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NewsDay

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Govt seeks to stimulate ICT growth

Business
The government has said a 10% growth in the information communication and technology (ICT) industry will increase the gross domestic product (GDP) by 1,5%, Information for Communication and Technology minister said.

The government has said a 10% growth in the information communication and technology (ICT) industry will increase the gross domestic product (GDP) by 1,5%, Information for Communication and Technology minister said.

BY TATIRA ZWINOIRA

Speaking to ICT leaders of industry to map out the ICT infrastructure sharing yesterday in Harare, ICT, Postal and Courier Services minister Supa Mandiwanzira said that government was seeking to encourage growth in the ICT industry to add to the gross domestic product.

“We have a responsibility to work together, grow the economy together, and to keep this industry ticking to make sure that it is the biggest contributor to GDP,” Mandiwanzira said.

“As we have these enterprises doing well or going up we also know that we are creating new employment.”

This meeting was a follow up to the ultimatum handed by government to members in the sector to sign the infrastructure agreement in 90 days which government hopes will stimulate the industry.

Industry leaders cited their major concerns as taxes, the growing number of social applications that are hurting their revenue streams, and uncertainty as to the share to be given among them from the agreement as some have invested more than others.

Representatives from the big players in the industry that were present included Econet Wireless, Telecel, NetOne, and TelOne.

“When revenues of the fastest growing or robust industries come down equally the revenues to government come down so we have a responsibility as a ministry to ensure that the revenues go up,” Mandiwanzira said.

“So the more growth we have in the ICT sector, the more growth we have in the economy.”

Government sees infrastructure sharing leading to the reduction in costs through sharing of technologies and therefore allow room to grow within the industry.

Mandiwanzira said that players with more infrastructure than the other would get more profits than other ICT players within the industry.

He said that government was not targeting Econet Wireless through this deal as it was directed to all players in the industry “We need to clear this perception that we are anti a particular company or we favour State-owned enterprises in the telecommunications sector,” Mandiwanzira said.

He said that since the announcement of the infrastructure sharing, he received reports that Econet Wireless was forcing suppliers to reduce their costs by 16%, cutting salaries of employees, and getting rid of the SMS platform from suppliers in favour of its own. Mandiwanzira said his ministry would look into the matter.