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Home>> Industrial Development>> Sectors >> Electro-technical/ICT Services Sector

Electro-technical/ICT Services Sector

Background

The electro-technical sector comprises a large family of diverse sub-sectors (ICT, IT and telecommunications, electronics and electrical engineering) with different production and market dynamics. However, they have in common a high level of technological and knowledge application with a significant value addition to the South African economy.

The sector serves a wide range of demanding local and international customers in fields such as electricity generation and distribution, mining, asset management, software development, electronics manufacturing and communications. There is also an internal interdependence within the sector, with outputs of one sub-sector providing inputs or complementary services to other parts. The industry contributes in the region of 12,5% to South African gross domestic product (GDP).

Objective of the Directorate

To develop both human and technological capabilities, and enhance the competitiveness of the sector to contribute to economic growth, employment creation and equity. This includes:

  • Support the local electronics manufacturing industry to take advantage of the growing aggregate demand for electronics products;
  • Support the development of local ICT services capability and capacity to drive modernisation of both domestic and global economies;
  • Build high-level human and technological capabilities associated with the sector and the knowledge economy;
  • Promote safety, quality and recognised certification/accreditation requirements for the sector; and
  • Facilitate investments in activities that are under provided in the market, such as technological infrastructure upgrading, and skills development and alignment.

Key focus areas for the next three years

Building on past achievements (e.g. rebate system for both the manufacturers of television sets and set-top boxes; designation of set-top boxes, cables and electricity meters; an incentive to support technology upgrading by white goods manufacturers, the directorate will prioritise the following:

  • Upgrade South Africa's ability to produce quality software products, in line with international methods, through development processes such as Capability Maturity Model Integration (CMMI) and Team Software Process (TSP) support export activities in the industry;
  • As per past achievements, develop and implement action plans aimed at supporting the broadband roll-out (inclusive of tariff policy, standards, industrial incentives and export promotion) and electronics and contract manufacturing to leverage on aggregate demand for electro-technical products (including smart phones and tablets, electrification products);
  • Develop the White Goods Export Strategy to enlarge South Africa's footprint in both international and regional markets. This work will include the review of tariffs and introduce a rebate mechanism to support further local manufacturing; and
  • Support technical quality and safety within the industry through the facilitation of working relationships with other agencies such as SARS, ITAC, SABS and the NRCS to ensure an effective regulatory framework that fights illegal and substandard imports.

Achievements

  • Designation of Electrotechnical and Telecoms cables at 90% local content.
  • Designation of Pre-Paid, Post Paid and Smart electricity Meters ranging from 50-70% local content.

For further details, please contact

Mr Themba Khumalo
Director: ICT Services Sector
+27 (0)12 394 1300
tkhumalo@thedti.gov.za

or

Mr Yusuf Timol
Director: Electro-technical Sector
+27 (0)12 394 3387
ytimol@thedti.gov.za