|Environmental factor||Description||Impact||NLC’s response|
|Macroeconomic||South Africa’s economy is no longer regarded as stable and has experienced increasing economic pressure which has been a major driver of strikes and protests.
Contributions to the NLDTF has been stagnant for the past five years. In addition, the number of registered NPOs have doubled to approximately 136 000 from 2010 to 2015 implying the additional demand for funding.
The high levels of unemployment also negatively affect disposable income. These falling levels in disposable income implies that basic needs come first and the purchase of a lottery ticket might not be a priority. This could contribute to people participating in alternative illegal activities that exhibit higher success of winnings. Through these tough economic times, it is envisaged that selling “hope” through a game of chance may prove to be lucrative on the sale of national lottery tickets. In addition, the NLC has positively contributed by creating and sustaining approximately 25 000 jobs in the 2016/17 financial year.
|Economic conditions have resulted in an increased number of applications with demand for funding from NLDTF
The stagnant contributions to the NLDTF
|NLC conducts research and revises funding priorities annually to address societal needs.
NLC focuses on high impact projects
NLC funding have contributed to creation of jobs as indicated in the Operations Division report
|Regulatory and legislative||
|Political||The NLC’s role and functions as outlined in the Lotteries Act (as amended) places an obligation on the organisation to support (directly and indirectly) the electoral mandate of Government. From a strategic perspective, the sight of government priorities provides a major opportunity for the NLC within the disciplinary context of social development and social upliftment. These include addressing unemployment and alleviating poverty in alignment with the NDP. The NLC is therefore driven by government policies on economic and social development.||The NLC considers the NDP and Nine Point Plan in developing its strategies, to ensure alignment with the mandate of Government|
|Technological||In the context of the Fourth Industrial Revolution and its disruptive effect on all economies, there are three things to consider as Africa aims to maintain its “Africa rising” narrative:
The real economy and the digital economy are not mutually exclusive. The two have become one and the same as technologies blur the lines between the physical, digital, and biological spheres. The vast and growing potential of the Fourth Industrial Revolution is yet to be fully grasped. The ICT sector, industry and governments have a responsibility to unlock its potential for citizen service delivery, customer experience and innovative solutions, for a better life for all.
|The increase of mobile and internet use comes with its own threats – namely cyber security, which has become a massive global problem. Prioritising cyber security capabilities is not only important for protecting organisations and their customers’ data, assets and reputations, but also fundamental to successful digital transformation.
For the NLC, online gambling has changed the landscape as people want to participate at their convenience. The scourge of illegal online lotteries and gambling has encroached into the Lottery space. The promotion of Fantasy gaming further exacerbates the situation.
|The NLC’s Enterprise-wide Architecture aims to do exactly this from both an internal as well as external perspective. Entire systems of production, management and governance are being affected and, as digitisation continues, the issue becomes intimately intertwined with addressing youth unemployment, manufacturing and harnessing human innovation.
NLC has set aside necessary investments to enable staff and external stakeholders to participate in and benefit services from a secured infrastructure and enterprise architecture. Innovation remains a tool towards success, especially within an era of increasingly advancing business, social, and economical environments. We plan to introduce innovative methods of interaction, for example through use of mobile devices to allow stakeholders take on new roles as enabled and empowered participants. To capitalise on these opportunities, the NLC shall ensure that the developed technology roadmap encapsulates principles of a flexible, scalable, cost-effective and risk tolerant infrastructure and enterprise environment. It must, however, be noted that introducing new services in a network often presents challenges, among them security. At the NLC, this is addressed through the enacted ICT Governance Framework.
|Governance||Corporate Governance is crucial to business sustainability and growth of the organisation. The development and implementation of a proper corporate governance framework is endorsed by the Board. The Board accepts responsibility for the application and compliance with the principles of ensuring that effective corporate governance is practised consistently throughout the organisation.||The impact of Corporate Governance weaknesses harm could harm the reputation of the NLC and threaten the integrity of NLC’s regulatory and grant funding activities||The Board discharges this role through its charters based on a Corporate Governance Framework which is includes amongst others the principles of the Lotteries Act, PFMA, Treasury Regulations and good governance principles. These are further aligned to the organisations top strategic risks and reviewed annually.|