Telecoms unlikely to feature in Sona – economists
The telecoms and communication sector is unlikely to feature in South African president, Jacob Zuma’s State of the Nation Address (Sona) this evening, according to economists.
In 2011, the president allocated no more than a sentence to technology and communications.
“In communications, we have committed to convert our television and radio signals from the analogue platform to the more advanced digital signal which will enable quality pictures and sound.
“Jobs will be created in manufacturing, packaging, distribution and installation during this period,” he said.
Senior economist at professional services firm, Lullu Krugel, told BusinessTech that the president was in a difficult position ahead of his address.
“There are so many other things that need his attention, and I am not so sure that the telecommunications sector will feature”.
Krugel, however, noted the importance of infrastructure development in this space.
“Currently we are not in a position to compete with the likes of countries in Europe and emerging economies like India. Often infrastructure is the first thing to get cut.”
The economist pointed to a drive from a number of provinces in business process outsourcing (BPO) and cloud computing, to generate economic development and create jobs.
“So many other industries depend on communications to drive growth and job creation, but basic infrastructure and affordable communication services need to be in place,” Krugel said.
Dawie Roodt, the chief economist of Efficient Group, said that the government underestimates the importance of the role of the communications sector within the economy.
“It is very important, and no he (Zuma) doesn’t realise its importance,” Roodt said. “We have a few large players dominating the industry to the detriment of consumers and the economy,” the economist said adding that it was unlikely the Zuma would “rock the boat”.
As was the case in 2011, president Zuma is expected to focus on job creation when he delivers his speech at 19:00 this evening. Last year, Zuma pledged R39 billion to stimulate job creation, including tax breaks for the manufacturing industry and investments by state-owned Industrial Development Corp.
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