The Eastern Cape Information Communication Technology Initiative (ECITI) has announced a combined turnover of R6.5-million for its 20 incubated businesses.

The enterprises operated mainly in software development, film and design. The best performing sectors were infrastructure and networks followed by communication and media management and film.

“The R6.5-million turnover is pleasing when measured against total grant funding of R2.4-million from the Eastern Cape Development Corporation,” ECITI head Patricia Dlamini said.

The ECITI further stated that, while the turnover for the 2013 financial year was lower than the R9-million generated in 2012, it was not as a result of a decline in the financial performance of the businesses, but rather owing to three enterprises that had graduated from the programme during 2012.

“During the two-year graduation cycle, turnover naturally increases because companies that are ready to graduate are financially sustainable. Turnover was, therefore, indicative of the readiness of the businesses to graduate from the programme. The period under review is the first year of the new two-year cycle,” the ECITI explained.

Meanwhile, the ECITI also identified a need to expand its offering to reach beyond the confines of the Eastern Cape.

“Based on the challenges of slow economic growth, expanding the reach of entrepreneurship and capacity development will offer job creation and poverty reduction opportunities. This calls for a bigger financial investment and commitment of patient capital in support of the broad-based entrepreneurship capacity development objectives,” Dlamini said.

In light of these objectives, the Department of Trade and Industry (DTI) had, through its recently launched Incubation Support Fund, committed a total of R11-million to the ECITI over the next three years.

Dlamini added that the ECITI was well placed to coordinate provincial efforts to bridge the digital divide, particularly in reaching out to the rural communities, allowing them to explore the use of information and communication technology (ICT) and film for the development of communities.

“ICT creates a powerful medium through which rural communities can transform their lives and create livelihoods,” she said.

The increased appetite for incubation from enterprises located away from the main centres has resulted in a decision to establish satellite incubation centres in the OR Tambo and Chris Hani regions. This decision should bring ECITI services closer to its clients, Dlamini stated.

She added that the provincial Department of Economic Development and Environmental Affairs and Tourism (DEDEAT) had also established an ICT task team led by the ECITI and Innovate Eastern Cape.

The task team would identify ICT infrastructure gaps within the province, classify available ICT skills and gaps, find existing ICT projects and programmes within the province run by the public or private sector, and develop a comprehensive project proposal as a basis for DEDEAT to engage the national Department of Communication (DoC) around provincial ICT issues.

The ECITI had been tasked with championing these initiatives to support economic development initiatives.

The ECITI was also collaborating with the DoC and its State-owned companies on the implementation of several projects related to connectivity initiatives in the rural parts of the province through the establishment of ICT labs in the Eastern Cape.

“These projects have enabled ECITI enterprises to become the primary implementers locally and to offer post-establishment maintenance and aftercare support. The organisation was also tasked with the championing, strategic planning and implementation of the fifth annual ICT Summit. The ECITI’s role is viewed as the relevant conduit that government can invest funds in to enable the conference,” Dlamini added.