UNLOCKING POTENTIAL OF ICT SMMES Joshua Motjuwadi MD

UNLOCKING POTENTIAL OF ICT SMME’S Joshua Motjuwadi MD: Government Solutions March 2015

UNLOCKING POTENTIAL OF ICT SMME’S Effects of Post 1994 Transformation 1. Economic Development 2. Productivity Performance 2

Effects of Post 1994 Transformation ………. continued 1. Economic Development – RSA managed to stay on its feet 1. 1 Fiscal and monetary policy 1. 2 Capitalised banking system 1. 3 Natural resources 1. 4 Regulatory system 3

Effects of Post 1994 Transformation ………. continued 2. Productivity Performance – forces that have contributed to the poor performance: 2. 1 Pre 1994 • Economic inequality • Discriminatory practices in labour markets • Discriminatory education & skills development 2. 2 1980 -1990 Investments took place in industries that were capital intensive – both physical & human capital. Later mechanisation resulted in job losses. 2. 3 Democratisation of SA, also removed international isolation • Openness in foreign trade. • Increase in import penetration. • Price competitiveness with domestic producers. 2. 4 Advanced financial systems – failed to address the needs of the poor & micro enterprises. 4

BASES OF PRODUCTIVITY Investment in Human Capital • Education (local/abroad) • Training • Seminars Investment in Physical Capital • Schools & colleges • Infrastructure (transport, etc) Financial Systems • Loans • Finance management, etc. • National Youth Development Fund Regulatory + Policies • Reconstruction and Development Programme (RDP) • Growth, employment and redistributions (GEAR) • National Development Plan (NDP) • BEE BBBEE 5

BASES OF PRODUCTIVITY ………. continued Public-Private Partnerships: Concession PPP Models Degree of Private Sector Risk Privatization Design-Build-Finance-Maintain-Operate Design-Build-Finance-Maintain Build-Finance Operation & Maintenance Design-Build Degree of Private Sector Involvement © The Canadian Council for Public-Private Partnerships 6

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