Foreword - MICT Web viewSouth Africa is in the third phase of its National Skills Development...

The Media, Information and Communication Technologies Sector Education and Training

Authority

Sector Skills Plan2014–2019

November 2013

MICT SETA Sector Skills Plan for 2014-2019 1

Foreword

South Africa is in the third phase of its National Skills Development Strategy, known as NSDS III. MICT SETA is confident that it will continue to service its stakeholders as well as it has in the past. Notwithstanding the hurdles that must be cleared moving forward, the MICT SETA Sector Skills Plan (SSP) for 2014-2019 provides a clear path towards achieving the skills development objectives of the MICT sector. The need for technical, professional and management skills is clearly identified and MICT SETA will work together with employers, providers, government and the community to channel appropriate resources into creating the pool of talent that will meet the need. Integrating this skills plan into MICT SETA’s business plan and the business plan of its partners will provide the formula for success.

The combined efforts from all stakeholders to produce this document are gratefully acknowledged. The following deserves special mention:

The Ministerial representatives on MICT SETA’s Board Industry, via representation on MICT SETA’s Board Organised Labour, through representation on MICT SETA’s Board

Our thanks go to all the stakeholders whose collective wisdom has been incorporated into this document. Sharing of knowledge is the catalyst for achieving South Africa’s skills development potential and economic growth.

________________________________ __________________________

Oupa Mopaki CEO: MICT SETA Chairperson: MICT SETA Board


Synopsis of the Sector Skills Plan

Introduction

The purpose of this synopsis is to provide an overview of the MICT sector in the context of skills development in South Africa. The information for developing this sector profile was gathered through desk research by reviewing data and information from several institutions including Statistics South Africa (Stats SA), the South African Revenue Service (SARS), the South African Reserve Bank (SARB) and the Bureau for Economic Research (BER). This data is complemented by workplace skills plans (WSPs) and annual training reports (ATRs) submitted by employers, as well as other desktop and online research reports that are sub-sector specific and those that provide key data about the South African economy. In addition, field research in the form of a survey and in-depth interviews were conducted amongst stakeholders in the sector to gain insights. Research findings were presented and discussed at validation focus groups.

Sector Profile and Analysis

The MICT sector is made up of five sub-sectors that are varied but interconnected and at the forefront of technology. The products and services provided in the sub-sectors are complementary to one another. The five sub-sectors are Advertising, Film and Electronic Media, Electronics, Information Technology and Telecommunications. There are over 19,500 employers in the sector of which about half are in the information technology sub-sector. About 95% of the employers are small and almost 40% are located in Gauteng. Levy-paying employers within the sector constitute only 20%. The MICT sector is spread across the manufacturing and services sectors of the economy.

The forecast for the sector is set to enjoy growth across all the five sub-sectors over the next few years. There are a number of drivers of change that will have an impact on the sector. Government programmes are likely to impact the sector’s telecommunications, film and electronic media, electronics and Information Technology sub-sectors. The Strategic Infrastructure Project (SIP-15) relating to the television digital migration programme will have to be supported increasingly from a skills development point of view, especially as there will be skills required for operating the back end platforms (electronic media) as well as for the manufacturing of set top boxes (electronics).

The film industry’s continued growth, buoyed by the incentives available from the DTI is likely to create further opportunities for employment and skills development. As the SKA programme and solar parks are being set up, there are electronic products to be manufactured, especially with the advent of the supplier development and localisation programmes that require that government spend and state owned enterprises purchase locally manufactured products. The international players in the ICT and electronics sub-sectors continue to see South Africa as a gateway into Africa and this has implications for skills development. With these sectors expected to continue to experience growth, both locally and in the African continent, the need for skills is likely to intensify.


Skills Demand, Supply and Scarcity

The demand for skills in the sector is varied. The workforce profile in the sector reflects an inverted pyramid, with more people employed in professional and technician occupational groups as compared to elementary occupations. The implication is that there is a need for more middle and high level skills within the sector. Critical skills are mainly required in technical areas to ensure continued relevance of practitioners’ abilities.

All universities in South Africa produce skills that are relevant in the five sub-sectors of MICT SETA. The public FET colleges tend to offer end-user type of computing skills and some generic business management and marketing programmes. There are 43 MICT SETA qualifications registered with the National Qualifications Framework of which 40% are at NQF level 4 and 37% at NQF level 5. Given the rapid technological advances being experienced in the sector, employers have to constantly train their workforce on the latest technologies, techniques and methods. The sub-sectors mainly utilise bespoke learning programmes developed by the organisations at the forefront of the particular technology. Thus there is a prevalence of vendor specific training programmes, especially in the IT and Telecommunications sub-sectors. Film & Electronic Media uses short courses to some extent. Some of the vendor programmes are highly credible amongst employers and are internationally recognised. This equips the learners with marketable skills.

The scarce skills that have been identified in the sector are mainly in three occupational groups: managers, professionals and technicians/associate professionals. The employers in the sector have identified weaknesses with graduates from the public higher education institutions. These graduates still have to be exposed to the workplace upon completion and have been found to still require a lot of capacitation..

As pressure mounts with the advent of the National Development Plan, there will be more expectations from the skills development system to work more efficiently in delivering skills that are required by the economy. In order to achieve the requisite 5.4% economic growth being cited in the NDP, pressure would be on SETAs, including MICT SETA to facilitate sound skills development.

The White Paper on Post Schooling is in the process of being finalised and together with the country’s Integrated Human Resource Development Plan and the Labour Market Intelligence Programme (both under development) would require the SETAs to conduct their business differently. As it stands, there is an expectation that SETAs should work closely with public FET colleges and HET institutions, providing accreditation for qualifications that have the potential to improve the employment capability of learners.

Sector Skills Development Strategy

The skills development strategy for the MICT sector is based on developing MICT SETA’s capability to understand the sector skills needs in order to ensure appropriate intervention to respond to such needs. The enhancement of internal skills demands research and labour market analysis as well as partnerships with research organisations and universities which are an important source in this regard.


The various stakeholders in the sector are an integral part of the skills development strategy. Government institutions will play an important part in regulatory activities as well as in providing experiential learning opportunities. Working with incubators is an important contributor to small business development and will continue to be an integral aspect of skills development. There will be concerted efforts to develop partnerships with agencies like the IDC, SEFA, SEDA, CSIR, NYDA and the TIA to mainstream the work of MICT SETA and to integrate the development of skills in the sector.

In order to ensure sufficient supply of scarce and critical skills to meet the demand in the sector, targeted interventions are necessary. These include bursaries for higher education programmes, work integrated learning and particularly upskilling unemployed graduates in areas of scarce skills as well as implementation of learnerships and internships. Skills programmes will continue to play an important role in the sector in terms of upskilling workers in the dynamic and fast changing technological environment.

For a sufficient supply of skills to be in place within the sector, partnerships with FET and HET institutions are of paramount importance. Focus in this regard would be on influencing changes in curriculum within the HET sector to respond to the complex needs of employers in the sector as well as supporting public FET colleges to enable them to provide training in MICT SETA qualifications that open up opportunities for employment in the sector. The private sector training providers remain an integral aspect of the MICT sector and efforts to enforce quality training will continue to be a key focal area.

Conclusion

The MICT sector is a dynamic sector with potential for further growth. Being at the forefront of technological changes, advancement is a crucial factor amongst employers and stakeholders in the sector. This, together with keeping up to date with international trends in advertising as well as in film and electronic media, has some serious skills development implications. As the use of technology and mechanisation becomes prevalent it too impacts skills development.

The B-BBEE imperatives of the country require that meaningful transformation take place in the economy and skills development is an important pillar in this regard. Mainstreaming of computer skills, especially end user computing will continue to be relevant, especially amongst people with low-level skills. As various programmes expressed in government policies and guidelines start to be implemented in the medium term, there will be a need to address the skills requirements that emerge from such programmes. This SSP endeavours to address all these issues and will be an important contributor towards achieving inclusive growth in the MICT sector.


Table of Contents

Foreword................................................................................................................2

Synopsis of the Sector Skills Plan............................................................................3

List of Tables...........................................................................................................7

List of Figures..........................................................................................................8

Acronyms................................................................................................................9

Chapter 1 Sector Profile....................................................................................121.1 Introduction............................................................................................................121.2 The MICT sector industry landscape.......................................................................121.3 Caveats...................................................................................................................141.4 Size and shape of the five sub-sectors....................................................................151.5 Distribution of Employers by Province....................................................................161.6 Levy Paying Employers............................................................................................161.7 The importance of the sector in relation to the wider economy............................181.8 Employment in the MICT sector.............................................................................241.9 Stakeholders in the MICT sector.............................................................................35

Chapter 2 Sector Analysis.................................................................................412.1 Introduction, scope and methodology....................................................................412.2 Economic performance and outlook.......................................................................412.3 Factors impacting economic growth and development in the sector.....................562.4 Summary Scenario analysis.....................................................................................692.5 Conclusion and key strategic issues........................................................................70

Chapter 3 Demand and Supply of Skills.............................................................723.1 Introduction............................................................................................................723.2 Labour Demand......................................................................................................723.3 Scarce Skills demand...............................................................................................723.4 Approach to identifying scarce and critical skills.....................................................733.5 Overview of scarce skills.........................................................................................753.6 Overview of critical skills.........................................................................................79

Chapter 4 Supply of Skills.................................................................................834.1 Introduction............................................................................................................834.2 Supply of Skills into the MICT Sector.......................................................................834.3 Training Conducted in the Sector............................................................................894.4 Summary.................................................................................................................90

Chapter 5 MICT Sector Strategy........................................................................915.1 SSP and the Strategic Plan and Annual Performance Plan......................................915.2 Strategic goals.........................................................................................................925.3 Conclusion............................................................................................................100

Chapter 6 Monitoring and Evaluation Framework..........................................101

References..........................................................................................................117


List of TablesTable 1: The MICT SETA SIC Code List.............................................................................................13Table 2: Aggregated Standard Industry Classification for MICT Sector..........................................14Table 3: The MICT Sector Number of Employers per Sub Sector...................................................15Table 4: The MICT Sector Size of Employers per Sub Sector..........................................................15Table 5: Provincial Spread of Employers........................................................................................16Table 6: Number of Levy-Contributing Companies.........................................................................17Table 7: Number of Companies in the MICT Sector by Size of Company.......................................18Table 9: Number of employers submitting WSPs...........................................................................29Table 10: Modelling output of the number of employees in the sector........................................29Table 11: Number of Employees by OFO Sub Major and Sub-sector.............................................33Table 12: Major Group by Gender..................................................................................................34Table 13: Major Group by Race......................................................................................................34Table 14: Macroeconomic Forecast for the South African Economy.............................................42Table 15: Advertising in South Africa..............................................................................................44Table 15: Forecast for South African Advertising...........................................................................45Table 16: Ten Largest Contributors to Global Advertising Spend Growth between 2010 and 2013 (US$ million, current prices)...........................................................................................................45Table 18: Forecast for South African Film and Electronic Media Market.......................................46Table 20: Electronics Sector in South Africa...................................................................................49Table 21: South Africa It Industry - Historical Data & Forecasts.....................................................51Table 22: Information Technology Sector in South Africa..............................................................51Table 23: Telecoms Sector - Mobile - Historical Data and Forecasts..............................................52Table 24: Fixed Line Telecommunications SWOT...........................................................................53Table 25: Mobile Telecommunications...........................................................................................54Table 26: Estimation of Advertising Scarce Skills Need..................................................................75Table 27: Estimation of Film and Electronic Media Scarce Skills Need...........................................76Table 28: Estimation of Electronics Scarce Skills Need...................................................................77Table 29: Estimation of Information Technology Scarce Skills Need..............................................77Table 30: Estimation of Telecommunications Scarce Skills Need...................................................79Table 31: Estimation of Advertising Critical Skills...........................................................................80Table 32: Estimation of Film and Electronic Media Critical Skills...................................................80Table 33: Estimation of Electronics Critical Skills............................................................................80Table 34: Estimation of Information Technology Critical Skills.......................................................81Table 35: Estimation of Telecommunications Critical Skills............................................................81Table 36: Results of the National Senior Certificate.......................................................................84Table 37: The MICT SETA Qualifications, and Number of Accredited Training Providers...............87Table 38: The MICT SETA Qualifications and Number of Registered Assessors.............................88Table 39: Training conducted based on ATR submissions..............................................................90


List of FiguresFigure 1: Levy paying employers in the MICT Sector......................................................................18Figure 2: Regional Mobile Penetration (LHS), Key Telecoms Indicators (RHS), 2012.....................24Figure 3: Employment Trends in Business Services........................................................................25Figure 4: Employment trends in the economic sector consisting of the Film & Electronic Medis sub-sector.......................................................................................................................................26Figure 5: Employment trends in the economic sector consisting of the Electronics sub-sector....26Figure 6: Employment Trends in the Communications Sector.......................................................27Figure 7: Number of Employees by Sub-sector, 2009 to 2013.......................................................28Figure 8: Number of Employees from employers submitting WSPs by Sub-sector in 2013...........29Figure 9: Race Distribution of Employees.......................................................................................31Figure 10: Gender Distribution of Employees.................................................................................32Figure 11: Number of People with Disability Employed per MICT Sub-sector................................32Figure 12: Employee Breakdown by Age........................................................................................33Figure 13: Employee Breakdown by Major Group..........................................................................34Figure 14: SA GDP Forecast and Total Employment.......................................................................42Figure 15: South Africa Unemployment.........................................................................................43Figure 16: Forecast for South African Electronics Market..............................................................47Figure 17: Enrolments by Registered Qualifications (NQF)............................................................85


Acronyms

Abbreviation DescriptionABET Adult Basic Education and TrainingACA Association for Communication and AdvertisingASGISA Accelerated and Shared Growth Initiative for South AfricaATR Annual Training ReportBBBEE Broad-Based Black Economic EmpowermentBEE Black Economic EmpowermentBER Bureau for Economic ResearchBITF Black Information Technology ForumBPO Business Process OutsourcingBRIC Brazil, Russia, India and ChinaCAGR Compound Annual Growth RateCEPD Centre of Education Policy DevelopmentDBE Department of Basic EducationCRASA Communication Regulators' Association of Southern AfricaCSIR Council for Scientific and Industrial ResearchCSSA Computer Society South AfricaCV Curriculum VitaeCWU Communication Workers UnionDoC The Department of CommunicationsDHET The Department of Higher Education and TrainingDoL The Department of LabourDTI Department of Trade and IndustryDTT Digital Terrestrial TelevisionDVB-T Digital Video Broadcasting - TerrestrialEASSy Eastern Africa Submarine Cable SystemEE Employment EquityEIF Electronics Industry FederationETQA Education and Training Quality AssuranceFET Further Education and Training (Institution)F.I.L.M. Film Industry Learner MentorshipFOSS Free and Open-Source SoftwareGDP Gross Domestic ProductHEMIS Higher Education Management Information SystemHET Higher Education and Training (Institution)HIV/AIDS Human Immune Virus / Acquired Immune Deficiency SyndromeHRD Human Resource Development


Abbreviation DescriptionHRDSSA Human Resource Development Strategy of South AfricaHSRC Human Sciences Research CouncilICASA Independent Communications Authority of South AfricaICT Information and Communications TechnologyILO International Labour OrganisationIPAP Industrial Policy Action PlanISOE Institute of Sectoral Occupational ExcellenceIT Information TechnologyITA The Information Technology AssociationITAC Information Technology Acquisition CentreJCSE Joburg Centre for Software EngineeringJIPSA Joint Implementation Project of South AfricaKPA Key Performance AreaM&E Monitoring and EvaluationMDDA Media Development and Diversity AgencyMICT Media and Information Communication TechnologiesMTN Mobile Telephone NetworksMTSF Medium Term Strategic FrameworkNAB National Association of BroadcastersNAIRU Non-Accelerating-Inflation Rate of UnemploymentNEPAD New Partnership for Africa's DevelopmentNEMISA National Electronic Media Institute of South AfricaNGO Non-Governmental OrganisationNIPF National Industrial Policy FrameworkNQF National Qualifications FrameworkNSA National Skills AgencyNSDS National Skills Development StrategiesNSF National Skills FundOECD Organisation for Economic Co-operation and DevelopmentOFO Organising Framework for Occupations

OGS On-line Grant System (the MICT SETA system for electronic capturing of WSP and ATR data)

PC Personal ComputerPDI Previously Disadvantaged IndividualQCTO Quality Council for Trades and OccupationsSAAF South African Advertising Research FoundationSABC South African Broadcasting CorporationSAPO South African Post OfficeSAQA South African Qualifications AuthoritySARB South Africa Reserve BankSDF Skills Development FacilitatorSDL Skills Development Levy


Abbreviation DescriptionSETA Sector Education Training AuthoritySIC Standard Industrial ClassificationSIP Strategic Integrated PartnershipSITA State Information Technology Agency

SME Small and Micro Enterprises (less than 50 employees in the MICT Seta’s context)

SMMEs Small, Medium and Micro Enterprises (less than 150 employees in the MICT Seta’s context)

SSP Sector Skills PlanStatsSA Statistics South AfricaSTB Set Top BoxUSAASA Universal Services and Access Agency of South AfricaUSD United States DollarWITSA World Information Technology and Services AllianceWSP Workplace Skills Plan


Chapter 1 Sector Profile

1.1 Introduction

The purpose of this chapter is to provide an overview of the MICT sector in the context of skills development in South Africa. The development of a Sector Skills Plan (SSP) is a statutory function as stipulated in the Skills Development Act. It must be developed within the framework of National Skills Development Strategy III, as well as within the context of other national strategies and policies such as the National Development Plan, New Growth Path, Industrial Policy Action Plan, the Medium Term Strategic Framework and the Human Resource Development Strategy for South Africa. This SSP for the MICT sector is a culmination of multiple data sources and research methods:

Desk research was conducted by sourcing and reviewing documents and data from several institutions including Statistics South Africa (Stats SA), the South African Revenue Service (SARS), the South African Reserve Bank (SARB), and the Bureau for Economic Research (BER). This data is complemented by other desktop and online research reports that are sub-sector specific and those that are generic about the South African economy.

An ICT skills survey report developed by the Joburg Centre for Software Engineering in conjunction with MICT SETA and supported by the Computer Society of South Africa, the Information Technology Association of South Africa and ITWeb

An analysis of the workplace skills plans (WSP) and annual training report (ATR) submissions was conducted to determine the level of skills need and supply amongst employers submitting these documents periodically to MICT SETA

In-depth Interviews were conducted with key informants and stakeholders with knowledge of the sector to gain insights about the dynamics of the sector and issues relating to skills development

Focus groups were conducted across all sub-sectors, including targeted sessions with the small businesses in the sector to confirm scarce skills

The MICT sector consists of sub-sectors that are varied but interconnected. The products and services provided in the sub-sectors are complementary of one another. This chapter profiles the MICT sector with a view to understanding the make-up of the sector, employers and employees’ demographics in the various sub-sectors as well as the various players and stakeholders, including government departments that have some bearing on the sector.

1.2 The MICT sector industry landscape

The MICT sector was demarcated in 2010 through Government Notice, No. 33756, published in the Government Gazette, dated 11 November 2010. The notice lists and defines the 46 MICT SETA Standard Industry Classification (SIC) Codes as outlined in the table below.



Table 1: The MICT SETA SIC Code ListSub-Sector SIC-

CodeDescription

Advertising 88310 Advertising88311 Activities of Advertising Agents88313 Commercial Design

Film and Electronic Media

96110 Motion Picture and Video Production and Distribution96112 Related Activities - Film and Tape Renting To Other Industries, Booking, Delivery and Storage96113 Film and Video Reproduction96123 Bioscope Cafes96132 Production and Broadcast of Radio and Television Broadcast Content96200 News Agency Activities88940 Photographic Activities

Electronics 35791 Manufacture of Alarm Systems75216 Security Systems Services except Locksmiths75217 Office Automation, Office Machinery and Equipment Rental Leasing including Installation and

Maintenance86004 Electronic and Precision Equipment Repair and Maintenance Computer Maintenance and

Repairs86010 Consumer Electronics Repair and Maintenance86013 Other Electronic and Precision Equipment Repair and Maintenance86014 Repair and Maintenance of Electronic Marine Equipment87142 Research and Development of Electronic Equipment and Systems87143 Import and Product Integration of Pre-Manufactured Electronic It and Telecommunications

Equipment87146 Research and Development In The Physical and Engineering Sciences87147 Electronics Importation and Product Integration of Pre-Manufactured Electronics It and

Telecommunications Equipment96133 Installation, Maintenance and Repair of Tracking Devices For Cars

Information Technology

86001 Software Publishers Prepacked Software86002 Computer Systems Design and Related Services Computer Integrated Design86003 Computer Facilities Management Services86005 Computer Rental and Leasing86006 Computer Programming Services86007 Other Computer Related Activities86008 Call Centre Systems Development and Installations Activities Call Centre and Customer

Relationship Management System Development86009 Computer System Design Services and Integrated Solutions86011 Computer and Office Machine Repair, Maintenance and Support Services

Telecommunications

75200 Telecommunication75201 Wired Telecommunication Carriers Telegraph75202 Television Broadcasting, Television and Radio Signal Distribution Television and Radio Signal

Distribution75203 Cable Networks and Programme Distribution Cable TV Services75204 Telephone75205 Wireless Telecommunication Carriers except Satellite Radiotelephone75209 Television Broadcasting75211 Telecommunications and Wired Telecommunication Carriers75212 Paging75213 Cellular and Other Wireless Telecommunications75214 Satellite Telecommunications75215 Other Telecommunications86012 Communication Equipment Repair and Maintenance87148 Telecommunications Importation and Product Integration of Pre-Manufactured Electronics It

and Telecommunications Equipment


Sub-Sector SIC-Code

Description

96131 Providing Radio and Television Transmission SignalsSource: Government Notice, No. 33756, Government Gazette, 11th November 2010

The combination of Media with ICT into an economic sector is unique to South Africa and does not follow international conventions of industry classifications and this makes it complex to conduct research at MICT level. As demonstrated in the table below, the MICT sector is made up of SIC codes under four different Level 1 economic (SIC) sectors, namely: manufacturing, transport, storage and communication, finance, insurance, real estate and business services as well as community, social and personal services. This makes it difficult to obtain economic data relating to the sector as the data has to be disaggregated and at times is not available at the requisite level of disaggregation. For example, some of the information technology activities are aggregated under business services (SIC 83-88), which is part of the finance, insurance, real estate and business services industry (SIC 8). That means unless economic data is available at the lowest SIC level, MICT SETA might need to conduct some disaggregation of such data or empirical research into the sector to obtain insights.

Table 2: Aggregated Standard Industry Classification for MICT SectorIndustry Sub Industry Sub-Sector

3 Manufacturing 361-366....Electrical machinery & apparatus – Electronics

7..Transport, storage & communication 75....Communication

– Telecommunications

8..Finance, insurance, real estate & business services

83-88....Business services – Advertising– Information Technology

9..Community, social & personal services

93-96.... Other services – Film and Electronic Media

Source: Stats SA

Despite the SIC codes falling under four different industry classifications, the SIC codes in the MICT sector have been organised into five logical sub-sectors. These sub-sectors are:

– Advertising– Film and Electronic Media– Electronics– Information Technology– Telecommunications

1.3 Caveats

The MICT sector does not comprise all organisations linked with its five sub-sectors. There are employers that provide ICT services together with other professional services and who are located in other sectors. Though such companies are generally recognised as falling in these sub-sectors they have defined themselves outside of the MICT sector. There are also organisations whose business offerings straddle across various sectors and are located in other SETAs based on how they have defined their core business and perhaps because of their holding structures as well.


As will be demonstrated below, MICT SETA’s view of the MICT sector is to include non-levy paying organisations and freelancers as well as those in the informal economy. Organisations across the economy are increasingly reliant on ICT to manage their processes and operations. Even though ICT is used throughout the economy, it is important to note that the MICT SETA currently addresses the skills needs of the MICT SETA stakeholder companies, as registered on its employer database. This Sector Skills Plan primarily addresses the MICT Sector specifically, not the ICT Sector, hence the exclusion of ICT skill demands of other SETA sectors, unless stated otherwise.

1.4 Size and shape of the five sub-sectors

The MICT sector is made up of over 19,000 companies spread across the five sub-sectors. Information Technology is by far the largest sub-sector, constituting almost 50% of the sector employer base. The second largest sub-sector is electronics (13%) followed by advertising (12%). The telecommunications sub-sector (6%) has the smallest number of employers. The database of employers in the sector reflects over 1,900 employers (10%) who are not classified into a particular sector. This could be attributed to employers who are operating in more than one sub-sector. However, this discrepancy will be discussed with the South African Revenue Service (SARS) who maintain a national database.

Table 3: The MICT Sector Number of Employers per Sub SectorSub-Sector Total

Advertising 2,303Film and Electronic Media 2,151Electronics 2,469Information Technology 9,398Telecommunications 1,228Unknown 1,963Total 19,515

Source: The MICT SETA OGS, 2013

The number of employers in any sub-sector needs to be understood in the context of the relative size of these employers. There is a majority of smaller employers represented in the sector as compared to medium and large. Small sized employers constitute about 96% of all employers in the sector. Given the high number of smaller employers with less than 50 employees, the sustainability of such organisations is an important measure that will be trackedin the future.

Table 4: The MICT Sector Size of Employers per Sub SectorSub-Sector 0-49 50-149 150+ Total

Advertising 2252 40 11 2303Film and Electronic Media 2072 38 41 2151Electronics 2304 98 67 2469Information Technology 8961 297 140 9398Telecommunications 1112 72 44 1228Unknown 1936 17 10 1963


Total 18640 562 313 19515Source: The MICT SETA OGS, 2013

Although information technology is reflecting the highest number of employers (9,398), it is of interest to note that over 95% of these 9,398 employers are small. A similar trend can be observed with advertising. While large employers are able to absorb more people and create more employment opportunities, the small and medium sized businesses have been identified as future creators of employment, particularly in growth sectors.

1.5 Distribution of Employers by Province

There are more employers located in the industrialised provinces of the country. Gauteng has the largest share of employers at 40%, followed by Western Cape and Kwazulu-Natal with 8% each. Northern Cape, Limpopo and North West have the least number of employers at about 1% each, whilst Eastern Cape, Free State and Mpumalanga each have about 2% representivity.

Table 5: Provincial Spread of EmployersProvince 0-49 50-149 150+ TotalEastern Cape 374 10 1 385Free State 354 3 1 358Gauteng 7189 398 218 7805KwaZulu-Natal 1493 29 15 1537Limpopo 110 3 113Mpumalanga 302 5 2 309North West 137 2 139Northern Cape 63 1 64Western Cape 1432 112 75 1619(blank) 7186 7186Grand Total 18640 562 313 19515


The majority of large employers are located in the more developed provinces of Gauteng and Western Cape whilst smaller employers dominate the less developed provinces. That means the skills development approaches for less developed provinces should be aimed at supporting smaller employers whilst a different approach is required in provinces that have a mix of small and large employers.

1.6 Levy Paying Employers

In terms of the Skills Development Act, employers paying annual remuneration of less than R500,000 are exempt from paying the skills development levy (SDL). The number of levy paying employers has increased between 2010/11 and 2012/13. The increase in the number of levy payers indicates an increase in total employee income in the sector, as the levy is based on 1% of employee earnings. This increase could be as a result of time value of money, especially as the R500,000 threshold has not been changed in many years. Levy payers represent almost 20% of all employers (19,515) in the sector.


Table 6: Number of Levy-Contributing Companies1

Sub-sectorLevy Payers

2010/11Levy Payers 2011/12

Levy Payers 2012/13

Growth in NoOf Companies

2012/13

Film and Electronic Media 211 277 10%Electronics 458 529 5%Information Technology 1 750 1 989 7%Telecommunications 417 514 -17%Grand Total 3 192 3 745 3 866 3%

Source: The MICT SETA OGS

Although the MICT sector experienced a general increase in the number of levy payers, the telecommunications sub-sector experienced a 17% decrease. On the other hand, the Film and Electronic Media sub-sector experienced a 10% increase in the number of levy payers. The Information Technology sub-sector has the highest proportion of levy payers, accounting for 55% of all levy-paying employers. The Film and Electronic Media sub-sector has the lowest proportion.

The following diagram presents the sub-sector segmentation of the MICT Sector, segmented by number of companies.

Figure 1: Levy paying employers in the MICT Sector

Advertis

ing

Film and Electr

onic M

edia

Electr

onics

Info

rmatio

n Technolo

gy

Telecom

munica

tions

0

500

1000

1500

2000

2500

2011 2012 2013


The following table summarises the number of levy paying employers by size. Size in this regard is measured by the number of employees and not by turnover. The number of levy-paying employers increased by 17% between 2011 and 2012, and further by 3% in 2013. The increase was experienced mainly in the small and large employer category whilst the number of medium sized levy-payers decreased slightly.

1Some organisations were unallocated to a sub-sector during analysis and were excluded


Table 7: Number of Companies in the MICT Sector by Size of Company

Company SizeNo of

Companies2011

No ofCompanies

2012

No ofCompanies

2013Large(150+Employees) 160 159 174Medium(50-149Employees) 344 367 329Small(1-49Employees) 2 688 3 219 3363Grand Total 3 192 3 745 3866

Source: MICT SETA OGS

While the number of levy-paying employers increased between 2012 and 2013, a good measure of growth would be movement from small employer to medium and from medium to large. That would indicate an increase in the number of people being employed by organisations in the sector.

1.7 The importance of the sector in relation to the wider economy

The MICT sector is an important component of the South African economy. The various sub-sectors are of importance mainly because of their link with the rest of the economy and the services that they provide. Each sub-sector plays a crucial role in either strengthening the economy or supporting other sectors of the economy.

1.7.1 Advertising

The South African advertising sector is regarded as one of the most developed in the world. Given the globalised world and the presence of global organisations in South Africa, it is not surprising that some of the biggest names in advertising globally have a presence in South Africa. Global advertising revenue increased by 3.2% in 2012 to US$ 557 billion, with South Africa experiencing a 5.6% growth.

The Advertising industry plays a very important role in society. They influence the behaviours and lifestyles of people through messages that are sent out via multiple channels. The advertising industry is largely focused on targeting an audience who are the primary observers and consumers of the products advertised. Advertising of all forms has become a ubiquitous feature of our daily lives and the different forms of advertising have evolved to suit the communication type preferred by the consumer. To this end, electronic and online marketing and advertising has shown rapid growth over the past decade and with this growth, the concomitant need to fast-track the supply of IT skills, inter- and intranet marketing and advertising and marketing strategies aimed at techno-savvy youth. The marketing of small and medium businesses effectively through the use of cheaper mediums such as mobile telephones and the internet is another example of how new forms of technology promote increased usage and creates a new skills demand within this sector.

Internet advertising in the South African economy has grown tremendously over the past five years with continued expected growth. ASA has recorded an increase in the amount of lodged complaints, which is a direct result of the increase in the demand and consumption.


Commercial advertising is a form of communication projected at persuading an audience (readers, viewers and listeners) to obtain merchandise where its message strongly suggests that the purchaser needs the explicit merchandise that is being advertised. One of advertising’s sole purposes is to create amplified utilisation of a specified product and this is done through branding and repetition of advertisements that reminds consumers about their need for a specific product or service.

Political parties, various interest groups, religious organisations and governments mostly apply non-commercial advertising formats to raise awareness of socio-economic issues. These are called Public Service Advertising and its primary use is to inform, educate and motivate the broader citizenry about non-commercial issues such as HIV/ AIDS, political ideologies and even energy conservation.

In both cases these are paid for mechanisms that traditionally took the form of print or broadcasting. With rapid technological and electronic advancements, advertising too has changed its means of communication to include new technologies such as the Internet and other electronic media types. This is an indication of a shift away from traditional published information towards modern media types and a requirement that the current definition includes electronic forms of advertising. The five primary advertising components as listed by the Advertising Standards Authority of South Africa are:

Media – e.g. press releases and celebrity endorsements Print – e.g. pictures, print adverts and in store adverts Television – e.g. video adverts Internet – e.g. electronic and sometimes interactive Radio – e.g. aural/spoken adverts Outdoor - e.g. billboards, mobile billboards and underground advertising

Corporate and non-corporate organisations choose a range of advertising types and in a country such as South Africa with a discernible dual economy, traditional and modern approaches are combined in order to speak directly to targeted consumers. Television and music advertisements are effective but very expensive and are used in conjunction with radio advertising (restricted to sounds and listeners), but have a wider target area because it can communicate with consumers who do not have access to television or the Internet. Press advertisements are also widely used because they can target a large mass of consumers at a much cheaper rate than television advertisements.

1.7.2 Film and Electronic Media

South Africa has a vibrant, growing film industry that is increasingly competitive internationally. Local and foreign filmmakers are taking advantage of the country's diverse and unique locations – as well as low production costs and favourable exchange rate, which make it up to 40% cheaper to make a movie in South Africa than in Europe or the US and up to 20% cheaper than in Australia.

According to the Department of Trade and Industry, South Africa's entertainment industry is valued at around R7.4 billion, with film and television generating more than R5.8.billion in


economic activity each year. A recent economic impact assessment study commissioned by the Cape Film Commission has reported direct annual turnover of more than R2.65 billion and a contribution of indirect annual turnover of more than R3.5 billion to the country's gross domestic product (GDP).

Broadcasting in South Africa is regulated by the Independent Communications Authority of South Africa (ICASA), which issues broadcast licences; ensures universal service and access; monitors the industry and enforces compliance with rules, regulations and policies; hears disputes brought by industry or members of the public against licensees; plans, controls and manages the frequency spectrum; and protects consumers from unfair business practices. SABC's television broadcasting monopoly ended in 1986 when the subscription-based M-Net was launched. DSTV carries more than 50 channels, ranging from South African produced content, to international content, sports and news.

Recently there were two new 24-hour news channels launched in South Africa. One was launched by the SABC. According to South African Advertising Research Foundation, the latest statistics on South Africa’s four terrestrial channels – SABC 1, 2, 3 and e.tv – are all up by nearly a million viewers each.

The South African radio stations have in excess of 31 million listeners and the ability to be heard by a large cross section of the South African society in all age ranges, including both men and women who are regularly listening. Zulu is the most common home language among the South African radio audience, with over 7 million listeners, followed by Afrikaans and Xhosa with just over 4 million listeners each. Radio is listened to by speakers of all South Africa's 11 official languages. Ukhozi FM, a Zulu radio station based in KwaZulu-Natal is the biggest radio station in Africa. New technologies offer important distribution channels for radio: around 5% of South Africans now listen to the radio online, while approximately 28% listen to radio content on their phones.

The sub-sector has a host of small community radio and television companies that are either non-profit organisations or fall below the R500 000 total annual payroll boundary, but nevertheless represent a significant area of employment. According to figures from the South African Advertising Research Foundation, there are more than 196 community radio stations currently on air in South Africa, which collectively broadcast to 8.7-million listeners a week. Furthermore, this sub-sector is characterised as having large numbers of freelancers who may or may not directly be levy contributors, but are likely to have skills development needs.

Employers in the sector have noted that today’s listeners are looking for more engagement. In this regard, PWC has noted that radio stations are looking to establish and engage with communities of listeners by being interactive and being inclusive. Advertisers are able to gauge the audience reaction to their campaigns in real time, though better measurement of online audiences remains a priority. Social media offers two-way communication between the audience and presenters (and advertisers) facilitated by SMS, online, mobile phones, social networks, podcasts and vodcasts.


Media is a general term that encompasses the mass distribution of information and entertainment through a wide variety of electronic and paper based mediums. These include film, television, radio, Internet, CD-ROMs, DVD’s, newspapers, magazines, books, etc.

Although using very similar techniques, skills and processes, electronic media differs from film in that it requires the end user to access visual/audio art, creative content or communication by using an electronic device or tool. South Africa still uses the dual formats of analogue and digital electronic media and any equipment used in the electronic communication process is also categorised as electronic media. Examples of these are video recordings, audio recordings, multimedia presentations, photography, slide presentations, e-books (iPad), cellular phones, iPods, CD-ROM’s and devices/programmes to access online content. This field is further stratified into New Media which is a form of electronic media that is only available in digital formats – such as software, cameras, video games, and digitalized creative content; and Static Media which is mainly print media in hard copy format and does not require electronics to be accessed by the end user – examples of these are newspapers, magazines, books, etc.

Film and Electronic Media is a constantly growing industry because it is directly affected by technological innovations, therefore modern day definitions include diverse sub-sectors, all forms of broadcast television, electronic journalism, e-magazines, sitcoms, game and talk shows which involve an assortment of production methods, research and studio skills and what is commonly known as ‘long form’ – the mostly location-based television or drama series, or features. The scope also includes stills photography, animation, corporate or documentary productions and digital advertising. It however does not include stage productions and Arts and Crafts although the increasing usages of technologies in these art forms are beginning to blur the obvious distinctions.

The South African film and electronic media industry can only flourish in an environment where the diverse cultural interests of the majority of South Africans are recognised, the environment is safe-guarded, creative freedom and flair is encouraged and ensuring that South African stories reach the masses through cinemas. The 1999 Human Development Report raises an important concern that foreign culture and practices in these industries can put local cultural diversity at risk. In order to safeguard its culture, its people, its natural and other resources, strong and unambiguous legislation is required.

1.7.3 Electronics

The electronics industry is a growth sector characterised by innovation in terms of production efficiency and new inventions. It is a global industry with products from one country ending in value chains of other countries or markets in different continents. The industry produces goods for use by private consumers, businesses and government organisations either as end products or semi-finished products for input into the production of end products. Typically, the manufacturing of low cost, high demand electronics goods requires huge capital outlays in order to be able to produce at huge scale and minimise the average cost of production. This becomes a barrier to entry for smaller and aspirant


electronics manufacturers and service providers who often have to find niche products that are not typically produced by large players.

Another hurdle for smaller players is that production also tends to require very stringent standards to be met. Smart production methods have been implemented the world over with goods and products being designed in one country, components manufactured in a different plant and the final assembly taking place elsewhere. The Asian countries have emerged as the most cost effective and therefore ideal manufacturing locations and currently produce most of the world’s electronics.

The South African electronics industry is a mature industry that has developed over the years through investment into research and development, especially during the years of economic exclusion from global markets. It is currently estimated to have a market of about US$ 10 billion and is forecasted to reach US$ 13.2 billion by 2017. South Africa is a global top-20 consumer electronics market2 and, despite economic headwinds, will likely remain an attractive one for multinationals over the forecast period. In addition to its large domestic market, South Africa has significance as a hub for the growing sub-Saharan market. Most global IT players have a presence in South Africa. The country plays an increasingly important role in the global industry and is a major supplier of IT and electronics products and services to neighbouring countries, such as Botswana. Apart from being the largest consumer electronics market in Africa, South Africa is receiving increasing attention from vendors and regional distributors. The country will continue to be an important market for consumer electronics devices into the future.

The industry is quite innovative and has been able to respond to local challenges and conditions through the manufacturing of goods and products that directly meet the needs of the markets. The electronics industry can be clustered into nine areas, namely:

Aerospace, military and radar electronics

Astronomy

Automotive electronics (Vetronics)

Computers and related equipment

Consumer electronics

Energy

Industrial electronics

Medical electronics

Telecommunications/Networking

South Africa is an international player in the electronics industry, albeit at a smaller scale than the dominant players. The country has capacity and skills to produce electronics for a number of industries and is considered a leader in the manufacturing of some niche products. Moreover, South Africa has a number of companies that play in the design, manufacturing, contract manufacturing and assembly of products across these industries. While some of the companies are local branches of international companies, there are also

2BMI, 2013


locally grown companies that have proved quite pioneering and can hold their own against international competitors.

1.7.4 Information Technology

The Information Technology sub-sector is an integral part of society because of its universal use across the economy and in society in general. South Africa has a mature IT industry characterised by world-class organisations and services. There is a presence of international IT organisations in the country.

Organisations across the economy are increasingly relying on information technology to carry out their day-to-day transactions whilst individuals and households are also increasingly utilising IT. It is estimated that in 2012, spend on IT for the country totalled over R 88 billion3, with computer hardware sales accounting for 44%, software sales 19% and IT services sales 37%.

South Africa is identified as a source of high technology for other developing economies in the 2012 United Nations Conference on Trade & Development technology and innovation report but is shown in the report to be dropping behind its peers in the percentage that technology represents of total exports. The report highlights undeveloped skills as a reason for the inequalities (Schofield, 2013).

The South African information and communication technologies (ICT) sector is well established and sophisticated. The largest and most advanced in Africa, the local IT industry is characterised by technology leadership, particularly in the field of mobile software and electronic banking services.4 South African companies are world leaders in pre-payment, revenue management and fraud prevention systems, and in the manufacture of set-top boxes, all exported successfully to the rest of the world.

1.7.5 Telecommunications

All sectors of the economy increasingly rely on telecommunications to conduct their business. The telecommunications sub-sector has three categories which are mobile, fixed line and internet. The internet category can further be broken down into wireless broadband (3G/4G) and fixed line internet. South Africa remains one of Sub-Saharan Africa's most developed markets. It had an estimated mobile penetration rate of 134.9% at the end of 2012, higher than the Sub-Saharan regional average of 76.5%, and third in the region after Gabon and Botswana. South Africa has the highest proportion of 3G subscribers in the region, 29.3% of all mobile users compared to the regional average of 8.4%, and the second highest Annual Revenue Per User (ARPU), after Gabon. Although there is still growth potential in the South African market, compounded average growth rate (CAGR) is low at 3.5%, and operators will become increasingly dependent on data services to maintain ARPUs.

3 Business Monitor International, 20134 http://www.southafrica.info/business/economy/sectors/icte-overview.htm#.UoXWZqXspfM


Figure 2: Regional Mobile Penetration (LHS), Key Telecoms Indicators (RHS), 2012

f = BMI forecast. Source: BMI, operators

There are four licensed mobile operators (Cell C, MTN, Telkom Mobile and Vodacom) as well as two fixed line operators (Telkom and Neotel). The sector also has various other players including organisations that specialise in laying cables, commissioning new systems and networks and installing new telecommunication infrastructure. There has been increased investment in infrastructure in the sub-sector particularly around internet and data services, which is where much growth is anticipated.

Given South Africa's relatively saturated mobile market, at 134.9% penetration, operator growth will increasingly be driven by moving existing subscribers to new products, rather than capturing new connections. Subscriber growth will remain important over the short-to-medium term but long-term expansion will be focused on next generation technologies. Vodacom's position at the top of the market continues to decline as the company reported two quarters of losses and discounted inactive SIMs.

1.8 Employment in the MICT sector

The MICT sector straddles four different economic industries as classified by Stats SA. This makes it a complex exercise to estimate total employment at sector level and to conduct an analysis of historical trends. There is however some economic data at sub-sector level which provides some indications of employment in the sector.

1.8.1 Employment Trends

South Africa’s broader services sector accounts for over 60% of GDP. There are two MICT sub-sectors that form part of the broader services sector; advertising and information technology. The SIC codes for these sub-sectors are located with business services which is an industry under the broader services sector represented by SIC codes 83 to 88. The business services sector experienced an increase in employment from 1.36 million people in 2002 to 1.73 million at the end of 2012. This represented a weighted average annual growth rate in employment of 3.4% between 2002 and 2012. Although there was a slight dip in 2009 and 2010, which could be attributed to the recession, the upward trend appears to be continuing, albeit at a slow pace. Responses from the survey conducted in the Advertising


and Information Technology sub-sectors have supported and confirmed the upward trend in employment as well as the negative impact of the recession in the sub-sectors.

Figure 3: Employment Trends in Business Services

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

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Source: Quantec Easy Data, 2013

The Film and Electronic Media sub-sector is located under the category “Other Services” aggregated under SIC 94 to 96. Although the data cannot be disaggregated to the level of the SIC codes in the Film and Electronic Media sub-sector, the figure below demonstrates that there has been an increase in total employment between 2002 and 2012. This industry added around 11,000 employees during this period. The 2013 survey data indicates that employers experienced a decline in employment during the recession in 2008. Since 2008, growth in employment within this sector has been very slow.

Figure 4: Employment trends in the Film & Electronic Media sub-sector

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

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Employers in the electronics sub-sector form part of the electrical machinery and apparatus [SIC 361 – 366] industry as classified in the Stats SA datasets. Total employment in this sector fluctuated between 2002 and 2012, with employment levels in 2012 similar to those in 2002. Between 2004 and 2008 employment in the sector was on an upward trend, peaking at 41,000 people in 2008 and dipping to 36,000 in 2010. The electronic sub-sector is subject to turbulent economic conditions in the global electronics sector. Fierce competition in this sector implies that South African employers cannot always compete with cheaper imports, mainly from Asia.

Figure 5: Employment trends in the Electronics sub-sector

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201233000

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Electrical Machinery and Apparatus SIC [361-366]


The Telecommunications sub-sector is aggregated under SIC 75 on the Stats SA economic datasets. The communication sector (SIC 75) has experienced an increase in total employment between 2002 and 2012. The number of people employed increased from around 106,900, peaking at over 120,000 before ending on around 118,000 in 2012. The communication sector is considered to reflect the dynamics of the Telecommunications sub-sector.


Figure 6: Employment Trends in the Communications Sector

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012100000

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CommunicationSIC [75]


The MICT sector also relies on its member database as well as annual WSP and ATR submissions by employers to determine the number and breakdown of employees in the sector. While this does not provide an accurate reflection of the total employee picture, the MICT SETA relies on this data to identify trends that emerge in employment numbers. The challenge with this is that the number of employers submitting annually fluctuates and this means the annual changes might not necessarily reflect real changes in the sector. There are processes underway to get more sub-sector data disaggregated from the Statistics South Africa’s employment figures. This process is however complex as Stats SA does not organise its data following the MICT sector SIC codes at their lowest level and data generally include organisations located in other sectors of the economy.

The employment data utilised in this section is based on submissions of WSPs by levy paying employers in the sector. Although there are fluctuations in the numbers submitted annually, particular trends can be derived from the data, despite a reduced number of WSP submissions in 2013. Between 2009 and 2012 there has been a general increase in the number of people employed reported in the sector. Despite a general reduction in the number of employees reported in 2013, and some volatility in the advertising and film and electronic media sub-sectors, all sub-sectors have experienced an overall increase in the number of employees between the years 2009 to 2012.


Figure 7: Number of Employees by Sub-sector, 2009 to 2013

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Based on data from the WSP and ATR submissions, the total number of employees in the Advertising sub-sector has fluctuated, despite an increase in the number of WSP submissions. The dip in employment figures in 2013 could be attributed to the lower number of WSPs submitted. The number of employees in the Film and Electronic Media sub-sector has been on an increase, consistent with the broader Stats SA employment data. The Electronics sub-sector has been experiencing a decline in employees since2010. This could be attributed to the competitive nature of the sub-sector and South African organisations struggling to compete with their counterparts in Asia and the US. These figures are also consistent with the Stats SA datasets in this respect. Between 2009 and 2012, employment in the Information Technology sub-sector was on a consistent increase. This is almost consistent with the Business Services economic performance data, which has reflected an increase in total employment despite the recession.

1.8.2 Number of Employees in the MICT Sector

The number of employees in the sector is estimated using WSP submissions, as there is no disaggregated employment data from Stats SA. According to the WSP analysis there were 162,579 employees in the sector, down from 193,032, in 2011. Although the numbers appear to have decreased substantially, these fluctuations are subject to the number of WSPs submitted by employers. The consistency of employers in submitting annually is also important. The following graph presents the number of employees per sub-sector


Figure 8: Number of Employees from employers submitting WSPs by Sub-sector in 2013

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As may be observed in the figure above, in terms of the number of employees within the sub-sectors, the Information Technology sub-sector is the largest of the sub-sectors with 45% of employees in 2013, and Advertising the smallest with about 6% of employees. As with the relative share of the number of companies in each sub-sector, the relative share in terms of number of employees has remained relatively stable from 2012 to 2013 amongst employers submitting WSPs.

The following table provides a breakdown of employers by sub-sector and size that are submitting WSPs.


Table 8: Number of employers submitting WSPs

Sub-Sector 0-49 50-149 150+ TotalAdvertising 70 40 11 121Electronic Media and Film 49 15 13 77Electronics 108 51 37 196Information Technology 421 155 80 656Telecommunications 81 38 30 149Unknown 35 4 6 49Grand Total 764 303 177 1248


The table above is of significant importance for the purpose of modelling the number of employers per sector. Given that this is based on only 1,248 employers or about 6% of all employers in the sector, a modelling exercise has been conducted based on the following assumptions to calculate indicative number of employees in the sector:

– Of the 97% of smaller employers not submitting WSPs, about 50% are of the same size as those submitting

– Of the 46% employers not submitting WSPs, about two-thirds (67%) are of the same size as those submitting

– Of the 43% of large employers not submitting WSPs, about 90% are of the same size as those submitting.

For smaller employers, it is assumed that those employers not submitting WSPs are likely to be employing significantly fewer employees than those submitting WSPs. For medium sized employers, it is assumed that they employ almost a third less than those submitting WSPs. For larger employers it is assumed that they employ almost the same. These assumptions were further modelled per sub-sector and the results there reflected a total of about 439,756 employees in the sector.

The following table provides an estimation of the potential total number of employees in the sector based on the modelling assumptions mentioned above.

Table 9: Modelling output of the number of employees in the sector

Sub-sector 0-49 150+ 50-149 TotalAdvertising 3074 3404 2754 9232Electronic Media and Film 1905 2989 17728 22621Electronics 4891 14306 34629 53827Information Technology 19099 39480 115995 174575Telecommunications 4567 10661 141519 156747Unknown 1691 892 20172 22755Grand Total 35226 71732 332797 439756


A similar model was built with the underlying assumption that given the variety of employers submitting WSPs, those not submitting are of equivalence in terms of size. The


model based on that assumption reflected a total employment of over 665,000 for the MICT sector.

1.8.3 Race Segmentation of Employees in the Sector

Across the sector there are more white people (40%) employed than other race groups. Africans constitute over 37% of all employees in the sector whilst Indians are the least represented employees. The following figure illustrates the race distribution of employees in the MICT Sector, by sub-sector. As can be seen from the figure below, information technology has the highest proportion of white employees as compared to other sub-sectors accounting for 48% of all employees. On the other hand, telecommunications and film and electronic media have as the highest proportion Africans.

Figure 9: Race Distribution of Employees

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In terms of employment equity, the sectors still have some way to go in ensuring that those employed are representative of the demographics of the country.

1.8.4 Gender Segmentation of Employees in the Sector

The following figure presents the gender distribution of employees in the MICT Sector. The figure shows that the advertising sub-sector in particular and the film and electronic media sub-sectors both appear to favour women. The advertising sub-sector employs more females (57%) than males whilst in film and electronic media, women constitute 46% of all employees. It should be noted that the data presented for the film and electronic media sub-sector is to some extent understated because the MICT SETA still needs to assess the magnitude of employment in this sub-sector, as well as assist with skills development as mentioned above.


Figure 10: Gender Distribution of Employees

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1.8.5 Disability Segmentation of Employees in the Sector

The total number of disabled employees amongst employers submitting WSPs was 1,280 in 2013, up from 1,048 in 2012, representing less that 1% of total employment in both years. The following table presents the number of people with disability by sub-sector. Within the telecommunications sub-sector, there are more people with a disability than in any other sub-sector, yet the sub-sector is not the largest employer in the sector.

Figure 11: Number of People with Disability Employed per MICT Sub-sector

Advertising Film and Electronic Media and

Electronics Information Technology

Telecommunications0

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African Coloured Indian White


Although the numbers are low in all sub-sectors, there is something that can be learned from the telecommunications sub-sector in terms of attracting and reasonable accommodation of disabled people.


1.8.6 Age Segmentation of Employees in the Sector

The sector has an even split of people younger than 35 years and those between ages 35 and 55 years, both at 47%. In other words almost half of the reported employees in the sector are youth (less than 35 years). Telecommunications is the only sub-sector with more than 50% of reported employees being between 35 years and 55 years of age. Only about 5% of employees in the sector are older than 55 years. The Electronics sub-sector has more than 8% of the reported employees being above 55 years old. More than 51% of the reported employees in the Advertising sub-sector are youth whilst about 6% are older than 55 years.

Figure 12: Employee Breakdown by Age

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All in all, around 6% of reported employees in the MICT sector are above the age 55 whilst those below age 55 account for 94% of the sector.

1.8.7 Employees in the Sector by Occupation Group

It is important to understand the occupational make up of employees in the sector as this ultimately has implications on the types of skills development intervention required. There are more professionals than any other occupational category in the sector. Professionals constitute 37% of all employees in the sector. Managers and clerical support workers each represent 15% of the reported total workforce.

Employment within managers, professionals and associate professionals categories typically require a degree, diploma or NQF level 6 qualifications as an entry. These categories collectively account for 68% of all employees in the sector. As compared to other economic sectors, which employ more people in elementary occupations, this sector reflects the converse and could be attributed to the professional services orientation of offerings by employers in the sector.


Figure 13: Employee Breakdown by Major Group

1 Managers

2 Professionals

3 Technicians and Associate Professionals

4 Clerical Support workers

5 Service and Sales Workers

6 Skilled Agricultural, Forestry, Fishery, Craft And Related Trades Workers

7 Plant and Machine Operators and Assemblers

8 Elementary Occupations

0 20000 40000 60000 80000

Source:The MICT SETA OGS, 2013

Across all sub-sectors, there are more professionals as compared to other occupational categories. They are followed by managers and clerical support workers each representing 15% of the total workforce of employers submitting WSPs. Across all sub-sectors, elementary occupations and plant and machine operators have the lowest representivity. The implication of this spread amongst occupational categories is that the MICT SETA has to focus on the production of mid to higher level skills.

Table 10: Number of Employees by OFO Sub Major and Sub-sectorMajor OFO Group Advertisin

gElectronic Media and Film

Electronics


Telecommunications

Total

1 Managers 1531 1316 3265 9864 8024 255432 Professionals 3219 4386 6220 29354 13699 604823 Technicians and Associate Professionals

963 2675 4579 10486 4586 24315

4 Clerical Support workers 1075 3208 3273 10216 6715 257365 Service and Sales Workers 200 268 569 1963 2470 57956 Skilled Agricultural, Forestry, Fishery, Craft And Related Trades Workers

206 298 1457 1549 9389 13270

7 Plant and Machine Operators and Assemblers

229 228 798 782 623 2744

8 Elementary Occupations 224 659 722 2275 510 4737Total 7647 13038 20883 66489 46016 162622


The following figure presents the number of employees in the MICT Sector, segmented by gender. As can be observed, the sector is very male dominated with 63% of all employees being male. At the managerial, professional and technical occupational levels there are


more males than females. Amongst the elementary occupations there appears to be an even split between male and female whilst clerical support workers and service and sales workers have a higher female representivity.

Table 11: Major Group by Gender

Major OFO Group Male Female

1 Managers 17081 84622 Professionals 41052 19430

3 Technicians and Associate Professionals 15541 8774

4 Clerical Support workers 9059 16677

5 Service and Sales Workers 2735 3060


11350 1920

7 Plant and Machine Operators and Assemblers 2183 573

8 Elementary Occupations 2808 1929


In terms of race, Whites account for 61% of total managers reported and 50% for professional roles. Amongst plant and machine operators and elementary occupations Africans are the majority accounting for 68% and 81% respectively. This implies that Africans are holding lower level positions whilst their white colleagues have a higher representivity in more senior roles.

Table 12: Major Group by Race

Major OFO Group African Coloured Indian White

1 Managers 4694 2143 3053 156532 Professionals 17593 5405 6928 30556

3 Technicians and Associate Professionals 10374 3106 2371 8464

4 Clerical Support workers 13814 4111 2198 5613

5 Service and Sales Workers 2212 901 948 1734


6688 1936 921 3725

7 Plant and Machine Operators and Assemblers 1873 529 190 164

8 Elementary Occupations 3872 471 57 337

Total 61120 18602 16666 66246


The racial profile for the sector when observed according to occupational categories has some significant implications for transformation in the sector. In terms of skills development, there is a need to capacitate and upskill Africans so that they can over time access more senior roles and managerial roles can be more representative of the demographics of the country.


1.9 Stakeholders in the MICT sector

The following are key organisations that either play a policy, regulatory or developmental role in the MICT sector.

National Government DepartmentsDepartment of Communications

The Department has responsibility for policy development in the communications sector. The work of the Department interfaces with the telecommunications sub-sector in terms of providing policy direction for the sector. The Department also has shareholder control over the South African Broadcasting Service (SABC) a major player in the film and electronic media in the country.

Department of Trade and Industry

The Department through the Industrial Policy Action Plan (IPAP) plays a developmental role, particularly in the electronic media and electronics sub-sectors. Industrial incentive packages are offered by the Department to encourage industrial development and investment in these sub-sectors.

Department of Science and Technology

The Department is the custodian of the National Innovation Policy and has a number of agencies that are at the forefront of research, development and technological advancement. The Department funds research, development and innovation in technology through various programmes.

AdvertisingAdvertising Standards Authority

The Advertising Standards Authority (ASA) is an industry driven body set up by the marketing and communication sector to monitor the application of the internationally compliant Code of Advertising. Even though this initiative was started outside of government, ASA works closely with the Department of Communication in monitoring and complying with national priorities and guidelines as well. Their chief function is to ensure that advertising agencies abide by national and international norms and standards, that competitive advertising adheres to national statutes and that fair play is maintained amongst competing industries. The ASA is set up to allow the sector to become self-regulatory within a country where freedom of expression is guaranteed, but where responsible marketing and advertising is closely monitored to protect the public laws related to children, gender, faith and race.

Advertising Media Association of South Africa (AMASA)


AMASA as a voluntary body focuses on media education, organises monthly meetings in open forums to share knowledge relevant to the advertising and media industries, has a bursary plan for those wanting to enter the world of media and organises annual workshops for planners, strategists and advertisers at all levels.

Association for Communication and Advertising (ACA)

ACA is the official, representative body for the Communications and Advertising profession in South Africa. Communications has evolved into an exciting hybrid of interactive, brand activation, new content and more, and the ACA represents companies in this profession to government, media and the public. It is a voluntary body formed both by, and for the industry, focused on and committed to self-regulation, and to defend the highest standards of ethical practice.

Film and Electronic MediaAssociation of Christian Broadcasters (ACB)

The Association of Christian Broadcasters is a network of Christian broadcasting organisations that have a vision of reaching people with the Gospel and are willing to share their resources and expertise. Nearly all of the Christian radio & television stations and their programme producers in Southern Africa are members of the ACB. The ACB was founded in 1994.

Broadcasting Complaints Commission of South Africa

The Broadcasting Complaints Commission was set up by NAB in 1993 to adjudicate and mediate complaints against any broadcaster who has signed its code of conduct. It is entirely independent from the NAB and the broadcasters, with commissioners appointed by an independent panel, chaired by a retired judge of the Appellate Division of the Supreme Court.

Cape Film Commission (CFC)

The Cape Film Commission is the official advocate for feature the film, television, video, commercials and stills photography production industry in the Western Cape. The Commission is a Section 21 (not-for-gain) company and functions as an independent, autonomous organisation that combines the film-related interests of the City of Cape Town and the Provincial Government of the Western Cape. The core aim of the Commission is to position Cape Town as a globally competitive film city and to promote Cape Town and the Western Cape region as a world-class production destination. It is responsible for facilitating and coordinating on-location filming in both the City and the Province. This includes the assembly and management of all information that affects and influences film making in the region.

Film and Publications Board (FPB)


Film and Electronic MediaThe FPB is a statutory body whose role is to regulate the media sector through classification of content. The Board regulates the creation, production, possession, and distribution of certain publications and certain films by means of classification, the imposition of age restrictions and giving of consumer advice. In addition, the FPB advances the rights of children through making exploitative use of children in pornographic publications, films, or on the internet, punishable.

Media Development and Diversity Agency (MDDA)

MDDA was set up by an Act of Parliament (Act 14 of 2002) to enable "historically disadvantaged communities and persons not adequately served by the media" to gain access to the media. Its beneficiaries will be community media and small commercial media. To achieve its objective, the MDDA encourages ownership and control of, and access to, media by historically disadvantaged communities, historically diminished indigenous language and cultural groups; encourages the channelling of resources to community and small commercial media; encourages human resource development and capacity building in the media industry especially amongst historically disadvantaged groups; and encourages research regarding media development and diversity.

National Association of Broadcasters (NAB)

The NAB is a non-profit group of organisations and individuals working in broadcasting and related industries. NAB helps the industry regulate and promote itself grounded in the principles of democracy, diversity and freedom of expression.

National Electronic Media Institute of South Africa (NEMISA)

NEMISA came into being as an institution of education and learning, specialising in teaching production and technical skills applicable to the TV, radio and broadcasting industries. Formed as part of a government initiative in 1998, its fundamental purpose was to train previously disadvantaged individuals, particularly women, and equip them with the skills necessary to play significant roles in the broadcasting environment. The newly revitalised institute offers meaningful, targeted and relevant coursework covering the entire spectrum of the production activities serving the converging technologies for digital content production. It offers training in all the disciplines essential in the emerging world where video, sound, graphics, animation, telephony and data meet in the merger of computers, satellites, television and Internet.

South African Screen Federation (SASFED)

The South African Screen Federation was set up in 2006 to represent the interests of all workers within the film and electronic media industry. Its objectives are to:

– Uphold and safeguard the rights and interests of the South African Film and Television industry

– Act as a political lobby and advocacy organisation i.e. to represent the views of the industry, formulate policy and act as a bridge between the Industry and Government



– Improve the film production and distribution environment in South Africa and if necessary initiate research on specific industry related issues.

The Independent Forum for Faith and Media (IFFM)

Formerly the Independent Forum for Religious Broadcasting and founded in 1994, it is devoted to promoting spirituality and faith in all aspects of broadcasting, including electronic media. The IFFM reaches out in many directions: to Parliament, to Government.

Information and Communication TechnologyBlack Information Technology Forum (BITF).

The Black Information Technology Forum is an association of Black individuals formed specifically to address the poor representation of Blacks in the information and communications technology industry as both professionals and business operators.

Computer Society of South Africa (CSSA)

CSSA actively engages with commerce, industry and government in order to influence policy formulation on behalf of both its own members and other stakeholders. The Society also encourages the growth of professionalism and the responsible and professional use of Information and Communications Technology throughout the South African economy.

Government Information Technology Officers Council (GITOC)

GITOC is a body made up of Chief Information Officers of government departments across South Africa. It aims to discuss issues of mutual interest and to mainstream excellence in information technology across the public service. One of the main programmes of the GITOC is free open access software (FOSS), which they are trying to implement across government.

Independent Communications Authority of South Africa (ICASA)

ICASA is the regulator for the South African communications, broadcasting and postal services sector. ICASA was established by an Act of statute, the Independent Communications Authority of South Africa Act of 2000, as amended. The Postal Services Act for the regulation of the postal sector spells out ICASA’s mandate in the Electronic Communications Act for the licensing and regulation of electronic communications and broadcasting services. Enabling legislation also empowers ICASA to monitor licensee compliance with license terms and conditions, develop regulations for the three sectors, plan and manage the radio frequency spectrum as well as protect consumers of these services.

Information Technology Association (ITA)


Information and Communication TechnologyThe ITA is a representative body for the local Information, Communication and Technology (ICT) Sector. The main purpose of this body is to represent and foster the professional and commercial interests of its members, who are employers active in the Information Technology Sector.

National Community Radio Forum (NCRF)

NCRF, registered as a Section 21 Company not for gain, was formed in 1993 in Orlando, Soweto, in order to lobby for the diversification of the airwaves in South Africa and to foster a dynamic broadcasting environment in the country through the establishment of community radio stations. The NCRF has about 120 community radio station projects in its membership, with about 75 of the stations on air and others waiting to be licensed by the Independent Communications Authority of South Africa (ICASA). Community Radio collectively is now the third largest broadcaster nationally according to SAARF 2004B, with almost 5 million listeners in the most rural areas of our country covering all provinces.

South African Communications Forum (SACF).

SACF is a non-government industry association, which was formed in 2001. The key members of this forum are the stakeholders in the Telecommunications, Information Technology, Electronics and the Broadcasting industries.

South African Electronic Industries Federation (SAEIF)

SAEIF represents various organisations and companies in the electronics industry. The objectives of the SAEIF are to protect and grow the industry, stimulate economic growth in the sector and sub-sectors, protect the industry with tariff and non-tariff barriers, identify and mitigate bottlenecks that restrict growth of the sector, develop skills by retaining, developing and attracting skills; and influence academia in respect of curricula, and help empower government on various industry issues, challenges and to provide advice to ministers on mechanisms to market and promote the industry.

South African Electrotechnical Export Council (SAEEC)

SAEEC is a not for gain organisation established as a Public Private Partnership between South African business and the Department of Trade and Industry to facilitate the export growth and internationalisation of its members. Members are South African registered companies that are manufacturers and providers of products and related services from the Electrotechnical sector namely Electrical Engineering, Electronics, Information Technology and Telecommunications. The Council was established in 1991 and reports to a Board of Directors drawn from its members. It provides an important platform on which to coordinate the export marketing efforts of the sector as well as being an official conduit to government to enhance strategies and policies to improve the export support environment.

Technology Innovation Agency (TIA)


Information and Communication Technology

The TIA’s main objective is to stimulate and intensify technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations. The organisation supports the development and commercialisation of competitive technology-based services and products. In this regard, the agency primarily uses South Africa’s science and technology base to develop new industries, create sustainable jobs and help diversify the economy.

In addition to the above stakeholders, there are three trade unions doing work in the MICT sector. There are:

Broadcasting Electronic Media and Allied Workers Union (BEMAWU)

Communication Workers Union (CWU)

Media Workers' Association of South Africa (MWASA)


Chapter 2 Sector Analysis

2.1 Introduction, scope and methodology

The sector analysis seeks to explore the drivers of change in the sector and how the various sub-sectors will experience such changes as well as how they are likely to develop in the future. This requires a combination of skills: obviously research skills, but also some industry knowledge and economics, including labour market economics. The MICT SETA uses a combination of tools including the SWOT analysis to present the analysis. The trends identified in the sector profile statistics are analysed so that opportunities for growth can be identified or potential contraction considered. Interviews were conducted with stakeholders across all sub-sectors to obtain, among other, perceptions on the key drivers of change in the sector. In addition, a survey was conducted amongst employers to further understand key issues pertaining to demand and supply of skills in the sector.

Scenario development is then introduced, identifying a small number of variables that might determine the growth and development trajectory for the sector.

2.2 Economic performance and outlook

The South African economy has grown by an average of 3.5% since the advent of democracy in 1994. Despite the negative growth levels experienced during the global recession, economy quickly bounced back. During this period, economic growth reached an all time high of 7.6% in March of 1996 and a record low of -6.3% in March of 2009.

The Gross Domestic Product (GDP) in South Africa expanded by 3% in the second quarter of 2013 over the previous quarter. The International Monetary Fund (IMF) has forecasted that growth for the whole of 2013 is expected to be around 2% and is likely to be at 3% in 2014. In this regard, the IMF noted that the country is destined to experience continued sluggish economic growth and higher current account deficits, leaving the economy exposed to both internal and external shocks. The rising fiscal deficit and current account deficit, which the IMF forecast at 4.9% and 6.1% of gross domestic product (GDP) respectively for 2013, leaves South Africa vulnerable to the reversal of capital inflows and at the mercy of investor sentiment.

The National Development Plan (NDP) has noted that growth of about 6% is needed for the economy to create sufficient number of jobs. As the NDP is being implemented across the various sectors of society, economic growth will remain an important factor for eradicating poverty and reducing inequality.


Coupled with analysis of GDP growth rate is inflation and interest rates. The South African Reserve Bank has a policy of inflation targeting, with the aim of keeping the rate within a target of 3% to 6%. Thus far the SARB has been fairly successful and it is forecasted that inflation will not be out of control, despite weaker commodity exports and increased importation of fuel and high valued goods. The rand has weakened and is expected to remain under pressure. The key features of the economic forecasts for South Africa are:

Table 13: Macroeconomic Forecast for the South African Economy

Fiscal year and percentage changeForecast 2011/12 2012/13 2013/14 2014/15Real GDP growth 2.7 3.0 3.8 4.3GDP inflation 5.9 7.0 5.7 5.8Headline CPI inflation 5.7 5.9 5.3 4.9GDP at current prices(R billion) 2 996 3 301 3 622 3 997

Source: SARB; National Treasury; Stats SA Reports, 2013

According to the Business Monitor International economic report on South Africa, the economy is forecasted to undergo a slowdown in growth in 2013, forecasting that real GDP will expand by less than 2.7% in 2013. Although private consumption should hold up relatively well, serious headwinds from the global economy will inevitably take their toll on growth.

As can be seen from the figure below, the increase in real GDP has not always yielded a similar increase in the total number of people employed in the country. Between 2009 and 2013, even when real GDP was increasing, it appears that total employment didn’t follow a similar pattern. There was less growth in employment as compared to the growth in the economy. That could signal that the people who lost jobs during the 2008 recession were not reabsorbed into the economy.

Figure 14: SA GDP Forecast and Total Employment

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

5000

10000

15000

20000

GDP (Constant 2005 Prices) Total Employment (000)


Source: BMI. SARB, 2013

While the consistent average economic growth has helped bring down unemployment from the 2003 levels of over 30%, joblessness has continued to be a problem in South Africa. In this regard economists often talk of jobless growth whereby the economy is growing but the growth doesn’t result in a growth in employment. As at 2013, unemployment stood at almost 26% of the South African labour force.

Figure 15: South Africa Unemployment

According to International Labour Organisation (ILO) in its 2012 report on global employment trends, it suggests that the world faces a serious jobs challenge and widespread decent work deficits. The global estimates pertaining to unemployment outlined in the report are alarming. The ILO notes that after three years of continuous crisis conditions in global labour markets and against the prospect of a further deterioration of economic activity, global unemployment will continue to increase, and more than 400 million new jobs will be needed over the next decade merely to avoid a further increase in unemployment.

2.2.1 Advertising

The South African advertising industry is a growth sector that has enjoyed consistent growth recently. The sector is vibrant and is considered to be amongst the best in the world. There is a strong presence of international players. Vast potential exists for expansion into other African countries especially Nigeria and Ghana. South Africa can produce at a good price and has the capacity and the skills.

Potential threats for industry growth are the penetration of multi-nationals and local labour costs, which makes it cheaper to produce a commercial in places like Miami and China than in South Africa. In government, procurement processes have often inconvenienced the sector stakeholders, as they have to respond to public tenders instead of a few of them pitching for business. The industry body has in this regard negotiated for a differentiated method of operation which calls for fewer organisations. The following table profiles the sub-sector in terms of its internal strengths and weaknesses as well as external threats and opportunities.


Table 14: Advertising in South AfricaStrengths Weaknesses

• International competitiveness• Strong performance• Infrastructure• Technical skills• Growth sector• Strong institutions• Quality standards being maintained

• Skills gaps• Print losing traction• Co-ordination• International and domestic intelligence• Financing• Market access

Opportunities Threats

• Rapid technological advances• Internet advertising• Mobile technology advertising• Gateway to Africa• New technology• Public service advertising• Untapped audiences

• International competition• Susceptibility to economic pressures• Exchange rate• Foreign content• International perceptions• Reduced government support

Digitisation has become a key feature in Advertising. Market analysts at Frost & Sullivan predict that by 2025 global online sales will represent 19% of all consumer purchases, worth a total of $4.3 billion. This means the consumer is fast changing their buying patterns. According to research by Price Waterhouse Coopers (2013):

– The South African Internet advertising market is forecast to generate revenues of R3.7 billion in 2017, up from R1.2 billion in 2012, a CAGR of 25.4%.

– Search is set to remain the primary online advertising format in South Africa, although its share of online advertising will decline slightly over the forecast period from 44% to 41%.

– Search will grow at a CAGR of 23.9% over the forecast period, driven principally by an increase in Internet penetration.

– Online display advertising is being driven on by the ever increasing number of Internet, and in particular Facebook users in South Africa. Despite the fact that mobile will cut into display’s share, display will still remain the second largest format.

– The Internet advertising segment will increase throughout the forecast period, with the segment set to grow at a CAGR of 22.6%, reaching R1 billion in 2017.

– Classifieds will continue to increase over the forecast period, growing from R112 million to an estimated R209 million between 2012 and 2017. Classifieds will represent the slowest-growing online advertising format over the forecast period, primarily due to some consumers’ loyalty to more traditional print formats.

– Mobile advertising is set to grow at a notable CAGR of 37.8% over the forecast period, growing from R189 million in 2012 to R938 million in 2017. This growth will be driven by the increased penetration of LTE-compatible smartphones and more affordable feature phones that provide access to the mobile Internet.

The world economic downturn led to an 8.6% decline in advertising in 2008/9 but since 2010 the advertising sub-sector has been on an increase. The 10.4% increase in 2010


was attributed to spending related to the World Cup, however forecasts are that the growth will continue into 2015. Internet advertising rose by 25.5% in 2010 and television and radio marketing each increased by more than 10%.

Table 15: Forecast for South African AdvertisingSpend by segment in(R millions)

2011 2012 2013 2014 2015 2011–15CAGR

(%)Television 9 014 9 968 10 776 11 888 12 654

% change 4.7 10.6 8.1 10.3 6.4 8Radio 3 200 3 400 3 650 3 925 4 230

% change 6 6.3 7.4 7.5 7.8 7

Internet 661 912 1 264 1 643 2 058

% change 36.9 38 38.6 30 25.3 33.6Newspapers 7 940 8 372 9 020 9 837 10 738

% change 4 5.4 7.7 9.1 9.2 7.1Consumer Magazine

2 211 2 392 2 598 2 821 3 041

% change 2.5 8.2 8.6 8.6 7.8 7.1

Total 23 026 25 044 27 308 30 114 32 721

% change 54.1 68.5 70.4 65.5 56.5 62.8

Sources: PriceWaterhouseCoopers, 2012

Whereas consumer magazines and newspapers categories collectively grew by 5.7%, they are expected to experience more growth going into 2015. While benefiting from improved economic conditions, print significantly lagged the other segments, reflecting a shift in the share of spending from print to the electronic media. Internet advertising is expected to be the fastest-growing category in the foreseeable future.

Table 16: Ten Largest Contributors to Global Advertising Spend Growth between 2010 and 2013 (US$ million, current prices)

Country Ad Spend growth1.USA 13,8042.China 13,0053.Russia 6,0684.Brazil 3,5215.Indonesia 2,7686.India 2,6397.UK 1,8688.SouthAfrica 1,7979.Australia 1,71910.Germany 1,714

Source: ZenithOptimedia

South Africa is rated amongst the world`s top ten advertising markets. In fact, it is even rated above some of the top G7 countries such as Australia and Germany, and slightly lower


than the UK. South Africa’s growth rate is comparable to the other BRICS countries (Brazil Russia India China), but has been lower than China.

The dynamism of the advertising sector and the improved use of technological advancement signifies the need for cutting edge technological skills to remain relevant in this ever-changing market. Thus MICT SETA will have to be agile in responding to the skills needs of this sub-sector. Although South Africa experienced some jobless growth whereby the economic growth experienced during the democratic era did not translate into a parallel increase in the number of jobs, growth presents an opportunity for positive changes in any sector and also for learning and innovation.

2.2.2 Film and Electronic Media

The South African film and electronic media market experienced some growth after a dip in 2009 during the world economic crisis. Spurred by the hype of the FIFA World Cup in 2010, the film and electronic media market experienced a 21.1% increase in spend as compared with the 4.6% growth experienced globally in20105. Over the next five years, the demand for digital experiences will increase and become the norm. The table below shows that television is expected to be the next fastest-growing segment with a projected growth of 9.9%. The steady growth is attributed to the continued growth in subscription spending and steady growth in advertising. Spending in the film and electronic media sub-sector is expected to expand at a rate of 9.5% on a compound annual basis through to 2015. This means spending in 2015 will total an estimated R 140.3 billion, a 7.4% compound annual increase from R 98.3 billion in 2010.

Table 17: Forecast for South African Film and Electronic Media MarketSpend by segment

(R millions)2011 2012 2013 2014 2015 2011–15

CAGR (%)

Filmed entertainment 3 004 3 158 3 319 3 454 3 574% change 4.7 5.1 5.1 4.1 3.5 4.5Television 21 569 24 285 26 507 28 944 30 920% change 11.6 12.6 9.1 9.2 6.8 9.9

Radio 3 647 3 8500 4 106 4 384 4 694% change 5.4 5.6 6.6 6.8 7.1 6.3

Internet 15 721 20 775 25 999 31 610 37 743% change 26.0 32.1 25.1 21.6 19.4 24.8

Sport 11 180 11 960 12 175 13 690 13 635% change -39.5 7.0 1.8 12.4 -0.4 -5.9

Total 55 121 98 678 72 106 82 082 90 566% change 8.2 62.4 47.7 54.1 36.4 39.6

Sources: PriceWaterhouseCoopersLLP, Wilkofsky Gruen Associates

According to PWC, the continued attraction of TV content and the demand from new consumers will ensure that the pay-TV industry continues to grow despite concerns about over-the-top (OTT) services and piracy. South Africa's status as a fast-growing market means its total TV revenue is growing in importance in regional terms. By 2017 it will account for 4.4% of total EMEA television revenues, up from 3.7% in 2012. In terms of the value of the television sector in 2012, (defined as revenues from pay-TV, public licence fees and

5Price Waterhouse Coopers Film SA


advertising), PWC estimated a figure of R27.4 billion. The expectation is that the television sector spend will reach the R30 billion mark in 2014, before pushing on past R35 billion in 2017, a CAGR increase of 5.5% over the forecast period of 2013 to 2017. This anticipated growth up to 2017, amid technological advancements will require a skills development focus.

Film

The market for filmed entertainment in South Africa generated revenues of R2.2 billion in 2012. Fuelled by a growing economy and subsequent higher demand from consumers, the market is forecast to grow by a CAGR of 7.0% over the next five years to reach R3.1 billion in 2017. Going to the cinema will continue to be a popular leisure activity in South Africa with box office revenues forecast to reach R835 million in 2017, while cinema advertising will also grow to reach R781 million in 2017. The electronic home video segment will be the fastest-growing segment in the South African filmed entertainment market with a CAGR in excess of 24% over the forecast period and revenues exceeding R700 million in 2017. This growth in electronic home video will offset declines in the physical sell-through segment. Over-the-top (OTT) delivery of high-quality video services over the Internet could become an important feature of the filmed entertainment market in the next five years, but growth will be limited by relatively low levels broadband access.6

The South African government has through the IPAP identified the film industry as a sector with excellent potential for growth. Although South Africa's contribution to global output stands at a mere 0.4%, the local film industry is getting stronger. There is focus on quality productions and through the DTI’s incentive packages, the film industries are being positioned for growth. With South Africa continuing to be a prime film location, offering a combination of solid film infrastructure, attractive financial incentives with a favourable exchange rate, sunny climate and a wide diversity of spectacular locations, the incentives are likely to spur growth.

The film industry is highly labour intensive and is therefore one of the industries which can potentially contribute extensively towards the creation of jobs. Education and training is key to the viability, growth and sustainability of the film industry.

The South African radio market is also growing, having generated revenues of just over R3.6 billion in 2012, up from R2.65 billion in 2008. Revenue is forecasted to grow to R 5.5 billion by 2017.

Although underlying economic challenges persist – primarily the continuing weakness in unemployment rate at 25.2% in 2012, the absence of a meaningful pick-up in the overall economy could signal low creation of new employment opportunities in the sub-sector. However, given the changes and technological advancements, there is a likelihood for continued pressure and increased demand in the development of skills relevant for the new technologies.

6PWC, South African entertainment and media outlook: 2013 – 2017


The rollout of digital terrestrial TV (DTT) will increase competition in the broadcast sector. However indecision over the choice of technology standard and, more recently, a legal challenge by e.tv has delayed the launch of DTT several times. With two new local 24-hour news channels having been launched and the digital migration still anticipated, this sector would continue to experience some changes that will see more skills being required.

2.2.3 Electronics

The Electronics sub-sector is expected to continue to experience growth. According to BMI forecasting, the South African consumer electronics market will achieve an estimated growth of 11.4% in 2013. This will be driven by relatively strong private consumption growth, at 3.2% in 2013, increased spending on big ticket items such as PCs and notebooks, and the rising demand for smartphones on the back of rapid 3G and 4G network roll-out and declining data tariffs. Fundamental demographic trends will drive South African spending on consumer electronics devices, including a trend of urbanisation. More than 50% of South Africans now live in cities and this proportion is expected to increase steadily to about 55% by 2013. This will drive an increase in per capita GDP from about US$5,815 in 2009 to more than US$12,833 by 2017.

Figure 16: Forecast for South African Electronics Market

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

.00

2000.00

4000.00

6000.00

8000.00

10000.00

12000.00

14000.00

Total Consumer Electronic Sales (US$mn)

Source: BMI, 2013

The BMI reports that in the recent past demand for consumer electronics products has grown rapidly in line with rising disposable incomes. Mobile penetration has passed 100%, while household TV penetration is also close to 100%. The mass market dominates demand for most product categories, and this has resulted in continued pressure on prices of products such as mobile handsets and digital TV sets. Youthful demographics, rising incomes and a regional economic boom should all support expansion. There is still some room for organic growth in most consumer electronics segments, particularly for computers, where penetration is still below 10%. Even the Audio Visual segment, in which household television penetration is close to 100%, will benefit from a trend among higher income households to purchase more than one TV set. Mobile subscriber penetration passed 100% in 2008, but as


this total includes a large portion of inactive subscribers, there is still some room for further growth.

Although it is still relatively small in absolute terms, South Africa's electronics sector has grown quite rapidly. This process allowed a number of domestic consumer electronics brands to become established in the market. The country has a growing military/aerospace and automotive electronics production segment. In recent years, South Africa has also developed a consumer electronics contract manufacturing capability, with the US and European vendors in particular forging partnerships with local companies to serve the growing local and regional market. Companies operating subsidiaries in South Africa include IBM, Intel and Dell.

The government courts foreign investment in the electronics-manufacturing sector. South Africa is a leader in some electronics areas including security devices and set-top boxes, which are exported to the rest of the world. Some local consumer electronics brands have won a niche in the local market, particularly in Personal Computer (PC) and Audio Visual (AV) product categories. These tend to cater for the entry-level segment, which is of course the largest part of the IT market. The main gap in South Africa's consumer electronics portfolio is mobile handsets, with very little local production. The challenge for local TV or PC brands is to add value and build a channel capable of cultivating brand loyalty and offering acceptable service levels. The deficiencies of local competition with respect to multinational products are more in the areas of branding, service, warranty and logistics.

Table 18: Electronics Sector in South AfricaStrengths Weaknesses

• The largest consumer electronics market in Africa, with spending projected to reach US$13.2bn by 2017.

• A hub to serve growing demand in the sub-Saharan region and a major supplier of electronic products to neighbouring countries such as Botswana.

• A tech-literate, high-end market that is well informed about latest trends.

• Youthful demographics, rising incomes and a regional economic boom should all support expansion.

• Despite the presence of some strong local brands, global brands dominate the market overall.

• Provincial governments, particularly in Gauteng, often follow an agenda of using computers to tackle fundamental challenges.

• Digital cameras should have received a boost from the FIFA 2010 World Cup and inflow of tourists.

• The digital divide limits market potential, with huge income disparities and regional variations in computer penetration.

• The South African market is regionalised due to the lack of intercity connectivity and infrastructure in parts of the country.

• Price sensitivity means declining margins in most product categories.

• South Africa's consumer electronics market has been constrained by high communication costs and uneven infrastructure development.

• Relative saturation in some segments, although there is still some room for organic growth. Mobile penetration has surpassed 100%, while household TV penetration is also close to 100%.

• A significant level of piracy that is increasingly focused on high-end electronic devices.



• The premium TV set market will be boosted by subsidies for set-top boxes.

• Increased demand for mobility, lower prices and channel expansion will fuel demand for notebook computers.

• Mobile handset sales will be driven by new technologies such as HSDPA and 3G, and new services such as mobile banking and mobile TV.

• The national and local governments will be important drivers of PC demand.

• The market will remain highly price sensitive.

• Failure to control parallel imports

Source: BMI 2013

Meanwhile, government ICT initiatives in areas ranging from broadband infrastructure to mobile telecoms rates regulation and subsidised computer programmes will shape and drive the market. A reduction in broadband prices as a result of South Africa's linkage in 2009 to the SEACOM undersea fibre-optic cable should result in more and cheaper broadband connections. However, the market drivers of rising computer penetration and growing affordability should immunise South Africa to some extent against a major slowdown in consumer electronics spending.

2.2.4 Information Technology

The South African IT spending is expected to increase from R96.88 bn in 2013 to just under R139 bn by 2017, driven by consumer-centric sectors of the economy and large government projects. Key sectors of the economy expected to drive growth include retail, financial services, transportation, manufacturing and communications. The 2013-2017 South African IT market’s compound annual growth rate (CAGR) is projected to be in the region of 8%, as a number of major IT infrastructure projects generate spending at provincial levels. Furthermore, a significant improvement in the country's broadband infrastructure, following investments in submarine and terrestrial fibre-optic networks, is expected to be an important driver of spending across all IT market segments.7

Although the weakening local currency poses a significant downside risk to imported products, such as computer hardware, the slowdown in demand is likely to be offset by an uptick in foreign business process outsourcing (BPO) services as international firms move to take advantage of lower costs in South Africa.

A number of factors should serve to keep South Africa's IT market on a positive growth trajectory. In particular, a wave of public infrastructure projects with IT dimensions should continue to be launched. Private real investment is expected to report positive growth over our forecast period through to 2017.

7BMI, 2013


Much spending in key IT verticals such as telecoms, banking and mining will be driven by factors internal to those sectors. The IT market fundamentals of sub-10% PC penetration, rising incomes and falling prices also underpin our growth forecast. The latest data on retail sales and credit extended to private households suggest the consumer remains in decent shape in spite of indebtedness; retail sales grew by 8.3% year-on-year in June and credit rose by 7.7% year-on-year in the same month.

South African spending on IT services still depends heavily on government programmes and, despite a climate of relative fiscal austerity, the government will remain the largest spender on IT services, followed by financial services and telecoms. South Africa plans to invest more than R40bn (US$5.5bn) in a range of projects to boost economic growth and create jobs. This spend should be supported by the availability of skills in the economy.

Table 19: South Africa It Industry - Historical Data & Forecasts2010 2011 2012 2013f 2014f 2015f 2016f 2017f

IT Market (ZARmn) 75,020

82,619

88,894

96,880

105,986

116,051

126,905

138,922

IT Market as % GDP 2.82 2.79 2.81 2.83 2.85 2.87 2.89 2.91Hardware (Computer market sales) (ZARmn)

34,509

36,766

38,891

43,887

45,150 48,625 52,919 57,653

Services (ZARmn) 27,007

30,569

33,113

34,392

40,275 44,680 48,858 53,485

Software (ZARmn) 13,504

15,285

16,890

18,601

20,561 22,746 25,127 27,784

PCs (including notebooks) (ZARmn)

27,952

29,854

31,891

36,338

37,384 40,262 43,817 47,736

Servers (ZARmn) 3,106 3,309 3,500 3,950 4,064 4,376 4,763 5,189Source: BMI, 2013

The progress of cloud computing in South Africa should also receive a boost from projected improvements in South Africa's broadband infrastructure, as South Africa will see a substantial increase in bandwidth. There is likely to be growing interest in Software-as-a-Service (SaaS), with a number of companies promoting on-demand software. Larger companies represent a particular opportunity, with estimates that around 60% of larger South African companies will have implemented some cloud computing solutions by 2013.

The following table profiles the sub-sector in terms of its internal strengths and weaknesses as well as external threats and opportunities.

Table 20: Information Technology Sector in South AfricaStrengths Weaknesses

• Largest market in Africa.• Regional hub as supply base for

neighbouring countries.• Free trade policies and tax incentives.

• Domestic market remains highly price sensitive and dependent on government spending.

• Poor IT infrastructure outside major urban areas.

• Shortage of skilled IT workforce.• Continued uncertainty over the

government's ICT policy.Opportunities Threats


• Reduction or scrapping of import duties on many classes of computers.

• Improved capital expenditure on IT infrastructure.

• Security products market showing growth.

• Government IT projects.• Strong private investment in key

industry verticals, including retail, manufacturing and mining.

• Weak regulatory environment.• Muted domestic economic growth.• The South African economy is

vulnerable to global economic shocks.• Weakening currency poses downside

risks to sales of imported products and services.

Source: BMI 2013

As the largest market in Africa, South Africa is positioned to play a lead role as a gateway into Africa’s development in IT. Availability of IT services is still an urban phenomenon in South Africa.

The ICT industry cannot afford to wait for local, regional, or national government to provide solutions to the skills crisis. Tertiary education institutions do not possess the required responsiveness. The ICT profession will have to own, and solve, the crisis through an ecosystem of scalable initiatives. A culture of ―learn from at least one other, and train twice as many ― is required.

2.2.5 Telecommunications

The telecommunications sub-sector has experienced phenomenal growth over the years. As it stands the penetration rate of mobile phones in South Africa has surpassed 100%. It is forecasted that the number of mobile subscribers will increase from 68 million in 2012 to about 81 million in 2017. This means more people are subscribing to multiple product packages from providers. Although the number of mobile subscribers has increased, this has been at the expense of fixed line communications, with the exception of subscribers interested in fixed line Internet service being forced to acquire a fixed line telephone service.

Table 21: Telecoms Sector - Mobile - Historical Data and Forecasts2010 2011 2012 2013f 2014f 2015f 2016f 2017f

No. of mobile phone subscribers ('000)

52,864

60,276

68,351

73,477

76,857

79,355

80,799

81,284

No. of mobile phone subscribers/100 inhabitants

106.4 120.2 134.9 143.6 148.7 152 153.3 152.7

No. of mobile phone subscribers/100 fixed-line subscribers

1,239 1,448 1,710 1,876 1,999 2,098 2,167 2,204

No. of 3G phone subscribers ('000)

9,935 13,500

20,000

24,000

26,532

28,898

30,777

32,033

3G market as % of entire mobile market

18.8 22.4 29.3 32.7 34.5 36.4 38.1 39

Source: BMI, 2013

As the market matures, some market players have opted to widen their revenue streams. Operators who traditionally played in the fixed line Internet service provider space have


recently acquired access point names (APN) to offer data and voice services in the mobile market.

According to research conducted by Price Waterhouse Coopers into the South African market, consumer spending on Internet access in South Africa will reach approximately R59.6 billion by 2017, up from R19.8 billion in 2012, a CAGR of 24.7%. The South African Internet market is dominated by the mobile segment due to increased investment in cellular coverage by mobile operators and decreasing tariffs. Internet access via mobile devices comprised 89% of the Internet access market (mobile Internet subscribers plus fixed broadband households) and 81% of its revenues in 2012. Within the home broadband market, which will grow its subscriber base by a CAGR of 8.6% over the next five years, asymmetric digital subscriber line (ADSL) will be the dominant technology due to demand for higher speeds and its relatively wide coverage.

Various municipalities and provincial governments are investing billions of rand into the development of fast fibre optic telecommunications infrastructure. Such infrastructure is expected to provide fast internet access for governments, communities and schools. Government’s broadband company, Broadband Infraco has also laid infrastructure throughout South Africa for strategic use. The existence of a number of submarine data cables that connects South Africa with the rest of the world are likely to improve connectivity levels in the country. The following table profiles the sub-sector in terms of its internal strengths and weaknesses as well as external threats and opportunities of fixed line telecommunications.

Table 22: Fixed Line Telecommunications SWOT

Strengths Weaknesses

• Competition exists in the fixed voice services market, with several companies providing call-by-call carrier selection and VoIP services.

• According to the Electronic Communications Act of 2006, any communications service provider may apply for a license to construct a national communications infrastructure.

• 'Second national operator' Neotel provides voice and data services to both residential and business customers and continues to extend its network across South Africa.

• Multiple companies are licensed to provide broadband WiMAX services.

• Fixed-line connections and revenue are in decline.

• The sector has yet to benefit from the introduction of local loop unbundling, with the first stage of implementation continually delayed by the regulator.

• Telkom's ADSL network has been heavily criticised for being expensive and slow. The operator has been addressing this issue, which led to a recent reduction in tariffs, but they are still seen as too high by consumers.

• Broadband subscriber growth has slowed down substantially in the last six months. According to Telkom's latest figures, the number of ADSL customers grew by 5.8% y-o-y in the 12 months to September 2012, as opposed to 10% y-o-y in March 2012.

• Prices for accessing wholesale infrastructure remain high for alternative operators.

• Despite the continued deployment of Neotel's network, Telkom remains the dominant fixed-line operator; Telkom also



retains a dominant position in the ADSL market.


• Deployment of Telkom's NGN, and the construction of a national fibre backbone by Neotel, MTN and Vodacom, will help to support the development of new services such as Internet TV and video calling.

• Greater access to undersea cable systems will help to further lower international bandwidth costs for South African operators. This should lead to more competitive pricing for subscribers.

• An increasing number of service providers are entering the market for corporate data solutions and managed data services, pointing to a segment with considerable growth potential.

• The introduction of fixed number portability between Telkom and Neotel will make it easier for customers to change their service provider.

• Danger that slower economic growth in South Africa will have a negative long-term impact on the uptake of broadband and data services by businesses and consumers.

• Uncertainty exists as to whether the new government will maintain market-friendly policies; this could have an impact on future investments in the sector.

• Telkom is investing in a range of new services including fixed wireless telephony, VoIP and fibre optics; such investments could make it harder for market competition to develop.

Source: Adapted from BMI, 2013

All South Africa's major operators have launched Long-Term Evolution (LTE) technology, but coverage remains limited. Vodacom and MTN launched LTE during the latter part of 2012, setting the trend with the primary focus on business and wealthy residential areas before making the technology available to the mass market and expanding the coverage area. The adoption of LTE services across all segments will help to ensure the continued growth of mobile broadband adoption in South Africa.8

The SWOT table below profiles the sub-sector, providing strengths, weaknesses, opportunities and threats of mobile telecommunications.

Table 23: Mobile Telecommunications


• Competitive sector with four network operators and MVNOs.

• Leading operators Vodacom and MTN have a strong international presence, bringing international expertise and best practice into the sector.

• 3G and 3.5G services are offered by all of the network operators, and MTN

• Despite strong contract customer growth, the mobile market remains highly skewed towards prepaid users.

• Despite the presence of Virgin Mobile, the MVNO sector remains undeveloped.

• South Africa's telecoms regulator, ICASA, has been criticised for not doing enough to help liberalise the market; tariffs remain

8Price Waterhouse Coopers, 2013



experienced strong growth in data services in 2012.

• LTE network rollouts began in 2012.• Vodacom, MTN and Telkom are able to

offer converged service packages.• Sector has benefited from strategic

investments from Vodafone (Vodacom) and Saudi Arabia's Saudi Oger (Cell C) as well as the Virgin Mobile Group.

high by international standards and the government was also accused of hindering rather than aiding telecoms policies.


• MTN and Vodacom have been actively deploying multimedia content services, providing opportunities for content providers.

• Cell C has launched high-speed networks and continues to expand nationwide.

• The fixed-line incumbent's 8ta mobile brand has further intensified competition, offering low-priced services.

• LTE launches offer chances to reach clients with a wider range of services and products, building long-term revenue potential.

• Deployment of HSDPA and HSUPA and the launch of new multimedia mobile handsets should have a positive impact on data service usage.

• Deployment of fibre networks by MTN and Vodacom will enable these operators to offer a broader suite of converged services.

• Mobile market appears to be approaching saturation point, limiting the potential for new customer growth.

• LTE growth likely to be limited due to low availability of spectrum.

• Danger of third operator Cell C being squeezed out of market as Vodacom and MTN remould themselves as converged telecoms service providers.

Source: Adapted from BMI, 2013

All these developments, the increase in the number of subscribers and the rapid technological input into the market require increased front-end customer service support. Given the rapid technological advancements, the customer support people are under pressure to keep abreast with all the changes so they can provide appropriate support to consumers. Such pressures ultimately lead to high attrition rates amongst employees. As government, private operators and banks like FNB continue to roll out telecommunications infrastructure, this has a serious bearing on the availability of technical skills to implement such projects in the sector.


2.3 Factors impacting economic growth and development in the sector

A number of factors are impacting economic growth in the MICT sector. These range from government’s planning priorities to the regulatory environment, global economy, changes in consumer demands and international trade.

2.3.1 Stakeholder perceptions: factors impacting success and sustainability

In a sector survey conducted as part of the SSP research in October 2013, stakeholder perceptions were tested in respect of the main factors promoting and/or hindering the success and sustainability of their business currently and into the future.

The four graphs below illustrate responses.

Figure 14: Main Factors currently promoting success and sustainability

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The main factors CURRENTLY promoting the success and sustainability of your business.

Source: Sector Survey 2013

The most important factors currently contributing to business success are good quality of products and services, technological advancements and good working relations with industry.


Figure 15: Main Factors currently hindering success and sustainability

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The main factors CURRENTLY hindering the success and sustainability of your business.


In terms of current threats to business success and sustainability, the most dominant factor is skills shortages, followed by price sensitivity, weak currency and high infrastructure cost.

When projecting the future, economic growth, access to new projects, technological advancements and increased consumer demand are seen as key contributing factors to growth and sustainability, as per the graph below.

Figure 16 Main Factors promoting future success and sustainability

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The main factors that will promote future growth and sustainability of your business.



Factors that may or will inhibit growth and sustainability include a possible economic slowdown, the uncertainty of the regulatory environment and a weak currency.

Figure 17: Main factors that will slow future growth and sustainability

Uncertain regulatory environ-

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competi-tion

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0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

The main factors that will slow future growth and affect sustainability of your business.


A majority of stakeholders in the sector believe the fortunes of their businesses are reliant on the economy. In a growing economy their businesses are likely to thrive. However, they are likely to experience hardships should the economy slow down. Given that they are operating in a fast paced technological environment, it is not surprising that technological advancements are featuring as an area of concern. With skills shortages being considered the main factor hindering growth of their businesses, there appears to be a clear message around the need for development of the skills that they are finding difficult to source.


2.3.2 Key government planning priorities

The following are government’s key planning policies and priorities that impact the MICT sector. A brief description is provided of the government policy or planning priority followed by implications for the sector. In the strategy chapter, these priorities are aligned with strategic objectives and interventions reflecting the sector’s strategic response.

Government Planning Priority

Description

National Development Plan

The NDP Vision 2030 (November 2011) identifies as one of the core priorities, reducing unemployment to 6% by 2030. Other objectives include eradicating poverty and reducing inequality. In meeting the objectives of the plan, the following are identified– A larger, more effective innovation system closely aligned with firms

that operate in sectors consistent with the growth strategy.– Support for small businesses through better coordination of relevant

agencies, development of finance institutions, and public and private incubators.

– An expanded skills base through better education and vocational training.

– Identify business incubation for SMEs generally and the expansion of business services in particular as priority actions for growth and development.

The MICT sector is at the centre of the National System of Innovation and would thus have to play a leading role in supporting effectiveness and efficiency. For the economy to grow at the requisite levels or better the NSI should commercialise research and smaller businesses, and especially the ICT sector should be supported to grow. Thus incubation would play a key role in achieving this. To achieve all of this, the development of relevant and quality skills is of paramount importance.

The Medium-Term Strategic Framework(MSTF)

The MSTF outlines government’s key strategic priorities for economic growth and social development for the period 2009-2014. The MSTF provides a guide for planning and resource allocation across all spheres of government. The centrality of skills development is stated in the MTSF in the following way;“Critically, investment in quality education for all young people and in skills development should form the bedrock of Government’s approach. Indeed, success in reducing poverty, in eliminating structural unemployment, in implementing a comprehensive social security system, in building social cohesion and in reducing crime will depend to a large extent on progress made in growing the economy in an equitable manner, underpinned by a growing skills base” (MTSF 2009, p6).

The MSTF places greater emphasis on the provision of quality education and for the sector this is not misplaced. There continues to be areas within the sector where scarce and critical skills have been identified and where occupational training would play a critical role.

HRD Strategy Government has adopted the Human Resource Development Strategy for South Africa (HRDS-SA) (2010-2030). The macro-strategy seeks to locate



Description

education and training within the broader developmental agenda of the country and therefore ensure common alignment of various government programmes in addressing human development challenges. The HRD-SA establishes broad outcomes for equitable access to education and training and the development of skilled people for the economy.

The HRDS-SA as a broad strategic document, when read with other policy documents around skills development, guides the work of MICT SETA in terms of how it should respond to the skills needs of the country. The eight commitments set out in the HRDS-SA are:– We will urgently overcome the shortages in the supply of people with

the priority skills needed for the successful implementation of current strategies to achieve accelerated economic growth

– We will increase the number of appropriately skilled people to meet the demands of our current and emerging economic and social development priorities

– We will ensure improved universal access to quality basic education and schooling (up to Grade 12) that is purposefully focused on achieving a dramatic improvement in education outcomes for the poor; that is focused on equipping learners with optimal capacity for good citizenship; and pursuing post-school vocational education and training or employment

– We will urgently implement skills development programmes that are purposefully aimed at equipping recipients/citizens with requisite skills to overcome related scourges of poverty and unemployment.

– We will ensure that young people have access to education and training that enhances opportunities and increases their chances of success in further vocational training and sustainable employment

– We will improve the technological and innovation capability and outcomes within the public and private sectors to enhance our competitiveness in the global economy and to meet our human development priorities

– We will ensure that the public sector has the capability to meet the strategic priorities of the South African Developmental State:

– We will establish effective and efficient planning capabilities in the relevant departments and entities for the successful implementation of the HRD-SA

National Skills Development Strategy (NSDS III)

The NSDS III gives expression to the HRDS-SA and government’s strategic objectives and provides an overarching framework for sector skills planning and the implementation of skills development. Sector skills plans should be aligned to government and industry development initiatives, address the needs of unemployed youth, provide for new occupational qualifications, address the challenges within FET Colleges and build strong partnership to deliver on the strategy.

The NSDS III places greater emphasis on SETAs being centres of excellence for research and skills planning within their respective sectors. For the MICT sector, this implies that MICT SETA should develop such capacity for researching the sector. In addition, the NSDS III requires SETAs to be developmental and to work with non-governmental organisations,



Description

community based organisations, cooperatives and people from rural areas. For the MICT sector, this implies taking technology to the people and effecting skills development in areas that would have been neglected in the past.

New Growth Path(NGP)

The NGP presents a 10 programme micro economic package of which this is the fourth. This programme focuses on meeting the shortages in important skills for the economy and sets targets for:– the training of engineers underpinned by improved science and

mathematics education and expanded bridging programmes for HE courses

– the training of artisans particularly in construction, mining, manufacturing and new industries such as in the green economy through the participation of state owned enterprises and under the management of SETAs

– improved skills for workers in every job through the provision of certificated programmes, facilitated, financed and managed by SETAs

– an expanded resourced FET college system that produces higher graduation rates

– provision of ICT skills in schooling, adult education and public service– skills development policy framework for increased supply of highly

skilled labour through education and training and a streamlined immigration system that is linked to a skills transfer programme and on-going upgrade of local education

In terms of the MICT sector, the NGP places emphasis on the development of ICT skills, as well as the increased supply of highly skilled labour in the economy. The MICT SETA in supporting these efforts needs to engage with its stakeholders and ensure that this becomes a joint effort.

Industrial Policy Action Plan (IPAP)

The IPAP has identified a number of priority sectors, which it aims to support for development in the country. Those that have a direct link with the MICT sector include:– Facilitate the upgrade of manufacturing facilities and capabilities to

increase domestic production and growth of exports– Green industries– Commercialisation of technologies. Projects to be pursued will include

the establishment of a South African garment-sizing database using three-dimensional (3-D) body-scanner technology and computer-aided design using 3-D scanner data

– Skills development for the business process outsourcing sector– Development of set top boxes

As stakeholders in the sector start to engage in these programmes, the MICT SETA would be a skills development partner, ensuring that along the way the requisite skills are being developed.

National Skills Accord The National Skills Accord is the government`s broad strategy against unemployment and was inaugurated in 2010 by the Department of Economic Development. The accord is developed and signed as part of the NGP and signatories include government, labour, business and communities.

MICT SETA supports the NGP and by extension, the values espoused in the



Description

accord.Strategic Integrated Projects

One of the Strategic Integrated projects outlined by the Presidential Infrastructure Coordinating Commission (PICC) is SIP-15 in respect of Digital Television Migration. Although South Africa's schedule for migration to digital broadcasting and analogue switch-off has been plagued by doubts and uncertainties it is anticipated that this will be in place in the foreseeable future with only about one year envisaged for the transition, a far shorter period than was the case in many developed countries.The following SIPs have relevance for the MICT Sector– Infrastructure development for higher education focusing on lecture

rooms, student accommodation, libraries and laboratories as well as ICT connectivity. Development of university towns with a combination of facilities from residence, retail, recreation and transport. Potential to ensure shared infrastructure such as libraries at universities, FETs and other educational institutions.

– Provide for 100% broadband coverage to all households by 2020 by establishing core Points of Presence (POP’s) in district municipalities, extend new Infraco fibre networks across provinces linking districts, establish POP’s and fibre connectivity at local level, and further penetrate the network into deep rural areas.

– While the private sector will invest in ICT infrastructure for urban and corporate networks, government will co-invest for township and rural access as well as for e-government, school and health connectivity.

– The school rollout focuses initially on the 125 Dinaledi (science and math focussed) schools and 1525 district schools. Part of digital access to all South Africans includes TV migration nationally from analogue to digital broadcasting.

– SKA is a global mega science project, building an advanced radio-telescope facility linked to research infrastructure & provides an opportunity for Africa and South Africa to contribute towards advance science.

MICT SETA will through its skills development interventions endeavour to support the SIPs. In this regard, MICT SETA will leverage the support of its partners in the sector to ensure sound delivery of skills and occupationally directed learning throughout the projects.

Comprehensive Rural Development Programme

To mitigate the impact of the unemployment crisis the Skills Accord identified a number of commitments in key areas to reduce levels of unemployment and these are:– To expand the level of training using existing facilities more fully– To make internship and placement opportunities available within

workplaces– To set guidelines of ratios of trainees and artisans as well as across

the technical vocations, in order to improve the level of training– To improve the funding of training and the use of funds available for

training and incentives to companies to train– To set annual targets for training in state-owned enterprises– To improve SETA governance and financial management as well as

stakeholder involvement– To align training to the New Growth Path and improve Sector Skills

Plans– To improve the role and performance of FET Colleges


Government’s policy frameworks and programmes all have one thing in common. The common thread are the triple ills of inequality, poverty and unemployment and how best to deal with those. The policies provide good guidelines and frameworks for MICT SETA to work within in delivering on its mandate.

2.3.3 Broad Based Black Economic Empowerment

The Broad-Based Black Economic Empowerment (B-BBEE) protocol has an important influence on the MICT sector, including investments and tender bids. The Black Empowerment Charter for the ICT sector, endorsed by South Africa's cabinet in June 2005, included stipulations on ownership structures and employee composition for companies involved in government tenders. However, multinational vendors lobbied against these elements of the charter, with the result that the government introduced the concept of equity equivalents. This enabled multinationals to invest the equivalent of 25% of the value of their local operations into schemes such as training and social responsibility initiatives.

The release in 2007 of the government's scorecards for B-BBEE gave vendors a clearer idea about how they would receive credit for black equity or employment representation. In order to participate in public sector and corporate tenders, international vendors are keen to prove their credentials under these criteria. Most IT vendors have opted to go the equity equivalent route. HP, for example, invested in a training institute for graduates from the industry.

In the narrower context of employment equity, the promotion of and insistence that stakeholders adhere to legislative requirements in respect of e.g. the Employment Equity Act (film industry), assists in eliminating unfair discrimination in the workplace. To this end, projects which are approved based on this legislative requirement redresses past imbalances in respect of race, gender, disability and income.

Previously disadvantaged groups, in line with transformation targets, are actively pursuing transformation within the critical areas of broadcasting through the SABC’s industry development efforts, which promote access to the industry. Challenges are however, faced in the form of the transfer of critical skills to designated groups which is progressing at a slower rate than planned.

2.3.4 Growth of the South African economy and consumer demand

Private Consumption Outlook:

According to a recent report released by BMI (2012), private consumption in South Africa is forecasted to experience real growth of 3.3% in 2012, following a 5.0% expansion in 2011. Although BMI figures suggest a notable slowdown, given the bleak outlook for the global economic environment, the numbers are fairly decent. The report notes that there are


several factors that bode well for consumer spending: relatively contained inflation (5.7%y-o-y in May 2012), high nominal wage growth and the low interest rate environment which should keep a lid on debt servicing cost. Certainly, the latest data (SARB, 2012) on credit extended to private households bodes well for spending: Credit rose by 6.8% year-on-year in March 2012, up from 6.6% in February and 6.1% in January, 2012 respectively.

Government Spending Outlook:

With regards to government spending, the BMI (2012) again has a relatively upbeat stance, forecasting real growth of 4.0% in 2012, following the same 4.0% level in 2011. This upbeat stance is boosted by the Treasury Department, which is proactively nurturing the economy recovery, withdrawing fiscal stimulus gradually and tolerating a fiscal deficit over the medium term. The budget released in February 2012 illustrates this: the finance ministry intends to run a fiscal deficit equalling 4.6% of GDP in the fiscal year 2012/13, in line with its 'gradual fiscal consolidation' policy. The public sector is proving to be a key driver of job creation in the current climate, helping to boost consumer spending and keep a lid on unemployment – although unemployment remains high, recorded at 25.2% in quarter 1 of 2012.

Investment Outlook:

Based on the latest data from StatsSA (2012) and SARB (2012), the outlook for investment in South Africa is less positive: this is based on forecasting real growth of 1.0% in 2012, which is not impressive and would mark a notable slowdown from the 4.4% growth seen in 2011. This view is largely predicated on the likelihood of global risk appetite remaining weak amid a protracted crisis in the Eurozone and a potential sharp slowdown in China. According to BMI (2012), South Africa's manufacturing sector is particularly vulnerable, given its reliance on external demand. BMI notes that political risk could be an important factor weighing on investment, given the uncertainty surrounding the ruling African National Congress’s elections in December 2012. It is worth pointing out that although the forecast for investment growth is weak, it is still good and in this respect, South Africa will likely outperform several countries across the world in 2012.

2.3.5 Changing consumer patterns and demands

In research conducted by McKinsey Africa,9 some of the findings indicate that:

Africans are very optimistic about their economic future, with 84% saying that they will be better off in two years

Internet is far bigger than anticipated, with 50% of urban Africans indicating that they have accessed the internet over the previous four weeks, on par with countries like Brazil and China

Africa has the world’s fastest population growth and is projected to account for 40% of global population growth by 2030. It also has the world’s youngest population, with 50% 9 Rise of the African Consumer, Mc Kinsey Africa Insights Centre, 2012


being under 20 years of age. They are more likely to search for information on-line. Twenty-two per cent of urban Africans spend more than 10 hours per week on-line.

Consumers use both traditional and non-traditional methods of gathering information. Television remains the most used and trusted source. However, according to the research, print media also remains important, and is used by more than 70% of sub-Saharan consumers.

Internet-based technology is rapidly becoming more and more accessible to people via cell phones. This is creating expectations of good quality local content amongst other things.

The consumer of the future doesn’t want to just make a call or send an SMS. This user wants to access the internet at faster speeds, pay bills online, transfer money to loved ones wherever they are, without enduring long queues, and also be able to get the latest in global sports, news, and entertainment information – all from their handset.

2.3.6 International trade and trade agreements

The Department of Communication’s “ICT International Affairs and Trade” has as its purpose the alignment between South Africa’s international activities and agreements in the field of ICTs with South Africa’s foreign policy. Its key functions are as follows: to give effect to South Africa’s foreign policy in ICT-related matters, prioritising Africa’s development; and to establish a dynamic, effective and mutually beneficial multi-stakeholder partnership.

In 2005 an international treaty agreement was signed at the conclusion of the International Telecommunications Regional Radio Communication Conference (RRC-06) in Geneva “heralding the development of ‘all-digital’ terrestrial broadcast services for sound and television”. The agreement formalised the digitisation of broadcasting in Europe, Africa, Middle East and the Islamic Republic of Iran by 2015. “The agreement reached at the RRC-o6 “[paved] the way for utilizing the full potential of information and communication technologies to achieve the internationally recognised development goals”. This treaty also began the change from analogue broadcasting to digital modes – with Canada leading the pack in 2005.

2.3.7 Technological changes and mechanisms

Mobile technology and digitisation has had a major impact on the consumer and the sector. The media/advertising industry is changing quickly - a traditional media platform no longer exists. Everything is becoming integrated, and digitised. It has become quite a fragmented industry in the sense that there are specialisations in so many areas: creative, media strategy, and media buying. Advertising agencies have to reinvent themselves. They have to find new ways of advertising products.

Internet-based technology is rapidly becoming more and more accessible to people via cell phones. With the launch of digital migration, it is expected that new jobs will be created.


Broadband is expected to improve connectivity and make it affordable to all; it should allow for e-learning (possible job creation).

Due to the increased application of ICT across all economic sectors, specialist ICT technical skills are becoming increasingly transferable outside the core ICT sector, increasing demand and competition for skills.

The MICT sector relies on a mix of hard technical and soft skills among its workforce, with a trend towards general up-skilling across the different categories of MICT occupations due to advancement and changes in technology. The numbers of less knowledge intensive ICT jobs are expected to reduce as the structure of skills demand changes. The demand for low-end developers and database administrators are expected to be replaced by demand for business analysts, sales specialists and high-end developers. There has been a shift in the skills mix of the sector with lower-skilled jobs being replaced by higher-skilled jobs and that up-skilling is expected to continue in the foreseeable future.

Recently, growing needs have been identified for ‘hard’ ICT professional skills in fields such as data privacy, server technology, general networking and network infrastructure.


2.3.8 Quality standards

Quality is an important issue for South Africa. There are various bodies tasked with dealing with the issue of quality from different angles.

Most products manufactured in the electronics sub-sector have to conform to standards and guidelines set by the South African Bureau of Standards (SABS). Some of the electronics products used in the Telecommunications sub-sector have to be tested and approved by ICASA before they are offered for sale in South Africa. The Film and Publications Board regulates, classifies and approves all the films, electronic media and publications in the country. The board may debar material from being distributed or classify it for viewing or access by particular age groups. The Broadcasting Complaints Commission of South Africa is responsible for dealing with complaints from the public about broadcast material or comment that is unfair or that causes harm to the viewers or listeners. Finally the consumer commission enforces the Consumer Protection Act, which ensures that all consumers in the country are protected against unscrupulous business people including those in the MICT sector.

2.3.9 HIV/Aids

According to StatsSA10 the estimated overall HIV prevalence rate is approximately 10%. The total number of people living with HIV is estimated at approximately 5,26 million in 2013. Of adults aged 15–49 years, an estimated 15,9% of the population is HIV positive.

The HSRC11 released the key findings of the 2012 household survey. The results show that an estimated 6.4 million people are living with HIV/AIDS in 2012. The estimated prevalence of HIV (the proportion of people living with HIV in the country) increased from 10.6% in the 10StatsSA: Mid-year population estimates 201311Plenary Session 3, 20 June 2013 - "HIV/AIDS in South Africa: At last the glass is half full"

MICT SETA Sector Skills Plan for 2014-2019

Quality Standards

SABS (Electronics)

ICASA (Telecoms)

FPB

BCCSA

ASA

Consumer Commission

69

2008 HIV Household Survey, to 12.3% in 2012. Another key finding of the 2012 survey was that over 2 million people were on antiretroviral (ARV) treatment by mid-2012. This dramatic increase of ARV treatment coverage in the country has had a major impact on the survival of people living with HIV, which was more prominent in the older age groups. There has been a decline of HIV prevalence among youth aged 15 – 24 years.

However, in general it is difficult to assess the macro-economic impact as a variety of factors are at play. In the context of current HIV/AIDS trends, it depends on the capacity to replace the human capital (the response by management, and the effectiveness of government interventions).

Nevertheless, it seems predictable that direct and indirect costs related to HIV/AIDS might cause a shift from savings to current expenditure and from productive spending to potentially unproductive spending. This in turn may limit fixed investments and economic growth.

The reduction of high skilled labour might also not be replaceable in the short run. A less experienced and particularly young workforce might result in declining productivity. The economic impact on South African business is potentially big, considering that people at the peak of their productivity are most affected. Absenteeism may increase due to associated illnesses, care of family members, funeral attendances, low morale of infected workers, and an increase in training, recruitment and employee turnover costs.

2.3.10 Legislation

The promulgation of legislation such as the Electronic Communications Act (ECA) of 2005 and the Independent Communications Authority Amendment Act of South Africa has effectively converged traditional broadcasting with telecommunications and information technologies. As a result, this sector has been organised and protected and the creation of new digital media technologies allows for the combined transmission of video; voice, data and sound.

Electronic Communications Act

The primary objectives of the Electronic Communications Act (ECA) of 2005 are to facilitate the convergence of telecommunications, broadcasting and information technologies and to promote the stability of the ICT sector. This Act also makes specific provisions for public service broadcasting through the mediums of radio and television, which are able to provide information to a diverse citizenry where first and third world access to information is still a feature.

ICAASA

The Independent Communications Authority Amendment Act of South Africa, 2005, was enacted to regulate the telecommunications environment. Its primary function is to issue broadcast licences; ensure universal service and access; monitor the industry and enforce


compliance with rules, regulations and policies; hear disputes brought by industry or members of the public against licensees; plan, control and manage the frequency spectrum; and protect consumers from unfair business practices. It also manages telephony and two of its key achievements were the opportunities created for a second landline company to operate as a direct competitor to the Telkom monopoly. Secondly, it facilitated an environment for 3 international cellular phone companies to flourish.

The Independent Broadcasting Authority Act (IBAA)

Together with ICAASA, the Independent Broadcasting Authority Act No. 153 of 1993 and the Broadcasting Act No. 4 of 1999, a solid foundation has been laid for public broadcasting that was less prohibitive than the previous dispensation. The Independent Broadcasting Authority (IBA) facilitated the SABC’s transformation from a state broadcaster to a public broadcaster.

The Counterfeit Goods Act (CGA)

The recent ruling by Magistrate Wessels in the Pretoria Commercial Crime Court has made it more difficult for Police to confiscate counterfeit goods and enforce copyright of electronic media. This has had a devastating impact on legitimate rights holders, distributors and retail businesses and has resulted in job losses in the rental industry where a 30% drop in sales has been registered12. Based on this, the International Intellectual Property Alliance (IIPO) is advocating for the South African government to reinstate the police powers to confiscate counterfeit goods; conduct ex-office raids and prosecute offenders; pass modern copyright legislations and to sign the World International Property Organisations (WIPO) Treaty and its Performances and Phonograms Treaty.

The South African telecoms sector has been in flux over the last decade from a policy and regulatory perspective. Sub-optimal outcomes after the first phase of reform saw the partial privatisation of the sector and the entry of a third mobile operator. In the second phase another national fixed-line operator entered the market and the market was further liberalised through the enactment of the Electronic Communications Act in 2005. The intent of this legislation was to unshackle market constraints and enable the optimisation of a converged environment, but the anticipated opening up of the market has been hampered by a number of legal and regulatory bottlenecks. The Act placed an onerous administrative task on the regulator. This ranged from the conversion of existing licensees to the new horizontal licensing framework, to the coordination of market definition studies for the resulting new competitive market regulation.

In a sector survey conducted as part of the research to develop the Sector Skills Plan, 51,2% of respondents indicated that an “uncertain regulatory environment” is a strong contributor to slow sector growth and a potential threat to the sustainability of their businesses.

12 IIPA 2007 Special 301 South Africa, issued 12 February 2007, page 520


According to research conducted by Steve Esselaar et al 13, regulatory bottlenecks have hampered the opening up of the telecoms market. The inability of the regulator to effectively perform its role has limited innovation and constrained affordability of services.

Critical regulatory interventions to support market entry and competitor viability such as cost based interconnection, regulation of essential facilities and allocating spectrum have been stalled as a result of the onerous demands of the law on the regulator.

2.4 Summary scenario analysis

The MICT sector is forecasted to enjoy growth across all the five subsectors over the next few years. There are a number of drivers for change that will have an impact on the sector. Government programmes are likely to impact the sector mainly the telecommunications, electronic media and film, electronics and information technology sub-sectors. The strategic infrastructure project (SIP-15) relating to the television digital migration programme will have to be supported increasingly from a skills development point of view especially because there will be skills required for operating the back end platforms (electronic media) as well as for the manufacturing of set top boxes (electronics).

The film industry’s continued growth, buoyed by the incentives available from the DTI is likely to create further opportunities for employment and skills development. As the SKA programme and solar parks are being set up, there are electronics that would require to be manufactured, especially with the advent of the supplier development and localisation programmes that require that government spend and state owned enterprises purchase locally manufactured products.

The international players in the ICT and electronics sub-sectors continue to see South Africa as a gateway into Africa and this has implications for skills development. With these sectors expected to continue to experience growth, both locally and in the African continent, the need for skills is likely to intensify.

As pressure mounts with the advent of the National Development Plan, there will be more expectations on the skills development system to work more efficiently in delivering skills that are required by the economy. In order to achieve the requisite 5.4% economic growth being cited in the NDP, pressure would be on SETAs, including MICT SETA to facilitate sound skills development.

The White Paper on Post Schooling is in the process of being finalised which together with the country’s Integrated Human Resource Development Plan and the Labour Market Intelligence Programme (both under development), will require the SETAs to conduct their business differently. As it stands, there is an expectation that SETAs should work closely with public FET colleges and HET institutions, providing accreditation for qualifications that have potential for improving employability amongst learners.

13South African ICT Sector Performance Review 2009/2010; Steve Esselaar, Alison Gillwald, Mpho Moyo and Kammy Naidoo. Towards Evidence-based ICT Policy and Regulation; Volume Two , Policy Paper 6, 2010


In the following section, two main variables that may impact growth and development of the sector and have implications for skills development (economic growth and employment growth) are illustrated in four different scenarios. Other factors that have been discussed in this chapter are assumed to be contributing directly or indirectly to economic and employment growth.

In this scenario the economy of the sector is growing in line with projections, but due to factors such as technology and the move to “contract work”, the growth is to a large extent “jobless growth”.

Stable economic grow

th of sector in line w

ith high road projections

In this scenario the sector will grow in line with projections provided in this chapter. (Advertising 8% y.o.y compounded, Film and Electronic Media 7.4% y.o.y compounded, Electronics 11,4%, , Information Technology 8% and Telecommunications approximately 10%). Employment will continue to grow in line with the trend analysis done in Chapter 2, at an average of 3,5%. This implies that, annually, there will be approximately 6,500 “new entrants” into the sector. Added to this will have to be labour turnover, which is probably at least double that of the projected growth of 3,5%.

No employment growth/decline in employment

Employment continues to grow in line with economic growth

The economy slows down and impacts the sector to a more or less stagnant position i.t.o economic growth. No employment growth or even a decline in employment is experienced.

Economic grow

th stifled or non-existent

The economy slows down and little or no economic growth is experienced. Despite the lack of growth, there is growth in employment (Unlikely scenario)

2.5 Conclusion and key strategic issues

All indications are that the MICT sector, across all of its five sub-sectors, is well positioned to contribute increasingly to the GDP of South Africa as well as to growth in employment. With its up- and downstream role and “presence” in almost every other economic sector in the country, it has a key role to play within the developmental context of the country.

Although the sector is price sensitive and subject to the pressures of the global economy, this is not unique to South Africa. Globally the sector is growing and is dynamic and


innovative, probably more so than any other economic sector outside of the broader services sector.

Skills shortages are rated as one of the most important factors hindering the success and sustainability of companies in the sector. This will be analysed in the next chapter dealing with the supply and demand in the sector.


Chapter 3 Demand and Supply of Skills

3.1 Introduction

This section starts off by discussing labour demand in the MICT sector based on the data from the sector profile and sector analysis. Thereafter, it outlines challenges being experienced in quantifying scarce skills demand in a more coherent manner. MICT SETA has started using various research methods to achieve a level of triangulation in the demand for scarce and critical skills in the sector. Methods being used include the traditional reliance on WSPs and ATRs submissions as well as interviews with selected stakeholders in all the sub-sectors and an electronic survey.

3.2 Labour Demand

Demand for labour is a function of a number of factors. As output in the economy increases, firms are likely to employ more people. As outlined in the previous chapter, all the sub-sectors are anticipating growth in the medium term and this could have a positive impact on the demand for additional people.

– In terms of expected growth rates per sub-sector, Advertising 8% y.o.y compounded, Film and Electronic Media 7.4% y.o.y compounded, Electronics 11,4%, Information Technology 8% and Telecommunications approximately 10%

– It was reported in chapter 1 that about 6% of employees in the sector are above the age of 55 implying that they are nearing retirement and will have to be replaced in the next five years, considering a retirement age of 60

– Interviews with stakeholders in the sector have pointed to high levels of labour turnover. They cited the fact that the skills employed in the sector are also applicable in other sectors of the economy

As articulated in chapter 1, the sector employs more managers, professionals and technicians and associate professionals. These occupational categories generally require training in mid to higher-level skills.

The expected economic growth in the sector, coupled with the anticipated retirements and attrition and other exits from the sector indicates a need for increased demand for labour in the sector. Although at a slow pace, the sector overall experienced an increase in total employment between 2002 and 2012 and this is likely to continue, at least in the medium term. As posited by Schofield (2013), in relation to the ICT sector, “so with Gartner predicting 1,9 million new technology jobs in the USA to support Big Data analytics by 2015, the European Union forecasting a shortage of 700 000 entry-level skills by 2015, Australia predicting a shortfall of 35 000 IT workers in the same time frame, ICANN suggesting a shortage of between 20 000 and 40 000 computer security experts in the USA, what can we expect for South Africa?”


3.3 Scarce Skills demand

MICT SETA is required to focus primarily on the development of scarce and critical skills in the sectors. There are various ways of understanding demand for skills in an economic sector. These include:

– In the WSP submissions from stakeholder organisations, MICT SETA requires SDFs to provide data on the training interventions that they intend conducting. In other words, an indication of planned demand.

– During interviews, employers were asked to comment on occupations that they were finding difficult to recruit. This provided “top of mind” examples of such occupations by those interviewed.

– The survey conducted amongst employers in the sector also provides some indications of scarce and critical skills demand.

Although an analysis of WSPs provides indications for demand in terms of planned training to take place in the sector, there are instances where training is conducted to “claim” back money from the SETAs and often this distorts the picture. Employers have indicated that they often do not provide in the WSP the training that they are self-funding and only include the training where they expect the SETA to provide funding and which is in line with funding guidelines. This obviously distorts the picture.

The MICT SETA also requests SDFs to provide data on the occupations they had difficulty filling and to forecast their anticipated difficulties in recruiting experienced and qualified people over a four-year period as follows:

– Immediate – these are immediate as at end March2013

– Anticipated need for the period 1st April 2013 to 31st March 2014



One of the major limitations of the demand data is the lack of submissions from all the employers in the sector. However, this is circumvented through modelling techniques, which extrapolate the data for the whole population.

3.4 Approach to identifying scarce and critical skills

As part of their work, SETAs analyse demand for skills from employers within the sector of their respective sub-sectors. The demand for skills takes various forms:

– Recruitment difficulties: There are instances when employers experience difficulties recruiting. Some of the reasons could be linked with the shortage of skilled and qualified people for the identified vacancies. That could signal a need for training of people to increase a pool of qualified people. It could of course be that there are sufficient people in the market but the job or industry or even particular company does not have a good image and therefore does not attract good skills. No amount of training of new people will turn things around. A particular TV station could have difficulties recruiting Camera Technicians even though there is a high supply of such


people in the market. The people with the necessary skills could have a particular dislike for the TV station or there could be better opportunities in the film making business making working in TV less attractive. No matter how many more people are trained, they could still choose not to work there because of the lack of attractiveness of working in the particular organisation, sub-sector or job.

– Skills Gaps: there are times when people particular jobs, roles or occupations require people with particular skills but there is shortage of people with those skills. Due to the dynamic nature of the MICT sector with technologies changing constantly, people employed in the sector and those not currently employed could find themselves lacking certain skills because of changes in technology. In other words, there is a supply of qualified people but they lack the particular skill required. These skills gaps are sometimes referred to as critical skills, which are basically skills that are critical for a particular job or occupation but which are lacking amongst those qualified and available to work. There is need for training to top up the skills that these people already possess. For example, as programming languages evolve, Programmers and Developers with knowledge of older languages could soon find themselves not being able to operate in the world of new programming languages and new technologies. There is however some additional specialised skills that one needs which are additional requirements for such a job. In other words, there is a skills gap amongst those who are qualified and available to work.

– Skills shortage: this is when there are not sufficient numbers of qualified people to fill certain vacancies. One can think of the number of medical doctors being produced by the universities in the country annually. If say there are only 500 electrical engineers being produced annually but there are currently vacancies for 4000 engineers across the economy, it could take 8 years to fill all vacancies. Of course electrical engineers might die, emigrate or retire and in that way, more vacancies would exist and there would be an even bigger need that just 4000 for engineers. In such instances certain employers could elect to import qualified and experienced people from countries that have an over-supply or which pay lower salaries. Skills development could play an integral part in alleviating such problems.

– Labour shortage: this happens when there just isn’t sufficient numbers of people to work. In countries with high employment one could find it difficult to find people to work in certain sectors, which for whatever reasons are not able to attract people. When there is labour shortage, skills could be imported from elsewhere to help increase the pool.

Given the above typologies for employment, having conducted an analysis of demand for skills in the sector, the SETA has a number of levers open to it on the supply side:

– There are instances where a new qualification has to be developed to help increase a pool of qualified people through creating a new pathway for accessing learning.

– The qualification should be of good quality and be trusted by employers– Funding of learning could enable the production of more skills in the sector


– Retooling of graduates into areas where there is demand for qualified people could increase a pool of people available to work

– Provision of top up skills could enable people with skills gaps to become competent in performing particular roles

Although it is difficult to quantify the accurate numbers of skills demand across the various typologies, thinking through the typologies helps with the development of an appropriate intervention. On the supply side, MICT SETA could be working with universities to improve their curriculum to make it more responsive to the needs of employers, developing new qualifications, retooling graduates, providing experiential learning opportunities and providing access into the sector through entry level programmes.

3.5 Overview of scarce skills

Each year, the SETAs gather data on the scarce skills (occupations where employers experience difficulties recruiting qualified people) identified in each of the SETA sub-sectors. As outlined above there are various typologies for skills identifying scarcity.

In estimating scarce skills for the sector a model was developed taking into account the number of WSPs submitted per sub-sector. In addition the model was weighted on the size of employers. A number of assumptions, which were outlined in chapter one, were used to calculate the weightings and a platform was developed on which to estimate demand for the whole sector. The model was applied on the scarce skills needs identified for the sector through WSP submissions and a list of over 185 occupations was developed.

In compiling the top scarce skills, the following were considered:

– Number of times an occupation is identified as scarce in the WSP submission– Occupations identified as scarce skills per sub-sector during interviews– Reasons for scarcity given during the survey

Advertising

The limitation of the data presented below is that even though it is modelled, the input data is from employers and might not have been well thought through when being submitted as part of WSPs. The following table provides an estimate of top 10 scarce skills in the Advertising sub-sector.

Table 24: Estimation of Advertising Scarce Skills NeedOccupation OFO Code 2013 2014 2015 2016Director (Enterprise / Organisation) 112101 52 13 13 26Data Management Manager 133103 26 13 13 26Graphic Designer 216601 209 143 130 104Multimedia Designer 216603 509 104 104 757Web Designer 216604 52 26 26 52Advertising Specialist 243101 222 170 117 352ICT Account Manager 243401 26 26 26 26Multimedia Specialist 251301 65 0 0 13


Occupation OFO Code 2013 2014 2015 2016Copywriter 264201 78 157 196 78

Sales Representative (Business Services) 333903 26 13 13 52Classified Advertising Clerk 441901 65 0 0 0


As presented in the table above, in the Advertising sub-sector, the occupations identified are mostly professional indicating the need for high-level skills . Across most of these, the most favoured intervention was internships followed by bursaries. The following is a summary of the scarce skills occupations for the sub-sector:

– Director could refer to senior managerial people including project directors. Other alternative titles include Chief Executive Officer (CEO), Company Director, Executive Director and Managing Director

– Alternative titles to a Data Management Manager are Data Operations Manager or Data Processing Manager. Their role involves processing and manipulation of data

– Multimedia Designer alternative titles include Digital Media Designer, Instructional Designer, Interactive Media Designer and Multimedia Artist

– Advertising Specialists are also known as Advertising Account Executive, Advertising Account Manager, Advertising Agent Representative, Advertising Coordinator / Specialist or Creative Director (Advertising)


The table below presents the estimation of Film and Electronic Media scarce skills identified and projected over a period of four years. There appears to be some relationship between skills required in the Advertising sub-sector and in the Film and Electronic Media sub-sector.

Table 25: Estimation of Film and Electronic Media Scarce Skills NeedOccupation OFO Code 2013 2014 2015 2016

Multimedia Designer 216603 2788 2788 2788 1859Management Accountant 241102 133 187 187 80Market Research Analyst 243102 267 533 533 133Software Developer 251201 107 0 0 27Multimedia Specialist 251301 2665 2665 2665 1333Web Developer 251302 133 187 187 133Technical Writer 264103 267 533 267 533Radio Journalist 264204 133 53 53 133Director (Film, Television, Radio or Stage) 265401 1333 1333 1333 1333Film and Video Editor 265403 133 0 0 0Program Director (Television or Radio) 265404 107 160 160 53Technical Director 265405 133 213 267 0Sales Representative (Business Services) 333903 187 80 80 160Set Designer 343204 160 213 213 107Sound Technician 352103 533 800 1066 533



It appears the areas of scarcity for most of the Film and Electronic Media occupations exists primarily in more technical roles specific to the sector and less on generic skills such as HR and Finance. In addition to the table above, print journalists with particular specialisations were identified as scarce.

– Alternative titles to a multimedia specialist are Animation Programmer, Computer Games Programmer, Digital Media Specialist, Graphical Programmer, Multimedia Developer and Multimedia Programmer.

– Film and Video Editors are also known as Post Production Editor or Film Editing Equipment Operator

Electronics

The table below presents the estimation of the top Electronic sub-sector scarce skills required within South Africa projected over the next four years. For this sub-sector, higher scarcity is being estimated in computer related and electronics related occupations. As demonstrated in the next table, there are similarities between the areas of scarcity in the Electronics and Information Technology sub-sector. This could be attributed to the IT intensive nature of the electronic sub-sector and the level of convergence that exists between the two sub-sectors.

Table 26: Estimation of Electronics Scarce Skills NeedOccupation OFO Code 2013 2014 2015 2016Sales Manager 122102 136 72 48 144Electronics Engineer 215201 112 112 136 128ICT Trainer 235601 120 80 40 120ICT Sales Representative 243403 160 80 48 160Software Developer 251201 176 152 152 176Developer Programmer 251203 184 192 24 104Computer Network and Systems Engineer 252301 272 208 208 160Electrical Engineering Technician 311301 176 0 0 88Electronic Engineering Technician 311401 1280 480 240 960Computer Network Technician 351301 320 176 152 232


With regards to Electronic Engineer the alternative job titles are Communications Engineer (Army), Computer Engineer, Electronics Designer, Information Engineer, Instrumentation Engineer and Television Engineer.

Computer Network and Systems Engineers have alternative job titles such as Communications Analyst (Computers), Computer Network Engineer, Computer Systems Integrator, Computer Systems / Service Engineer, Network Engineer, Network Programmer / Analyst, Network Support Engineer, Systems Engineer, Systems Integrator or ICT Customer Support Officer.



Table 27: Estimation of Information Technology Scarce Skills NeedOccupation OFO

Code201

3201

4201

5201

6Finance Manager 121101 166 18 37 46ICT Project Manager 133102 175 239 368 110Management Consultant 242101 230 202 193 257ICT Account Manager 243401 120 175 147 83ICT Sales Representative 243403 147 156 156 46

ICT Systems Analyst 251101109

4101

1 883121

4

Software Developer 251201123

2 947 975130

6Programmer Analyst 251202 120 120 110 37Developer Programmer 251203 910 782 690 717Quality Assurance Analyst (Computers) 251901 166 193 248 230Database Designer and Administrator 252101 147 607 175 175Systems Administrator 252201 202 138 92 221

Computer Network and Systems Engineer 252301200

5 947 736140

7

ICT Security Specialist 252901 497 671103

0 524Technical (ICT) Support Services Manager 252902 138 37 37 28

Computer Network Technician 351301 883 579 331105

7Web Technician 351401 211 745 331 138Telecommunications Technical Officer or Technologist 352201 331 221 230 294Program or Project Administrators 441903 276 184 110 524


There are software developer, programmer analyst and developer programmer skills that remain areas of scarcity in the sub-sector. In this regard, the ICT survey found that priority skills are in the fields of Software as Service/Cloud Computing, Network Infrastructure, Information Security and Application Development. On the other hand, the top programming languages were found to be NET, C#, C++, Java and VB.

In addition to the scarcity reflected above, the Government Information Officers Council, representing all government departments CIOs in South Africa have provided a list of scarce skills from a government IT’s viewpoint. The list consists of job titles where blue indicates scarcity also identified in the table above:

– Business Analyst– Mobile Apps Developers– ECM Specialists– Web & Portal Developers– Business Intelligence Developers– SAP HCM Consultants– SAP SRM Consultants– SAP Authorization Consultants– SAP Basis Consultants


– SAP Abap Developers– Open Source Developers– Data Architects– Application Architects– Network Administrators– Quality Assurance Administrators– IT Managers

With regards to the list above it is noted that the imminent deployment of SAP HCM as part of IFMS will impact on SAP HCM skills countrywide. The government strategy to promote open source will be impacted by the scarcity of skills. Enterprise Content Managers are in demand by all government departments and is a high scarcity. Moreover, the strategy of developing IMSP will be impacted by lack of Enterprise Architecture skills.

Telecommunications

As with the Information Technology and Electronics sub-sectors, Telecommunications has identified a higher need in the technical occupations that are specific to the sector as being a scarcity of skills.

The telecommunications sub-sector incorporates both the retail side and the technical side. As noted in the table below, there is a scarcity amongst professionals. The experienced retail managers are required in the mobile phone shops.

Table 28: Estimation of Telecommunications Scarce Skills NeedOccupation OFO

Code201

3201

4201

5201

6Sales and Marketing Manager 122101 50 50 50 55Chief Information Officer 133101 100 100 50 175Retail Manager (General) 142103 45 40 40 40Telecommunications Network Engineer 215303 50 50 50 25ICT Trainer 235601 30 25 25 40Management Consultant 242101 50 25 25 50ICT Business Development Manager 243402 55 50 50 60ICT Systems Analyst 251101 40 25 25 65Developer Programmer 251203 185 165 165 185Systems Administrator 252201 25 25 25 35Electrical Engineering Technician 311301 35 20 15 25Computer Operator 351101 250 100 100 250Computer Network Technician 351301 310 275 270 300Telecommunications Technical Officer or Technologist 352201 30 30 30 55Telecommunications Line Mechanic 672204 50 50 50 100Source: The MICT SETA OGS

In the table above, all occupations presented are deemed to specifically require ICT technical skills. It must be noted that the OFO code for Management Consultants also


include job titles such as Business Analyst, Business Support Project Manager, E-commerce Programme Manager, Service Solutions Project Manager and Technology Development Coordinator.

The occupations identified as scarce over the next four years presents MICT SETA with an opportunity to work with stakeholders in prioritising and supporting interventions that are aimed at addressing these scarce skills.

3.6 Overview of critical skills

The rapid technological changes in the sector require that employees keep abreast with the developments. This is a costly exercise for employers, as they constantly have to send employees for training on new technologies. The annual training report submissions for 2013 by employers has reflected a 78% training on short courses (learning programmes that are not credit bearing) as compared to other forms of learning programmes. Employers in the sector have indicated that the type of training that employees have to attend is typically vendor specific and some do not bother with providing MICT SETA with information about such programmes as they fund them from their internal training budgets.

Each year, the SETAs gather data on the scarce skills (current and potential important vacancies) identified in each of the SETA Sectors. The critical skills below were identified from WSP submissions and extrapolated using modelling techniques to reflect demand at a sector level. There were over 500 critical skills identified across all the five sub-sectors and identifying the top ones was somewhat challenging.

The table below reflects an estimation of critical skills for the Advertising sub-sector.

Table 29: Estimation of Advertising Critical SkillsCritical Skill 2013 2014 2015 2016Customer Service 114 228 285 331Digital skills (Including programming, animation, and applications) 95 190 238 276Strategic thinking 57 114 143 166Reputation management 38 76 95 110Research skills 19 38 48 55Management / Leadership development 19 38 48 55Content Management 19 38 48 55


As presented in the table above, in the Advertising sub-sector, it is estimated to require customer service skills more than any other critical skill. The crucial skills identified were grouped together as they reflected needs identified across various occupations.

The table below presents the estimation of Film and Electronic Media critical skills. Most of the critical skills identified are technical skills that are relevant to occupations in the sector, followed by generic skills such as accounting that are required across various economic sectors.


Table 30: Estimation of Film and Electronic Media Critical SkillsCritical Skill 2013 2014 2015 2016Digital (programming, airwaves, animation) 1983 3967 4958 5752Set Building 401 801 1002 1162Project Accounting 401 801 1002 1162Technical directorial skills 200 401 501 581Client Relationship Building 120 290 352 349Management / Leadership 120 240 300 349


The Electronics subsector listed technical skills as the highest critical skills in the sector. With the exception of sales, the rest of the critical skills identified in the Electronics sub-sector are technical skills that are specific to people employed in the sub-sector.

Table 31: Estimation of Electronics Critical SkillsCritical Skill 2013 2014 2015 2016

Technical skills (Including 1512 3023 3779 4384Consulting 252 504 630 731Engineering techniques 252 504 630 731Facilitation 189 378 472 548Sales 189 378 472 548Java 126 252 315 365Database Administration 76 151 189 219Voice and Data Communication 76 151 189 219Biochemistry 63 126 157 183Field Technician Controls 63 126 157 183


The table below presents the estimation of Information Technology critical skills over the next four years. It is likely that the sub-sector stakeholders will continue to enrol their employees on short courses, as is currently the case, to address the skills gaps. Innovation and commoditisation of technology and the consumerisation and proliferation of devices ensure that the employers and practitioners in the sector must invest in skills and skills updates on a continuous basis (ICT Survey, 2013).

Table 32: Estimation of Information Technology Critical SkillsCritical Skill 2013 2014 2015 2016

Sales Skills (Including Account Management) 71721434

41793

02079

9Technical skills 1057 2115 2644 3067Support Skills 570 1140 1425 1653Product Skills 386 772 965 1120Network Support 322 644 805 933Oracle and MS Databases 276 552 690 800


Critical Skill 2013 2014 2015 2016

Accounting 257 515 644 747Business Analysis 202 405 506 587Management and leadership Development 184 368 460 533Office Automation 184 368 460 533Source: The MICT SETA OGS

In the Information Technology sub-sector, employees require to be upskilled in sales skills followed by technical skills. Most of the critical skills gaps in the sub-sector are technical in nature. Some soft skills such as management and leadership development and accounting are starting to emerge in this sub-sector as compared to other sub-sectors.

The table below presents critical skills gaps in the Telecommunications sub-sector. Most of the critical skills gaps are deemed to specifically require IT technical interventions with the exception of mentoring and succession planning skills.

Table 33: Estimation of Telecommunications Critical SkillsCritical Skill 2013 2014 2015 2016

Mentoring and succession planning 1104 2209 2761 3203Customer Service Skills 412 824 1030 1195Technician 412 824 1030 1195Management/Leadership 148 297 371 430Product knowledge 90 165 206 239Engineering, planning, Core network and monitoring 84 165 206 239General understanding of Telecoms 82 165 206 239IT networking 80 165 206 239Programming 78 165 206 239Source: The MICT SETA OGS

The critical skills needs highlighted above indicate the trend of employers funding and conducting their own training as they see fit and in line with their business requirements. Given the varied nature of programmes per sub-sector and across occupations, employers are accessing bespoke training from providers of their choice.

MICT SETA has identified a number of vendor programmes that are in high demand within the sector and it is in the process of aligning them with the National Qualifications Framework so that they could be recognised as credit bearing. Employers recognise these programmes as standard bearers and they enable employees to be employable. Once the programmes have been aligned with the NQF, in addition to receiving a certificate from the vendor or the certificatory, MICT SETA will also be issuing a certificate of credits.


Chapter 4 Supply of Skills

4.1 Introduction

It is important to understand the extent of provision of skills in the MICT sector, especially given the fact that sub-sectors such as IT and advertising are cross cutting and tightly interlinked with the rest of the economy. The supply of skills in a sector where people are generally mobile and their skills are relevant in the rest of the economy presents interesting dynamics for MICT SETA.

4.2 Supply of Skills into the MICT Sector

The MICT sector relies on a mix of private and public provision of education and training for skills into the sector. The public HET sector provides degrees and diplomas that are relevant for the sector however there is always a need for additional skills once people have graduated. These are typically offered in the private sector. The private providers have traditionally provided training in some of the sub-sectors over the years and their training is generally considered to be of sufficient value. In most instances such programmes are not NQF aligned.

Employers in the sector across sub-sectors have indicated that they generally spend more than the 1% of payroll on education and training. Given the rapid nature of technological advancements in the sector, they are having to consistently upskill their employees. Employers further highlighted the need for vendor specific programmes and certifications that are standard in the sector. For the practitioners to work on particular equipment, they require training that is typically non credit bearing and lasting a couple of days.

4.2.1 National Senior Certificate Pass Rate

Many of the occupations in the sector require a basic foundation in maths, and/or science as well as English in order to pursue further studies to gain entry into a university or HET qualification. For example, most computer science and IT related qualifications require a good pass in maths to gain entrance into university or a university of technology. The table below shows that on average, most candidates sitting for English, maths and science examinations received a mark above 30%. Between 2010 and 2012 there was a slight increase in the “pass rate” for mathematics from 47.4% to 54%. It must however be noted that the requirements for mathematics at universities is generally a minimum of 50% and 60% for mathematically inclined qualifications. Given that the pass rate is reflected at 30%, those passing at 60% are likely to be significantly lower.

The introduction of mathematics literacy has also created some problems whereby due to a lack of good career guidance and subject choice advice, many learners realise very late that the subject does not qualify them for most technical or business degrees at universities. This is an area that the Department for Basic Education needs to prioritise for redress and further development.


Table 34: Results of the National Senior Certificate

2010 2011 2012

Learning Area

Total Wrote

Achieved above 30%

% Total Wrote

Achieved above 30%

% Total Wrote

Achieved above 30%

%

Mathematics 263034 124749 47.4% 224635 104033 46.3% 225874 121970 54%

Mathematics Literacy

280836 241576 86.0% 180585 96441 53.4% 291341 254611 87.4%

Physical Science

205364 98260 47.8% 180585 96441 53.4% 179 194 109 918 61.3%

English (1st Additional language)

449 080 424 392 94.5 414480 398740 96.2 420039 410999 97.8

Source: Education Statistics in South Africa, 2013

Although these numbers appear to demonstrate a reasonably sufficient pipeline of matriculants into the post schooling system, the pass rate set at 30% is insufficient to qualify the learners to access most post schooling degrees and diplomas which have requirements of a 50% pass. This means many learners who are deemed to have passed are not likely to have access to the post schooling system but could be candidates for learnerships in the sector.

4.2.2 FET/HET landscape and enrolments in relevant qualifications

All universities in South Africa produce skills that are relevant in the sector. The DHET requires that SETAs work closely with public HETs and FETs in delivering skills development. In respect of this, the SETA grant regulations issued in 2012 required SETAs to fund PIVOTAL programmes.

There are about 52 FET colleges in South Africa which each provide a myriad of qualifications. A few of these FET colleges are conducting business with SETAs and have successfully implemented SETA funded programmes on behalf of employers. Government would like to see more of these colleges getting involved in the delivery of training, especially in rural areas where private provision is almost non-existent and where there is a need for targeted skills development interventions. A number of FET colleges are accredited to offer the International Computer Drivers License (ICDL), which enables them to offer end user computing skills to people close to where they are located. Challenges that currently exist for FET colleges are ensuring better throughput rates amongst NC (V) learners and those enrolled on Nated programmes. FET colleges offer technical and business programmes that are relevant in the MICT sector.

The South African HET sector produces thousands of graduates annually who remain unemployed. Often learners enrol on programmes that do not offer career opportunities whilst in other cases the curriculum being taught at these institutions does not align with the


needs of employers in the economy. The HEMIS database of the DHET provides graduates data across all public HEIs in the following categories:

– Undergraduate diplomas and certificates– First bachelor’s degrees– 4 year bachelor degrees– Postgraduate diplomas and certificates– Honours degrees– Masters degrees and diplomas– Doctoral degrees

The following table reflects graduates per annum between 2009 and 2011.

Learning Category 2009 2010 2011Advertising and Marketing related 5,311 5,834 6,626Computer science and electrical engineering related

7,326 7,937 8,378

Film and Photographic Arts 63 341 361Source: HEMIS database, 2013

As can be seen from the table above, there has been a general graduate output increase in all categories. Graduate outputs for marketing and advertising related degrees have been on an increase between 2009 and 2011. There was an increase of about 13% in graduates between 2010 and 2011. Computer science and computer science related graduates have also increased between 2009 and 2011. With regards to the Film and Photographic Arts, an almost 6% growth was recorded between 2010 and 2011.

Although the graduate output reflected in the table above indicates a growing trend, taking into account over 19,000 employers in the sector as well as other employers in the broader economy who are also recruiting these skills, the output is limited. It must be noted that employers in the sector do not only employ graduates from these categories, however, these form the core of “technical” skills required in the sector.

It must however be noted that employers have lamented the lack of work readiness of graduates. In most instances these graduates were taught on out-dated curricula and must first learn some more in the workplace before they become usable. In addition, employers have to train them on proprietary software packages or equipment relevant short courses. Given that most of the vendor courses are not aligned to the NQF, these cannot be claimed under PIVOTAL grants despite being of importance in the sector.

The employers have further pointed to degree programmes in countries like Australia and the UK, which enables graduates to complete their degrees whilst at the same time getting professional certifications such as Cisco. There appears to be a challenge with graduates not having sufficient knowledge and exposure to the workplace prior to graduating. Employers in this regard noted that there are some private training providers who work closely with the industry and are constantly exposing their students to real world projects. In order to overcome the challenge of a lack of work-readiness, some employers have explored internships, which they use as an on boarding programme to expose and develop graduates.


4.2.3 Other providers

There are private training providers operating in the sector have an increasingly important skills development role. They provide specialised and niche training to the employers in the sector and in certain instances are reliant upon to produce the technical skills required. Employers in the ICT sector increasingly rely on vendor specific training packages in relation to the software packages and technologies that practitioners are required to use. While some of the training is provided as top up skills to graduates and experienced practitioners, there are specific training programmes that are aimed at providing skills and certification for people with no post school qualification or background in the sector.

Given the need policy direction to fund more PIVOTAL programmes, it is imperative for the sector to identify and align specific vendor programmes on the NQF so that they can be funded as part of the sector development strategy.

4.2.4 Preferred modes of learning

Given the technological orientation of the sector, it is not surprising that electronic learning or e-learning has some relevance in the sector. E-Learning has gained popularity amongst employers in South Africa. According to Nicholas (2013), one of the main advantages of e-learning is no matter their size or scope of business in the long run costs can be cut up to 70%, partly due to the fact that trainers and training material don’t have to be transported to outlying areas. E-learning is worth about $56.2bn business globally in 2013, and is likely to double in size before 2015. As technology advances further and more employers pick up on e-learning, the SETA will have to improve its processes to respond to and support e-learning.

With regard to Advertising, private training provision is preferred for the technical roles whilst university graduates are employed on the strategic side. The ICT Survey found that onsite mode of training is preferred to offsite and knowledge sharing has joined self-study (discs/ videos/books and e-Learning) as the top scores onsite. The ICT survey further noted that offsite, academic institutions are starting to emerge similar to commercial training companies as the venue/supplier of choice. This reflects the growing number of short course programmes offered by tertiary establishments.

4.2.5 Registered qualifications

The MICT SETA ETQA has a number of qualifications that it manages and for which it accredits training providers and registers assessors and moderators. For every such qualification, once registered, the training provider is not limited to the MICT sector but can offer training to the rest of the economy. That means in addition to supporting, the MICT SETA has a responsibility to the rest of the economy for provision of quality assurance services on the qualifications it accredits.

The following table presents the list of qualifications managed by MICT SETA, and the number of accredited training providers for each qualification. There are 43 qualifications registered of which 40% are at NQF level 4 and 37% at NQF level 5. There are three


qualifications at level 6 and 1 at level 7. Over 10 qualifications have no training provider accredited whilst 10 have only 1 provider registered. There are only five qualifications with more than 50 training providers registered. That potentially signifies the popularity of such qualifications.

Table 35: The MICT SETA Qualifications and number of Accredited Training Providers

SAQA ID

Qualification Title Credits Assessors NQF Level

Providers

21190

Further Education and Training Certificate: PC Engineering

120 13 Level 4 1

21191

Further Education and Training Certificate: PC Support

120 18 Level 4 1

21797

National Certificate: Telecommunications for Customer Premises Equipment

152 17 Level 4 3

21799

National Certificate in Telecommunications for Customer Premises Equipment: Level 3

135 14 Level 3 3

48573

National Certificate: Information Technology: Systems Support

147 329 Level 5 99

48671

National Certificate Music Industry: Sound Technology

139 20

48792

Certificate: Broadcast Engineering 120 7 Level 5 0

48811

Further Education and Training Certificate: Music Industry: Sound Technology

159 8

48872

National Certificate: Information Technology: Systems Development

131 248 Level 5 87

49077

National Certificate: Information Technology: End User Computing

130 1346 Level 3 778

49121

National Certificate: Interactive Media 130 24 Level 5 0

49122

National Certificate: Radio Station Management 157 6 Level 5 0

49127

Further Education and Training Certificate: Design Foundation

141 36 Level 4 0

49138

National Diploma: Copywriting 240 1 Level 5 0

49317

National Certificate: Scriptwriting 147 1 Level 7 0

50479

Further Education and Training Certificate: Advertising

148 16 Level 4 0

57607

National Certificate: 3D Animation and Visual Effects

149 6 Level 5 0

57611

National Certificate: 2D Animation 136 9 Level 5 0

58394

National Certificate: Film and Television Production 122 22 Level 5 0

58820

National Certificate: Advertising 124 6 Level 5 0

58978

National Certificate: Journalism 120 32 Level 5 0

59057

Further Education and Training Certificate: Telecommunication Network Operations

132 30 Level 4 5

59569

National Certificate: Electronics 120 11 Level 3 0

59910

National Certificate: Information Technologies Operations

130 0 Level 3 2

60509

National Certificate: Design Techniques 121 7 Level 5 0


SAQA ID

Qualification Title Credits Assessors NQF Level

Providers

61450

Further Education and Training Certificate: Film and Television Production Operations

157 22 Level 4 1

62069

National Certificate: Radio Production 159 17 Level 5 0

63769

National Certificate: Business Analysis Support Practice

138 36 Level 5 4

63849

Further Education and Training Certificate: Electronics

122 4 Level 4 0

63909

National Certificate: Business Analysis 149 30 Level 6 2

65874

Further Education and Training Certificate: Telecommunication Systems

132 1 Level 4 0

65876

Certificate: Telecommunication Systems 120 1 Level 5 1

71850

Certificate: Information Technology: Database Development

120 8 Level 6 1

71853

Further Education and Training Certificate: Information Technology: End User Computing

132 16 Level 4 1

71869

Certificate: Information Technology: Database Administration

120 23 Level 6 1

73298

Further Education and Training Certificate: Photography

128 2 Level 4 0

73390

Further Education and Training Certificate: Graphic Web Design and Multimedia

136 4 Level 4 1

73391

Further Education and Training Certificate: Website Development

136 4 Level 4 1

73429

Further Education and Training Certificate: Computer Programming

136 5 Level 4 1

78963

National Certificate: Telecommunications for Customer Premises Equipment

120 4 Level 2 0

78964

Further Education and Training Certificate: Information Technology: Technical Support

163 320 Level 4 59

78965

Further Education and Training Certificate: Information Technology: Systems Development

165 182 Level 4 50

83026

National Certificate: Information and Communications Technology (ICT) Software Testing

138 4

Source: MICT SETAETQA database, 2013

The availability of assessors on qualification is important to ensure sufficient provision of training in the sector and across the economy. At NQF level 2 there is one qualification and four assessors registered. This is contrasted with NQF 7 where there is 1 qualification and only one assessor.

Table 36: The MICT SETA Qualifications and Number of Registered Assessors

Row Labels Qualifications Assessors

Level 2 1 4Level 3 4 1371Level 4 16 690Level 5 15 751Level 6 3 61Level 7 1 1

Source: MICT SETA ETQA database, 2013


The availability and capacity of one assessor to produce quality work over time is risky, especially if demand for the qualification increases and this could pose a risk for MICT SETA. This means there is a potential need to improve the number of assessors. The highest number of assessors is registered against NQF 3 qualifications. However it must be noted that the majority of workers in the sector require mid to high level skills and not lower level skills. That means assessors are likely to be servicing the rest of the economy instead of the MICT sector.

4.2.6 Utilisation of Qualifications

The utilisation of qualifications by employers in the MICT sector and across the rest of the economy is an important indicator of targeted skills development and appropriateness of skill programmes. According to the MICT SETA ETQA database, between 2008 and 2013 there were just over 60,000 enrolments. Amongst those, 37% had an achieved status whilst 60% were still enrolled. Less than 1% of all enrolments were recorded as having been de-enrolled.

Amongst the 43 registered qualifications there were 21 that recorded enrolments between 2008 and 2013, with the highest number of enrolments being recorded against National Certificate: Information Technology: End User Computing at 18% of approximately 60000 enrolments. In total there were 24382 enrolments recorded against the registered qualifications.

Figure 17: Enrolments by Registered Qualifications (NQF)

Level 345%

Level 418%

Level 534%

Level 63%

Source: MICT SETA ETQA database, 2013

In terms of the enrolments on registered qualifications, NQF 2 and 7 qualifications did not have any enrolments recorded between 2008 and 2013. Although the enrolments include skills programmes, the above figure is in respect of registered full qualifications of MICT


SETA. The figure illustrates that amongst 24382 enrolments, 45% were at NQF 3, 34% at NQF 5 and 18% at level 4.

4.3 Training Conducted in the Sector

Analysis of ATR data demonstrates the extent of training taking place in the sector amongst those employers submitting WSPs. The data demonstrates that employers there are training more on short courses and skills programmes as opposed to other forms of skills development interventions. Given the dynamic and fast paced nature of the sector, this is not surprising. Employers across all sub-sectors during interviews further indicated the need to ensure continuous capacitation of employees in new methods and technologies. The employers across all sub-sectors are operating in a globalised world and the need to keep abreast with latest development is of importance.

Table 37: Training conducted based on ATR submissionsLearning Intervention

Advertising Electronic Media and Film

Electronics


Telecoms Total

Learnerships 18.1

154 107 160 670 183 1274

Learnerships 18.2

38 834 299 2249 536 3956

Skills Programmes

533 1443 3188 7927 20838 33929

Internships 77 85 90 222 98 572Short Courses

5016 10542 12976 56039 89562 174135

Adult Education & Training

187 300 1351 1720 1673 5231

Bursaries 129 288 547 1179 820 2963Total 6134 13599 18611 70006 113710 222060


The current regime of SETA grant regulations requires that SETAs fund more PIVOTAL programmes and this is going to have an impact on the number of funded interventions in all sub-sectors. Employers may have to fund short courses from their internal training budgets whilst relying on SETAs for full qualifications. This however has implications in terms of an expected increase in the demand for full qualifications.

4.4 Summary

The MICT sector relies on private and public sector providers of education and training. Although the public HETs and FETs play an important role in producing graduates with relevance for the sector, private training providers have an increasingly important role to train in niche areas. In order to expand provision, MICT SETA needs to work with public FET colleges to enable them to offer accredited qualifications. There is also a need to build the capacity of private providers to provide quality occupational qualifications.


Given that employers are spending their internal training budgets - more than 1% of payroll, the significant concentration of short courses more than any other learning type points to a response to the real market needs. Employers have indicated that these short courses are not cheap and they are enrolling their employees because these are their tools of trade. This calls for a targeted approach by MICT SETA in building skills supply capacity for the sector.

Chapter 5 MICT Sector Strategy

This strategy for the MICT sector seeks to guide the development and advancement of skills and to enable growth and development in the sector. The strategy maintains alignment to government’s key policies and strategies whilst taking into account the unique dynamics of the five sub-sectors. The articulating of the sector strategy takes account of all the various strategic issues relating to skills development that were raised in the preceding chapters of this SSP.

The sector strategy has to be understood in the context of government’s planning framework. Firstly the sector was profiled in chapter 1, outlining its shape and size. This was followed by an analysis of the sector including the various drivers of change. The skills demand and supply chapter foregrounded the scarce skills in the sector as well as the various challenges on the supply side. The sector strategy, taking cognisance of all the previous chapters seeks to identify and outline various interventions aimed at improving skills development in the sector.

5.1 SSP and the Strategic Plan and Annual Performance Plan

In terms of the Skills Development Act, SETAs are required to develop and implement a sector skills plan. However, SETAs operate within an established planning system of government, which forms part of the broader monitoring and evaluation framework. The framework provides for a five-year strategic plan and an annual performance plan. A Strategic Plan sets out an institution’s policy priorities, programmes and project plans for a five-year period, as approved by its executive authority, within the scope of available resources. On the other hand, an Annual Performance Plan sets out what the institution intends doing in the upcoming financial year and during the medium term expenditure framework to implement its Strategic Plan.

In this regard, the SSP is an overarching strategy for the sector that identifies the vision for skills development in the sector within the framework of the National Development Strategy. The SSP guides the development of the Strategic Plan and a very tight alignment exists between the two documents in this respect. While the SSP discusses various issues extensively, the strategic plan sets out a number of programmes to achieve the strategic goals. In addition the strategic plan focuses on allocating the finite financial resources to the programmes so that the financial goals are achieved. The annual performance plan sets out how the programmes would be implemented over the upcoming financial year.


This logic is important in understanding the various strategic goals and outputs outlined in the next section.

5.2 Strategic goals

There are six strategic goals that are also aligned with the MICT SETA strategy. For each strategic goal, a goal statement is provided and a number of outputs identified. In addition, narrative is provided on how these outputs would be achieved. The six goals articulate with the following national imperatives: The seven transformative pillars outlined in the NSDS III, The 10 commitments of the HRDS-SA, IPAP, MSTF and the NDP.

Strategic Outcome Oriented Goal 1 Credible mechanism for skills planning and impact evaluation established within the MICT sector

Goal Statement: Coordinated research by MICT SETA to guide activities that will enhance employers’ capacity to plan and report through WSPs and ATRs is built and results in a credible and accurate Sector Skills Plan

The NSDS III requires MICT SETA to be a centre of excellence for skills planning research in the MICT sector. There is a need for a mechanism to ensure sound identification of scarce skills and skills critical for the growth of the MICT sector. Additionally there should be availability of information about skills that will be required in the future. Performing a monitoring and evaluation function is integral to ensure sound planning, budgeting, costing, research and monitoring, as well as evaluation of programmes. The ultimate goal is to achieve the required outcomes and provide an early warning system to correct any deviations from structured plans.

A number of challenges have been identified in respect of workplace skills planning, especially the use of the organising framework of occupations (OFO) and the identification of scarce and critical skills. This has often led to confused or inaccurate workplace skills plans being developed. A small portion of employers in the MICT sector is submitting WSPs and with the reduction in mandatory grants there appears to be less motivation for employers to submit. However, the MICT SETA requires quality data from WSPs and from a larger proportion of employers, including small employers. This obviously calls for a SSP research model that is not reliant on WSPs/ATRs. In 2013, the MICT SETA conducted a survey amongst employers and there are plans to continue this survey periodically.

There has been limited evaluation research conducted to determine the outcomes and impact of the extensive skills development interventions in the sector. Given the millions of Rand invested into skills development within the sector annually, it is important to measure the impact of such investment in the MICT sector.

Output 1.1 Established Seta Management System (SMS) that enable WSPs and ATRs that are credible and professionally developed, and reviewed annually

– Capacitation of the research function to build labour market


analysis, forecasting and trends analysis skills to take advantage of the SMS

– Encourage better use of information management tools in the SMS so that data can be turned into information and information turned into intelligence about the MICT sector

– Simplify WSP and ATR forms, using clear and simple language to make them easy to complete, especially by smaller businesses

Output 1.2 Professionally researched and credible SSP that articulates an agreed-upon sector strategy and addresses sector skills needs developed and reviewed annually

– Conduct periodic research in the economy to identify scarce, critical skills and well as future skills required in the sector

– Identify ways of understanding the current skills needs in the MICT sector, mortality rates and drivers of change in order to anticipate future skills needs

– Provide grants for research projects and postgraduate research as well as funding for relevant conferences, study tours, seminars and workshops, overseas secondments, attendance of film markets and other industry exhibitions to enable for more insights and knowledge about the MICT sector

Output 1.3 Accurate and reliable critical and scarce skills database developed and reviewed annually

– Increase the number of WSPs and ATRs submitted through the mobilisation of employers in the sector

– Work closely with employers to ensure the submission of quality WSPs that clearly articulate the scarce skills and critical skills needs.

– Simplify the “skills development landscape” language used in the SETA and make it more accessible to employers in the sector

Output 1.4 Systems and processes for the monitoring of funded skills development are reviewed and strengthened

– An effective programme evaluation system linked to the SMS put in place.

– A programme of baseline studies and impact evaluations is developed and agreed for the period of NSDSIII.

– Checks and balances as well as a system of early warning signals are put in place for monitoring training provision

– A comprehensive report is produced on the outcomes and impact of MICT SETA funded training during the period of NSDSIII.

Output 1.5 Impact studies and evaluations conducted to understand the impact of the learning programmes in the sector

– Impact evaluations of MICT SETA funded programmes conducted– Tracer studies conducted on employed and unemployed learners

who participated in MICT SETA funded learnership, internship and other programmes

– Value for money assessments conducted on funded incubation programmes and ISOEs

– Analysis of unfunded learnerships conducted



Strategic Outcome Oriented Goal 2 Research and innovation capacity within the MICT sector enhanced

Goal Statement Research supported, and working relations established with institutions at the forefront of research and innovation to facilitate access for employers in the MICT sector

The MICT sector is firmly located within the National System of Innovation, which comprises the higher education institutions (HEIs), science councils such as the CSIR as well as small and large businesses. Research and Development has become the significant contributor of competitiveness and innovation globally as evidenced in the Global Competitiveness Index and the Global Innovation Index. Countries that feature prominently in these indices tend to invest significantly in research and development and have matured national systems of innovation. Commercialisation of research has been identified as an area of weakness in South Africa and innovation in the ICT and electronics sub-sectors could enhance the country’s competitiveness.

Output 2.1 Expanded access to research and innovation opportunities– Identify innovation support programmes and funding opportunities

available for employers in the MICT sector– Promote innovation in the MICT sector through mainstreaming of

innovation and funding incentives available to organisations in the sector

– Provide information and support to employers in the sector about innovation and research incentives provided by government

Output 2.2 Collaborative partnerships with university faculties and other flagship research projects linked to MICT sector development

– Facilitate partnerships between businesses in the sector and university faculties to advance innovation

– Work with institutions like the NRF, Technology Innovation Agency and the CSIR involved in the development of new technologies to support skills development around such technologies

– Support research and development efforts into free open source (FOSS) software for use in government

Output 2.3 Expanded production of high-level skills and support of post‐graduate programmes.

– Provide research grants to postgraduate researchers involved in sector specific research

– Work with relevant government departments on projects and priorities that are of national importance such of programmes linked with the Strategic Integrated Projects (SIPs) and IPAP related programmes and support skills development

– Facilitate postgraduate student access to employers in the forefront of innovation in the MICT sector.


Strategic Outcome Oriented Goal 3 Increased access to quality occupationally directed learning programmes within the MICT sector

Goal Statement Collaborative partnerships with respective public and private service providers established to ensure accessible workplace‐based training

The MICT sector has public and private sector organisations with varying skills development needs and priorities. There is a need to promote internship and learnership learning programmes through partnerships with employers across all sub-sectors. The sector is blessed with member organisations that are spread across all corners of the country. Although the SETA has limited resources to fund training for every employer, there needs to be expanded access to workplaces that can be used as training spaces, especially in rural areas. There are a number of organisations that are either located in the sector or outside the sector whose involvement will enable improvement of skills development efforts and provision of further opportunities for skills development in the MICT sector. Working with such institutions will require MICT SETA to streamline its processes and systems so that much could be achieved.

Given the technological intensity of the MICT sector, there is an increasing need for mid- to higher-level skills in the sector. That means MICT SETA had to maintain a balance between providing mid and high level learning opportunities and its transformative mandate of improving computer literacy in the country through providing basic computer skills.

Output 3.1 Increased uptake of qualitative learning programmes that address industry skills needs

– Simplify and improve the processes for registering Learnerships, applying for Discretionary Grants, and the accreditation processes

– Encourage FETs to train learners on MICT SETA accredited qualifications and facilitate the process where there is need.

– Develop new qualification based on needs identified, e.g. management level 6 qualification

– Supporting experiential learning opportunities and providing more funding for employers to host learners in scarce skills occupations

– PIVOTAL and discretionary grants made available to support experiential learning opportunities

– Workplace learning and experience monitored and improved to enhance competence

Output 3.2 Programmes that produce competent and work-ready learners and graduates by 2016

– Recruit an increased number of learners into programmes, increase graduate throughput and support their successful completion of these programmes.

– Unemployed graduates identified and placed for experiential learning


opportunities in scarce skills occupations– Workplace training and experience placement opportunities

identified in each sub-sector including work integrated learning opportunities for public FET and HET institutions

– Work-readiness programmes for new entrants into the sector– Facilitation of increased collaboration between industry and HET

institutions, to align curricula to industry needs

Output 3.3 Partnerships with government departments, state owned enterprises and agencies to turn the public service into a training space

– Identify opportunities and place unemployed youth from rural areas requiring experiential learning in government IT departments

– Contribute to the DoC’s programmes through the provision of skills development support as identified by industry and the DoC.

– Support efforts identified in the IPAP in respect of electronics, film & electronic media and telecommunications

– Provide skills development support for government’s priority projects like the Solar Parks and the Square Kilometre Array

– Partner with government institutions and PSETA to sponsor MICT learning programmes across the public service

– Co-operate with SOEs and strategic partners to develop skills for technicians in the MICT Sector.

Output 3.4 Learning opportunities for youth, disabled and unemployed graduates are opened up, especially in rural areas

– Retooling of unemployed youth and upgrading of graduates for scarce skills occupations in the MICT sector where there are high possibility of employment

– Partner with the National Youth Service and the National Youth Development Agency (NYDA) to access graduates and learners looking for opportunities but also to access MICT related opportunities for learners through the NYDA programmes

– Provision of bursaries for youth to access programmes in the scarce and critical skills occupations

– Encourage GET, FET and HET institutions to provide life skills that will enable the youth to be more employable

– Supporting people with disabilities to access scarce and critical skills occupations in the sector


Strategic Outcome Oriented Goal 4 Increased and improved capacity to meet workplace skills development needs.

Goal Statement Capacity for industry build to provide quality programmes that address specific workplace and broader sectoral skills gaps that have an impact.

The MICT sector is at the forefront of technological advancements and relies increasingly on the public and private sector education and training providers to constantly meet workplace skills development needs. These include FETs and HETs that are located in rural areas. This will have a long-term effect of making the South African population ICT literate, providing them with better access to employment opportunities. Working with institutions in rural areas will enable for better access to opportunities for those people who are located in areas that do not currently offer opportunities. The SETA will work closely with employers in the sector to ensure that whilst working with HETs and FETs, there are opportunities for work integrated learning that are being opened up. In this regard the SETA would explore various programmes including:

Output 4.1 Occupational qualifications to address skills needs developed and specialised learning programmes aligned with the NQF

– Support the consolidation of relevant SETA-based learnerships into single occupation-specific programmes, with provision for sectoral and other specialisation fields, for scarce skills occupations.

– Identify curriculum innovations and inform the HET and FET sector of ways to make their qualifications relevant for the economy

– Upgrade the capacity of relevant colleges, including lecturer development and curriculum design in qualifications that lead to employment opportunities.

– Align vendor specific training programmes that address scarce skills to the NQF

Output 4.2 Partnerships established with education and training providers– Work with public FET and HET institutions to ensure that they provide

training in technology and computer skills so that all learners graduate being computer literate

– Encourage public private partnerships between established and specialised private education and training providers and public FET colleges in rural areas

– Capacity build for FET Colleges, private providers and employers to deliver on MICT programmes

– Workplace exposure for FET lecturers facilitated within the MICT sector

Output 4.3 Education and training providers offering programmes relevant to the MICT sector supported

– Provide sufficient support to public and private education and training providers to offer quality programmes that address scarce and critical skills in the sector

– Work with the DBE, HETs and FETs to support the development of curriculum on entrepreneurship in the education and training system

– Support to FET institutions through Train-the-Trainer programmes so


that lecturers are able to facilitate and assess accredited programmes– Encourage formal educational institutions and training providers to

include strong workplace experience components into educational institution qualifications.

– Encourage institutions of learning to achieve a sufficient balance of technical / theoretical knowledge with practical application to ensure readiness for technical roles in the MICT Sector

Output 4.4 Employers are supported to ensure that their workplaces are conducive for learning

– Develop and maintain a database of skilled, knowledgeable candidates in the MICT sector who are able to provide mentoring and coaching to young graduates

– Provide mentoring training for employers engaged in experiential learning

Strategic Outcome Oriented Goal 5 Increased alignment with national developmental imperatives and the development of SMMEs, Unions, Co-ops and NGOs within the MICT sector.

Goal Statement SMMEs, Unions and community-based organisations’ skills needs are identified and addressed through relevant programmes and partnership funding.

The SMMEs have been identified as the bedrock of development and future creators of employment. There is an increased need to support small businesses through targeted skills development programmes that take into account their unique needs. Incubation is an integral part of supporting small businesses and enabling them to grow, be sustainable and create employment. The MICT SETA will work with ISOEs, Incubators and Training providers with expertise in supporting businesses in the MICT sector. In addition, the MICT SETA will provide support to trade unions, CBOs, Co-ops and NGOs that operate within the MICT sector.

In relation to national developmental imperatives, government is in the process of investing hundreds of billions in the strategic infrastructure projects (SIPs). These initiatives are going to provide an environment conducive to learning and experiential learning. There will be a need to ensure a coordinated inter-Seta collaboration to address the SIPs opportunities as well as to deal with other cross-sectoral challenges. There are three strategic integrated projects that have a direct impact on the sector, and which MICT SETA has to support in terms of skills development.

Each province and region in the country has its unique growth and development strategy and MICT SETA will identify areas of need where skills development interventions could be


supported to enable the much-needed growth. In order to achieve growth, skills development should not only benefit organisations located in main centres, even though this is where most employers are located.

Output 5.1 Strategic Integrated Projects supported through skills development– Identify skills needs of the Square Kilometre Array project (SIP 16) and

work with the Department of Science and Technology and other partners in support of the development of such scarce skills

– Research the skills development implications of providing 100% broadband coverage (SIP 15) to all households in South Africa by 2020 and work with Broadband Infraco and other stakeholders to ensure sufficient planning and delivery of skills

– Analyse the implications for infrastructure development for higher education (SIP 14), especially around expanded ICT connectivity and support efforts to develop requisite skills

Output 5.2 Training and support for SMEs, Unions and NGOs on their skills development needs

– Increase rural presence and development of existing small businesses in the MICT sector through incubation and business development programmes

– Facilitate access for SMMEs to development programmes offered by government agencies like SEDA, SEFA, NEF and the IDC

– Engage with Productivity SA to support businesses in the MICT sector with process improvement so that this coupled with skills development interventions could enable their growth and creation of employment

Output 5.3 New ventures supported within the MICT sector and their impact measured by 2016

– Work with incubators such as Bandwidth Barn, SmartXchange, the Innovation Hub, and JCSE to develop small businesses in the MICT sector into sustainable businesses

– Identify ways of developing new venture creation programmes that are not just training based but which are supported by government agencies like SEDA, SEFA, NEF and the IDC

– Encourage development of more ISOEs.– Supporting the existing co-ops in the sector through targeted and

relevant skills development interventions to grow and create employment opportunities

– Conduct impact evaluations on programmes supportedOutput 5.4 Regional economic development supported

– Conduct research and identify areas requiring MICT related skills development interventions in all provincial growth and development strategies and work with the provincial governments to support programmes in MICT related growth areas

– Provide information to the provincial governments and skills development fora on skills development interventions in the MICT sector


Strategic Outcome Oriented Goal 6 Accessible career and vocational guidance within the MICT sector

Goal Statement Career guides developed and distributed with labour market information to attract talent to the sector and promote comprehensive MICT career development.

The MICT sector operates in a fast paced environment with constant technological advancements. It is one of the growing sectors across the world. As the world becomes more globalised, there is constant pressure for countries to be competitive. Access to correct information at the right time is of utmost importance. For South Africa to be competitive, it must train learners to be prepared for careers that will enable them to be employed.

Output 6.1 Information about careers in the MICT sector shared extensively– Develop a career guidance book that addresses various market

segments: school going children making subject choices, scholars making study choices, students making career choices, adults considering career changes.

– Produce and distribute the Career Opportunities Guide annually to school going children so that they are aware of occupations that have potential for employment

– Inform FET and HET institutions and learners of skills demands via Career Opportunities Guides

– Host career fairs (in collaboration with companies in the industry) to provide career development and vocational guidance information, especially in rural areas

5.3 Conclusion

The MICT sector is a dynamic sector with potential for further growth. Being at the forefront of technological changes and advancement is crucial amongst employers and stakeholders in the sector. This together with keeping up to date with international trends in advertising as well as in film and electronic media has some serious skills development implications. As the use of technology and mechanisation becomes prevalent this too has skills development implications. The BBBEE imperatives of the country require that meaningful transformation take place in the economy and skills development is an important pillar in that regard. Mainstreaming of computer skills, especially end user computing will continue to be relevant, especially amongst people with low-level skills. As various programmes expressed in policies and guidelines of government start to be implemented in the medium term, there will be a need to address the skills requirements that emerge from such programmes. This SSP endeavours to address all these issues and will be an important contributor towards achieving inclusive growth in the MICT sector.


Chapter 6 Monitoring and Evaluation Framework

The following framework seeks to guide the implementation of the strategic goals in the sector. It is aimed at helping to

Outcomes Outputs Activities Indicators Measure (Quantitative) Measure (Qualitative)

Strategic Outcome Oriented Goal 1: Credible mechanism for skills planning and impact evaluation established within the MICT sector.

Coordinated research by MICT SETA to guide activities that will enhance employers’ capacity to plan and report through WSPs and ATRs is built and results in credible and accurate Sector Skills Plan

1.1 Established SETA Management System (SMS) that enable WSPs and ATRs that are credible and professionally developed, and reviewed annually

Capacitation of the research function to build labour market analysis, forecasting and trends analysis skills to take advantage of the SMS

– The Sector Skills Planning Division is fully staffed

– Frequency of forecasts and trends analysis conducted

– Better use of information from the SMS and integration with external economic data

Encourage better use of information management tools in the SMS so that data can be turned into information and information turned into intelligence about the MICT sector

– Management decision making enhanced

– Number of periodic analysis reports from the SMS

– Improved provision of insights drawn from the SMS

Simplify WSP and ATR forms, using clear and simple language to make them easy to complete, especially by smaller businesses

– Understanding of stakeholders on the completion of WSPs and ATRs

– % Increase in the number of WSPs and ATRs submitted

– Quality and usability of the data submitted in the WSPs and ATRs

1.2 Professionally researched and

Conduct periodic research in the economy to identify scarce, critical

– Research conducted– Scarce and critical

– Frequency of SSP updates

– Improvements in identification of



credible SSP that articulates an agreed-upon sector strategy and addresses sector skills needs developed and reviewed annually

skills and well as future skills required in the sector

Identify ways of understanding the current skills needs in the MICT sector, mortality rates and drivers of change in order to anticipate future skills needs

Provide grants for research projects and postgraduate research funding to enable more insights and knowledge about the MICT sector

skills periodically identified

– Skills needs of the sector sourced

– SSP produced and updated annually

scarce skills– Analysis of demand

1.3 Accurate and reliable critical and scarce skills database developed and reviewed annually.

Increase the number of WSPs and ATRs submitted through the mobilisation of employers in the sector

– Employers mobilised to submit WSPs

– Engagement with employers conducted

– Language made more accessible

– Forms for WSPs made easy

– Number of WSPs submitted

– % Increase in the number employers submitting

– Extent to which language plays a deterrent to submission

– Efficiency of methods of submitting WSPsWork closely with employers to

ensure the submission of quality WSPs that clearly articulate the scarce skills and critical skills needs.

Simplify the “skills development landscape” language used in the SETA and make it more accessible to employers in the sector

1.4 Systems and An effective programme evaluation – Programme – Number of baseline – Quality of baseline



processes for the monitoring of funded skills development are reviewed and strengthened

system linked to the SMS put in place.

evaluation system developed

– Baseline studies conducted

– Checks and balances agreed upon

– Reporting on outcomes of NSDS III conducted

studies conducted

– Number of impact evaluations conducted

– Number of times early warning signals identify programme risks

studies

– Extent of baseline studies

– Improvement in programmes based on evaluative data

– Performance of the SETA over the NSDS III period

A programme of baseline studies and impact evaluations is developed and agreed for the period of NSDSIII.

Checks and balances as well as a system of early warning signals are put in place for monitoring training provision

A comprehensive report is produced on the outcomes and impact of MICT SETA funded training during the period of NSDSIII.

1.8 Impact studies and evaluations conducted to understand the impact of learning programmes in the sector

Impact evaluations of MICT SETA funded programmes conducted

– Number of impact studies conducted

– Frequency of periodic studies conducted

– Number of assessments conducted

– Extent of use of evaluation results to inform future planning

– Improved information about the learners who participated in funded programmes

– Improved use of funds on skills development interventions

– Better use of

Tracer studies conducted on employed and unemployed learners who participated in MICT SETA funded learnership, internship and other programmes

Value for money assessments conducted on funded incubation programmes and ISOEs



information about labour demand and scarcity in the sector

Analysis of unfunded learnerships conducted

Strategic Outcome Oriented Goal 2: Research and innovation capacity within the MICT sector enhanced

Research supported and working relations established with institutions at the forefront of research and innovation to facilitate access for employers in the MICT sector

2.1 Expanded access to research and innovation opportunities

Identify innovation support programmes and funding opportunities available to employers in the MICT sector

– Innovation support programmes offered by government identified

– Funding opportunities for efficiencies and innovation identified

– Information about funding and innovation support programmes shared with employers

– Number of programmes identified

– Number of funding opportunities

– % of employers accessing innovation and funding

– Number of channels through which information is communicated

– For all these, the improvement in competitiveness as a result of innovation and other funding

Promote innovation in the MICT sector through mainstreaming of innovation and funding incentives available to organisations in the sector

Provide information and support to employers in the sector about innovation and research incentives provided by government

2.2 Collaborative partnerships with university faculties and other flagship research projects linked to MICT

Facilitate partnerships between businesses in the sector and university faculties to advance innovation

– Partnerships facilitated between businesses and universities

– Partnerships established with NRF, Technology

– Number of partnerships facilitated

– Number of partnerships established between employers and universities

–

– Extent of objectives of partnerships being met

– Competitiveness in the sector

– Extent of Free Open Source success in SA

Work with institutions like the NRF, Technology Innovation Agency and the CSIR involved in the



sector development

development of new technologies to support skills development around such technologies

Innovation Agency and the CSIR

– R&D into free open source supported

Support research and development efforts into free open source (FOSS) software for use in government

2.3 Expanded production of high-level skills and support of post‐graduate programmes

Provide research grants to postgraduate researchers involved in sector specific research

– Research grants awarded

– Engage with key government departments and agencies conducted

– Access to employers for postgraduate students facilitated

– Number of research grants awarded

– Number of engagements held with government departments

– Number of postgraduate students accessing opportunities

– Extent of production of high level skills

– Effectiveness of research grants

Work with relevant government departments on projects and priorities that are of national importance such as programmes linked with the Strategic Integrated Projects (SIPs) and IPAP related programmes and support skills development

Facilitate postgraduate student access to employers in the forefront of innovation in the MICT sector.

Strategic Outcome Oriented Goal 3: Increased access to quality occupationally directed learning programmes within the MICT sector.

Collaborative partnerships with respective

3.1 Increased uptake of qualitative learning

Simplify and improve the processes for registering Learnerships, applying for Discretionary Grants, and the

– Process for registering learnerships

– Turnaround time for registering a learnership

– Extent to which improvements lead to take up



public and private service providers established to ensure accessible workplace‐based training

programmes that address industry skills needs

accreditation processes simplified– Process for applying

for discretionary grants streamlined

– FET colleges accredited to offer MICT SETA qualifications

– New qualifications developed

– Experiential learning opportunities supported

– Turnaround time for processing a discretionary grant application

– Number of FET colleges offering MICT programmes

– Number of new qualifications developed

– Number of experiential learning opportunities opened up

– Improvements in learnership registration

– Effectiveness of funded programmes

Encourage FETs to train learners on MICT SETA accredited qualifications and facilitate the process where there is need

Develop new qualification based on needs identified, e.g. management level 6 qualification

Support experiential learning opportunities and provide more funding for employers to host learners in scarce skills occupations

PIVOTAL and discretionary grants made available to support experiential learning opportunities

3.2 Programmes that produce competent and work-ready learners and graduates by 2016.

Recruit an increased number of learners into programmes, increase graduate throughput and support their successful completion of these programmes.

– Learners recruited– Unemployed

graduates placed for experiential learning

– Opportunities for learning identified

– Work readiness programmes

– Number of learners recruited

– Number of unemployed graduates on experiential learning

– Number of opportunities for learning identified

– Employability of learners and graduates

– Extent of experiential learning

– Extent to which industry needs are met by curricula

Unemployed graduates identified and placed for experiential learning opportunities in scarce skills



occupations developed– Curricula aligned to

employer needs

– Number of learners partaking in work readiness programmes

– Number of collaborations between providers and employers around curriculum

Workplace training and experience placement opportunities identified in each sub-sector including work integrated learning opportunities for public FET and HET graduates

Work-readiness programmes for new entrants into the sector

Facilitation of increased collaboration between industry and HET institutions, to align curricula to industry needs

3.3 Partnerships with government departments, state owned enterprises and agencies to turn the public service into a training space

Identify opportunities and place unemployed youth from rural areas requiring experiential learning in government IT departments

– Opportunities for learning in government department and agencies identified

– Opportunities for learning in government funded programmes

– Number of unemployed youths placed

– Extent of improvement in the government programmes

– Employability of the youthContribute to the DoC’s programmes

through the provision of skills development support as identified by industry and the DoC.



identified– Skills development

support provided to government programmes

Support efforts identified in the IPAP in respect of electronics, Film & Electronic Media and telecommunications

Provide skills development support for government’s priority projects like the Solar Parks and the Square Kilometre Array

Partner with government institutions and PSeta to sponsor MICT learning programmes across the public service

Co-operate with SOEs and strategic partners to develop skills for technicians in the MICT Sector.

3.4 Learning opportunities for youth, disabled and unemployed graduates are opened up, especially in rural areas

Retooling of unemployed youth and upgrading of graduates for scarce skills occupations in the MICT sector where there is a high possibility of employment

– Unemployed youths retooled into scarce skills areas

– Partnership with the NYDA concluded

– Bursaries allocated to the youth and people with disabilities

– Number of unemployed graduates retooled

– Number of youths accessed from NYDA database accessing opportunities

– Number of bursaries allocated to the youth

– % of youth awarded

– Employment patterns for retooled youth

– Employability of youths accessed from the NYDA

Partner with the National Youth Service and the National Youth Development Agency (NYDA) to access graduates and learners



looking for opportunities but also to access MICT related opportunities for learners through the NYDA programmes

– Engagement with HETs, FETs and GETs around life skills

– Learning opportunities opened up for people with disabilities

bursaries coming from rural areas

– % of people accessing learning opportunities living with a disability

Provision of bursaries for youth to access programmes in the scarce and critical skills occupations

Encourage GET, FET and HET institutions to provide life skills that will enable the youth to be more employable

Supporting people with disabilities to access scarce and critical skills occupations in the sector

Strategic Outcome Oriented Goal 4: Increased and improved capacity to meet workplace skills development needs

Capacity for industry built to provide quality programmes that address specific workplace and broader

4.1 Occupational qualifications to address skills needs developed and specialised learning programmes aligned with the NQF

Support the consolidation of relevant SETA-based learnerships into single occupation-specific programmes, with provision for sectoral and other specialisation fields, for scarce skills occupations

– Learnerships consolidated into occupation specific programmes

– Research conducted around curriculum innovation

– Engagement with FETs and HETs held

– Number of learnerships consolidated

– Number of engagements conducted with FETs and HEIs

– Number of FET colleges capacitated

– Number of vendor

– Efficiency of learnership programmes

– Improvement in qualifications due to curriculum innovations

– Performance of supported FET

Identify curriculum innovations and inform the HET and FET sector of ways to make their qualifications



sectoral skills gaps that have an impact

relevant for the economy – Capacitation of FET colleges conducted

– Vendor programmes aligned to the NQF

– Capacity for open source programs built

programmes aligned with the NQF

– Number of providers offering training in Open Source

colleges– Extent of coverage of

open sourceUpgrade the capacity of relevant colleges, including lecturer development and curriculum design in occupational qualifications that lead to employment opportunities.

Align vendor specific training programmes that address scarce skills to the NQF

Build capacity for open source training amongst public and private providers

4.2 Partnerships established with education and training providers

Work with public FET and HET institutions to ensure that they provide training in technology and computer skills so that all learners graduate being computer literate

– Engagements with public FETs and HETs conducted

– PPPs encouraged and establishment supported

– Providers supported with accreditation

– Workplace exposure for FET lecturers facilitated within the MICT sector

– Number of public FETs and HETs offering meaningful ICT training

– Number of PPPs formed

– Number of providers supported with accreditation

– Number of FET lecturers gaining workplace exposure

– Quality of ICT training offered

– Success and improvement in provision as a result of PPPs

– Extent of coverage of MICT programmes by providers

– Quality of teaching and facilitation by FET

Encourage public private partnerships between established and specialised private education and training providers and public FET colleges in rural areas

Capacity built for FET Colleges, private providers and employers to



deliver on MICT programmes lecturers

Facilitate workplace exposure for FET college lecturers

4.3 Education and training providers offering programmes relevant to the MICT sector supported

Provide sufficient support to public and private education and training providers to offer quality programmes that address scarce and critical skills in the sector

– Private and public providers of education and training supported

– Entrepreneurship curriculum developed

– Partnerships formed between FETs and private providers

– FETs supported to facilitate accredited programmes

– Learners placed with employers for experiential learning

– Number of providers supported

– Number of partnerships formed

– Number of FET college lecturers supported

– Number of FETs offering accredited programmes

– Number of learners enrolled on accredited programmes through FET colleges

– Throughput rates of FET colleges supported

– Improvement in training on scarce and critical skills

– Quality of learning provided in supported FETs

– Efficiency of training conducted

Work with the DBE, HETs and FETs to support the development of curriculum on entrepreneurship in the education and training system

Support to FET institutions through Train-the-Trainer programmes so that lecturers are able to facilitate and assess accredited programmes

Encourage formal educational institutions and training providers to include strong workplace experience components into educational institution qualifications.

Encourage institutions of learning to achieve a sufficient balance of technical / theoretical knowledge



with practical application to ensure readiness for technical roles in the MICT Sector

4.4 Employers are supported to ensure that their workplaces are conducive to learning

Develop and maintain a database of skilled, knowledgeable candidates in the MICT sector who are able to provide mentoring and coaching to young graduates

– Database of mentors and coaches developed

– Mentoring training provided

– Barriers for learning in the workplace identified

– Number of mentors and coaches identified and listed

– Number of new mentors and coaches trained

– Quality of mentorship and coaching taking place

– Efficiency of coaching and mentoring in the workplace

– Extent of removal of learning barriers

Provide mentoring training for employers engaged in experiential learning

Strategic Outcome Oriented Goal 5: Increased alignment with national developmental imperatives and the development of SMMEs, Unions, Co-ops and NGOs within the MICT sector.

SMMEs, Unions and community-based organisations’ skills needs are identified and addressed through relevant programmes

5.1 Strategic Integrated Projects supported through skills development

Identify skills needs of the Square Kilometre Array project (SIP 16) and work with the Department of Science and Technology and other partners in support of the development of such scarce skills

– Skills needs for SIP 16 identified

– Skills development implications for SIP 15 researched

– ICT Skills needs implications for SIP 14 identified

– Number of learners placed on the SKA programmes to gain experiential learning

– Number of occupations identified as requiring attention

– Research results made available

– Quality of research data

– Extent of requirements gathered

– Improvement in decision making as a result of informationResearch the skills development

implications of providing 100% broadband coverage (SIP 15) to all households in South Africa by 2020 and work with Broadband Infraco



and partnership funding

and other stakeholders to ensure sufficient planning and delivery of skills

Analyse the implications for infrastructure development for higher education (SIP 14), especially around expanded ICT connectivity and support efforts to develop requisite skills

5.2 Training and support for SMEs, Unions and NGOs on their skills development needs

Increase rural presence and development of existing small businesses in the MICT sector through incubation and business development programmes

– Existing small businesses in the sector provided with skills development support

– Small businesses in rural areas supported

– Access to developmental agencies by small businesses facilitated

– Process improvement interventions facilitated

– Number of small businesses supported

– % of small businesses from rural areas

– Number of targeted referrals to developmental agencies

– Number of referrals to Productivity SA

– Sustainability and improvement of businesses supported

– Process efficiencies of businesses supported

Facilitate access for SMMEs to development programmes offered by government agencies like SEDA, SEFA, NEF and the IDC

Engage with Productivity SA to support businesses in the MICT sector with process improvement so that this coupled with skills development interventions could enable their growth and creation of employment



5.3 New ventures supported within the MICT sector and their impact measured by 2016

Work with incubators such as Bandwidth Barn, SmartXchange, the Innovation Hub, and JCSE to develop small businesses in the MICT sector into sustainable businesses

– Small businesses incubated through partnerships with various incubators

– New Venture Creation programmes upgraded

– ISOEs developed across the sector

– Co-ops in the sector supported to enable growth

– Impact studies conducted on programmes supported

– Number of businesses incubated

– Number of learners enrolled on upgraded NVC programmes

– Number of ISOEs developed

– Number of Co-ops supported

– Number and frequency of impact studies conducted

– The extent of success and sustainability of the incubated businesses

– Success and sustainability of businesses as a result of NVC

– Quality of output of ISOEs

– Impact of programmes on the sector understood

Identify ways of developing new venture creation programmes that are not just training based but which are supported by government agencies like SEDA, SEFA, NEF and the IDC

Encourage development of more ISOEs

Supporting the existing co-ops in the sector through targeted and relevant skills development interventions to grow and create employment opportunities

Conduct impact evaluations on programmes supported

5.4 Regional economic development supported

Conduct research and identify areas requiring MICT related skills development interventions in all provincial growth and development

– Research conducted in regions to identify need areas

– Number of research reports produced

– The extent to which information shared was useful for the regional stakeholders



strategies and work with the provincial governments to support programmes in MICT related growth areas

– Need areas identified through research

– Skills development information shared with skills provincial and local forums

– Number of provincial and local skills development forums attended

Provide information to the provincial governments and skills development fora on skills development interventions in the MICT sector

Strategic Outcome Oriented Goal 6: Accessible career and vocational guidance within the MICT sector

Career guides developed and distributed with labour market information to attract talent to the sector and promote comprehensive MICT career development

6.1 Information about careers in the MICT sector shared extensively

Develop a career guidance book that addresses various market segments: school going children making subject choices, scholars making study choices, students making career choices, adults considering career changes

Improvement amongst learners in knowledge of scarce skills and learning pathways in the sector

– Number of channels in which the guide is available

– Number of guides distributed to schools

– Number of career fairs hosted

– Number of learners reached

– % fairs held in rural areas

– Effectiveness and accessibility of the career guidance material used

– Extent of knowledge about careers in the sector

Produce and distribute the Career Opportunities Guide annually to school going children so that they are aware of occupations that have potential for employment

Inform FET and HET institutions and learners of skills demands via Career Opportunities Guides



Host career fairs (in collaboration with companies in the industry) to provide career development and vocational guidance information, especially in rural areas


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