The telecoms and communication sector is unlikely to feature in South African president, Jacob Zuma\u2019s State of the Nation Address (Sona) this evening, according to economists.<\/p>\n
In 2011, the president allocated no more than a sentence to technology and communications.<\/p>\n
\u201cIn 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.<\/p>\n
\u201cJobs will be created in manufacturing, packaging, distribution and installation during this period,\u201d he said.<\/p>\n
Senior economist at professional services firm, Lullu Krugel, told BusinessTech that the president was in a difficult position ahead of his address.<\/p>\n
\u201cThere are so many other things that need his attention, and I am not so sure that the telecommunications sector will feature\u201d.<\/p>\n
Krugel, however, noted the importance of infrastructure development in this space.<\/p>\n
“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.\u201d<\/p>\n
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.<\/p>\n
\u201cSo many other industries depend on communications to drive growth and job creation, but basic infrastructure and affordable communication services need to be in place,\u201d Krugel said.<\/p>\n
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.<\/p>\n
\u201cIt is very important, and no he (Zuma) doesn\u2019t realise its importance,\u201d Roodt said. \u201cWe have a few large players dominating the industry to the detriment of consumers and the economy,\u201d the economist said adding that it was unlikely the Zuma would \u201crock the boat\u201d.<\/p>\n
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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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