A target of 30% black ownership has been set by South Africa’s information, communications and technology sector (ICT), according to a draft ICT sector empowerment charter released on Thursday.
The charter steering committee said the charter is expected to be implemented in the second half of this year.
The steering committee chairperson, Joe Mjwara, noted that in the light of sub-sector meetings that will be held between April 18 and 20, the final ICT charter could differ extensively from the final draft released on Thursday.
He added that the charter will be concluded after the sub-sector meetings and before the end of April.
Mjwara — who took over from advocate Dali Mpofu when Mpofu’s working group handed over the charter process to the new committee — acknowledged that the drafting process has been protracted, and ascribed the latest snags to the Department of Trade and Industry’s codes of good practice on black economic empowerment (BEE).
The committee said it is currently circulating the final draft to industry players and expects this to help it solicit oral presentations during the sub-sector meetings.
Furthermore, the Mjwara-led team proposes that at least 60% of management positions in the sector should be held by black people, of which half should be held by black women.
The team said in the case of enterprises, where the government does not own an entire stake, the target is 30% of that component of shareholding that is not state-held. If the value of the total empowerment holding exceeds R7,5-billion, then the company shall be deemed compliant on the equity front.
In line with the fourth draft released in 2004, the final draft also addresses enterprise development, preferential procurement, skills development and employment equity. — I-Net Bridge