ICT charter to kick in next March
20 August 2004
The black economic empowerment charter for South Africa's information and communications technology (ICT) sector is to come into effect in March 2005, the ICT empowerment working group has announced.
The working group formed by companies in the country's ICT sector said the fourth and final draft of the charter would be released on 23 August.
The final draft, which takes into account extensive input from the country's ICT community, includes the much-anticipated targets for black economic empowerment (BEE) in the sector.
The third draft proposed that at least 25% of a company's equity be in black hands by 2009.
"Once the document is out, constituencies in the industry will be given an opportunity to comment until the end of September, when it will be handed to the government", said the working group's chairman, Electronics Industries Federation president Dali Mpofu.
"We expect the charter to be operational ... by 1 March 2005."
Mpofu said an agreement had been signed between the working group and the American Chamber of Commerce, which represents multinationals, who were bidding for the charter's equity target to be optional for multinational technology companies with local operations.
The third draft of the charter ruled out such exemptions, with the weight of opinion in the local industry favouring across-the-board compliance.
"This development is significant because it was a major issue, and now we can comfortably say the end is in sight", he said.
An 'industry-driven charter'
The ICT working group has been leading countrywide consultation on the charter over several months.
"If the people of South Africa are to place their faith in the new charter, then we must ensure that they are included in its construction", Mpofu said when the third draft was released, adding that the "industry-driven" charter would ensure that black people were
included in the mainstream economy, as set out in the government's black economic empowerment strategy.
Mpofu said the core elements of the charter included transformation indicators such as ownership, management and control, skills development, employment equity, enterprise development, preferential procurement and social investment.
The scorecard targets included in the charter were "generally achievable, although somewhat robust and forward-looking", Mpofu said.
He added that the targets had been tailored for the ICT sector, which, unlike the financial and mining sectors, was very diverse, with a wide range of different-sized companies, technologies and ownership structures, and continually changing market conditions.
The working group has also proposed the establishment of an ICT Black Economic Empowerment Council to monitor and review the implementation of the charter, and to be responsible for accrediting national ICT projects aimed at bridging the
digital divide.
The working group is made up of representatives of the Black IT Forum, the Electronics Industries Federation, the SA Communications Forum, Information Industry South Africa, the Information Technology Association, and the SA Chamber of Business.
The working group has held discussions with government departments, including the departments of trade and industry, communications, and public service and administration, over the contents and implementation of the charter.
"We have embarked on a very ambitious process that is not going to be easy, but we recognise that the vehicle of empowerment is through the enterprises themselves", Mpofu said. "We cannot underestimate the role of enterprises and even of individuals in this process."
For more information, updates and links to the latest draft charter, visit the ICT Charter website.
SouthAfrica.info reporter
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