PUBLICATION: ITWEB ALL AFRICA NEWS
DATE: 7 JULY 2010
Robert Sussman, Joint CEO at the Integr8 Group
The South African government is set on improving efficiencies, and while many of us approach statements like this with some skepticism, companies would do well to pay attention. Several legislative amendments on the cards will have a real impact on how we do business.
Our telecoms regulator, ICASA, is due to be given more power with the ICASA Amendment Act, which is has received cabinet approval. While not the complete overhaul of the ECA many have been calling for, the Amendment Act will allow for faster response times and a degree of greater independence.
This is good news for players in the sector as many of us have been frustrated by the endless delays and an environment which has, until now, been characterised by ‘regulation by litigation’.
The ICT sector is not out of the woods yet though, and there have been many people in the industry who remain suspicious of the new Minister’s enthusiastic involvement in matters, which should fall under an independent regulator.
Examples of this can be seen in the recent delay in spectrum auctions and (while certainly to everyone’s benefit), the ‘directives’ ordered by the Minister in the interconnect pricing.
Another legislative issue which may well impact all of us in the industry is the First and Second Tax Amendment Bills of 2010.
This complex set of amendments will certainly make compliance more tricky. SARS seems set on not only extending the tax revenue net, but ensuring that the net has little wriggle room.
Despite the criticism we all level at government, Integr8 Group sees these new legislative amendments as an opportunity to ensure SA is seen as a safe and low-risk investment environment. Looking at some of the figures coming out of Africa, it is clear that the region is now a prime investment opportunity for companies who are trying to move out of the saturated OECD countries.
However, if we are to be taken seriously, we have to ensure that we have a business environment that is stable and that conforms to global regulatory best practice. Companies would do well to ensure they look for partners who understand the complexities of the legislative arena and who can ensure that compliance is met at every step of the business ecosystem.