The South African government-owned State Information Technology Agency’s (Sita) net profit after tax for the period ended March this year jumped by 69% to R59,303-million from R35,085-million reported previously, Sita CEO Mavuso Msimang said on Friday.
Revenue grew by 14,5% to R2,636-billion, while profit from operations surged from R29,239-million in 2004 to R72,483-million. No dividend was declared to the sole shareholder — the state, represented by Minister of Public Administration Geraldine Fraser-Moleketi.
Although net profit increased by 69%, it was still below the R82-million recorded in 2003 and the trend was attributed to a cut in tariffs as well as extra expenditure that include research and development.
During the financial year, the IT firm continued with “Tswelopele”, a restructuring process that also entailed voluntary severance packages. To date, the exercise has reduced staff numbers by 13% from 3 000 about 18 months ago, Msimang said.
“With the completion of the organisational restructuring, there are clear signs of employee reassurance and buy-in into the programme of transforming the organisation. Our assessment is that by the end-of-the-year strategic-plan period, the organisation will have achieved performance levels, efficiencies and the cost-effective delivery that will render it a proud ICT [information and communications technology] agency,” he added.
Outgoing chairperson Zodwa Manase mentioned that the firm is also participating in South-South and continent ICT-related projects in which the government is involved.
To this effect, agreements have been signed with Brazil, China, the Democratic Republic of Congo (DRC) and India — a technologically advanced country.
“We are getting to know what China and India can do for South Africa because they are more advanced than us. South Africa is also collaborating with Brazil, especially on open-source software. The South must find solutions to its problems and as such we’ll work together in these areas,” Fraser-Moleketi said.
Manase said the agency is mainly playing a procurement role in the DRC and other parts of Africa. She added that the organisation will follow the government and assist wherever it is required. Such partnerships are also in line with the aims of Commonwealth and the New Partnership for Africa’s Development’s e-Commission.
Looking ahead, Msimang said in 2006 Sita will improve service delivery, address the costing and pricing model that he conceded is sometimes expensive, and finalise a convergence strategy that will assist the government on the convergence front.
Thenjiwe Chikane will replace Manase, who steps down to become a non-executive member of the Sita board. — I-Net Bridge