The State IT Agency (SITA) will focus on its financial sustainability over the medium-term expenditure framework (MTEF) period.
So says the Estimates of National Expenditure (ENE), which is the document handed out to coincide with the 2022 National Budget tabled today.
SITA is government’s agency mandated to provide IT, information systems and related services to and on behalf of government departments and organs of state.
In the past, it has faced numerous maladministration and corruption allegations, and has often been described as an embattled state entity.
The agency, however, is in the process of being repurposed into a new digital transformation entity that will drive digitalisation, innovation, localisation and supporting a capable state.
In addition to focusing on its financial sustainability, SITA has reconfigured its strategic programmes to complement the objectives of the national economic reconstruction and recovery plan, according to the ENE document.
“In line with this focus, it will continue to seek collaborations with the industry and learning institutions to create relevant and useful content and seek to build innovation capital by encouraging initiatives such as hackathons among the public.
“The agency will also partner with local research institutions to develop innovative digital solutions for government and focus on information and cyber security to ensure the state and its citizens are able to transact, communicate and interface within a secure and safe environment.”
In terms of the spending overview, SITA’s expenditure is expected to increase at an average annual rate of 3.8%, from R6.2 billion in 2021/22 to R7 billion in 2024/25.
“Goods and services account for an estimated 61.2% (R12.2 billion) of expenditure over the medium-term, mostly for the provision of IT services, whereas compensation of employees accounts for an estimated 33.5% (R6.7 billion).
“As the implementation of strategic projects – such as South Africa Connect, cloud infrastructure and the Gauteng Broadband Network – require substantial capital investment, R1.5 billion is allocated for the acquisition of assets over the MTEF period.
“The agency generates revenue by providing ICT infrastructure and services to government departments and organs of state. Revenue is expected to increase at an average annual rate of 4.3%, from R6.2 billion in 2021/22 to R7.1 billion in 2024/25.”
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