10 May 2025

The ANC Study Group on Communication and Digital Technology is deeply concerned about the ongoing discussions regarding the regulation to decentralise ICT procurement powers from the State Information Technology Agency (SITA). These discussions have sparked critical debates about the future of ICT governance in South Africa and the role of SITA as a central pillar of the country’s digital transformation agenda. We stand firmly in support of strengthening SITA and ensuring it remains a key enabler of government efficiency and service delivery through ICT infrastructure and strategic innovation.

It is unacceptable for an entity like SITA to be compromised by poorly planned and improperly implemented decentralisation strategies. SITA is essential in providing ICT solutions to the government, ensuring secure, cost-effective, and integrated services for the public sector. The calls for revitalising SITA’s business model must be acknowledged, and their concerns addressed promptly.

As the Study Group on Communication and Digital Technology, we find it impossible to reconcile the Ministers’ statements that departments must present a “credible business case” to procure outside of SITA with the idea of enhancing SITA’s business model; these two ideas are fundamentally contradictory and cannot co-exist. We recognise the efforts of those promoting a balanced strategy for ICT governance. This strategy would aim not to dismantle SITA but to redefine its mandate and enhance efficiency in its operations. The decentralisation of procurement powers to client departments, allowing them to handle their procurements, could result in job losses for almost half of SITA’s 3,200 employees. This situation jeopardises economic transformation and job creation within the ICT sector and could negatively affect progress.

We support granting government agencies greater autonomy in ICT procurement under specific conditions approved through SITA. This approach offers a balanced solution that aims to strengthen the agency rather than undermine it. Importantly, these initiatives must not compromise SITA’s stability or its ability to oversee and support its clients. When implemented correctly, a balanced approach can improve service delivery, create job opportunities, and stimulate local economies by enabling SMME participation in the ICT value chain.

The ANC Study Group on Communication and Digital Technology strongly condemns any poorly planned decentralisation processes that could result in the collapse of key government agencies. The intentional weakening of a state entity like SITA is an unpatriotic act that undermines the country’s transformation agenda. The preservation of SITA is central to the safeguarding of data sovereignty and state ICT protection.

Engaging SITA in meaningful dialogue is essential when pursuing any reforms. This commitment is crucial to ensure the changes align with its operational realities and strategic objectives. The 2005 Regulations should serve as the foundational framework for any modifications, guiding progress that supports SITA’s core mission rather than undermining it. The newly appointed board must be given the time and space to rebuild the agency, as evidenced by their proactive oversight visits and ‘boots on the ground’ campaign aimed at addressing systemic challenges.

We urge the government to prioritise revitalising SITA’s business model, ensuring it remains agile, responsive, and capable of driving digital transformation. Increased investment in SITA’s capacity-building initiatives and a SITA inclusive decentralisation approach is essential to achieving this goal.

We, therefore, call upon the government to work collaboratively towards strengthening SITA and positioning it as a leader in ICT innovation and service delivery. SITA’s success is the success of the Department, and failing to support SITA would be failing the nation. We call upon the Minister to respond to the calls for SITA’s revitalisation with urgency and to follow the correct procedures should he wish to make any amendments to legislation that is currently in place.

Issued by the Whip of the ANC Study Group on Communication and Digital Technologies, Cde Imraan Subrathie MP

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