Minister expresses concern about lack of adherence to 30% local content rule in the manufacturing of government subsidised set-top-boxes
The Minister of Communications Nomvula Mokonyane would like to correct an article published by ITWeb, which erroneously quotes her as saying that all contracted local manufacturers of government set-top-boxes import decoders from abroad.
Minister Mokonyane is, however, extremely concerned, about the lack of adherence to the 30% local content manufacturing rule on the part of some suppliers who manufacture government's subsidised set-top-boxes which are meant to enable migration from analogue to digital television services.
The Department of Communication has learnt that some local manufacturers contracted by state-owned-entity Universal Service and Access Agency of South Africa to manufacture these decoders are procuring non-compliant devices abroad and import them into country.
This means that they are in fact contravening the local content quota prescription, which requires them to ensure that at least 30% of all decoder components are produced locally.
This undermines government's efforts to ensure that this project contributes towards boosting the country's electronics manufacturing sector to stimulate job creation in the sector. Additionally, many of these imported decoders are found to be defective and not compliant with the local standards framework set by the SA Bureau of Standards. This has resulted in decoder recipients having to return them to government's distribution agent - the SA Post Office.
There are 27 manufacturing firms contracted by USAASA to produce decoders and antennas for government's broadcasting digital migration project at a cost of R4.5 billion.
The Minister has also expressed concern about the cost per unit of the set-top-boxes (STB). Government is currently paying R1700 per manufacturing of a single STB, including installation.
She has described these costs as unsustainable for government and has called on public-private-partnerships in implementing the broadcasting digital migration project.
Minister Mokonyane firmly believes that a thriving local electronics manufacturing sector will go a long way in bringing down the cost of electronic devices in the country, including television sets.
The department is currently reviewing the implementation plan and the model around the broadcasting digital migration project; this process is set be concluded in the next few weeks.
The details of this reconfiguration of the broadcasting digital migration implementation plan will be made available upon consultation with Cabinet.
Enquiries:
Mish Molakeng
Cell: 082 469 3997
