STAATSKOERANT, 24 JANUARIE 2014
No. 37261
operating in the ICT sector. This implies that ICT SMMEs accounted for approximately 1,6%
of the total formal small enterprises in South Africa in 2008. SMMEs currently contribute 35%
to Gross Domestic Product (GDP). They also contribute 54% to formal private sector
employment. Moreover the potential of SMMEs to resolve the country's development
challenges such as employment and economic growth is immense.
Given its opportunities, the ICT sector provides a fertile ground for SMMEs incubation,
development and promotion. In analysing the state of SMMEs in South Africa, the ICT
SMME Enterprise Development Strategy (2008) said the following:
There is inadequate information regarding the economic activities, the sizes of SMMEs in the
ICT sector and their peculiar challenges, including business models. Therefore, policy
interventions are often broad and influenced by general SMMEs environment in South
Africa. This has made targeted interventions difficult. More scoping work is required to
understand ICT SMMEs for future policy intervention.
Policy Questions:
Given this Economic Climate, how can the South African ICT Industry attract and
sustain the Investrnents?
2. How do we grow the domestic market amid the high levels of imports without
undemanding our trade agreements and what other industry-specific support
mechanisms both (direct and indirect) should be implemented so that the sector
rejuvenated to create jobs and revive South Africa's excellence?
3. The value of IP does not necessary lie in its registration but its use How can we
promote the use of local IP to drive innovation in the ICT sector?
4. Considering the economic climate characterised by limited domestic capital, how can
South Africa balance FDI and local ownership of ICTs, particularly in those highly
regulated sectors such Broadcasting and Telecommunications services?
5. How can we re-engineer ICT SMME development so as to enable them to participate
across the entire ICT value chain.
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