Programme Director, ADDG Willie Vukela,
ADG, Mr Munzhelele representing Hon. Ms Faith Muthambi MP, the Minister of Communications,
DG Lionel October, representing of Minister of Trade and Industry,
Hon. Deputy Minister Mkhize who may join us from Cape Town,
Hon. Ms Mmamoloko Kubayi MP, the chairperson of Telecommunications and Postal Services Portfolio Committee who is joining us from Cape Town,
Directors General present and other senior government officials,
Councilors of the B-BBEE ICT Sector Council,
BEE Commissioner Ms Zodwa Ntuli,
ICASA Councilors present,
Representatives of the ICT Industry,
Members of the press,
Distinguished guests,
Ladies and gentlemen.

Sanibonani, Goeie More, Good Morning, Thobela, Dumelang, Absheni, Molweni.

It gives me great pleasure this morning to address this historic formal launch of the Broad-Based Black Economic (B-BBEE) Information Communication Technologies (ICT) Sector Council that was appointed in September 2015, as well as the relate ICT Sector Codes that were published yesterday in the notice 1387 of Gazette no. 40407.

This launch coincides with message of the Government’s Imbizo Focus Week under the theme “Together we move South Africa forward: “Our future – make it work”. Yesterday, His Excellency President Jacob Zuma kicked off this period of heightened engagements with communities at the Marhulana Primary School in Tembisa, a stone’s throw away from here.

Addressing the Imbizo, which included a handover of computers, President Zuma stressed the value of long-standing partnerships. He said; “China trained our first freedom fighters. Now they are partnering with us to help us utilise technology to be a smart country, a smart province and a smart municipality.”

This means that China initially gave us weapons to fight for democracy. They are now giving us tools to fight in the new terrain of struggle.

The year’s Imbizo Focus Week coincides with other Government programmes that are aimed at creating an inclusive society and raise awareness about some societal challenges. These include the National Disability Rights Awareness Month which began on 3 November, the 16 Days of Activism for No Violence Against Women and Children from 25 November to December 10 and the World Aids Day on the 1st of December.

All these programmes underscore our Government’s deep commitment to transforming society and ensuring that it is more inclusive and prosperous, as outlined in the National Development Plan (NDP). The values of our Constitution are entrenched in the NDP, such as;

• Social solidarity and pro-poor policies
• Non-racialism, non-sexism
• The need to redress the ills of the past.

To underscore the devastating effects of more than 350 years of colonialism and institutionalised apartheid racism, the NDP narrated The Story of Thandi’s Life Chances; I quote,

“Thandi is an 18 years old girl who completed matric in 2010. Let us look at her life chances; There is a 13% chance that Thandi obtain a pass to enter university BUT she is an African female so, for Thandi, the chance of getting a university pass is actually 4%.  Les us assume that Thandi passed matric but did not go to university:

• Her chances of getting a job in the first year are 13%
• Her chances of getting a job in the first 5 years out of school are 25%.
• Her chances of earning above the median income of R4000 a month are 2%
• Chances are that Thandi will not get a job in the 5 years after school and for the rest of her life she will receive a periodic work for a few months here and there
• Chances are that Thandi will remain below the poverty line of R418 a month for her entire life until she finally gets a pension”.

What is or has been the response of our ICT industry to the story of Thandi our NDP was warning us about? Was she luck to be admitted at university and be part of 4% chance pass and if so is she still struggling as part of fees must fall because of marginalization, poverty, hunger and lack of accommodation? Is she part of unemployed or part of those earning below poverty line until they get pension?

I re-narrated the story to highlight that transformation in South Africa is not negotiable but a necessity. It can no longer be ignored or postponed but is a responsibility for all if we are to avert a looming disaster of the wide spread discontent of the marginalized majority. In 2012 the ANC adopted the radical transformation of the economy for inclusive growth and meaningful participation of the marginalized, blacks in general and Africans in particular. In 2013 the government amended the BEE Act and BEE Generic Sector Codes.

The launch of the Broad-Based Black Economic Empowerment (BBBEE) ICT Sector Council marks another achievement that we are chalking up as we aggressively implement the NDP.

The Council is tasked with broadening the meaningful participation of blacks, women, youth and people with disabilities in the ICT sector – not just as consumers but also as entrepreneurs and content producers. It also has to measure the progress we are making as a country towards an inclusive digital economy.

The work of the Council is predicated on the principle of building progressive partnerships that deliver measurable outcomes towards a transformed society by radically altering the ICT landscape.

In the last 22 years the ICT sector has introduced us to some of the most powerful modern tools for development and upliftment such as the internet and applications. But, sadly, technology has left scores of people in rural areas behind, mostly in developing countries. We can’t afford to allow new digital divides to form because we won’t be able to achieve a more inclusive digital society. We need to embrace technology to bridge the digital divide.

The composition of the BBBEE ICT Sector Council speaks to the goal of inclusivity and transformation. It has representatives from government, regulator, telecommunications, electronics, information technology, women, youth, organised labour and broadcasting sectors.

The Council functions independently and the reports it produces are processed through Department of Telecommunications and Postal Services (DTPS). Both the DTPS and Department of Communications have representatives in council.

Since the establishment of the Council in September 2015, it has worked diligently to a point where Trade and Industry Minister Dr Rob Davies, approved the Amended BBBEE ICT Sector Code for gazetting for immediate implementation.

We are fortunate that the Council hit the ground running as they had to align the sector code to the revised Generic B-BBEE Code of Good Practice by the end of October 2015. It took them three weeks of tireless work to conclude the alignment process. Their work ensured that the sector can be measured with yardsticks that apply to ICT, instead of the generic code.

The advantage of sector specific code is that it brings regulatory certainty and enables the sector to maximise its transformative impact by focusing on opening up participation in the sector for designated groups that include women, youth and people with disabilities.

The council has also concluded all the consultations with all the stakeholders that it need to undertake. The gazetting of the code is a monument to the sterling work of the council as it contributes in making our future work.

I invite you to join me in applauding the selfless work of the Council.

A word of appreciation also goes to all the companies in the ICT Sector that have not only embraced government’s agenda of transformation and economic inclusiveness, but have also taken significant strides to make it a reality by supporting emerging black businesses, whether it be through technical support, skills development, mentorship, procurement and providing access to much needed capital. You are our true patriots in our endeavour to achieve equality and transformation in our young democracy. Thank you so much and please do not relent. We really appreciate your support.

Ladies and gentlemen,

Recognizing the cross-cutting nature of the ICTs and their role in the socio-economic development of our country, the ICT sector stakeholders on their own resolve and committed to:

• The objectives of the B-BBEE Act as amended
• Promote the effective implementation of B-BBEE in the ICT sector;
• Bridge the “digital divide” by actively promoting access to ICTs;
• Stimulate and support growth in the ICT sector;
• Advance economic and social transformation in the ICT sector;
• Contribute towards the reduction of unemployment and poverty alleviation;
• Support skills development and training initiatives;
• Foster equity and address the legitimate economic aspiration of all South Africans;
• Provide an enabling environment conducive to transparency, fairness, and consistency when adjudicating on matters related to B-BBEE in the ICT sector; and
• Comply with the requirements of the ICT Sector Code as defined hereunder and where possible meet and exceed targets across the sector.

In short they committed to move away from narrow-based empowerment of ownership and management control to broader empowerment that enhances the real empowerment emphasising ownership and minimising fronting; skills development; and skills and enterprise development.

I am pleased that the Code give weighting scores that are skewed towards Enterprise and Supplier Development. This is to encourage companies to put more effort in this transformation area where little action has taken place in the past. The Council will provide more details about how the scoring will work.

May I say that there isn’t a shortage of young entrepreneurs who are pursuing their dreams by establishing ICT businesses that seek to solve local challenges. They need a hand up not hand-outs. And these dynamic youth are present in all provinces. It is such enterprising youth that I hope will benefit from Enterprise and Supplier Development element of this Code.

Ladies and gentlemen, I feel honoured and humbled to mention that the Council has also produced the Sector Monitoring Report, which outlines the status of the implementation of BBBEE in the ICT Sector, within the short period of their establishment.

The report reflects the transformation efforts of ICT companies that were gleaned from 200 BEE verification reports. This is a small sample but it provides a good measure of where the sector is in relation to transformation. The report shows that the ICT sector is performing poorly on transformation by all measures. I am happy that the Council has undertaken to discuss the constraints to transformation with all stakeholders.

I thank the companies that provided the information for the sample and the South African National Accreditation Services approved agencies that contributed to the report. I urge all the companies in the sector to provide information to the Council for future monitoring reports so that we can have a more accurate and broader picture of how the sector is contributing to transformation. I invite you to look at the BBBEE ICT Sector Monitoring Report that outlines the status of BBBEE implementation up to October 2016.

Ladies and gentlemen, allow me to introduce to you the Council members of the BBBEE ICT Sector Council and the sectors they represent:

Women

• Mrs Nokuzola Ehrens (Council Chairperson)

Electronics

• Mr. Raletlhogonolo Andile Tlhoaele (Council Deputy Chairperson)
• Mr. Mduduzi Mkhonza

Regulator

• Ms Khatharina Pillay

Telecommunications

• Mr. Lucky Masilela
• Mrs Sara-Jane Capazario

Information Technology

• Mr. Gavin Pieterse
• Mr. Andrian Schofield

Broadcasting

• Ms Pheladi Gwangwa
• Mr. Frank Awuah

Youth

• Ms. Morwesi Ramonyai

Organized Labour/Trade Unions

• Mr. Richard Charles Poulton
• Mr. Thulani Tshefuta
• Mr. Tshepang Lesiba

Government

Department of Telecommunications & Postal Services (Including Persons with Disability)

• Ms Petronella Linders

Department of Communications

• Ms Miyelani Khosa

Chairperson,

These are the patriots who are tasked with ensuring that the sector is inclusive and affords opportunities to emerging businesses that can create jobs. They have many years of industry experience. I wish them well in their work.

As the department, we commit to adequately resource the council to work with the BBE Commissioner in developing monitoring mechanism that will ensure that amended ICT sector codes are consistently complied with and enforced.

Let us all work together to bring hope to Thandi and contribute in materially improving her life chances to participate meaningfully in our journey of a better life for all. Let us work together to pull all the Thandi’s out cycle of poverty, inequality, unemployment and indignity of perpetual dependency on grant and launch them to their full potential as active citizen that are their own liberators.

Thank you!