Business Day (Johannesburg)

South Africa: Stalled Telecoms Reforms Make SA Less Techno Savvy

Johannesburg — SA IS slipping down the list of the world's most technologically savvy countries as other nations make greater strides in using information and communication technology (ICT) to benefit their economies.

The World Economic Forum has ranked SA 37th on its annual networked readiness index -- the world's most respected assessment of how ICT can boost the economy and the competitiveness of a country.

Africa makes its first appearance at number 36 thanks to Tunisia. Last year SA achieved 34th position, with Tunisia at 31.

Mauritius comes in 45th after moving up two places as its government strives to make Mauritius a cyber island.

Other African nations enjoying a relatively high global ranking are Botswana at 56 and Ghana at 61.

"I don't think we have necessarily worsened, it's just that we haven't progressed much," said James Hodge of local research house Genesis Analytics. He said the adoption of broadband internet and the use of cheap technology to carry voice calls over the internet had had miniscule effect.

Hodge said SA had delayed the telecommunications sector reforms far more than the countries which have been streaking ahead. SA scored 6,5% for the number of people with internet access, on par with China.

The report covered 115 countries and examined the regulatory and infrastructure environment; the readiness of individuals, businesses and governments to use and benefit from ICT; and their actual usage of the latest technologies.

The US has regained its position at the top of the chart after being usurped by Singapore last year. Singapore now ranks second, followed by Denmark, Iceland and Finland.

Singapore was praised for its excellent regulatory environment, world-class education and training, and a government that encouraged the use of the latest technologies across all sectors of the economy.

The US regained its lead thanks to an impressive performance in ICT infrastructure and high business and government adoption of new technologies. That was supported by, among other things, excellent higher education institutions.

In comparison, SA was often criticised by ICT players for poor education, including a lack of computers in most schools, and for a timid venture capital sector unwilling to back fledging businesses.

"Information and communication technologies represent one of the most important drivers in boosting efficiency and productivity in today's fast changing global economy," said Augusto Lopez-Claros, a director at the World Economic Forum.

The sustained ability of the US to harness technology to boost its economy was a benchmark for other countries wishing to rapidly improve the living standards of their citizens, he said.


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