DPSA ICT SMME’s Workshop By Sydney Tshibubudze, Chief Procurement Officer 23 March 2015 SITA SMME’s Development Strategy

2 Agenda SMME Development Background The Key Drivers of SMME’s Development SITA SMME Development Approach SITA SMME Development Strategy SITA SMME Development Opportunities SITA SMME Target/Actual Performance

3 SMME Development Background  South Africa’s small-, micro- and medium-sized enterprise (SMME) economy has been actively promoted since  SMMEs are a vital contributor to the health of the economy by boosting productivity, increase competition and innovation, create employment and prosperity, and revitalize communities.  The New Growth Path (NGP) articulates the need to achieve a common vision to work together to achieve a goal of creating 5 million jobs by  Information and Communication Technology (ICT) provides a platform for an economy to unlock new economic opportunities for growth and development.

4 The Key Drivers of SMME’s Development  Engagement in Entrepreneurial upliftment  Contribute to the sustainability of Small Local Enterprises  Increasing SMME’s operational capacity & efficiency  Enhancing SMME’s management capabilities  Increasing SMME’s technology development capabilities  Enables SMME’s financial sustainability

5 SITA SMME Development Approach Defend SMME’s by supporting existing SMME; locking in opportunities for growth and collaborating with market players to support current SMME’s for new projects Develop SMME’s for new markets/trends by skilling for the future (e.g. e-gov services etc) and recognizing excellence Grow SMME’s by enabling new entrants; introduce new opportunities for growth and reduce barriers to entry 1 2 3

6 SITA SMME Development Strategy (1/2) Early Payment  Improve supplier financial sustainability through improved cash flow by providing early payment from invoice. Mentoring and Training  Provide supplier mentoring in area such as technology and business management.  Conduct tender process information sharing forum e.g. SMME Supplier Day  Establishing SMME’s Help Desk to provide instant assistance. OEM Partnering  Provide platform for SMME’s to partner with hardware and software OEM’s to provide support, maintenance and logistics services. ObjectiveDevelopmental Strategy Research & Technology Solution  Provide platform for SMME’s to participate in research with academic institution and development of new technological solutions to address South African related socio-economic challenges in line with Government priorities.

7 SITA SMME Development Strategy (2/2) Proactive Tender Engagement  Create a database of all registered ICT SMME’s per category and proactive alert them of available tender opportunities to participate. Join-Venture Platform  Develop sourcing strategies that requires large ICT entities to form Join-Ventures with SMME’s when delivery ICT implementation projects. Local Manufacturing Support  Develop policy and sourcing framework that support buying of existing local brand as brand specific procurement. ObjectiveDevelopmental Strategy Foreign Player Elimination  Develop policy and sourcing framework to eliminate foreign suppliers to participate in biding when there is sufficient competition by local suppliers.

8 SITA SMME Development Opportunities (1/2) Early Payment  7 Day payment from invoice. Mentoring and Training  Supplier day for tender information sharing  Technology and business management mentoring/training  SMME Help Desk OEM Partnering  Computer & Mobile Devices  Computer Peripherals  Servers & Storage  Racks and Blades ObjectiveDevelopmental Opportunities Research & Technology Solution  E-Government Services  ICT Security Technologies  Mobile App  Softwares

9 SITA SMME Development Opportunities (2/2) Proactive Tender Engagement  Proactive tender notification platform.  Classified SMME Database Join-Venture Platform  Government Connectivity  Network and Cabling installations  Lan and desktop Local Manufacturing Support  ? “under analysis” ObjectiveDevelopmental Opportunities Foreign Player Elimination  ? “under analysis”

10 SITA SMME Target/Actual Performance 2014/15 ? ? ? ? 2015/162016/172017/182018/19 7% % of total SITA procurement spend through SMME’s 5% 12% 15% 20% 30%

GrowDefendDevelop Thank You