Technology and consulting company IBM on Thursday signed an Equity Equivalency Investment Programme (EEIP) with the Department of Trade and Industry (DTI) that would see IBM invest R700-million in skills development in the fields of science and technology in South Africa over a ten-year period.

Through the programme, IBM intended to make a significant contribution to broad-based black economic empowerment (BBBEE) in South Africa, taking its BBBEE rating to level 2.

"We are aligning our investment and commitment to the priorities of the National Development Plan, the Department of Science and Technology’s Information and Communications Technology (ICT) Research Development and Innovation Roadmap and making a meaningful contribution towards South Africa’s further growth and development,” said IBM South Africa GM Abraham Thomas.

He added that the company considered its investment as a vehicle to advance science and technology by developing skills, building the talent pipeline and fostering innovation, which were essential to further growth.

The EEIP had been designed to fulfil the requirements of BBBEE ownership, as well as to promote socioeconomic advancement and development within the domestic economy. It would do so with a first-of-a-kind integration of academic, enterprise and research and development components into a holistic skills development programme intended to drive South Africa’s digital capability in the global market.

IBM EEIP executive Gavin Pieterse noted that technology had an important role to play in delivering on national priorities – making the country more efficient, creating opportunities for young people and businesses, making systems and services more accessible and inclusive, and re-establishing South Africa as a leader in ICT in the emerging markets.

“We see this investment as a catalyst for the ICT sector and a significant opportunity to use innovative technology trends like cloud computing, analytics and green technologies for the benefit of all South Africans,” he said.

Linked to the investment programme, IBM concluded agreements with the University of the Witwatersrand and the Council for Scientific and Industrial Research to collaborate in supporting a three-pronged programme that included small business entrepreneurship, high-tech academic development, and research and development and innovation.

“This programme is intended to build an ecosystem of collaboration between academics, students, entrepreneurs and industry to foster innovation beyond the ten-year roll-out plan,” Pieterse stated.