Minister Malatsi Outlines Strategies for Digital Evolution in South Africa during Budget Vote Speech

During his budget vote speech in Parliament, Cape Town, Honourable Solly Malatsi, South African Minister of Communication and Digital Technologies, outlined a comprehensive strategy for capitalizing on digital technologies to foster South Africa’s development. Emphasizing the importance of stability, policy credibility, and collaboration, Minister Malatsi addressed key initiatives and financial allocations for the 2024/2025 period.

Acknowledging the volatility hampering progress, Malatsi detailed past leadership challenges within the Department, which had seen numerous changes since 1994. Reducing the 18% vacancy rate is now a priority to ensure that leadership gaps do not impede advancement. With a sharpened focus on transparent and simple communication, the Minister aims to make the Department’s work more accessible to the public.

On meaningful timelines, Malatsi acknowledged that while some deadlines were met, others were missed. Moving forward, priority-setting will follow the finalized policy priorities and the programme of delivery set by the GNU.

A budget of R3.969 billion, an 8% allocation for employee compensation, demonstrates a slight fiscal tightening while aiming to achieve both the stabilization of public finances and the support of vulnerable groups. Malatsi also highlighted the pivotal role of the Department in ensuring nobody is left behind in digitization.

Digital inclusion has seen progress with the installation of over 5,400 Wi-Fi hotspots; the goal is to achieve nearly 2 million connections via an expanded network. The focus on digital skills was reinforced through initiatives such as the National Digital and Future Skills Conference, aiming to train 90,000 beneficiaries in the 2024/25 financial year.

The updated Digital Economy Masterplan (DEM) aligns with the rapid technology advancements and aims to capture investments from the booming data center and submarine cable infrastructure sectors. Challenges such as the contentious spectrum release and regulatory concerns within the terrestrial fibre market are acknowledged, with proactive measures underway.

Pertaining to the digital migration journey, Malatsi reported significant strides in turning off analogue transmitters and the distribution of set-top boxes – vital steps in improving internet penetration and affordability. The timely implementation of the Broadcasting Digital Migration and Analogue Switch-off Programme is right on schedule.

The ongoing digitization of government services, with initiatives by SITA such as the eDRS and the South African eServices Portal, plays a crucial part in delivering efficient public services.

On SOE governance, Minister Malatsi disclosed that over 50% of the budget is earmarked for operational and project-specific funding. The SABC and Post Office have seen encouraging signs of turnaround, but challenges persist. Emphasis was given to resolving issues, such as those between the SABC and Sentech, through internal mediation rather than court disputes.

Malatsi commits to a direction that maintains evidence-based policies, meaningful stakeholder engagement, and an open-door policy to build a robust, inclusive digital economy. Recognizing the scope of the Department's mandate, he assured that through consideration, integrity, and excellence, the ministerial team is set on a path to enhance South Africa’s digital landscape.