The Media, Information and
Communication Technologies
Sector Education and Training
Authority
Sector Skills Plan
2014–2019
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
MICT SETA Sector Skills Plan for 2014-2019
2
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 subsector 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.
MICT SETA Sector Skills Plan for 2014-2019
3
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.
MICT SETA Sector Skills Plan for 2014-2019
4
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.
MICT SETA Sector Skills Plan for 2014-2019
5
Table of Contents
Foreword .............................................................................................................. 2
Synopsis of the Sector Skills Plan ........................................................................... 3
List of Tables ......................................................................................................... 7
List of Figures ........................................................................................................ 8
Acronyms ............................................................................................................. 9
Chapter 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
Introduction ............................................................................................................. 12
The MICT sector industry landscape ....................................................................... 12
Caveats .................................................................................................................... 14
Size and shape of the five sub-sectors .................................................................... 15
Distribution of Employers by Province .................................................................... 16
Levy Paying Employers ............................................................................................ 16
The importance of the sector in relation to the wider economy ............................ 18
Employment in the MICT sector .............................................................................. 24
Stakeholders in the MICT sector ............................................................................. 36
Chapter 2
2.1
2.2
2.3
2.4
2.5
Supply of Skills ............................................................................... 85
Introduction ............................................................................................................. 85
Supply of Skills into the MICT Sector ....................................................................... 85
Training Conducted in the Sector ............................................................................ 91
Summary.................................................................................................................. 92
Chapter 5
5.1
5.2
5.3
Demand and Supply of Skills ........................................................... 74
Introduction ............................................................................................................. 74
Labour Demand ....................................................................................................... 74
Scarce Skills demand ............................................................................................... 74
Approach to identifying scarce and critical skills .................................................... 75
Overview of scarce skills .......................................................................................... 77
Overview of critical skills ......................................................................................... 82
Chapter 4
4.1
4.2
4.3
4.4
Sector Analysis ............................................................................... 42
Introduction, scope and methodology .................................................................... 42
Economic performance and outlook ....................................................................... 42
Factors impacting economic growth and development in the sector .................... 57
Summary Scenario analysis ..................................................................................... 71
Conclusion and key strategic issues ........................................................................ 72
Chapter 3
3.1
3.2
3.3
3.4
3.5
3.6
Sector Profile .................................................................................. 12
MICT Sector Strategy ...................................................................... 93
SSP and the Strategic Plan and Annual Performance Plan ...................................... 93
Strategic goals ......................................................................................................... 94
Conclusion ............................................................................................................. 102
Chapter 6
Monitoring and Evaluation Framework ..........................................103
References .........................................................................................................119
MICT SETA Sector Skills Plan for 2014-2019
6
List of Tables
Table 1: The MICT SETA SIC Code List .............................................................................................13
Table 2: Aggregated Standard Industry Classification for MICT Sector ..........................................14
Table 3: The MICT Sector Number of Employers per Sub Sector ...................................................15
Table 4: The MICT Sector Size of Employers per Sub Sector ..........................................................15
Table 5: Provincial Spread of Employers .........................................................................................16
Table 6: Number of Levy-Contributing Companies .........................................................................17
Table 7: Number of Companies in the MICT Sector by Size of Company .......................................18
Table 9: Number of employers submitting WSPs ...........................................................................30
Table 10: Modelling output of the number of employees in the sector ........................................30
Table 11: Number of Employees by OFO Sub Major and Sub-sector .............................................34
Table 12: Major Group by Gender ..................................................................................................35
Table 13: Major Group by Race ......................................................................................................35
Table 14: Macroeconomic Forecast for the South African Economy .............................................43
Table 15: Advertising in South Africa ..............................................................................................45
Table 15: Forecast for South African Advertising ...........................................................................46
Table 16: Ten Largest Contributors to Global Advertising Spend Growth between 2010 and 2013
(US$ million, current prices) ...........................................................................................................46
Table 18: Forecast for South African Film and Electronic Media Market .......................................47
Table 20: Electronics Sector in South Africa ...................................................................................50
Table 21: South Africa It Industry - Historical Data & Forecasts .....................................................52
Table 22: Information Technology Sector in South Africa ..............................................................52
Table 23: Telecoms Sector - Mobile - Historical Data and Forecasts ..............................................53
Table 24: Fixed Line Telecommunications SWOT ...........................................................................54
Table 25: Mobile Telecommunications ...........................................................................................55
Table 26: Estimation of Advertising Scarce Skills Need ..................................................................77
Table 27: Estimation of Film and Electronic Media Scarce Skills Need ...........................................78
Table 28: Estimation of Electronics Scarce Skills Need ...................................................................79
Table 29: Estimation of Information Technology Scarce Skills Need ..............................................79
Table 30: Estimation of Telecommunications Scarce Skills Need ...................................................81
Table 31: Estimation of Advertising Critical Skills ...........................................................................82
Table 32: Estimation of Film and Electronic Media Critical Skills....................................................82
Table 33: Estimation of Electronics Critical Skills ............................................................................83
Table 34: Estimation of Information Technology Critical Skills .......................................................83
Table 35: Estimation of Telecommunications Critical Skills ............................................................84
Table 36: Results of the National Senior Certificate .......................................................................86
Table 37: The MICT SETA Qualifications, and Number of Accredited Training Providers ..............89
Table 38: The MICT SETA Qualifications and Number of Registered Assessors .............................90
Table 39: Training conducted based on ATR submissions ..............................................................92
MICT SETA Sector Skills Plan for 2014-2019
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List of Figures
Figure 1: Levy paying employers in the MICT Sector ......................................................................17
Figure 2: Regional Mobile Penetration (LHS), Key Telecoms Indicators (RHS), 2012 .....................24
Figure 3: Employment Trends in Business Services ........................................................................25
Figure 4: Employment trends in the economic sector consisting of the Film & Electronic Medis
sub-sector .......................................................................................................................................25
Figure 5: Employment trends in the economic sector consisting of the Electronics sub-sector ....26
Figure 6: Employment Trends in the Communications Sector .......................................................27
Figure 7: Number of Employees by Sub-sector, 2009 to 2013 .......................................................28
Figure 8: Number of Employees from employers submitting WSPs by Sub-sector in 2013 ...........29
Figure 9: Race Distribution of Employees .......................................................................................31
Figure 10: Gender Distribution of Employees .................................................................................32
Figure 11: Number of People with Disability Employed per MICT Sub-sector................................32
Figure 12: Employee Breakdown by Age ........................................................................................33
Figure 13: Employee Breakdown by Major Group ..........................................................................34
Figure 14: SA GDP Forecast and Total Employment .......................................................................43
Figure 15: South Africa Unemployment..........................................................................................44
Figure 16: Forecast for South African Electronics Market ..............................................................49
Figure 17: Enrolments by Registered Qualifications (NQF) ............................................................91
MICT SETA Sector Skills Plan for 2014-2019
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Acronyms
Abbreviation
ABET
ACA
ASGISA
ATR
BBBEE
BEE
BER
BITF
BPO
BRIC
CAGR
CEPD
DBE
CRASA
CSIR
CSSA
CV
CWU
DoC
DHET
DoL
DTI
DTT
DVB-T
EASSy
EE
EIF
ETQA
FET
F.I.L.M.
FOSS
GDP
HEMIS
HET
HIV/AIDS
HRD
Description
Adult Basic Education and Training
Association for Communication and Advertising
Accelerated and Shared Growth Initiative for South Africa
Annual Training Report
Broad-Based Black Economic Empowerment
Black Economic Empowerment
Bureau for Economic Research
Black Information Technology Forum
Business Process Outsourcing
Brazil, Russia, India and China
Compound Annual Growth Rate
Centre of Education Policy Development
Department of Basic Education
Communication Regulators' Association of Southern Africa
Council for Scientific and Industrial Research
Computer Society South Africa
Curriculum Vitae
Communication Workers Union
The Department of Communications
The Department of Higher Education and Training
The Department of Labour
Department of Trade and Industry
Digital Terrestrial Television
Digital Video Broadcasting - Terrestrial
Eastern Africa Submarine Cable System
Employment Equity
Electronics Industry Federation
Education and Training Quality Assurance
Further Education and Training (Institution)
Film Industry Learner Mentorship
Free and Open-Source Software
Gross Domestic Product
Higher Education Management Information System
Higher Education and Training (Institution)
Human Immune Virus / Acquired Immune Deficiency Syndrome
Human Resource Development
MICT SETA Sector Skills Plan for 2014-2019
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Abbreviation
HRDSSA
HSRC
ICASA
ICT
ILO
IPAP
ISOE
IT
ITA
ITAC
JCSE
JIPSA
KPA
M&E
MDDA
MICT
MTN
MTSF
NAB
NAIRU
NEPAD
NEMISA
NGO
NIPF
NQF
NSA
NSDS
NSF
OECD
OFO
OGS
PC
PDI
QCTO
SAAF
SABC
SAPO
SAQA
SARB
SDF
SDL
Description
Human Resource Development Strategy of South Africa
Human Sciences Research Council
Independent Communications Authority of South Africa
Information and Communications Technology
International Labour Organisation
Industrial Policy Action Plan
Institute of Sectoral Occupational Excellence
Information Technology
The Information Technology Association
Information Technology Acquisition Centre
Joburg Centre for Software Engineering
Joint Implementation Project of South Africa
Key Performance Area
Monitoring and Evaluation
Media Development and Diversity Agency
Media and Information Communication Technologies
Mobile Telephone Networks
Medium Term Strategic Framework
National Association of Broadcasters
Non-Accelerating-Inflation Rate of Unemployment
New Partnership for Africa's Development
National Electronic Media Institute of South Africa
Non-Governmental Organisation
National Industrial Policy Framework
National Qualifications Framework
National Skills Agency
National Skills Development Strategies
National Skills Fund
Organisation for Economic Co-operation and Development
Organising Framework for Occupations
On-line Grant System (the MICT SETA system for electronic capturing of
WSP and ATR data)
Personal Computer
Previously Disadvantaged Individual
Quality Council for Trades and Occupations
South African Advertising Research Foundation
South African Broadcasting Corporation
South African Post Office
South African Qualifications Authority
South Africa Reserve Bank
Skills Development Facilitator
Skills Development Levy
MICT SETA Sector Skills Plan for 2014-2019
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Abbreviation
SETA
SIC
SIP
SITA
SME
SMMEs
SSP
StatsSA
STB
USAASA
USD
WITSA
WSP
Description
Sector Education Training Authority
Standard Industrial Classification
Strategic Integrated Partnership
State Information Technology Agency
Small and Micro Enterprises (less than 50 employees in the MICT Seta’s
context)
Small, Medium and Micro Enterprises (less than 150 employees in the
MICT Seta’s context)
Sector Skills Plan
Statistics South Africa
Set Top Box
Universal Services and Access Agency of South Africa
United States Dollar
World Information Technology and Services Alliance
Workplace Skills Plan
MICT SETA Sector Skills Plan for 2014-2019
11
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.
MICT SETA Sector Skills Plan for 2014-2019
12
Table 1: The MICT SETA SIC Code List
Sub-Sector
SICCode
Description
Advertising
88310
Advertising
88311
Activities of Advertising Agents
88313
Commercial Design
96110
Motion Picture and Video Production and Distribution
96112
Related Activities - Film and Tape Renting To Other Industries, Booking, Delivery and Storage
96113
Film and Video Reproduction
96123
Bioscope Cafes
96132
Production and Broadcast of Radio and Television Broadcast Content
96200
News Agency Activities
88940
Photographic Activities
35791
Manufacture of Alarm Systems
75216
Security Systems Services except Locksmiths
75217
Office Automation, Office Machinery and Equipment Rental Leasing including Installation and
Maintenance
86004
Electronic and Precision Equipment Repair and Maintenance Computer Maintenance and Repairs
86010
Consumer Electronics Repair and Maintenance
86013
Other Electronic and Precision Equipment Repair and Maintenance
86014
Repair and Maintenance of Electronic Marine Equipment
87142
Research and Development of Electronic Equipment and Systems
87143
Import and Product Integration of Pre-Manufactured Electronic It and Telecommunications
Equipment
87146
Research and Development In The Physical and Engineering Sciences
87147
Electronics Importation and Product Integration of Pre-Manufactured Electronics It and
Telecommunications Equipment
96133
Installation, Maintenance and Repair of Tracking Devices For Cars
86001
Software Publishers Prepacked Software
86002
Computer Systems Design and Related Services Computer Integrated Design
86003
Computer Facilities Management Services
86005
Computer Rental and Leasing
86006
Computer Programming Services
86007
Other Computer Related Activities
86008
Call Centre Systems Development and Installations Activities Call Centre and Customer
Relationship Management System Development
86009
Computer System Design Services and Integrated Solutions
86011
Computer and Office Machine Repair, Maintenance and Support Services
75200
Telecommunication
75201
Wired Telecommunication Carriers Telegraph
75202
Television Broadcasting, Television and Radio Signal Distribution Television and Radio Signal
Distribution
75203
Cable Networks and Programme Distribution Cable TV Services
75204
Telephone
75205
Wireless Telecommunication Carriers except Satellite Radiotelephone
75209
Television Broadcasting
75211
Telecommunications and Wired Telecommunication Carriers
75212
Paging
75213
Cellular and Other Wireless Telecommunications
75214
Satellite Telecommunications
75215
Other Telecommunications
86012
Communication Equipment Repair and Maintenance
87148
Telecommunications Importation and Product Integration of Pre-Manufactured Electronics It and
Telecommunications Equipment
96131
Providing Radio and Television Transmission Signals
Film and
Electronic
Media
Electronics
Information
Technology
Telecommunic
ations
Source: Government Notice, No. 33756, Government Gazette, 11th November 2010
MICT SETA Sector Skills Plan for 2014-2019
13
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 Sector
Industry
Sub Industry
Sub-Sector
3 Manufacturing
361-366....Electrical machinery & apparatus
–
Electronics
7..Transport, storage & communication
8..Finance, insurance, real estate &
business services
9..Community, social & personal
services
Source: Stats SA
75....Communication
83-88....Business services
–
–
–
–
Telecommunications
Advertising
Information Technology
Film and Electronic Media
93-96.... Other services
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
MICT SETA Sector Skills Plan for 2014-2019
14
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 Sector
Sub-Sector
Total
Advertising
Film and Electronic Media
Electronics
Information Technology
Telecommunications
Unknown
2,303
2,151
2,469
9,398
1,228
1,963
19,515
Total
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 Sector
Sub-Sector
0-49
50-149
150+
Total
Advertising
Film and Electronic Media
Electronics
Information Technology
Telecommunications
2252
2072
2304
8961
1112
40
38
98
297
72
11
41
67
140
44
2303
2151
2469
9398
1228
Unknown
1936
18640
17
562
10
313
1963
19515
Total
Source: 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
MICT SETA Sector Skills Plan for 2014-2019
15
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 Employers
Province
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
(blank)
Grand Total
0-49
374
354
7189
1493
110
302
137
63
1432
7186
18640
50-149
150+
10
3
398
29
3
5
2
Total
1
1
218
15
2
112
1
75
562
313
385
358
7805
1537
113
309
139
64
1619
7186
19515
Source: The MICT SETA OGS, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
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Table 6: Number of Levy-Contributing Companies1
Sub-sector
Levy Payers
2010/11
Levy Payers
2011/12
Levy Payers
2012/13
356
211
458
1 750
417
3 192
436
277
529
1 989
514
3 745
453
306
554
2128
425
3 866
Advertising
Film and Electronic Media
Electronics
Information Technology
Telecommunications
Grand Total
Growth in No
Of Companies
2012/13
4%
10%
5%
7%
-17%
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
2011
2012
2013
2500
2000
1500
1000
500
0
Advertising
Film and Electronic
Media
Electronics
Information
Technology
Telecommunications
2011
356
211
458
1750
417
2012
436
277
529
1989
514
2013
453
306
554
2128
425
Source: The MICT SETA OGS, 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 levypaying 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
MICT SETA Sector Skills Plan for 2014-2019
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Table 7: Number of Companies in the MICT Sector by Size of Company
Company Size
Large(150+Employees)
Medium(50-149Employees)
Small(1-49Employees)
Grand Total
No of
Companies
2011
160
344
2 688
3 192
Source: MICT SETA OGS
No of
Companies
2012
159
367
3 219
3 745
No of
Companies
2013
174
329
3363
3866
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 subsectors 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.
MICT SETA Sector Skills Plan for 2014-2019
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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
MICT SETA Sector Skills Plan for 2014-2019
19
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.
MICT SETA Sector Skills Plan for 2014-2019
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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, ebooks (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
MICT SETA Sector Skills Plan for 2014-2019
21
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
MICT SETA Sector Skills Plan for 2014-2019
22
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
4
Business Monitor International, 2013
http://www.southafrica.info/business/economy/sectors/icte-overview.htm#.UoXWZqXspfM
MICT SETA Sector Skills Plan for 2014-2019
23
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-tomedium 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
MICT SETA Sector Skills Plan for 2014-2019
24
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
Business Services
SIC [83 - 88]
2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Employment 1364223 1440774 1509877 1460859 1583719 1710789 1783353 1715723 1675867 1720010 1733119
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
Other Services
SIC [94 - 96]
80000
70000
60000
50000
40000
30000
20000
10000
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Employment 59840
56781
66321
65890
64234
62768
65522
69464
69499
69966
70849
Source: Quantec Easy Data, 2013
MICT SETA Sector Skills Plan for 2014-2019
25
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
Electrical Machinery and Apparatus
SIC [361-366]
42000
41000
40000
39000
38000
37000
36000
35000
34000
33000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Employment 39622 37702 37670 39074 39977 40311 41009 37935 36241 38906 39565
Source: Quantec Easy Data, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
26
Figure 6: Employment Trends in the Communications Sector
Communication
SIC [75]
125000
120000
115000
110000
105000
100000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Employment 106910 109410 108265 107807 107869 107946 114479 119525 120669 115285 118651
Source: Quantec Easy Data, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
27
Figure 7: Number of Employees by Sub-sector, 2009 to 2013
2009
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2010
2011
2012
2013
Advertising
Film and Electronic
Media
Electronics
Information
Technology
Telecommunications
2009
11181
12888
26337
76452
52475
2010
11020
10849
28122
77981
52880
2011
9046
12608
27197
79611
53125
2012
12055
12835
26889
86554
54699
2013
7647
13038
20895
66489
46016
Source: The MICT SETA OGS
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 subsector 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
MICT SETA Sector Skills Plan for 2014-2019
28
Figure 8: Number of Employees from employers submitting WSPs by Sub-sector in 2013
70000
60000
50000
40000
30000
20000
10000
0
Employment
Advertising
Electronic
Media and Film
Electronics
Information
Technology
Telecommunica
tions
7647
13038
20883
66489
46016
Source: The MICT SETA OGS, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
29
Table 8: Number of employers submitting WSPs
Sub-Sector
0-49
50-149
150+
Total
Advertising
70
40
11
121
Electronic Media and Film
49
15
13
77
Electronics
108
51
37
196
Information Technology
421
155
80
656
Telecommunications
81
38
30
149
Unknown
35
4
6
49
764
303
177
1248
Grand Total
Source: The MICT SETA OGS, 2013
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
Total
Advertising
Electronic Media and Film
Electronics
Information Technology
Telecommunications
Unknown
3074
1905
4891
19099
4567
1691
3404
2989
14306
39480
10661
892
2754
17728
34629
115995
141519
20172
9232
22621
53827
174575
156747
22755
Grand Total
35226
71732
332797
439756
Source: The MICT SETA OGS, 2013
MICT SETA Sector Skills Plan for 2014-2019
30
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
African
Coloured
Indian
White
35000
30000
25000
20000
15000
10000
5000
0
Advertising
Film and Electronic
Media and
Electronics
Information
Technology
Telecommunications
African
2600
8091
6581
21446
19660
Coloured
882
1338
2277
6534
6245
Indian
571
642
2169
6490
5954
White
3594
2967
9868
32019
14157
Source: The MICT SETA OGS
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.
MICT SETA Sector Skills Plan for 2014-2019
31
Figure 10: Gender Distribution of Employees
Male
Female
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
Advertising
Film and Electronic
Media and
Electronics
Information
Technology
Telecommunication
s
Male
3222
7031
14099
41972
29833
Female
4425
6007
6796
24517
16183
Source: The MICT SETA OGS, 2013
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
African
Coloured
Indian
White
250
200
150
100
50
0
Advertising
Film and Electronic
Media and
Electronics
Information
Technology
Telecommunications
African
16
92
66
176
84
Coloured
2
17
18
32
42
Indian
0
8
14
24
52
White
18
45
60
157
205
Source: The MICT SETA OGS
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.
MICT SETA Sector Skills Plan for 2014-2019
32
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
Under35
Age35To55
AgeOver55
40000
35000
30000
25000
20000
15000
10000
5000
0
Advertising
Film and Electronic
Media and
Electronics
Information
Technology
Telecommunicatio
ns
Under35
3965
Age35To55
3237
7202
8887
33860
17991
5079
10325
28627
25912
AgeOver55
445
757
1671
4002
2113
Source: The MICT SETA OGS, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
33
Figure 13: Employee Breakdown by Major Group
8 Elementary Occupations
7 Plant and Machine Operators and Assemblers
6 Skilled Agricultural, Forestry, Fishery, Craft And Related
Trades Workers
5 Service and Sales Workers
4 Clerical Support workers
3 Technicians and Associate Professionals
2 Professionals
1 Managers
0
10000 20000 30000 40000 50000 60000 70000
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 subsectors, 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-sector
Major OFO Group
Advertising
Electronic
Media and
Film
Electronics
Information
Technology
Telecommuni
cations
Total
1 Managers
1531
1316
3265
9864
8024
25543
2 Professionals
3219
4386
6220
29354
13699
60482
3 Technicians and Associate
Professionals
4 Clerical Support workers
963
2675
4579
10486
4586
24315
1075
3208
3273
10216
6715
25736
5 Service and Sales Workers
200
268
569
1963
2470
5795
6 Skilled Agricultural, Forestry,
Fishery, Craft And Related Trades
Workers
7 Plant and Machine Operators
and Assemblers
8 Elementary Occupations
206
298
1457
1549
9389
13270
229
228
798
782
623
2744
Total
224
659
722
2275
510
4737
7647
13038
20883
66489
46016
162622
Source: The MICT SETA OGS, 2013
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
MICT SETA Sector Skills Plan for 2014-2019
34
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
8462
2 Professionals
41052
19430
3 Technicians and Associate Professionals
15541
8774
4 Clerical Support workers
9059
16677
5 Service and Sales Workers
2735
3060
6 Skilled Agricultural, Forestry, Fishery, Craft And Related
Trades Workers
7 Plant and Machine Operators and Assemblers
11350
1920
2183
573
8 Elementary Occupations
2808
1929
Source: The MICT SETA OGS, 2013
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
15653
2 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
6 Skilled Agricultural, Forestry, Fishery, Craft And
Related Trades Workers
7 Plant and Machine Operators and Assemblers
6688
1936
921
3725
1873
529
190
164
8 Elementary Occupations
3872
471
57
337
Total
61120
18602
16666
66246
Source: The MICT SETA OGS, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
35
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 Departments
Department 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.
Advertising
Advertising 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
MICT SETA Sector Skills Plan for 2014-2019
36
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 Media
Association 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)
The FPB is a statutory body whose role is to regulate the media sector through
MICT SETA Sector Skills Plan for 2014-2019
37
Film and Electronic Media
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
MICT SETA Sector Skills Plan for 2014-2019
38
–
Film and Electronic Media
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 Technology
Black 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)
MICT SETA Sector Skills Plan for 2014-2019
39
Information and Communication Technology
The 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.
MICT SETA Sector Skills Plan for 2014-2019
40
Information and Communication Technology
Technology Innovation Agency (TIA)
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)
MICT SETA Sector Skills Plan for 2014-2019
41
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
MICT SETA Sector Skills Plan for 2014-2019
42
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 change
Forecast
2011/12
2012/13
Real GDP growth
2.7
3.0
GDP inflation
5.9
7.0
Headline CPI inflation
5.7
5.9
GDP at current prices(R billion)
2 996
3 301
2013/14
3.8
5.7
5.3
3 622
2014/15
4.3
5.8
4.9
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 2 009
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
GDP (Constant 2005 Prices)
Total Employment (000)
3000.0
18000
16000
2500.0
14000
2000.0
12000
10000
1500.0
8000
1000.0
6000
4000
500.0
2000
.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
GDP (Constant 2005 Prices) 1427.3 1492.3 1571.1 1659.1 1751.2 1814.6 1786.9 1842.1 1905.7 1954.3 1999.4 2049.7 2111.8 2178.2 2249.7 2322.6 2395.1 2466.6 2540.2 2616.0
Total Employment (000)
11812 12044 12769 13419 13467 13867 13455 13061 13265 13351 13680 13932 14155 14376 14616 14803 14999 15205 15520 15752
Source: BMI. SARB, 2013
MICT SETA Sector Skills Plan for 2014-2019
43
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.
MICT SETA Sector Skills Plan for 2014-2019
44
Table 14: Advertising in South Africa
Strengths
•
•
•
•
International competitiveness
Strong performance
Infrastructure
Technical skills
Growth sector
Strong institutions
Quality standards being maintained
•
•
•
Opportunities
•
•
•
•
•
•
•
Rapid technological advances
Internet advertising
Mobile technology advertising
Gateway to Africa
New technology
Public service advertising
Untapped audiences
Weaknesses
•
•
•
•
•
•
Skills gaps
Print losing traction
Co-ordination
International and domestic intelligence
Financing
Market access
Threats
•
•
•
•
•
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
MICT SETA Sector Skills Plan for 2014-2019
45
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%.
Spend by
segment in(R
millions)
Television
% change
Radio
Table 15: Forecast for South African Advertising
2012
2013
2014
2011
9 014
9 968
4.7
10.6
10 776
11 888
2015
12 654
8.1
10.3
6.4
3 650
3 925
4 230
7.4
7.5
7.8
912
1 264
1 643
2 058
3 200
3 400
% change
6
6.3
Internet
661
2011–
15CAGR
(%)
8
7
% change
Newspapers
36.9
7 940
38
8 372
38.6
9 020
30
9 837
25.3
10 738
% change
Consumer
Magazine
4
2 211
5.4
2 392
7.7
2 598
9.1
2 821
9.2
3 041
7.1
% change
2.5
8.2
8.6
8.6
7.8
7.1
23 026
25 044
27 308
30 114
32 721
68.5
70.4
65.5
56.5
Total
% change
54.1
33.6
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
1.USA
2.China
3.Russia
4.Brazil
5.Indonesia
6.India
7.UK
8.SouthAfrica
9.Australia
10.Germany
Ad Spend growth
13,804
13,005
6,068
3,521
2,768
2,639
1,868
1,797
1,719
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
MICT SETA Sector Skills Plan for 2014-2019
46
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 everchanging 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 Market
Spend by segment
(R millions)
2011
2012
2013
2014
Filmed entertainment
3 004
3 158
3 319
3 454
% change
4.7
5.1
5.1
4.1
Television
21 569
24 285
26 507
28 944
% change
11.6
12.6
9.1
9.2
Radio
3 647
3 8500
4 106
4 384
% change
5.4
5.6
6.6
6.8
Internet
15 721
20 775
25 999
31 610
% change
26.0
32.1
25.1
21.6
Sport
11 180
11 960
12 175
13 690
% change
-39.5
7.0
1.8
12.4
Total
55 121
98 678
72 106
82 082
% change
8.2
62.4
47.7
54.1
Sources: PriceWaterhouseCoopersLLP, Wilkofsky Gruen Associates
2015
3 574
3.5
30 920
6.8
4 694
7.1
37 743
19.4
13 635
-0.4
90 566
36.4
2011–15
CAGR
(%)
4.5
9.9
6.3
24.8
-5.9
39.6
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
MICT SETA Sector Skills Plan for 2014-2019
47
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 fastestgrowing 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
MICT SETA Sector Skills Plan for 2014-2019
48
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$12,833 by 2017.
Figure 16: Forecast for South African Electronics Market
Total Consumer Electronic Sales
(US$mn)
14000.0
12000.0
10000.0
8000.0
6000.0
4000.0
2000.0
.0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
SALES: US$mn 4949.82 5379.61 6131.63 6244.64 7554.02 8280.49 8959.55 9984.60 10289.21 11142.45 12161.64 13242.29
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
MICT SETA Sector Skills Plan for 2014-2019
49
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 Africa
Strengths
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 subSaharan 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.
MICT SETA Sector Skills Plan for 2014-2019
•
•
•
•
•
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.
50
Opportunities
Threats
•
•
•
•
•
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
7BMI, 2013
MICT SETA Sector Skills Plan for 2014-2019
51
continue to be launched. Private real investment is expected to report positive growth over
our forecast period through to 2017.
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 & Forecasts
2010
2011
2012
2013f
2014f
2015f
IT Market (ZARmn)
75,020 82,619 88,894 96,880 105,986 116,051
IT Market as % GDP
2.82
2.79
2.81
2.83
2.85
2.87
Hardware (Computer market
34,509 36,766 38,891 43,887 45,150
48,625
sales) (ZARmn)
Services (ZARmn)
27,007 30,569 33,113 34,392 40,275
44,680
Software (ZARmn)
13,504 15,285 16,890 18,601 20,561
22,746
PCs (including notebooks)
27,952 29,854 31,891 36,338 37,384
40,262
(ZARmn)
Servers (ZARmn)
3,106
3,309
3,500
3,950
4,064
4,376
Source: BMI, 2013
2016f
126,905
2.89
52,919
2017f
138,922
2.91
57,653
48,858
25,127
43,817
53,485
27,784
47,736
4,763
5,189
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-aService (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 Africa
Strengths
•
•
•
Largest market in Africa.
Regional hub as supply base for
neighbouring countries.
Free trade policies and tax incentives.
Weaknesses
•
•
•
•
MICT SETA Sector Skills Plan for 2014-2019
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.
52
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.
Source: BMI 2013
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.
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 Forecasts
2010
2011
2012
2013f
2014f
2015f
No. of mobile phone subscribers
52,864 60,276 68,351 73,477 76,857 79,355
('000)
No. of mobile phone
106.4
120.2
134.9
143.6
148.7
152
subscribers/100 inhabitants
No. of mobile phone
1,239
1,448
1,710
1,876
1,999
2,098
subscribers/100 fixed-line
subscribers
No. of 3G phone subscribers ('000)
9,935 13,500 20,000 24,000 26,532 28,898
3G market as % of entire mobile
18.8
22.4
29.3
32.7
34.5
36.4
market
Source: BMI, 2013
2016f
80,799
2017f
81,284
153.3
152.7
2,167
2,204
30,777
38.1
32,033
39
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
MICT SETA Sector Skills Plan for 2014-2019
53
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% yo-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
MICT SETA Sector Skills Plan for 2014-2019
54
Strengths
Weaknesses
Opportunities
dominant fixed-line operator; Telkom also
retains a dominant position in the ADSL
market.
Threats
• 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
Strengths
Weaknesses
•
•
•
•
8Price
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
•
•
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
Waterhouse Coopers, 2013
MICT SETA Sector Skills Plan for 2014-2019
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Strengths
Weaknesses
the network operators, and MTN
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.
Opportunities
Threats
•
•
•
•
•
•
•
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.
help liberalise the market; tariffs remain
high by international standards and the
government was also accused of hindering
rather than aiding telecoms policies.
•
•
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.
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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
The main factors CURRENTLY promoting the success and sustainability of
your business.
Good quality of products
and services
Change in legislation
affecting the sector
Good working relations
with the industry
Technological
advancements
Intellectual property
Cross boarder exports
Increased domestic
demand
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
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.
MICT SETA Sector Skills Plan for 2014-2019
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Figure 15: Main Factors currently hindering success and sustainability
The main factors CURRENTLY hindering the success and sustainability
of your business.
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
Other (please
specify)
Reduced consumer
demand
Cheap imports
Skills shortages
Price sensitivity
Cost overruns
Rapid change in
technology
Foreign products
and services
High infrastructure
costs
0.0%
Source: Sector Survey 2013
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
The main factors that will promote future growth and sustainability of your
business.
Other (please
specify)
Predictability of
the regulatory
environment
State investments
Consumer
confidence in the
sector
Technological
advancements
Emergence of
new markets
Access to new
projects
Increased
consumer
spending
Economic growth
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Source: Sector Survey 2013
MICT SETA Sector Skills Plan for 2014-2019
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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
The main factors that will slow future growth and affect sustainability of
your business.
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Uncertain
regulatory
environment
Cheap
imports
International
competition
Weak
currency
Economic
slow down
Other
(please
specify)
Source: Sector Survey 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
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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
National Development
Plan
The Medium-Term
Strategic Framework
(MSTF)
Description
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 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
education and training within the broader developmental agenda of the
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Government Planning
Priority
Description
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,
community based organisations, cooperatives and people from rural
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Government Planning
Priority
Description
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 computeraided 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
accord.
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Government Planning
Priority
Strategic Integrated
Projects
Comprehensive Rural
Development
Programme
Description
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 radiotelescope 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.
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
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63
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%yMICT SETA Sector Skills Plan for 2014-2019
64
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
MICT SETA Sector Skills Plan for 2014-2019
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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.
MICT SETA Sector Skills Plan for 2014-2019
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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.
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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.
SABS
(Electronics)
Consumer
Commission
ICASA
(Telecoms)
Quality
Standards
ASA
FPB
BCCSA
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
2008 HIV Household Survey, to 12.3% in 2012. Another key finding of the 2012 survey was
10StatsSA:
11Plenary
Mid-year population estimates 2013
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
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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
MICT SETA Sector Skills Plan for 2014-2019
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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
MICT SETA Sector Skills Plan for 2014-2019
70
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
MICT SETA Sector Skills Plan for 2014-2019
71
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.
Stable economic growth of sector in
line with high road projections
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”.
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%.
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.
The economy slows down and little or no
economic growth is experienced. Despite the
lack of growth, there is growth in employment
(Unlikely scenario)
Economic growth stifled or nonexistent
No employment growth/decline in
employment
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
MICT SETA Sector Skills Plan for 2014-2019
72
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.
MICT SETA Sector Skills Plan for 2014-2019
73
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 subsectors 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 subsectors 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:
MICT SETA Sector Skills Plan for 2014-2019
74
–
–
–
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 1 April 2013 to 31 March 2014
–
Anticipated need for the period 1 April 2014 to 31 March 2015
–
Anticipated need for the period 1 April 2015 to 31 March 2016
st
st
st
st
st
st
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.
MICT SETA Sector Skills Plan for 2014-2019
75
–
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
MICT SETA Sector Skills Plan for 2014-2019
76
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 subsectors. 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 Need
Occupation
OFO Code
2013
2014
2015
2016
Director (Enterprise / Organisation)
112101
52
13
13
26
Data Management Manager
133103
26
13
13
26
Graphic Designer
216601
209
143
130
104
Multimedia Designer
216603
509
104
104
757
Web Designer
216604
52
26
26
52
Advertising Specialist
243101
222
170
117
352
ICT Account Manager
243401
26
26
26
26
Multimedia Specialist
251301
65
0
0
13
Copywriter
264201
78
157
196
78
Sales Representative (Business Services)
Classified Advertising Clerk
333903
441901
26
65
13
0
13
0
52
0
Source: The MICT SETA OGS
MICT SETA Sector Skills Plan for 2014-2019
77
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)
Film and Electronic Media
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 subsector.
Table 25: Estimation of Film and Electronic Media Scarce Skills Need
Occupation
Multimedia Designer
Management Accountant
Market Research Analyst
Software Developer
Multimedia Specialist
Web Developer
Technical Writer
Radio Journalist
Director (Film, Television, Radio or Stage)
Film and Video Editor
Program Director (Television or Radio)
Technical Director
Sales Representative (Business Services)
Set Designer
Sound Technician
OFO Code
2013
2014
2015
2016
216603
241102
243102
251201
251301
251302
264103
264204
265401
265403
265404
265405
333903
343204
352103
2788
133
267
107
2665
133
267
133
1333
133
107
133
187
160
533
2788
187
533
0
2665
187
533
53
1333
0
160
213
80
213
800
2788
187
533
0
2665
187
267
53
1333
0
160
267
80
213
1066
1859
80
133
27
1333
133
533
133
1333
0
53
0
160
107
533
Source: The MICT SETA OGS
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.
MICT SETA Sector Skills Plan for 2014-2019
78
–
–
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 Need
Occupation
Sales Manager
Electronics Engineer
ICT Trainer
ICT Sales Representative
Software Developer
Developer Programmer
Computer Network and Systems Engineer
Electrical Engineering Technician
Electronic Engineering Technician
Computer Network Technician
OFO Code
2013
2014
2015
2016
122102
215201
235601
243403
251201
251203
252301
311301
311401
351301
136
112
120
160
176
184
272
176
1280
320
72
112
80
80
152
192
208
0
480
176
48
136
40
48
152
24
208
0
240
152
144
128
120
160
176
104
160
88
960
232
Source: The MICT SETA OGS
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.
Information Technology
Table 27: Estimation of Information Technology Scarce Skills Need
Occupation
Finance Manager
ICT Project Manager
MICT SETA Sector Skills Plan for 2014-2019
OFO Code
2013
2014
2015
2016
121101
133102
166
175
18
239
37
368
46
110
79
Occupation
Management Consultant
ICT Account Manager
ICT Sales Representative
ICT Systems Analyst
Software Developer
Programmer Analyst
Developer Programmer
Quality Assurance Analyst (Computers)
Database Designer and Administrator
Systems Administrator
Computer Network and Systems Engineer
ICT Security Specialist
Technical (ICT) Support Services Manager
Computer Network Technician
Web Technician
Telecommunications Technical Officer or Technologist
Program or Project Administrators
OFO Code
2013
2014
2015
2016
242101
243401
243403
251101
251201
251202
251203
251901
252101
252201
252301
252901
252902
351301
351401
352201
441903
230
120
147
1094
1232
120
910
166
147
202
2005
497
138
883
211
331
276
202
175
156
1011
947
120
782
193
607
138
947
671
37
579
745
221
184
193
147
156
883
975
110
690
248
175
92
736
1030
37
331
331
230
110
257
83
46
1214
1306
37
717
230
175
221
1407
524
28
1057
138
294
524
Source: The MICT SETA OGS
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
MICT SETA Sector Skills Plan for 2014-2019
80
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 Need
Occupation
Sales and Marketing Manager
Chief Information Officer
Retail Manager (General)
Telecommunications Network Engineer
ICT Trainer
Management Consultant
ICT Business Development Manager
ICT Systems Analyst
Developer Programmer
Systems Administrator
Electrical Engineering Technician
Computer Operator
Computer Network Technician
Telecommunications Technical Officer or Technologist
Telecommunications Line Mechanic
OFO Code
2013
2014
2015
2016
122101
133101
142103
215303
235601
242101
243402
251101
251203
252201
311301
351101
351301
352201
672204
50
100
45
50
30
50
55
40
185
25
35
250
310
30
50
50
100
40
50
25
25
50
25
165
25
20
100
275
30
50
50
50
40
50
25
25
50
25
165
25
15
100
270
30
50
55
175
40
25
40
50
60
65
185
35
25
250
300
55
100
Source: 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.
MICT SETA Sector Skills Plan for 2014-2019
81
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 Skills
Critical Skill
2013
2014
2015
2016
Customer Service
114
228
285
331
Digital skills (Including programming, animation, and applications)
95
190
238
276
Strategic thinking
57
114
143
166
Reputation management
38
76
95
110
Research skills
19
38
48
55
Management / Leadership development
19
38
48
55
Content Management
19
38
48
55
Source: The MICT SETA OGS
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 Skills
Critical Skill
2013
2014
2015
2016
Digital (programming, airwaves, animation)
1983
3967
4958
5752
Set Building
401
801
1002
1162
Project Accounting
401
801
1002
1162
Technical directorial skills
200
401
501
581
Client Relationship Building
120
290
352
349
Management / Leadership
120
240
300
349
Source: The MICT SETA OGS
MICT SETA Sector Skills Plan for 2014-2019
82
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 Skills
Critical Skill
2013
2014
2015
2016
Technical skills (Including
1512
3023
3779
4384
Consulting
252
504
630
731
Engineering techniques
252
504
630
731
Facilitation
189
378
472
548
Sales
189
378
472
548
Java
126
252
315
365
Database Administration
76
151
189
219
Voice and Data Communication
76
151
189
219
Biochemistry
63
126
157
183
Field Technician Controls
63
126
157
183
Source: The MICT SETA OGS
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 Skills
Critical Skill
2013
2014
2015
2016
Sales Skills (Including Account Management)
7172
14344
17930
20799
Technical skills
1057
2115
2644
3067
Support Skills
570
1140
1425
1653
Product Skills
386
772
965
1120
Network Support
322
644
805
933
Oracle and MS Databases
276
552
690
800
Accounting
257
515
644
747
Business Analysis
202
405
506
587
Management and leadership Development
184
368
460
533
Office Automation
184
368
460
533
Source: 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
MICT SETA Sector Skills Plan for 2014-2019
83
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 Skills
Critical Skill
2013
2014
2015
2016
Mentoring and succession planning
1104
2209
2761
3203
Customer Service Skills
412
824
1030
1195
Technician
412
824
1030
1195
Management/Leadership
148
297
371
430
Product knowledge
90
165
206
239
Engineering, planning, Core network and monitoring
84
165
206
239
General understanding of Telecoms
82
165
206
239
IT networking
80
165
206
239
Programming
78
165
206
239
Source: 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.
MICT SETA Sector Skills Plan for 2014-2019
84
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.
MICT SETA Sector Skills Plan for 2014-2019
85
Table 34: Results of the National Senior Certificate
2010
Learning Area
Total
Wrote
Achieved
above 30%
2011
%
Total
Wrote
Achieved
above
30%
2012
%
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
MICT SETA Sector Skills Plan for 2014-2019
86
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
Advertising and Marketing related
Computer science and electrical engineering related
Film and Photographic Arts
2009
5,311
7,326
63
2010
5,834
7,937
341
2011
6,626
8,378
361
Source: 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.
MICT SETA Sector Skills Plan for 2014-2019
87
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 elearning 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
MICT SETA Sector Skills Plan for 2014-2019
88
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
21190
Further Education and Training Certificate: PC
Engineering
Further Education and Training Certificate: PC
Support
National Certificate: Telecommunications for
Customer Premises Equipment
National Certificate in Telecommunications for
Customer Premises Equipment: Level 3
National Certificate: Information Technology:
Systems Support
National Certificate Music Industry: Sound
Technology
Certificate: Broadcast Engineering
120
13
NQF
Level
Level 4
120
18
Level 4
1
152
17
Level 4
3
135
14
Level 3
3
147
329
Level 5
99
139
20
120
7
Level 5
0
159
8
131
248
Level 5
87
130
1346
Level 3
778
49121
Further Education and Training Certificate: Music
Industry: Sound Technology
National Certificate: Information Technology:
Systems Development
National Certificate: Information Technology: End
User Computing
National Certificate: Interactive Media
130
24
Level 5
0
49122
National Certificate: Radio Station Management
157
6
Level 5
0
49127
141
36
Level 4
0
49138
Further Education and Training Certificate: Design
Foundation
National Diploma: Copywriting
240
1
Level 5
0
49317
National Certificate: Scriptwriting
147
1
Level 7
0
50479
148
16
Level 4
0
57607
Further Education and Training Certificate:
Advertising
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
National Certificate: Electronics
132
30
Level 4
5
120
11
Level 3
0
National Certificate: Information Technologies
Operations
National Certificate: Design Techniques
130
0
Level 3
2
121
7
Level 5
0
Further Education and Training Certificate: Film and
Television Production Operations
National Certificate: Radio Production
157
22
Level 4
1
159
17
Level 5
0
National Certificate: Business Analysis Support
Practice
138
36
Level 5
4
21191
21797
21799
48573
48671
48792
48811
48872
49077
59569
59910
60509
61450
62069
63769
Qualification Title
MICT SETA Sector Skills Plan for 2014-2019
Credits
Assessors
Providers
1
89
SAQA
ID
63849
63909
65874
65876
71850
71853
71869
73298
73390
73391
73429
78963
78964
78965
83026
Qualification Title
Credits
Assessors
Further Education and Training Certificate:
Electronics
National Certificate: Business Analysis
122
4
NQF
Level
Level 4
Providers
149
30
Level 6
2
Further Education and Training Certificate:
Telecommunication Systems
Certificate: Telecommunication Systems
132
1
Level 4
0
120
1
Level 5
1
Certificate: Information Technology: Database
Development
Further Education and Training Certificate:
Information Technology: End User Computing
Certificate: Information Technology: Database
Administration
Further Education and Training Certificate:
Photography
Further Education and Training Certificate: Graphic
Web Design and Multimedia
Further Education and Training Certificate: Website
Development
Further Education and Training Certificate: Computer
Programming
National Certificate: Telecommunications for
Customer Premises Equipment
Further Education and Training Certificate:
Information Technology: Technical Support
Further Education and Training Certificate:
Information Technology: Systems Development
National Certificate: Information and
Communications Technology (ICT) Software Testing
120
8
Level 6
1
132
16
Level 4
1
120
23
Level 6
1
128
2
Level 4
0
136
4
Level 4
1
136
4
Level 4
1
136
5
Level 4
1
120
4
Level 2
0
163
320
Level 4
59
165
182
Level 4
50
138
4
0
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
4
Level 3
4
1371
Level 4
16
690
Level 5
15
751
Level 6
3
61
Level 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
MICT SETA Sector Skills Plan for 2014-2019
90
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 deenrolled.
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 6
3%
Level 5
34%
Level 3
45%
Level 4
18%
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
MICT SETA Sector Skills Plan for 2014-2019
91
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 submissions
Learning
Intervention
Advertising
Electronics
Information
Technology
154
Electronic
Media and
Film
107
Learnerships
18.1
Learnerships
18.2
Skills
Programmes
Internships
Telecoms
Total
160
670
183
1274
38
834
299
2249
536
3956
533
1443
3188
7927
20838
33929
77
85
90
222
98
572
Short
Courses
Adult
Education &
Training
Bursaries
5016
10542
12976
56039
89562
174135
187
300
1351
1720
1673
5231
129
288
547
1179
820
2963
Total
6134
13599
18611
70006
113710
222060
Source: The MICT SETA OGS, 2013
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.
MICT SETA Sector Skills Plan for 2014-2019
92
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.
MICT SETA Sector Skills Plan for 2014-2019
93
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
Goal Statement:
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 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
MICT SETA Sector Skills Plan for 2014-2019
94
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
MICT SETA Sector Skills Plan for 2014-2019
95
Strategic Outcome Oriented Goal 2
Goal Statement
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
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
Output 2.2
Output 2.3
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
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
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.
MICT SETA Sector Skills Plan for 2014-2019
96
Strategic Outcome Oriented Goal 3
Goal Statement
Increased access to quality occupationally
directed learning programmes within the
MICT sector
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
MICT SETA Sector Skills Plan for 2014-2019
97
–
–
–
Output 3.3
Output 3.4
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
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.
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
MICT SETA Sector Skills Plan for 2014-2019
98
Strategic Outcome Oriented Goal 4
Goal Statement
Increased and improved capacity to meet
workplace skills development needs.
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
Output 4.2
Output 4.3
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
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
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
MICT SETA Sector Skills Plan for 2014-2019
99
–
–
Output 4.4
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
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
Goal Statement
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 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
MICT SETA Sector Skills Plan for 2014-2019
100
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 supported
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
Output 5.4
MICT SETA Sector Skills Plan for 2014-2019
101
Strategic Outcome Oriented Goal 6
Goal Statement
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.
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.
MICT SETA Sector Skills Plan for 2014-2019
102
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
1.1 Established SETA
Management
System (SMS)
that enable
WSPs and ATRs
that are credible
and
professionally
developed, and
reviewed
annually
MICT SETA Sector Skills Plan for 2014-2019
Capacitation of the research function – The Sector Skills
to build labour market analysis,
Planning Division is
forecasting and trends analysis skills
fully staffed
to take advantage of the SMS
– Frequency of forecasts
and trends analysis
conducted
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
– Better use of
information from the
SMS and integration
with external
economic data
– 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
103
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
Skills Plan
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
– Research conducted
– Scarce and critical
skills periodically
identified
– Skills needs of the
sector sourced
– SSP produced and
updated annually
– Frequency of SSP
updates
– Improvements in
identification of
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 WSPs
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
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
MICT SETA Sector Skills Plan for 2014-2019
104
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
– Programme
evaluation system
developed
– Baseline studies
conducted
– Checks and balances
agreed upon
– Reporting on
outcomes of NSDS III
conducted
– Number of baseline
studies conducted
– Quality of baseline
studies
– Number of impact
evaluations conducted
– Extent of baseline
studies
– Number of times early
warning signals identify
programme risks
– Improvement in
programmes based on
evaluative data
employers in the sector
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
– Performance of the
SETA over the NSDS III
period
A comprehensive report is produced
on the outcomes and impact of MICT
SETA funded training during the
period of NSDSIII.
1.5 Impact studies
and evaluations
conducted to
understand the
impact of
learning
programmes in
the sector
MICT SETA Sector Skills Plan for 2014-2019
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
– 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
105
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Value for money assessments
conducted on funded incubation
programmes and ISOEs
Measure (Qualitative)
– Improved use of funds
on skills development
interventions
– Better use of
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
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
MICT SETA Sector Skills Plan for 2014-2019
Facilitate partnerships between
businesses in the sector and
university faculties to advance
– 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 – For all these, the
identified
improvement in
– Number of funding
competitiveness as a
opportunities
result of innovation
– % of employers
and other funding
accessing innovation
and funding
– Number of channels
through which
information is
communicated
– Partnerships
facilitated between
businesses and
– Number of partnerships
facilitated
– Number of partnerships
– Extent of objectives of
partnerships being
met
106
Outcomes
Outputs
faculties and
other flagship
research projects
linked to MICT
sector
development
Activities
Indicators
innovation
universities
– Partnerships
established with
NRF, Technology
Innovation Agency
and the CSIR
– R&D into free open
source supported
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
Measure (Quantitative)
Measure (Qualitative)
established between
employers and
universities
– Competitiveness in
the sector
– Extent of Free Open
Source success in SA
– 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
–
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
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
– Research grants
awarded
– Engage with key
government
departments and
agencies conducted
– Access to employers
for postgraduate
students facilitated
Facilitate postgraduate student
access to employers in the forefront
MICT SETA Sector Skills Plan for 2014-2019
107
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
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
public and
private service
providers
established to
ensure
accessible
workplace‐
based training
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
Support experiential learning
opportunities and provide more
funding for employers to host
learners in scarce skills occupations
– Process for
registering
learnerships
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
registering a
learnership
– 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
– Extent to which
improvements lead to
take up
– Improvements in
learnership
registration
– Effectiveness of
funded programmes
– Learners recruited
– Unemployed
– Number of learners
recruited
– Employability of
learners and
PIVOTAL and discretionary grants
made available to support
experiential learning opportunities
3.2 Programmes
that produce
MICT SETA Sector Skills Plan for 2014-2019
Recruit an increased number of
learners into programmes, increase
108
Outcomes
Outputs
competent and
work-ready
learners and
graduates by
2016.
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
graduate throughput and support
their successful completion of these
programmes.
graduates placed for
experiential learning
– Opportunities for
learning identified
– Work readiness
programmes
developed
– Curricula aligned to
employer needs
– Number of unemployed
graduates on
experiential learning
– Number of
opportunities for
learning identified
– Number of learners
partaking in work
readiness programmes
– Number of
collaborations between
providers and
employers around
curriculum
graduates
– Extent of experiential
learning
– Extent to which
industry needs are
met by curricula
– Opportunities for
learning in
government
department and
agencies identified
– Opportunities for
– Number of unemployed
youths placed
– Extent of
improvement in the
government
programmes
– Employability of the
youth
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 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
MICT SETA Sector Skills Plan for 2014-2019
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
109
Outcomes
Outputs
the public
service into a
training space
Activities
Indicators
development support as identified
by industry and the DoC.
learning in
government funded
programmes
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
Measure (Quantitative)
Measure (Qualitative)
– Number of unemployed
graduates retooled
– Number of youths
accessed from NYDA
database accessing
opportunities
– Number of bursaries
– Employment patterns
for retooled youth
– Employability of
youths accessed from
the NYDA
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
MICT SETA Sector Skills Plan for 2014-2019
Retooling of unemployed youth and
upgrading of graduates for scarce
skills occupations in the MICT sector
where there is a high possibility of
employment
Partner with the National Youth
Service and the National Youth
– Unemployed youths
retooled into scarce
skills areas
– Partnership with the
NYDA concluded
– Bursaries allocated
to the youth and
110
Outcomes
Outputs
rural areas
Activities
Indicators
Development Agency (NYDA) to
access graduates and learners
looking for opportunities but also to
access MICT related opportunities
for learners through the NYDA
programmes
people with
disabilities
– Engagement with
HETs, FETs and GETs
around life skills
– Learning
opportunities
Provision of bursaries for youth to
opened up for
access programmes in the scarce and
people with
critical skills occupations
disabilities
Measure (Quantitative)
Measure (Qualitative)
allocated to the youth
– % of youth awarded
bursaries coming from
rural areas
– % of people accessing
learning opportunities
living with a disability
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
4.1 Occupational
qualifications to
address skills
needs developed
and specialised
learning
programmes
MICT SETA Sector Skills Plan for 2014-2019
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
– Learnerships
consolidated into
occupation specific
programmes
– Research conducted
around curriculum
innovation
– Number of learnerships
consolidated
– Number of
engagements
conducted with FETs
and HEIs
– Number of FET colleges
– Efficiency of
learnership
programmes
– Improvement in
qualifications due to
curriculum
innovations
111
Outcomes
workplace and
broader
sectoral skills
gaps that have
an impact
Outputs
aligned with the
NQF
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
inform the HET and FET sector of
ways to make their qualifications
relevant for the economy
– Engagement with
FETs and HETs held
– Capacitation of FET
colleges conducted
– Vendor programmes
aligned to the NQF
– Capacity for open
source programs
built
capacitated
– Number of vendor
programmes aligned
with the NQF
– Number of providers
offering training in
Open Source
– Performance of
supported FET
colleges
– Extent of coverage of
open source
– Engagements with
public FETs and HETs
conducted
– PPPs encouraged
and establishment
supported
– Providers supported
with accreditation
– Workplace exposure
for FET lecturers
facilitated within the
– Number of public FETs
and HETs offering
meaningful ICT training
– Quality of ICT training
offered
Upgrade 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
Encourage public private
partnerships between established
and specialised private education
and training providers and public FET
colleges in rural areas
MICT SETA Sector Skills Plan for 2014-2019
– Number of PPPs formed
– Number of providers
supported with
accreditation
– Number of FET
lecturers gaining
– Success and
improvement in
provision as a result
of PPPs
– Extent of coverage of
MICT programmes by
providers
112
Outcomes
Outputs
Activities
Capacity built for FET Colleges,
private providers and employers to
deliver on MICT programmes
Indicators
MICT sector
Measure (Quantitative)
Measure (Qualitative)
workplace exposure
– Quality of teaching
and facilitation by FET
lecturers
– 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
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
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.
– 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
Encourage institutions of learning to
MICT SETA Sector Skills Plan for 2014-2019
113
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
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
Provide mentoring training for
employers engaged in experiential
learning
– Database of mentors – Number of mentors and – Quality of mentorship
and coaches
coaches identified and
and coaching taking
developed
listed
place
– Mentoring training
– Number of new
– Efficiency of coaching
provided
mentors and coaches
and mentoring in the
– Barriers for learning
trained
workplace
in the workplace
– Extent of removal of
identified
learning barriers
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
communitybased
organisations’
skills needs are
identified and
addressed
through
5.1 Strategic
Integrated
Projects
supported
through skills
development
MICT SETA Sector Skills Plan for 2014-2019
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
– 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 information
114
Outcomes
Outputs
relevant
programmes
and
partnership
funding
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
– Existing small
businesses in the
sector provided with
skills development
support
– Small businesses in
rural areas
supported
– Access to
developmental
– 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
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
5.2 Training and
support for
SMEs, Unions
and NGOs on
their skills
development
needs
MICT SETA Sector Skills Plan for 2014-2019
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
115
Outcomes
Outputs
5.3 New ventures
supported within
the MICT sector
and their impact
measured by
2016
Activities
Indicators
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
agencies by small
businesses
facilitated
– Process
improvement
interventions
facilitated
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
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
MICT SETA Sector Skills Plan for 2014-2019
Measure (Quantitative)
Measure (Qualitative)
– 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
116
Outcomes
Outputs
Activities
Indicators
Measure (Quantitative)
Measure (Qualitative)
– 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
– Need areas
identified through
research
– Skills development
information shared
with skills provincial
and local forums
– Number of provincial
and local skills
development forums
attended
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
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
Career guides
developed and
distributed with
labour market
information to
attract talent to
the sector and
6.1 Information
about careers in
the MICT sector
shared
extensively
MICT SETA Sector Skills Plan for 2014-2019
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
– Effectiveness and
accessibility of the
career guidance
material used
– Extent of knowledge
about careers in the
sector
117
Outcomes
Outputs
promote
comprehensive
MICT career
development
Activities
Produce and distribute the Career
Opportunities Guide annually to
school going children so that they
are aware of occupations that have
potential for employment
Indicators
Measure (Quantitative)
Measure (Qualitative)
– Number of learners
reached
– % fairs held in rural
areas
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
MICT SETA Sector Skills Plan for 2014-2019
118
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