After nearly 10 years of discussions and draft documents, South Africa’s government has gazetted the Information and Communications Technology sector charter.
The aim and principle behind the charter is to enable and encourage black participation and ownership in the ICT sector in the country.
It was first made public at the ICT Indaba on June 6, 2012, almost a decade after it was first drafted.
In a statement, Andile Tlhoaéle, ICT Charter Deputy Chairman, says the charter is still relevant as the transformation issues that faced the sector seven years ago still exist.
According to the government, the charter was developed in collaboration with all ICT stakeholders, including private technology companies.
The Independent Communications Authority of SA (ICASA), which regulates the sector, also provided input.
Amongst some of the requirements made by the charter for both private ICT companies and companies listed on the Johannesburg Stock Exchange (JSE) is that listed companies are expected to show that 25,1 percent of their equity is in the hands of black empowerment partners — maximum of R7,5bn of the company’s value.
Private ICT companies have to demonstrate 30 percent empowerment at the equity level.
The charter is not only aimed at transfer of ownership (equity). It is also aiming to close the digital divide by stipulating requirements regarding skills development and training, thus in turn hoping to reduce unemployment and increase growth of the ICT sector in South Africa.
It is alleged that the charter is in effect with immediate effect from June 6, 2012.
Chairman of the Computer Society of South Africa, Adrian Schofield, makes the point that the charter is welcomed by the industry.
He however expressed some reservations: “CSSA is concerned that their immediate implementation will cause a considerable amount of work for enterprises who have achieved compliance under the Generic Codes and will now have to recompile their scorecards and have them verified again in line with the different targets in the sector-specific Codes.”
Companies are expected to study the charter and evaluate whether they are compliant before taking measures to implement the stipulated requirements.
Although a lot of activity and comments can be expected from ICT companies once the charter has been gazetted, many had already taken measures in anticipation of its eventual publishing.
