TALKING

A key criticism of the Transformation Fund is the risk of corruption and mismanagement . Without robust oversight mechanisms , there is a risk that funds could be diverted for personal or political gain . Previous initiatives have highlighted the need for stricter auditing and monitoring to ensure funds are used as intended .

Administrative delays are a further risk – bureaucratic inefficiencies could slow the disbursement of funds ,

Small thinking , big solutions undermining their impact . Timing of support could mean life or death for many small businesses .

South Africa is already competing in a battle for deployment of funds by global investors and multinational businesses . The proposed fund could inadvertently create additional challenges for the South African economy .

All too often multinationals raise concerns about the high cost of doing business in South Africa . As mentioned , private sector contributions that are mandated through B-BBEE Codes or competition requirements will provide income for the fund .

The size of the company is not what drives technology implementation success , it is how they ensure that , regardless of size , they remember to prioritise people and results over sales . Gaining ground in competitive markets means listening to people and creating solutions that solve their problems .

It means thinking small when it comes to personalised service and collaborative customer relationships , but thinking far beyond the box when it comes to technology solutions , innovation and growth .

Heath Huxtable , Managing Director , Braintree

Limited DTIC statements to date seem to imply that mandatory fund contributions will not be required and that this won ’ t be a cost in addition to B-BBEE contributions , but clarity from the department on requirements on contributions and the integration with B-BBEE legislation will be important for all stakeholders .

Concerns about corruption , inefficiency , and policy uncertainty may dent investor confidence and deter both domestic and foreign investors . In addition , over-reliance on government intervention could stifle competition and innovation , particularly if funds are allocated based on political considerations .

This is something that many technology companies have forgotten – the human element of service delivery amidst the rush to create new solutions and implement new technologies . The pressure to drive sales often overshadows the importance of understanding what a business actually needs .

The most successful technology partners are built on shared growth and understanding . This is reflected in research that shows how the relationship between the service provider and the customer is one of the single biggest determinants of success .

It is also the customer ’ s experience throughout the technology implementation and support phases that defines the longevity of that success . Service providers need to take the time to understand the business and design solutions that will evolve with them .

Another often overlooked factor is the relationship between talent retention and service quality . Investing in the right people and fostering a culture of innovation has a direct impact on how satisfied a client feels . When technical teams combine ingenuity with engineering expertise , the results often exceed client expectations , however , retaining these teams and this talent means prioritising relationships within the business as well .

The most valuable partners – those that hold onto customers – are those who remember what it is like to think both in terms of scale and growth , but what it means to start small . And starting small means remembering the value of providing solutions that answer very real business problems and do not rely on hype to get in the door .

And government funds can foster dependency rather than self-reliance . Without a clear focus on sustainability , businesses that receive support may struggle to survive once funding ends . Where SMMEs are targeted by the fund , support should extend to include business mentoring and training .

The proposed Transformation Fund is a bold step toward addressing South Africa ’ s economic inequalities and fostering inclusive growth . Successfully implemented , this initiative could be a resounding success .

What this will need though is transparency and accountability ; merit-based allocation ; strong publicprivate stakeholder collaboration ; robust monitoring and evaluation ; and implementation that does not spook investors .

Unfortunately , the government does not have a rich history of success in similar initiatives and many will be critical of possibly increasing the cost of doing business in South Africa , of likely inefficient and ineffective deployment of funds , or even worse , of creating a black hole ripe for plunder .

Perhaps a strong public-private partnership can drive what is needed to achieve the fund ’ s goals . p

32 INTELLIGENTCIO AFRICA www . intelligentcio . com