Zuma's speech a 'great opportunity for ICT sector'

Tax incentives, a job-creation fund and digital TV migration are heralding a golden opportunity for the South African information, communications and technology (ICT) industry, according to Dimension Data SA chairperson Andile Ngcaba.

Speaking after Present Jacob Zuma delivered his State of the Nation address to Parliament on Thursday, Ngcaba said the measures announced meant that companies could confidently roll out infrastructure such as fibre-optic cables to improve connectivity in the country.

“The country needs thousands of kilometres of cable in order to improve connectivity as more and more undersea cables land,” he said.

Zuma announced three measures that would help create five million jobs over the next 10 years. These were: the R9-billion job-creation scheme, R20-billion in incentives and tax breaks aimed mainly at manufacturing; and R10-billion from the Industrial Development Corporation.

“Then the president also announced that the country would go ahead with digital TV migration—that is a wonderful opportunity for the sector,” Ngcaba said.

SA is converting its national broadcast system from an aged analogue service to digital.

“This means that set-top boxes will have to be made here and there is a whole manufacturing plan,” Ngcaba said.

He said at least 10-million households would have to have these devices installed.