BMIT Report: SA ICT spend in givernment 2022

SA ICT Spend in National and Provincial Government 2023

Overview

This report forms part of BMIT’s suite of reports on ICT expenditure in government, and this report examines the national and provincial tiers of government.
The overall sizing of government ICT spend is assessed, and then the report focuses in more detail on those government departments that have big ICT budgets, as well as the nine provinces, thereby identifying spending trends and deals which are significantly impacting the socio-economic and political environment in the country.
Segmentation of the data is provided according to the BMIT ICT definitions of communications and IT hardware, software and services, as set out in the following slide.
A separate report details the ICT at the local government tier, and a third report looks at state-owned enterprises.

Research methodology

This report is the outcome of secondary research techniques and sources, as follows:
The February 2023 Budget for national government – both published Votes for each department and unpublished audited ICT expenditure data provided by National Treasury.
Similarly, the 2023 Budget for each province, and provincial ICT data, made available by National Treasury to BMIT, is used to ascertain the provincial spend.
Additional information was obtained from SONAs, SOPAs, other speeches, and IDPs, APPs, SIDPs, annual reports and other strategic plans.
Secondary research utilising a wide variety of other resources, including Statistics SA, and ICT industry news sources.
BMIT’s internal research database and experience.

Notes:
BMIT appreciates the cooperation from National Treasury in releasing unpublished, detailed data on audited ICT spend for the past five years up to and including financial year 2022/23, which enables BMIT to present as accurate as possible a picture of both the size of government ICT expenditure, specific ICT categories of spend, and the extent to which departments and provinces use SITA.
Since the forecasted estimates for the MTEF period for the national and provincial budgets are not available at the same level of ICT detail, forecasting in this report is based on those more accurate audited numbers, and premised upon the available Budget MTEF estimates as well as BMIT’s own forecasting, which represents our ‘most likely’ view taking into account the credibility of each of the above sources.

Table of Content

Introduction

BMIT ICT category segmentation

Research methodology

Economic Overview

  • GDP and the South African economy
  • Government’s role in the economy

Total Government ICT Spend

  • Total government spend on IT and telecoms
  • Total national and provincial ICT spend
  • Summary of national & provincial ICT spend, 2020/21 – 2025/26

Major National ICT Programmes and Policies

  • ICT in government authority chain
  • ECA Act – 2023 amendments (page 1 of 2)
  • ECA Act – 2023 amendments (page 2 of 2)
  • The Integrated Justice System (IJS)
  • SA Connect Phases 1 & 2 – progress with implementation.
  • Revised SA Connect Phase 2 – funding and implementation plans
    for 2023.
  • Revised SA Connect Phase 2 – funding and implementation plans.
  • for 2023 – BBI, SENTECH & SITA
  • SA Connect Phase 2 – targets for the three connectivity streams.
  • SA Connect Phase 2 – Broadband Infraco progress with Community/Household targets
  • Other recent statements of intent with regard to SA Connect
  • A Connect with regard to education.
  • IFMS – integrated financial management system
  • Spectrum Licensing and Assignment – The Current Status
  • Spectrum Licensing and Assignment – Going Forward
  • Presidential Commission on 4th Industrial Revolution – History
  • PC4IR SIP – Strategy, Structure and Approach
  • Progress in 2022 with the PC4IR programme
  • PC4IR Strategic Position 4 and government modernisation
  • The role of the CSIR and associated entities

ICT Agencies and SOEs

  • ICT SOCs’ rationalisation programme – background and history
  • Round Table Report on provision and management of ICT in government
  • Round Table Report on ICT in government – findings
  • Round Table Report on ICT in government – recommendations
  • SITA (State Information Technology Agency)
  • SITA
  • BBI (Broadband Infraco)
  • SENTECH
  • Sentech plans
  • ICASA
  • USAASA & the USAF
  • USAF: to become part of Postbank

National ICT Spend

  • National government departments’ ICT spend 2017/18 – 2024/25
  • IT and telecoms spend categories, proportion of actual spend of national government departments 2021/22
  • National departments’ ICT spend: SITA versus non-SITA, 2021/22
  • Top 4 national departmental ICT spenders
  • Top national ICT spenders: in addition to the top 4 ICT spenders,
  • National Department – Police ICT expenditure
  • Some of the major recent ICT deals contracted by the South African Police
  • National Department – Home Affairs ICT expenditure
  • Home Affairs ICT projects
  • Some of the major recent ICT deals contracted by the Department of Home Affairs
  • National Department – Justice ICT expenditure
  • Some of the major ICT deals contracted by Justice departments
  • National Department – Defence budgeted ICT spend
  • Some of the major recent ICT deals contracted by the National Treasury
  • Some other major recent ICT deals contracted by the Department of Forestry, Fishing and Environment
  • Some other major recent ICT deals contracted by other national government departments
  • Some other major recent ICT deals contracted by other national departments

Provincial ICT Spend

  • National government departments’ ICT spend 2017/18 – 2025/26
  • IT and telecoms spend categories, proportion of actual spend of national government departments 2022/23
  • National departments’ ICT spend: SITA versus non-SITA, 2022/23
  • Top national ICT spenders
  • National Department – Police ICT expenditure
  • National Department – SAPS strategic ICT initiatives, cont.
  • SAPS Information System/Information and Communication Technology Strategy
  • Some of the major recent ICT deals contracted by the South African Police
  • National Department – Home Affairs ICT expenditure
  • National Department – Home Affairs strategic ICT initiatives, cont.
  • Automated Biometric Identification System (ABIS)
  • Some of the major recent ICT deals contracted by the Department of Home Affairs
  • National Department – Justice ICT expenditure
  • Some of the major ICT deals contracted by Justice departments in the past year
  • National Department – Defence budgeted ICT spend.
  • National Department – Defence ICT requirements
  • Some of the major recent ICT deals contracted by the National Treasury
  • Some other major recent ICT deals contracted by other national government departments.
  • Some other major recent ICT deals contracted by other national government departments, cont.

Provincial Government ICT

  • Provincial government ICT spend 2017/18 – 2025/26
  • Provincial government ICT spend is dominated by four provinces
  • Provincial ICT spend by categories, 2022/23
  • Provincial government ICT spend in 2022/23
  • Provincial government spend through SITA services, 2022/23
  • Gauteng government (GPG) ICT spend 2022/23 and forecast.
  • Gauteng City-Region (GCR) & Gauteng City-Region Observatory (GCRO)
  • Gauteng e-Government Department’s ICT plans, cont.
  • Western Cape government ICT spend 2022/23 and forecast.
  • Western Cape government’s ICT plans and projects, cont.
  • Western Cape government’s ICT plans and projects, cont.
  • KwaZulu-Natal government ICT spend 2022/23 and forecast.
  • KwaZulu-Natal Information and Innovation Hub
  • Eastern Cape government ICT spend 2022/23 and forecast.
  • Limpopo government ICT spend 2022/23 and forecast.
  • Mpumalanga government ICT spend 2022/23 and forecast.
  • North West government ICT spend 2022/23 and forecast
  • Free State government ICT spend 2022/23 and forecast.
  • Northern Cape government ICT spend 2022/23 and forecast.

Research team

The team for this research Penny Smith, Brian Neilson, Clinton Jacobs and Christopher Geerdts. This team has extensive sector experience in this field, having conducted these studies annually for more than a decade.

Further information

For further information and details on how to subscribe to this research please contact Anita Mathews |011 540 8000 | 082 466 2317 | anita@bmit.africa

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