The Eastern Cape Development Corporation (ECDC) is spearheading an IT initiative, which aims to consolidate and grow the province’s IT sector.

The corporation has brought together an influential team to work on the initiative which includes Dr Raven Naidoo who has been central to the Western Cape’s IT success, and John Jaffray and Judith Middleton from Radian Technologies who have been involved in the Cape IT initiative.

The team lists an impressive list of advantages, which the province offers companies who see the potential of the region as a base for IT research and other initiatives such as call centres.

It’s their view that the province’s small, vibrant and diverse sector needs a little more nurturing and support in order to leverage off its considerable advantages.

Abu Abdulatief, who assists with investment promotion in the ICT sector at ECDC says while favourable exchange rates, a good skills base, low cost of labour and the Eastern Cape’s beauty and lifestyle are among the advantages that present themselves to any industry wanting to invest in the region, the region offers the IT industry skilled IT personnel together with an unusually high concentration of outstanding educational institutions, some of whom specialise in the ICT field and are who prepared to extend their research with sufficient business support. Other advantages for the IT industry include the same time zones as Europe, the same broad cultural base as Europe and having English as first language.

He also says that the Eastern Cape’s two industrial development zones – Coega and the East London IDZ – with its strong automotive and manufacturing sectors should drive up the demand for IT. The IDZs, in particular, lend themselves to a strong logistics sector, which is highly ICT intensive. There is also opportunity to develop and export of specialist software for auto value chain sector, amongst others.

Tourism in the province is also expected to spur the ICT industry’s growth as this sector is communications-intensive with high levels of email and internet usage, notwithstanding that rural areas still lag behind.

Dave Larkin from East London based Freshmark, a fresh produce marketing company, says that the key to growing the province’s ICT sector is through collaboration and looking beyond the region for business opportunities.

He also explains that the reason for his success has been his company’s ability to work successfully with others and not having got greedy.

“We have also stuck with what we know,” Larkin adds.

One of the first projects of the initiative is the appointment of a steering committee which will address six areas such as increasing the number of SMMEs in the industry, increasing the number of start-ups and promoting their survival, increasing the competitiveness of the sector, increasing BEE participation, reducing the negative effects such as globalisation and promoting further understanding of the sector through sectoral research.

“Other interventions include the development of an implementation plan for the incubator as the next stage of the project, further workshops in Port Elizabeth and East London, the allocation of funding by the ECDC for the workshops and the initial incubator, and the development of two IT networks in the Nelson Mandela Metropole and Border Kei region. The networks hope to bring companies together to address common issues, provide information sharing opportunities and joint project activities,” explains Naidoo.

Local IT expert and ex chairperson of the Border Chapter of the Computer Society of SA Bill Brander, also refers to a wide range of initiatives in the province that stretch deep into the rural areas. He gives the example of Technology for Women in Business (TWIB).

TWIB, established a CISCO academy in OR Tambo, where 20 “techno girls” are currently completing a 12 month programme, due for completion in mid 2004 and who will be replaced by 20 further students. TWIB have taken the process further by training the students as ICDL trainers who will train 60 schools in the area.

“Buffalo City has 20 IT support learnerships running and according to our ISETT regional representative, they are the most efficient one running in the country right now.

“The bottom line is we have ICT qualified people in abundance in our region. Our education establishments are producing world class graduates and our tertiary establishments will tailor their programmes to what industry wants,” enthuses Brander.

Larkin reiterates Brander’s sentiments on the province’s education infrastructure. “We have very good schools as well as fantastic business leaders – all the right ingredients for a great business.”

Yet the region has its challenges too.

Larkin’s business which is based in East London says “because our head office is in East London means “we have to convince every client that we can deliver”.

Multinationals in the region use global or national ICT arrangements rather than local ICT companies who are generalists. Further there are very few high end ICT companies in the region.

Another major focus for the initiative is black economic empowerment. Only two per cent of the province’s 295 firms are black empowered.

Naidoo says that the Western Cape is also grappling with the need to ensure that more black entrepreneurs enter the market but this is a challenge which needs to be addressed both at the generic and sector level.

According to the ISETT SETA, in 2002, Gauteng has 63 per cent of ICT companies, Western Cape follows with 16 per cent and KwaZulu Natal 10 per cent. The Eastern Cape follows with five per cent.