1. SITA ICT SMME’s Development Strategy
By: Sydney Tshibubudze, Chief Procurement Officer
26 March 2015 1

2. SMME Development Background
Agenda
SMME Development Background 1
The Key Drivers of SMME’s Development 2
SITA SMME Development Approach 3
SITA SMME Development Strategy 4
SITA SMME Development Opportunities 5
SITA SMME Target/Actual Performance 6

3. SMME Development Background
South Africa’s small-, micro- and medium-sized enterprise (SMME) economy has been actively promoted since 1995.
SMMEs are a vital contributor to the health of the economy by boosting productivity, increase competition and innovation, create employment and prosperity, and revitalize communities.
The New Growth Path (NGP) articulates the need to achieve a common vision to work together to achieve a goal of creating 5 million jobs by 2020.
Information and Communication Technology (ICT) provides a platform for an economy to unlock new economic opportunities for growth and development.

4. The Key Drivers of SMME’s Development
Engagement in Entrepreneurial upliftment
Contribute to the sustainability of Small Local Enterprises
Increasing SMME’s operational capacity & efficiency
Enhancing SMME’s management capabilities
Increasing SMME’s technology development capabilities
Enables SMME’s financial sustainability

5. SITA SMME Development Approach1
Grow SMME’s by enabling new entrants; introduce new opportunities for growth and reduce barriers to entry 2
Defend SMME’s by supporting existing SMME; locking in opportunities for growth and collaborating with market players to support current SMME’s for new projects 3
Develop SMME’s for new markets/trends by skilling for the future (e.g. e-gov services etc) and recognizing excellence

6. SITA SMME Development Strategy (1/2)
Objective
Developmental Strategy
Early Payment
Improve supplier financial sustainability through improved cash flow by providing early payment from invoice.
Mentoring and Training
Provide supplier mentoring in area such as technology and business management.
Conduct tender process information sharing forum e.g. SMME Supplier Day
Establishing SMME’s Help Desk to provide instant assistance.
OEM Partnering
Provide platform for SMME’s to partner with hardware and software OEM’s to provide support, maintenance and logistics services.
Research & Technology Solution
Provide platform for SMME’s to participate in research with academic institution and development of new technological solutions to address South African related socio-economic challenges in line with Government priorities.

7. SITA SMME Development Strategy (2/2)
Objective
Developmental Strategy
Proactive Tender Engagement
Create a database of all registered ICT SMME’s per category and proactive alert them of available tender opportunities to participate.
Join-Venture Platform
Develop sourcing strategies that requires large ICT entities to form Join-Ventures with SMME’s when delivery ICT implementation projects.
Local Manufacturing Support
Develop policy and sourcing framework that support buying of existing local brand as brand specific procurement.
Foreign Player Elimination
Develop policy and sourcing framework to eliminate foreign suppliers to participate in biding when there is sufficient competition by local suppliers.

8. SITA SMME Development Opportunities (1/2)
Objective
Developmental Opportunities
Early Payment
7 Day payment from invoice.
Mentoring and Training
Supplier day for tender information sharing
Technology and business management mentoring/training
SMME Help Desk
OEM Partnering
Computer & Mobile Devices
Computer Peripherals
Servers & Storage
Racks and Blades
Research & Technology Solution
E-Government Services
ICT Security Technologies
Mobile App
Softwares

9. SITA SMME Development Opportunities (2/2)
Objective
Developmental Opportunities
Proactive Tender Engagement
Proactive tender notification platform.
Classified SMME Database
Join-Venture Platform
Government Connectivity
Network and Cabling installations
Lan and desktop
Local Manufacturing Support
? “under analysis”
Foreign Player Elimination
? “under analysis”

10. SITA SMME Target/Actual Performance
% of total SITA procurement spend through SMME’s
30% ?
20% ?
15% ?
12% ? 7% 5%
2014/15
2015/16
2016/17
2017/18
2018/19

11. Grow
Defend
Develop
Thank You