can be further enriched. Post our visit Telkom has sent their technicians to the school to continue monitoring and maintaining network connectivity in the laboratory.

As part of our visit to the eight districts in which the president has said that the first phase of broadband roll-out should start, we visited Mavuso High School situated in Hluhluwe on the 10th of April 2015 and launched a computer laboratory. Hluhluwe is located around the Big Five False Bay Municipality which is part of the Umkhanyakude District Municipality. This District is one of four district municipalities in KwaZulu-Natal that were selected as presidential nodes to redirect public funding to priority areas for poverty alleviation. After realizing how poor the area is, one of our SOCs, USAASA has committed to broaden connectivity in the area.

The ITU celebrated the International Girls in ICT Day on the 24th April 2015. The International Girls in ICT Day is an opportunity for girls and young women to see and experience ICTs in a new light encouraging them to consider a future in technology. This initiative is backed by the International Telecommunications Union (ITU) Member States’ Plenipotentiary Resolution 70 (Rev. Busan, 2014) to create a global environment that empowers and encourages girls and young women to consider studies and careers in the growing field of Information and Communication Technologies (ICTs). To empower young girls in South Africa, we also visited the Science and Engineering Telkom School, KwaMhlanga High School in Mpumalanga Province.

Our main activity for the day comprised of a Children’s Parliament where the young girls were given a slot to talk about issues affecting them in technology and cyberspace. The majority of the girl-children who participated in this Children’s Parliament showed interest in wanting to know more about the opportunities within the ICT Sector as well as the relevant subjects which will make them eligible to study towards an ICT qualification.

The Techno-Girl Programme is facilitated by an NGO called Uweso Consulting. This organization places girl children in participating companies over a three year programme. At the end of the three year period each participating company should enable learners to select a field of specialization in the ICT sector, identify an institution of higher learning to further their studies and assist the learners with the application of bursaries to study towards a formal qualification in ICTs or any high tech sector. A good example is SITA, in the financial year 2014/15 they have taken 110 girls through the programme at all their offices countrywide. In the current financial year this number will be increased by 50% and this initiative will be supported through ongoing branding, communication and marketing initiatives. We call upon all SOE’s and the ICT sector as a whole to support the programme which gives pupils a firm ground for inclusion.

E-Government

Honourable Members, e-Government refers to the government’s strategy to transform both internal and external governmental relationships through the use of ICT.

The Department has recognized and undertaken to appropriate the use of technology to ensure that the Citizen of the country are able to have seamless access of the services of government. It is also equally important for a seamless inter-departmental communication for effective service delivery. It has to be noted that SITA, which has recently appointed a permanent CEO, will play a meaningful role in ensuring that the department is able to achieve full e-government objectives. This will be achieved in collaboration with the rest of the strategic government SOCs. We will continue strengthening SITA and refocusing this entities.

One of the department initiatives that will ensure that the Citizens are able to access government services within government departments is the effective ICT infrastructure through the current Broadband rollout project.

Through the implementation of the Broadband Policy and Broadband roll-out the department is committed in promoting digital inclusion, where individuals and communities will be able to access and use ICTs. We have set out plans for the implementation of digital opportunities programmes in the NHI pilot sites to ensure that residents in these areas are able to benefit from the rollout of broadband infrastructure.

The expansion of capabilities of Women depends on the real opportunities those ICTs provide for them and their living conditions. The capability and functioning will also depend on Women’s freedom to choose the life they want to lead. The “commodities and functioning” are crucial for South African women’s development. The expansion of Women’s capabilities through the use of ICTs will have a direct impact on the functioning and their development.

It has to be noted that our Country as a member state of ITU has noted initiatives undertaken in order to develop and improve the livelihood of Women in ICT. ITU has established GEM-TECH to eradicate the gender digital divide. It is important to note that my department has established a platform to assist in more Women to access the ICT services. The Department has in the previous year opened an ICT Centre in Tlhabane where Women can have access to information and knowledge that will ensure that they are empowered. The Department with the contribution of Deloitte and Intel has also established a website which will assist to push the agenda of Women ICT forward. Honourable Members the name link of the website is www.ulwazi-ict.co.za for those who might be keen to visit. It is important to note that the Department is also promulgating and formulating a Gender and ICT Strategy which will address the gender imbalances within the sector.

As a part of Government sustainable and comprehensive development, nationwide healthcare reform is a high priority focus area for the Government. The e-government services will ensure an improvement of all citizens’ access to affordable and high quality healthcare services. The broadband roll-out will ensure that e-health services becomes a reality,

It also has to be noted that in order for the uptake of and implementation of e-government to be successful, there will be a need to identify and explore Digital opportunities. Digital opportunities come in the form of ICT applications development. In order to enjoy complete benefits brought about by Digital Opportunities, we are interfacing all programmes that support the development of ICT applications with formal Research, Development and Innovation (RDI) systems to collaborate, influence and direct efforts towards the development of ICT applications that support e-Administration, e-Health and e-Education, as prioritized in SA Connect.

In the past year we have attended a workshop organized by an organization called e-Strategies Africa, in which discussions were centered around “Social and economic transformation in African Countries”. This was a platform wherein key industry and government leaders, top technology representatives and academia attended to collaborate and discuss the opportunities, strategies and policies for eHealth adoption in South Africa and across the continent.

Honourable Members, sustainability of these localized ICT hubs will be very important. The Department has made a commitment to ensure that these localized ICT Hubs are sustainable and get maintained. We will partner with the Ministry of Higher Learning to ensure that these localized ICT Hubs get a sufficient supply of information regarding different degree programmes available at various universities, information on bursary application and any other info-tools that might be deemed important to the development of our youth. The frequent use of these localized ICT Hubs will stimulate innovation within our youth, which will result in new products developed such as softwares and applications. Through these localized ICT Hubs we will get more uptake and usage of ICTs by the majority group in our population, which is the youth.

ICT FOR TRANSFORMATION

While transformation has always been the pillar of ICT policy in South Africa, the slow progress achieved to-date seems to present, what Professor Jane Duncan refers to as “a stalled cause”. We need to put transformation back on the agenda.

It is said that the real power of broadband lies in its potential to improve development outcomes in the developing world. There is today growing evidence that broadband is making a tangible difference in the lives of people around the world.

We need to put transformation back on the agenda. We are encouraged by issues related to the gazette by the minister of Trade and Industry regarding the six months extension for the ICT sector to comply and implications for ICT SMMEs. We will expedite the establishment and operationalization of the ICT B-BBEE Council to monitor the implementation of BEE in the ICT sector and report to the Minister and the Presidential BEE Council.

Honourable member it is important to note that the department has recently conducted a workshop on the empowerment of SMMEs within the ICT sector.

One of the outcomes of the workshop is that the ICT usage can create opportunities for SMMEs to move up the economic value chain, leading to a future economy where a much larger proportion of SMMEs operate in the ‘zone of transition’ towards more sophisticated businesses with higher turnovers, employing more staff; and towards more differentiated businesses engaged in services, construction, manufacturing, and professional pursuits. This where e-commerce can be fully explored to ensure an optimum use of technology in achieve maximum profit for small businesses.

The main barriers to women’s use of ICT continue to be lack of training and access to the necessary tools. As one of the Patrons of the SA Women in ICT Forum, an organization that was established last year, we will be ensuring that we develop and implement formal support structures to attract and retain women in the ICT sector through mentorship programmes, scholarships and internships. Additionally, the Forum will contribute to the development of initiatives for innovative interventions that will significantly increase the interest and participation of women in the ICT sector.

Conclusion

Chairperson, in closing, the newly established Ministry of Telecommunications and Postal Services recognizes the economic value of spectrum.

We in partnership with our sister Ministry and ICASA are working on policy directives to urgently address the unlocking its effective potential use for social redress and economic growth.

All the new entrants that would like to enter our sector are battling to break the monopoly of big operators and big businesses and agencies hoarding spectrum. We are unable to create new jobs and youthful initiatives on innovation; and creating new technology solutions; opportunity to stimulate the economy without the effective use and allocation; re-distribution of wealth through spectrum management.

Our major growth path and contribution to NDP in the ICT infrastructure space will rely on spectrum deployment. Our global competitiveness and attraction of foreign investment in premised on this matter as a priority area. We need to note our role, position and contribution in the ITU as we will be attending WRC-2015 conference. As a major contributor in Africa, South Africa has to move the continent forward. Use of spectrum on new technologies has to permeate to ICT related SMME development; financial inclusion; and use of technology to innovate for wealth creation as just one of many values of effective spectrum management. Spectrum use and deployment is the heart of our countries source of income and growth; it is our new revenue source to transform this economy and modernize society in our quest to improve the quality of life.

I Thank You.