1. 1 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Department of Communications 2006/07 Annual Report Presentation to Portfolio Committee on Communications 6 November 2007 Cape Town

2. APOLOGIES  Ms. Lyndall Shope-Mafole Director General  Ms. Rosey SekeseDeputy Director-General: ICT Infrastructure Development  Leading the South African Delegation, made up of DOC, DFA, ICASA, DST, DOT, DOD,SAPS, Aeronautical Services, Marine Services and industry to the ITU World Radiocommunication Conference (WRC) in Geneva.  The WRC is a treaty conference whose decisions are binding globally  The Conference is held once every three or four years and decides on the use of the frequency spectrum globally. 2 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development TEAM DOC LEADERSHIP CORE Gerda GräbeActing DG Harry MathabatheDDG: Finance & ICT Enterprise Development Keith ShongweDDG: ICT International Affairs & Trade Norman MunzheleleActing DDG: ICT Policy Development Harold WessoActing CEO: Meraka e-skills Institute Basani BaloyiCD: Human Resources Management Sibongile MakopiCD: Shareholder Management Botlenyana MokheleCD: 2010 Broadcasting 3

4. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development MANDATE AND FUNCTIONS MANDATE : To create a favourable ICT environment that ensures South Africa has capacity to advance its socio-economic development goals, support the renewal of Africa and build a better world. CORE FUNCTIONS:  To develop ICT policies and legislation that stimulates and enhances the sustainable economic development of the South African economy and positively impact on the social well being of all our people  To ensure the existence of a robust, reliable and affordable ICT infrastructure  To ensure the availability of appropriate ICT infrastructure and services to increase the capacity of the State to deliver and exercise oversight on State Owned Enterprises (SOE’s)  To implement South Africa’s foreign policy in the context of the ICT sector 4

5. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 5 VISION A global leader in harnessing Information Communication Technologies for Socio-economic development MISSION To enhance the well being of the peoples of South Africa, the African continent and the world through the creation of a sustainable and enabling Information Communication Technology environment.

6. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 6 STRATEGIC FOCUS AREAS The Department’s key objectives were grouped under the following broad strategic focus areas, based on Government priorities:  Achieve higher rates of investment in the economy  Increase the competitiveness of the economy  Broaden participation in the economy  Contribute to building a better world  Contribute to the capacity of the State to deliver

7. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  Broadcasting Digital Migration: Flagship project of DoC – with numerous benefits for the country  Specialised television services  Increased local content  More regional content of national interest  Additional local language content  New channels to cater for education, health, youth, sport, SMMEs  Access to government services and information (e-government)  Broadcasting Digital Migration Strategy and the Implementation Plan were finalised  Cabinet approved 1 November 2008 as the digital signal switch- on and 1 November 2011 as the analogue signal switch off date, providing for three dual illumination period. ACHIEVE HIGHER RATES OF INVESTMENT IN THE ECONOMY 7

8. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  Policy directives for new and upgraded post offices were gazetted  The following policy directives aimed to reduce the cost to communicate were finalised:  International terrestrial and submarine cable  Robust, reliable and affordable international connectivity  Increasing competition through conversion of VANS licenses  Access to emergency communications  Frequency spectrum  Procedures and criteria for awarding radio frequency spectrum licenses  Underserviced area licenses  Local loop unbundling process  World Space INCREASE THE COMPETITIVENESS OF THE ECONOMY 8

9. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  National Emergency Communications  PPP document as well as PPP feasibility study have been completed with regards to the 112 Emergency Call Center BROADEN PARTICIPATION IN THE ECONOMY 9

10. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development AFRICA  The Policy and Regulatory Framework for NEPAD ICT Broadband Infrastructure Network for Eastern and Southern Africa signed - the first and largest of its kind in the world  NEPAD e-school demo project finalised and ready for its launching in six schools in 2007  The SA/Sudan Joint Bilateral Commission was launched in May 2006 in Pretoria SOUTH-SOUTH COOPERATION  The IBSA Framework of Co-operation was signed making it the first and most comprehensive in the IBSA trilateral. CONTRIBUTE TO A BETTER WORLD 10

11. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development MULTILATERAL  RSA participated in ITU Plenipotentiary Conference and elected to the ITU Council for fourth time in a row  South Africa participated in the ITU Regional Radio- communication Conference, elected chair and expert of the planning Committee for region one (Europe and Africa)  South Africa was elected to Chair the African Support Committee to provide support for Kenya in the 2008 Congress  As part of World Summit on the Information Society (WSIS) follow-up, organised and hosted the Information Ethics Conference CONTRIBUTE TO A BETTER WORLD (cont) 11

12. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  The Postal Service Amendment Bill was passed in Parliament and signed into law by the President Following recommendations for the licensing by ICASA, more USALS were licensed.  The Postal Regulator Staff was successfully transferred to ICASA in line with the ICASA Amendment Act and the Labour Relations Act.  Unqualified Audit opinion for the 5th consecutive year and for the first time without any matters of emphasis  Improved spending patterns with total spend being 99,8% of the total budget  Completed a risk assessment - the basis for the completion of a new Fraud Prevention Plan and Risk Management Plan IMPROVE CAPACITY OF THE STATE TO DELIVER 12

13.  326 of the 394 funded positions on the departmental structure were filled  31 SMS, 16 MMS and 2 ASD completed the Leadership and Management Development Programme with University of Pretoria Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development IMPROVE CAPACITY OF THE STATE TO DELIVER (cont.) 13

14. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development IMPROVE CAPACITY OF THE STATE TO DELIVER (cont.)  Employment Equity Statistics  All staff  SMS members  People with disabilities MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite 1036718149 (46%) 187 326 MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite 2155822 (34%) 21165 MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite 100111004 (1.2%) 14

15. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development PRESIDENTIAL NATIONAL COMMISSION ON INFORMATION SOCIETY AND DEVELOPMENT (PNC on ISAD) 15

16. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In line with the World Summit on the Information Society (WSIS) Plan of Action and the Presidential International Advisory Council on Information Society and Development (PIAC on ISAD) recommendation, a National Information Society and Development (ISAD) Plan was developed with the National Working Group (NWG)  NWG was made up of representatives of Directors-General of National Departments, provinces and SALGA.  Cabinet approved the ISAD Plan as a framework for building an inclusive information society in SA  Cabinet also approved, contained in the ISAD Plan, the country’s vision for building an inclusive information society in SA as; ‘ Establish South Africa as an advanced information society in which ICTs tools and Information are key drivers of economic and societal development’ Planning and Foresight 16

17. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  To ensure a coordinated and integrated implementation of the ISAD Plan, Cabinet also approved the Institutional Mechanisms  The Ministerial ISAD Committee  To be chaired by the Presidency  Supported by the Forum of South African Directors-General ( FOSAD) ISAD Cluster  The ISAD Intergovernmental Relation Forum (ISAD IGRF)  The ISAD IGR F was launched in December 2006  Chaired by the Minister of Communications with the Minister of Public Service and Administration as the first Deputy Chairperson and Deputy Minister of Communications as the second Deputy Chairperson.  The Forum has two MECs per province (nominated by the Premiers) as well as the CEO of the House of Traditional Leaders Coordination and Integration 17

18. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In line with the government-wide monitoring programme, a strategic framework for measuring the impact of ICTs on South Africa’s development was finalized  A National Working Committee, consisting of relevant stakeholders, developed an Information Society core indicators  Consultation on the development of a measuring tool started to measure the uptake and usage of Information and Communication Technology  The e-Barometer measurement tool, in line with the WSIS ICT Opportunity Index, is aimed at measuring the magnitude of the digital divide in the country Evaluation and Impact Assessment 18

19. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  In implementing the National ISAD Plan, decided to target youth sector with the aim of contributing towards addressing poverty and unemployment among youth.  In collaboration with the National Youth Commission and Umsobomvu Youth Fund, the PNC developed the Youth ISAD Programme.  The Youth ISAD Programme was adopted, with a vision aligned to the national vision as: “To empower youth to be active participants in the building of an inclusive Information Society and contributing towards bettering the lives of all our people”  460 youth were identified from all nine provinces to be trained and to establish e-cooperatives Special Projects 19

20. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development  To ensure that the PNC effective stakeholder management, multi-stakeholder engagement strategy and its implementation plan were finalized  In line with government priorities, Nodal Points were targeted with the aim profiling them to inform Information Society interventions to be initiated  Working closely with the Technical Champions in these nodes, a work study visit to twelve of the thirteen nodal areas were undertaken to introduce the work of the PNC on ISAD and to source first hand information on the challenges the nodes face  The launch ISAD IGR F further gave great impetus to the efforts of building an inclusive Information Society especially at provincial and local government spheres of government. Intergovernmental Relations 20

21. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Budget vs Actual Performance for the 2006/07 Financial Year 21

22. STATEMENT OF FINANCIAL PERFORMANCE REVENUE 2006/072005/06 R’000 Annual appropriation1 322 3061,031,683 Departmental revenue3 442 0253,178,882 Local and foreign aid assistance -1,000 Total Revenue4 764 3314,211,565 Current expenditure Compensation of employees99 00888,362 Goods and Services197 191175,464 Financial transactions in assets & liabilities 8 410105 Local and foreign aid assistance 5964 Total current expenditure304 668263,995 22 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

23. FINANCIAL PERFORMANCE (CONT.) 2006/072005/06 R’000 Transfers and subsidies1 006 505754 607 Expenditure for capital assets Machinery and equipment8 3118 844 Software & other intangible assets1722 621 Local and foreign aid assistance-108 Total expenditure for capital assets 8 48311 573 Total Expenditure1 319 6561 030 175 Sub total3 441 9663 181 390 Transferred/surrendered to National Treasury 3 439 2573 179 710 Balance2,7091,680 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 23

24. SUMMARY OF ECONOMIC CLASSIFICATION 2006/07 2005/06 Economic Classification Final Appropriation Actual Expenditure VarianceFinal Appropriation Actual Expenditure Current payments 306 990304 6092 381265 490263 931 Transfers and subsidies 1 006 6711 006 505166754 698754 607 Payments for capital assets 8 6458 48316211 49511 465 TOTAL 1 322 306 1 319 579 2 709 1 031 683 1 030 003 Local and foreign aid assistance 59172 GRAND TOTAL 1 322 306 1 319 656 2 709 1 031 683 1 030 175 24 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25. 25 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

26. APPROPRIATION STATEMENT 2006/072005/06 Programme Final Appropriation Actual Expenditure Variance Expenditure as % of final appropriation Final Appropria- tion Actual Expenditure 1. Administration111917109 9371 98098.2%88 95388 430 2. Strategic Policy Coordination and Integration 45 49245 4662699.9%47 32647 166 3. Policy Development 71 64071 43620499.7%69 01768 692 4. Finance and Shareholder Management 53 49753 48314100%31 628 4.1 Transfers and Subsidies 958 365958 32837703 367 26 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

27. APPROPRIATION STATEMENT (cont) 2006/072005/06 Programme Final Appropria- tion Actual Expenditure Variance Expendi- ture as % of final appropria- tion Final Appropria- tion Actual Expenditure 5. Innovative Applications and Research 57 79457 59819699.7%68 33268 311 6. Presidential National Commission 23 60123 34925298.9%23 06022 409 Total 1 322 306 1 319 597 2 709 99,8% 1 031 683 1 030 003 Local and foreign aid assistance * 59172 Grand Total 1 319 656 1 030 175 * Expenditure incurred on donor funding 27 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

28. DETAILS OF TRANSFER PAYMENTS Adjusted Appropriation 2006/07 R’000 Actual Transfer R’000 Adjusted Appropriation 2005/06 R’000 USA20 100 17 500 USF31 164 29 400 ICASA201 538 150 489 NEMISA19 199 18 163 SAPO Subsidy351 439 300 000 Sentech100 000 7 700 SABC: Public Broadcaster203 482 150 455 SABC: Channel Africa31 393 29 616 28 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

29. DETAILS OF TRANSFER PAYMENTS (CONT.) Adjusted Appropriation 2006/07 R’000 Actual Transfer R’000 Adjusted Appropriation 2005/06 SABC: Programme Production29 02627 79431 000 SABC: Community Radio Stations 10 87010 74610 255.za Domain Name Authority1 500 Meraka Institute4 000 7 000 Sector Education and Training Authority: ISETT-SETA 100 - International Telecommunications Union- SA/ITU/UPU joint project 1 439 - NEPAD2 000 - 29 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

30. FUNDING REQUIREMENTS FOR THE 2008 MTEF: OPEX Policy Priority2008/09 R’000 2009/10 R’000 2010/11 R’000 Sentech: Digital Terrestrial Migration 152 100224 800263 800 Meraka Institute97 021146 946224 147 ICASA95 84586 15673 596 Funding for personnel15 00017 46418 900 TOTAL359 966475 366580 443 30 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

31. FUNDING REQUIREMENTS FOR THE 2008 MTEF: CAPEX 2008/09 R’000 2009/10 R’000 2010/11 R’000 Sentech: Broadcasting Digital Migration 262 700231 400250 900 Sentech: NWBN665 9581 077 411296 927 ICASA90 09726 50010 000 TOTAL1 018 7551 335 311557 827 31 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

32. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development HOWEVER… Challenges remain in the following areas:  ICT infrastructure (especially broadband)  Access and accessibility  Availability  High cost to communicate – although it is coming down  Low level of ICT usage by Government, business and citizens  Scarce ICT skills and low e -literacy  Limited local content development capacity 32

33. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development CONCLUSION We started addressing these challenges:  Policy directives  ISAD Plan implementation and skills development  Establishment of the Meraka e-skills institute  Established a chief directorate to deal with local content development  Local content has been prioritised as part of the Industrial Policy Action Plan  Initial allocation of R0,5 billion for Sentech’s wireless broadband network  Accelerated infrastructure development in preparation for 2010 FIFA World Cup 33

34. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development THANK YOU 34