SA’s untapped software potential
A report by the UN Conference on Trade and Development (UNCTAD) has hinted at the untapped software potential in many developing countries including South Africa.
The document finds that software production and development can contribute to the structural transformation of economies in developing countries including South Africa.
The Information Economy Report 2012 says that, with the burgeoning skills of domestic software writers, emerging economies should seek to expand the creation of software that meets local needs and capabilities as a means of increasing income and addressing broader economic and social development goals.
UNCTAD urges governments to adopt policies that can help build domestic software capabilities. Developing such software locally increases the chances that it will fit the context, culture, and language where it is used, the report notes.
Going mobile
In the report, UNCTAD notes that widespread mobile phone use and improved broadband connectivity have improved the possibilities for developing countries to participate in software development and production.
“In order to ensure that improved ICT access brings about the desired benefits, the software used in various devices and services has to be adapted to the needs and capabilities of users.”
“Well-adapted software can, for example, help firms to manage their resources better, to obtain information more efficiently, and to operate their business at lower cost,” the report said.
Economic advantage
Developing capabilities to adopt and adapt software solutions, and to create software locally, adds an economic advantage. These capabilities also can help to expand exports of software, the report states.
Economies can be weaned away from dependence on low-technology goods and on a limited number of products for export, the report further contends. It can also boost learning, innovation and job creation, especially for skilled youth.
The market is also expanding for mobile applications aimed at improving access to domestic news and entertainment, government services, patient care, market information services, and “mobile money”.
The mobile apps industry is estimated to have generated worldwide revenue of $15–20 billion in 2011, and that may rise to $38 billion by 2014.
South Africa
Underlining the state of the software industry in South Africa, UNCTAD estimates that, in the years 2008–2011, private equity investment projects in software and IT services in the country totalled six projects at a value of $30 million.
SA accounted for 72 Greenfield FDI projects in software and IT services out of a total 228 in Africa from 2007–2011.
“Specific areas where South Africa is strong include system integration and applications development in industries such as mining, finance and mobile communications.”
“Labour shortages remain an issue although there are high-level educational faculties such as the Johannesburg Centre for Software Engineering at the University of the Witwatersrand and emerging technological hubs,” the report said.
It says further that, in SA, domestic software spending is high but exports are low, indicating scope for an expansion of exports.
Government’s role
Governments should take an active part in fostering software capabilities and in strengthening their national software systems, the report recommends.
“Governments are significant buyers of software. They also determine the curricula for the education of software engineers, influence the availability of affordable ICT infrastructure, and shape legal and regulatory frameworks affecting ICT uptake and use.
“At the same time, national software strategies should be informed via consultations with other actors, including the software industry, universities, and software developer communities, and with various users,” UNCTAD said.
Strategies should also be integrated into a country’s broader ICT policies, the report urges.
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