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THE ICT CHARTER

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companies and professionals concurrently belong to more than one<br />

association;<br />

3.5.4. detailed and reliable research on various key aspects of the <strong>ICT</strong><br />

sector does not yet exist or is not readily available. In many<br />

instances, NGO’s and other state organs have duplicated research<br />

with the unintended consequence that some important parts of the<br />

research are either incomplete or conflict with each other; and<br />

3.5.5. the development of Open Source platforms and other measures<br />

aimed at enhancing local technology and intellectual property<br />

capacity thus lessening reliance on proprietary platforms in the<br />

long term.<br />

With regard to formulating its Charter, the industry took cognisance of<br />

the interlink between itself and other processes outside the <strong>ICT</strong> sector.<br />

For example, proper implementation of the Financial Sector Charter is<br />

directly dependent on the finalisation of the <strong>ICT</strong> Charter. This owes to<br />

the fact that more than forty percent of the financial sector<br />

procurement is reportedly spent on the <strong>ICT</strong> sector. Clause 6.1 of the<br />

Financial Sector Charter reads:<br />

“The financial institutions will implement a targeted procurement<br />

strategy to enhance BEE. Provided there are charters in the<br />

information and communication technology (“<strong>ICT</strong>”), the advertising<br />

and the automotive and building sectors, and that international<br />

suppliers are subject to those charters, the target will be 50% of<br />

the value of all procurement from BEE accredited companies by<br />

2008 and 70% by 2014.”<br />

To varying degrees, every other sector of the economy is directly and<br />

heavily dependent on goods and services procured from the <strong>ICT</strong> sector.<br />

3.6. Key Principles of the Charter<br />

This Charter is based on the following underlying principles:-<br />

3.6.1. its provisions generally apply to all <strong>ICT</strong> sector enterprises active in<br />

the South African market. This shall also include specialised and<br />

sizable <strong>ICT</strong> related business units outside of the <strong>ICT</strong> sector itself<br />

such as IT departments of large banks;<br />

3.6.2. it is a voluntary and inclusive industry initiative;<br />

3.6.3. it is a transformation Charter as contemplated in the Broad-based<br />

BEE Act 53 of 2003;<br />

Third Working Draft Page 13 of 57

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