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					Moving up the value chain
   SMMEs and Ebusiness

  World Bank Video-conference
          2004/11/04

       Nhlanhla Mabaso
            CSIR
                   Outline
●   Challenges

●   Achievements

●   Value chain

●   Conclusion
  Recommendations from PNC
          report  Recommendation                             National            SMMEs
                                                                        ICT-related Users of ICT

A. Improve National Factor Conditions
1. Decrease cost and availability of telecommunications         X           X            X
2. Improve quality of education                                 X           X            X

B.   Improve     SMME       Regulatory       and   Policy
environment

1. Reduce/Change bureaucracy and regulations                                X            X

2. Improve government service delivery                                      X            X

C. Improve SMME Support environment
1. Increase ICT literacy                                        X           X            X

2. Improve start-up business environment                                    X            X

3. Strengthen    government    information   services   to
SMMEs                                                                       X            X

D. Support Specific Sector interventions

1. Establish Classification System                                          X            X


2. Apply targeted support strategies                                        X            X
E-Government house of value

                                                         I nc
                                                             rea
                                          s                     sed
                                     Cost                                       Pr
                                                                                     od
                                 red    e-Government                                   uct
                               we                                                          ivi
                             Lo         Business Case                                         ty

                                    Citizen Convenience
     Informati on Security




                                                           Economies-of-Scale




                                                                                                   Less Duplications
                                      Interoperability
  Duplication & false economies
                                       DOL        DOM
                  DTI(2b DOH    DOT         DOME       DOD DOD
                                        A          E
                    )    (2b)   (2b)         (2b)      (2b) (2b)
                                       (2b)       (2b)
SMME 1 (2m)

SMME 2 (2m)

Reseller 3 (2m)
Multinational 4
     (2m)
Reseller 5 (2m)

Reseller 6 (2m)
Company 7 (2m)
Company 8 (2m)
                  Digital Commons
                           DST

                         SMME 1

        SMME 2/DOH                       Company 7/DOD
                         Digital
                         Commo
    Reseller 3/DOT         ns            Company 8/DOD


Multinational 4                         Reseller 6/DOME
   /DOLA
                      Reseller 5/DOME
Collaboration for Innovation




       Coase's Penguin (Benchler)
         Human Language Technologies
●   Translate.org.za
     –   Mozilla into multiple
         African languages
     –   Afrikaans, Sesotho sa
         Leboa and isiZulu builds in
         OpenOffice.org
●   Senegalese Sängö OpenOffice
    Translation Sängö
●   Kompyuta ne Yuganda
     –   Enable a literate Luganda
         speaker into ICT
●    KiSwahili OpenOffice
    translation training in October
    2004
●   India-Brazil-South Africa
    institutional collaboration
Achievements
      ●   Charles Majola
          –   19 year old born in
              Katlehong
          –   programmer for an open-
              source accounting program
      ●   ICT Charter
      ●   eGovernment
      ●   Creative Commons
          South Africa
      ●   Impi Linux
          –   24/7 Support Hotline
             Moving up the value chain
                                                         Leader


                                          Partnerships


                          Collaboration



                                          Innovators
                               Trade
        Resellers              Value
                              Balance

       Consumers




Followers
            Year 1              Year 2         Year 3
                Conclusion
●   Collaboration

●   Appropriate models

●   Business as usual
Financial Support Services                               Non-Financial Services

                                   Big Business

                      IDC
                                  Medium-Sized
                                   Enterprises          MAC
                                                                             BR
                                                                             &F
                  Khula
                              Small-Sized Enterprises

                               Very Small Enterprises               Ntsika
                                 Micro Enterprises

   Micro                           Informal
  Lenders       x   x   x   x   x      x
              x   x   x   x   x     x    x
                                  Survivalist

				
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