PRESENTATION TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES The Role of ICT Public Policy and the Transformation, and e-Skills Development 3 FEBRUARY 2015 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2. TRANSFORMATION IN THE ICT SECTOR • In South Africa, transformation is a critical policy goal to achieve equal participation in the economy; • Transformation is not an issue of race alone. It has to be looked at from a broad industry perspective in terms of ownership, decision-making, business practices, staffing and products, and the society within which it operates; • There is a need therefore for continuous and sustainable transformation that adds value to the industry at large and adds to the bottom line Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. LEGISLATIVE REQUIREMENTS FOR B-BBEE • The Electronic Communications Amendment Act (Act 1 of 2014) has as one if its objectives the need to “align the Act with broad-based black economic empowerment legislation”; • This is achieved through removing references in the EC Act to “historically disadvantaged persons, including Black person” and replacing it with “broad-based black empowerment” • For example, Section 2 (h) of the principal Act has been amended to indicate that one of its objects is to “promote broad-based black economic empowerment with particular attention to the needs of women, opportunities for youth and challenges for [people]persons with disabilities’’ Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. LEGISLATIVE REQUIREMENTS FOR B-BBEE • In a similar fashion the Act proposes that ICASA promotes broad-based black empowerment as opposed to historically disadvantaged persons in granting licences. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

5. INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) CHARTER • The ICT Sector Charter, initially drafted in 2005, was gazetted in terms of  the B-BBEE Act, in June 2012; • It is a Sector Code of Good Practice (Sector Code) with the same status as the B-BBEE Codes of Good Practice, published by the Minister of Trade and Industry, in February 2007; and • Fully binding between and among businesses operating in the industry; • The ICT Charter Code has been finalised, although the ICT BEE Charter Council, intended to oversee implementation and measure progress, has yet to be set up; Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. ICT SECTOR TRANSFORMATION TARGETS • The ICT sector has set a black ownership target of 30%; • The main feature is a set target of 5% Net Profit After Tax to be spent on enterprise development initiatives aimed at growing and developing black owned ICT enterprises; • A spend of 1.5% of Net Profit After Tax on Socio Economic Development Initiatives to improve the lives of communities through programmes such as ICT's in education, and health. The ultimate goal is to bridge the digital divide in the country. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. FUNDING MECHANISMS & TRANSFORMATION MONITORING IN THE SECTOR • Government assisted funding mechanisms for telecommunications infrastructure and BEE companies through the DTI, IDC the Development Bank of Southern Africa (DBSA) and National Empowerment Fund etc. • We are all aware that government has committed to set aside finance to support the Broad-Based BEE process and has revised the mandate of the National Empowerment Fund (NEF) to ensure the effective and efficient utilisation of resources; • However, monitoring is still a challenge as there is no comprehensive data set currently which provides an overview of the transformation status of the sector.

8. MONITORING TRANSFORMATION IN ICT THE SECTOR • This is in part due to the lack of an overarching classification system, and also as no entity is charged with monitoring transformation in the sector; • The ICT BEE Charter Council, once it is established, will have to undertake this role. • DTPS is currently finalising arrangements for the establishment of the Charter Council – a call for nominations was issued by the Minister last year; • The alignment of the ICT Charter Code with the Generic Code of Good Practice would be considered by the Charter Council once it is established. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

9. MONITORING TRANSFORMATION • Notwithstanding, there are some significant examples of B-BBEE transactions which provide a glimpse into some of the transformation advances , e.g. MTN Zakhele, Dimension Data, On Digital Media, Microsoft Equity Equivalent programme, etc. • The sector will also continue to leverage on the Equity Equivalent programme to accelerate implementation of the sector’s transformation agenda. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

10. ICT POLICY REVIEW AND TRANSFORMATION AGENDA • Effective measures of accelerating transformation in the ICT sector are also a priority for the ICT Policy Review Panel; • Various stakeholders have made policy proposals during the Green paper stage of the process, e.g. IITPSA and SACCI proposed that there is no need for a sector Charter, that it would be simpler to follow the Sector code; • Other respondents lamented that the Charter is not being consistently enforced, therefore the ICT BEE Charter Council would need to be appropriately resourced to monitor and enforce implementation of the Charter, once established. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

11. PLANNED LEGISLATIVE & POLICY AMENDMENTS • Following the Cabinet approval of the National Integrated ICT Policy Green Paper, the Department will focus on the development and approval of the White Paper on National Integrated ICT Policy. The following key emerging policy issues will be prioritised as part of the Department’s Legislative Programme: • ECT Amendment to reflect changes in the policy environment around e-Commerce, Cybersecurity and Domain Name administration. • ECA Amendment to focus on National Radio Frequency Spectrum, Regulatory parity, Net neutrality, Rapid Deployment and Open Access Regime. • Postal Act Amendment with regards to universal service obligation • Post Office Act with regard to the appointment of the Administrator. • SITA Act amendment focused at streamlining functions aim at supporting e-Government. • Amendment to all laws related to the establishment of SOC with respect to appointment of Boards. • Amendment to e-Skills related prescripts. • Following participation in the World Radio Conference (WRC-15), the Department will develop the National Radio Frequency Policy in line with the WRC-15 Final Acts. • In line with the requirements of the National Development Plan the Department will focus on developing and obtaining approval of the National e-Strategy. 11 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

12. ICT Policy Review • To date the Department, through the ICT Policy Review Panel appointed by Minister has achieved the following: • Framing Paper (gazetted in April 2013) which contained the objectives and principles that underpin the current policy environment and which laid the foundation for policy discussions. • The Green Paper was also gazetted for public consultation in January 2014. The purpose of the Green Paper was to canvass opinions on various policy aspects that need to be reviewed, so as to change and develop the ICT sector in a way that better serves the needs of citizens and that boosts economic and social development and transformation in our society. This was a very inclusive process where various sectors were directly involved. • Key emerging issues: • Open Access Regime • Convergence • Licensing of new services • Transparent pricing • Rapid Deployment • Spectrum • Regulatory parity 12 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

13. e-Skills Development 13 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

14. As Basis for the Development Concept We leveraged ICT Skills Pyramid R&D Capable Practitioners ICT Practitioners ICT User Skills E-Business Skills E-Literacy Skills SKILLS Capabilities required for researching, designing and developing ICT systems Capabilities required for researching, developing, designing, managing, producing, consulting, marketing, selling, integrating, installing, administrating, maintaining, supporting and servicing ICT systems Capabilities required for effective application of ICT systems and devices by the individual. ICT users apply systems as tools in support of their own work, which is, in most cases, not directly related to ICT. User skills cover the utilisation of common generic software tools and the use of specialised tools supporting business functions within industries other than the ICT industry. Capabilities needed to exploit opportunities provided by ICT, notably the Internet, to ensure more efficient and effective performance of different types of organisations, to explore possibilities for new ways of conducting business and organisational processes, and to establish new businesses. Capabilities needed to socially appropriate ICTs for local development. This concept extends the digital literacy concept as defined by the European e-Skills Forum, namely that, “Being digitally literate implies being able to search and retrieve information to navigate and communicate on-line, to participate in digital and virtual communities. It is perceived as a key element in the battle to overcome social exclusion and division in the information society”. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

15. Research, Evaluation and Monitoring HEIs / Academia / Civil Society Labour 3. National Research Network for e-Skills 1. Need for a coordinated effort across all stakeholders 2. Adopt an Integrated Approach Individual / Community eSkills Knowledge Production Hubs eSkills Knowledge Production Hubs eSkills Knowledge Production Hubs Government Business Effective e-Governance and Service Delivery Socio Economic Development Business Development Employment Readiness National Response to Challenges Faced The Key Building Blocks: NeSPA 2010 & 2013 e-Skills Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

16. 1. SA’s e-readiness position with regard to its socio-economic contemporaries 4. Strategic position of iNeSI into the future 2. The shift for greater alignment and focus of activities Realignment, Focus and International benchmark The Key Building Blocks: NeSPA 2010 & 2013 5 - Skills 6 - Individual Usage 8 - Government Usage 10 - Social Impacts 11 - Affordability • The model of iNeSI and its current work has already been designed and mapped to address these areas e.g. • Skills: Value proposition, NCCF, Aggregation model and Research agenda for e-skills etc; • Individual Usage: building e-astuteness (e-literacy and life long learning); • Government Usage: service delivery, e-government, e-governance; • Social Impacts: delivering on the six pillars of the NDP and the digital opportunities pillar of SA Connect (Broadband Policy); and • Affordability: input into national policies Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

17. Launched on 21 February 2014 asa national catalytic collaborator, facilitator and change agent for developing e-skills capacity in the country. • Responds directly to: • SA Connect (Broadband Policy) • National ICT Policy • Human Resource Development Strategy of SA (HRDSSA) • National Development Plan • SA’s Global e-Readiness Ranking Human Capacity Development or e-Skills The mandate - Build a better life for all through an enabling and sustainable world class Information and Communications Technologies environment. National ICT Policy IS/KE Technologies Access Content e-skills Affordability SENTECH USAASA HRDSSA SA Connect SABC .zadna Post Office ICASA SENTECH National Development Plan strategic objective- ICT as a strategic social and economic enabler for a knowledge economy: (1) Policy (2) Broadband (3) E-Governance (4) Postbank (5) e-Skills Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

18. e-user skills e-practitioner skills e-literate Programme 2: e-Astuteness Development e-Skills Curriculum and Competency Framework - Teaching and Learning Supports the priority areas of the National HRD Strategy Work Plan Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

19. Sector user e-skills Sector user e-skills ICT practi-tioner skills e-Leader-ship skills e-Literacy Towards an e-Skills Framework (All-Inclusive) a.o. Sector user e-skills in 30

20. Hierarchy for iNeSI Aggregation Framework MDG Provincial Readouts NDP Impact on Poverty, Inequality and Unemployment Target: 10 Million e-Literate South Africans iNeSI’s APP* *to-be, not as currently reported Programme 4: Aggregation External Rankings Environmental Scans Provincial Gov’t* National Gov’t* APP, Current Budget eJobs Social Media Sentiment CoLab M&E Report WEF DHET DBE Civil Society* Business* Allocation of Funds Others CoLab Mgmt Report Demand: Jobs avail Supply: Skilled Labor Universities* IBM Cisco Thematic based metrics *proposed Others Sources of funds, both R and in-kind Discrete dashboard items to be assessed regularly and added or removed as needed Direct iNeSI input Legends Impact / Aggregate indicator Top Level Dashboard Items Drill Down items or sources of Input ResNeS input *Quadruple Helix

21. e-Skills Targeted Delivery for Impact Human Resource Development for an Inclusive Information Society and vibrant Knowledge Economy (E-literate Society By 2030) Over the next 5 years, the e-Skills Institute aims to deliver on: • Thought Leaders (across business, government, education, civil society including labour) • 120 Post-Graduate students • 4200 Targeted Seminars & lectures aimed at senior decision-makers, researchers etc. • 400 e-Skills researchers (ReSNeS) • 1 000 e-Skills Summit (NeSPA) • 2. Creative industries & ICT sector (practitioners) • 45 PhD students • 90 Honours & Masters degree students • 900 B Degree students • 10 International Visiting Scholars • Recognised, Certificated Industry-related Qualifications (short-courses) • 3. Users across key sectors i.e. Government, Health, Education (FETs), Business • 1 million recognised, certificated industry-related qualifications (short-courses) targeted at Business, Government (including Local Government), Education, Health and Private Sector • 4. Communities (Citizens, Unemployed, Women, Youth, Physically Disabled) • 10 million Basic e-literacy Skilled Citizens (Social appropriation of Technology) • 20% Civil Society Organisations capacitated to delivery on social appropriation skills

22. THANK YOU 22 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development