COMMENT
and e-health. This technology deficit
will become more pronounced as the
emerging Internet of Things develops
into the Internet of Everything.
“This lack of investment muscle
is exacerbated by a poorly
conceived investment strategy in
telecommunications. For example, the
current focus on laying down a fibre
backbone is insufficient to take the
country to where it needs to be. Fibre
will benefit only a small proportion
of the population within urban areas,
but will not be economically viable for
the rest of the country where large
numbers of disadvantaged people live.
However, a combination of fibre and
5G can make it commercially viable to
provide broadband to a much greater
proportion of the population. There
needs to be a shift in thinking by
considering the needs and requirements
of the disadvantaged and aligning
the telecommunication infrastructure
accordingly,” he emphasises.
Capital strategies
ZTE has been operating in South
Africa for more than 10 years, and has
developed a strong local capability
based on its determination to play
a role in developing the country. “At
least 50% of our local employees are
South Africans, and our policy is to use
local sub-contractors and suppliers. We
are committed to training our South
“There needs to be
a shift in thinking
by considering
the needs and
requirements of
the disadvantaged
and aligning the
telecommunication
infrastructure
accordingly.”
24
INTELLIGENTCIO
Liu Haishi, Chairman and CEO, ZTE Corporation South Africa
African staff via both computer-based
training and in person at our facilities
in China. Coupled with the provision
of capital funding, ZTE continues to
look for opportunities to grow the
South African economy and benefit
the South African people through skills
and knowledge transfer. This requires a
concerted effort and in order to create
the most benefit, alignment with the
right partners is imperative.”
Haishi says that more importantly,
ZTE is focused on bringing the latest
technology to the country. “We are
working with various operators to roll-
out 4G and to bring fibre to the home
but, as noted above, we believe a hybrid
approach that marries fibre and a
new technology like 5G is more suited
to conditions on the ground in South
Africa. ZTE is a global leader in 5G, with
many pre-5G projects already underway
around the world, so we can contribute
not only technological know-how
but also a growing body of hands-on
experience in the best deployment
models for 5G in various markets.”
He highlights one critical component
of ZTE’s strategy – which is aimed
at spearheading the provision of the
latest technologies – is the company’s
willingness to adjust its business model
to South Africa’s realities. “This means
that instead of operating simply as a
supplier, we are prepared to participate
in financially supporting the project,
either by financing it ourselves on a
build/ operate/ transfer model or by
helping clients to access the finance
needed for mega-projects from the large
Chinese banks with sufficient capital
resources to fund and support these
mega infrastructure projects.”
As China’s largest stock exchange-listed
telecommunications solutions provider,
ZTE is well positioned to deal with these
banks. “Therefore, we can play a key role
in helping South African clients access
the capital for large projects. Through
ZTE’s relationships as a main member
of SACETA (South African Chinese
Economic and Trade Association), we
are well positioned to facilitate and
promote other capital investment
projects within South Africa.
“We believe this combination of long-
term commitment to the country’s
development, access to capital, flexible
business models and technology
leadership can play an important
role in helping South Africa realise its
potential,” concludes Haishi. n
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