Sinazo Konongo | 26 June 2025 Solly Malatsi wants South Africa to send a clear message to the world that the country is open for investment, serious about transformation, and committed to connecting more people to opportunity. If we want to connect more South Africans to opportunities, jobs, education, health, and business, we need serious investment in digital infrastructure. To get that investment, we must create a regulatory environment that is not only fair and consistent but also aligned with all national laws on transformation. This is the purpose of the draft policy direction I issued recently. It aims to encourage the Independent Communications Authority of South Africa (ICASA) to ensure that all legitimate forms of transformation, as recognised in national legislation, are fully taken into account when it comes to licensing in the ICT sector. It’s a straightforward step to fix a regulatory misalignment that’s been holding us back for far too long. The policy direction is not a special exemption for anyone. It is about recognising the full scope of empowerment options set out in the ICT Sector Code, which was issued under the Broad-Based Black Economic Empowerment (B-BBEE) Act. That law makes provision not only for ownership but also for a range of other transformation elements, from skills development and enterprise support to socio-economic contributions and infrastructure investment. Yet despite this legal framework, ICASA’s current regulations focus narrowly on a single metric, which is 30% ownership by historically disadvantaged persons. This misalignment is not just a legal technicality. It’s a real barrier to investment and, ultimately, to the goal of giving every South African a fair shot at digital inclusion. While ownership is important, it is not the only valid or impactful route to transformation. By ignoring other contributions, such as those allowed under Equity Equivalent Investment Programmes (EEIPs), we are shutting the door on billions of rands in potential investment as well as the immense benefits these investments can create for citizens. EEIPs have been part of South Africa’s empowerment toolkit since 2016. They allow 100% foreign-owned multinationals to meet transformation obligations without selling equity. This is often not feasible due to global shareholder structures. Instead, companies invest directly in initiatives that benefit black South Africans. These may include funding for digital skills training, infrastructure projects in under-served areas, or the development of black-owned SMMEs. These are not theoretical ideas. EEIPs have already delivered real results. For example, IBM committed R700 million over 10 years to ICT training and supplier development. Microsoft’s APP Factory and enterprise development programmes have supported black-owned businesses across the country. Amazon launched a R365 million initiative focused on building 100% black-owned tech SMMEs. These are transformative contributions, and they are compliant with the law. There is no reason why the ICT sector should be treated differently. My responsibility, as Minister, is to ensure that the law is applied consistently and that ICASA’s regulations do not inadvertently create unnecessary barriers to entry or investment. That is precisely what the policy direction seeks to achieve. In fact, this issue goes back to 2014, when Parliament amended the Electronic Communications Act (ECA) to shift the focus from individual ownership by historically disadvantaged persons to include the broader framework of B-BBEE. The amendment was clear that ICASA was empowered to develop regulations that reflect broad-based empowerment, not just equity stakes. Importantly, the amended law included the phrase “or such other conditions” in section 9(2)(b)—deliberately creating space for empowerment mechanisms beyond shareholding. The law foresaw the need for multiple approaches to transformation and empowered ICASA to make regulations accordingly. Unfortunately, that hasn’t happened. ICASA’s 2021 regulations stick rigidly to the 30% equity rule and does not include other valid empowerment options under the ICT Sector Code and the B-BBEE Act. This not only limits investor participation, especially from global firms that may want to bring new technology and competition into the market, but also undermines the principle of inclusive growth. It also disrupts alignment across government. While the DTIC formally recognises and administers EEIPs through the B-BBEE Codes of Good Practice, ICASA’s regulations don’t fully reflect this. The result is a fragmented, inconsistent framework that discourages innovation and creates unnecessary regulatory risk. The policy direction is not amending legislation as some have expediently sought to portray it. It is an instrument already available at our disposal to drive inclusive growth and investment now. The ECA already gives the Minister the power to issue a policy direction, after consultation with ICASA, to ensure the effective application of the law. That’s exactly what I’ve done. I also want to stress that transformation is not negotiable. This policy direction does not lower the bar. It insists on meaningful, measurable contributions to empowerment, just not in a one-size-fits-all manner. It recognises that different business models require different, but equally impactful, ways of advancing transformation. Critics who suggest this policy direction creates a loophole are wrong. EEIPs are not exceptions, they are formally endorsed by government, underpinned by law, and subject to strict criteria and oversight. They represent an alternative route to full compliance, not an escape from it. The bigger picture here is not only about regulatory technicalities. It’s about what this means for ordinary South Africans. When we remove unnecessary obstacles to investment, we enable the rollout of more networks, lower the cost to communicate, and expand access to the internet. When transformation is broad-based, those benefits extend to SMMEs, youth in digital training programmes, and rural communities getting connected for the first time. Empowerment should not be confined to a tick-box approach. If a company invests R500 million into broadband rollout in deep rural areas, creates 1 000 new ICT jobs, or incubates 20 black-owned tech enterprises. That is transformation and it is the kind of progress we should welcome. That’s why this policy direction matters. It’s about bringing our laws, our regulator, and our national development goals into alignment. It’s about sending a clear message to the world that South Africa is open for investment, serious about transformation, and committed to connecting more people to opportunity. This isn’t a shortcut. It’s a step forward, for the benefit of all. Solly Malatsi is the Minister of Communications and Digital Technologies. This article originally appeared in the Sunday Times and is published with permission. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.leadershiponline.co.za/recognising-all-forms-of-transformation-to-unlock-investment-and-opportunity/

Setumo Stone | 29 June 2025 Petroleum industry upstart Nako Energy has blown the lid off what it describe as “war-like tactics” and “monopolistic practices” by major oil and gas companies and implicated state-owned PetroSA in the alleged sabotage of black-owned businesses and the manipulation of critical industry contracts.  In a complaint to the Department of Mineral Resources and Energy, which recently surfaced due to lack of intervention since the letter landed on the desk of director-general Jacob Mbele in August last year, Nako Energy’s co-founder, Nkosinathi Ngwenya, paints a harrowing portrait of a sector under siege – not by foreign interests but by a small cabal of multinational giants and their local enablers within state organs.   The allegations strike at the heart of transformation in South Africa’s energy sector.  The letter details a pattern of exclusion, obfuscation, and outright sabotage.   Far from being given a fair chance to compete, Nako Energy alleges it has been subjected to scrutiny and contract manipulation designed to keep newcomers, and especially black entrepreneurs, out of the lucrative petroleum value chain.  “Every vessel we have imported has been met with what can only be described as war-like tactics, severely impacting our ability to function, turn a profit, and establish ourselves as a significant player in the industry,” Ngwenya wrote.  In defiant terms, Ngwenya rejected any insinuations of political favouritism. “Nako Energy has never received any preferential treatment in the oil and gas industry. The barriers to entry have not only hindered us but have also prevented many others from entering this highly competitive sector.   “We formally lodge a protest and complaint against the ongoing attacks, sustained investigations, and insinuations that we may be receiving preferential treatment or undue attention.”   The company’s founders, who pride themselves on their black ownership and industry experience, describe how their attempts to form partnerships and invest in infrastructure met resistance at every turn, especially when dealing with PetroSA, the state oil company. This, Ngwenya said, is a betrayal of the very “codes of good practices” that were supposed to open the sector to black entrepreneurs.  The most explosive allegations relate to the involvement of PetroSA insiders who Ngwenya claims leaked his entity’s confidential business information and contracts to competitors and law enforcement agencies, leading to “unfounded accusations” and reputational damage.   As a result, the company’s business case – allegedly worth over R1-billion to PetroSA – was “dissected and undermined, with critical elements being stripped away”.  But it is the company’s assertion of internal sabotage that will be most damning for those tasked with safeguarding South Africa’s transformation agenda.   “What is even more troubling is the infiltration of state organs by the majors, particularly within PetroSA, where their interests are now protected by gatekeepers. For example, Nako has had its samples handed over to the industry without proper consultation or adherence to established policies and procedures.   “This allowed the majors to conduct analyses on our product and request information that seriously infringes on our intellectual property,” the complaint claims.  Despite the government’s much-publicised transformation goals, Ngwenya charges PetroSA’s legal leadership dismissed them as “untrusted”, not for any operational failing, but for their “youth, inexperience and lack of trustworthiness”.   This, he contends, flies in the face of both their credentials and successful deliveries. “It is unclear on what basis these judgements were made, particularly when Nako has been the only BEE and indigenous company to deliver successfully, time after time,” the complaint concludes.  Ngwenya said the company faced a financial onslaught comparable to the decimation wrought by state capture’s most powerful architects. He says it is buckling under the weight of “credit exposure of R600-million to our funders, $15-million to our component suppliers, and $10 million to our shareholders”.   “The finance charges alone are enough to sink any corporate entity, but thanks to the strategic intent and vision cultivated through our economic activism… we have managed to stay afloat.”  Nako Energy claims it is being starved of liquidity and opportunity by a system that appears to serve only the entrenched multinationals. “Our outstanding invoices now exceed R950-million, and our demurrage invoices have accumulated to over $12-million. This financial burden has severely impacted our ability to commission our refinery, build necessary storage facilities, and enter the retail market, which remains dominated by multinationals.  “It is rather disheartening that when other multinationals and international traders supply PetroSA, there are never any disputes over demurrage, and their invoices are settled promptly. In stark contrast, Nako has had our demurrage invoices outstanding for over 11 months.   “This disparity highlights the unequal treatment we have received within the industry.”   The company made an urgent plea to the government, demanding a fair hearing. “We need to officially present our case and seek support that will enable us to continue our mission of establishing a locally driven oil and gas enterprise.”  PetroSA declined to comment, and Mbele’s office failed to respond to questions.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/black-owned-nako-accuses-petrosa-and-industry-giants-of-sabotage/

Babalo Ndenze | 26 June 2025 CAPE TOWN - President Cyril Ramaphosa has again defended the country’s transformation laws, saying it was not the only country that requires international companies to transfer ownership to local investors. Ramaphosa also said new regulations that won’t require global companies like Starlink to hand over 30% ownership were well within the law and should be welcomed. Ramaphosa was responding to questions in the National Council of Provinces (NCOP) on Wednesday on transformation and its impact on foreign investment. The president said that new regulations on equity equivalence, which is investment without handing over ownership, should be welcomed. This is despite opposition by his own party in the communications committee, which insists on 30% ownership for disadvantaged groups. President Ramaphosa said the regulations, introduced by Communications Minister Solly Malatsi, were about finding new ways to trigger investment without doing away with transformation. But Ramaphosa said that the transfer of shares to local investors was not unique to South Africa. "And let me immediately say that we are not the only country in the world that requires that there should be local ownership." He said that South Africa was probably the only country that promoted transformation through "equity equivalence". "If you’re not able to have joint ownership, we want equity equivalence that will help to address the injustices of the past." On the regulations on equity equivalence, Ramaphosa said that South Africans would have an opportunity to make public submissions before they’re finalised. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.ewn.co.za/2025/06/26/ramaphosa-defends-transformation-laws-says-sa-not-the-only-country-that-requires-local-ownership

Sashnee Moodley | 25 June 2025 President Cyril Ramaphosa said on Wednesday that the Department of Trade, Industry and Competition (dtic) is considering a review of broad-based black economic empowerment (BBBEE) measures to improve across a range of areas. As he responded to questions in the National Council of Provinces, Ramaphosa admitted that more can be done around the policy, stating that government must constantly monitor goals achieved and where improvements can be made. “The Broad-Based Black Economic Empowerment Act remains a fundamental lever for transformation, as part of our broader strategy to achieve more rapid, inclusive and sustainable economic growth in the country. As I have said before, we must dispense with the false notion that we must make a choice between growth and transformation. Black economic empowerment is not only compatible with investment and growth, but is essential to achieve broad-based growth and prosperity,” Ramaphosa asserted. The dtic review aims to align with government’s priorities of industrialisation, inclusive growth, localisation and access to finance for emerging enterprises.   Ramaphosa said the review would help improve the effectiveness of BBBEE implementation and close any gaps in this area, while setting deadlines and links between BBBEE and industrial policies. “We need to ensure that our BBBEE policies support inclusive growth, just as we need to ensure that growth supports transformation. Our task is to strengthen BBBEE and ensure that it works effectively in promoting the participation of black people in our economy, not to abandon it,” said Ramaphosa.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/dtic-to-review-bbbee-measures-to-strengthen-efficacy-2025-06-25

Malcolm Libera | 25 June 2025 Young South Africans are facing a financial crisis which could negatively impact the country’s economic future.  This is according to consumer analytics company Eighty20, which noted young people aged 18 to 24 are being squeezed by high unemployment, rising debt, and limited access to the formal financial system. This age group makes up nearly half the population, with close to 30 million South Africans under the age of 24. However, the reality is bleak for the 6.7 million in the 18 to 24 bracket.  Only about one million of them are credit-active, and of those, nearly half have already defaulted on their loans. Their average monthly income is just R3,400, less than half the national average of R7,000. According to Stats SA, youth unemployment is 62.4%, locking millions out of the economy and any chance of upward financial mobility. Eighty20’s National Segmentation data showed clear signs of the significant pressure young South Africans are under.  The data showed that Most young credit users rely on retail credit, with 85% holding store accounts. A smaller share (17%) have personal loans, and just 9% hold credit cards.  Youth account for around 4% of the country’s total outstanding debt, which amounts to R10 billion.  However, their repayment performance lags behind that of the rest of the population, with R1.1 billion (around 11%) of that debt currently overdue.  “This elevated delinquency rate signals particular financial stress within this age segment,” said Andrew Fulton, Director at Eighty20. A further insight from the MRF’s Marketing All Product Survey (MAPS), which surveyed 20,000 South Africans, revealed that young people are especially private about their debt. They strongly prefer borrowing from formal institutions rather than friends or family, and they are highly concerned about others knowing when they take out a personal loan. However, the most troubling insight is that most young South Africans don’t even make it into the formal credit system at all.  Despite those under 24 accounting for roughly 20% of new credit entrants in recent months, hundreds of thousands remain excluded.  These so-called “thin file” clients have little or no credit history, locking them out of a wide range of opportunities. “A credit score serves as the gateway not only to lending products and favourable terms, but also to essential services across multiple sectors,” Fulton explained.  “A healthy credit profile enables access to cell phone contracts, rental agreements, and can even influence employment opportunities.” Even among those who can access credit, performance is often poor. Around half of young borrowers default early, and many never recover a healthy credit rating.  Eighty20 noted that this limits their future borrowing capacity and ability to participate in key aspects of adult life.  Fulton emphasised the need for better financial education and earlier intervention. “Those in distress need to get into debt counselling early. Education is critical if we want to stop this cycle.” The root of the problem is South Africa’s youth employment crisis. According to Harambee’s Breaking Barriers report, around one million young people enter the labour market annually, but only 40% find work within a reasonable timeframe.  Another 30% cycle in and out of informal or precarious employment. 20% want to work but never find opportunities. And the final 10% stop looking altogether. For those lucky enough to have jobs, one source of relief has been a side hustle.  According to BrandMapp, which surveys South African households earning over R10,000 per month, the proportion of people with no side income has dropped from 55% in 2021 to 49% today.  The side hustle economy has exploded into areas such as freelancing (graphic design, writing, web development), e-commerce, drop shipping, delivery and ride-share services, online tutoring, and content creation.  These ventures have become critical for young South Africans struggling to stay afloat. International trends reflect a similar shift, with about 50% of millennials and 46% of Gen Z globally now reporting having side hustles. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/finance/829255/the-one-group-of-south-africans-facing-financial-disaster/

Nicola Mawson | 26 June 2025 Old Mutual SMEgo yesterday launched its second edition of the SMEGo Pitchathon, for businesses in ICT and financial services, offering a R4.2 million prize − an increase of over R1 million from the 2024 edition. The 2025 initiative will see 14 businesses awarded R300 000 each towards their business needs. The launch was held at an event in Rosebank, attended by various stakeholders. At the event, speakers said for technology to help solve South Africa’s socio-economic challenges − like unemployment, education and housing − the solutions that it enables must be scaled so that even women living in Soshanguve without access to data can find a job. Nobesuthu Ndlovu, director of Old Mutual Corporate’s SME division, told ITWeb that technology can help solve these problems. She noted this is why Old Mutual developed SMEgo, a platform for companies to access business services, which is available on smartphones and as a web portal. Old Mutual aims to support small businesses by being a partner to them through SME go, which provides access to services, such as HR management tools, billing and legal documents, said Ndlovu. Entries for the pitchathon are open until 15 August and applicants need to provide a pitch deck, a valid B-BBEE certificate, proof of a minimum turnover of R500 000, and at least six months of trading history supported by documents like bank statements and contracts. Driving job creation Old Mutual’s support of SMEs through SMEgo and the pitchathon aims to help create employment and solve SA’s socio-economic challenges, said Ndlovu. “We need a country with people who want to make it work. I want to live in this country forever.” Small companies are the bedrock of SA’s economy, making up 91% of formalised businesses, providing employment to about 60% of the labour force and contributing about 34% of gross domestic product, according to The Banking Association of South Africa. However, Old Mutual says in a statement that SA has one of the highest rates of small business failures across the world, as up to 70% of SMEs fail within the first five years. Speaking at the event, Pali Lehohla, statistician-general of SA, said many small businesses fail because they don’t have access to funding. He said SMEs need scale to help create jobs. “Those who give the [financial] support are friends, families and fools.” SMEgo also provides companies an opportunity to secure funding, said Ndlovu. Old Mutual evaluates their eligibility by considering factors such as their transactional history, invoices submitted and paid, and contracts signed. Lindiwe Shibambo, founder of Maid4U, was one of last year’s 10 pitchathon winners. She explained that the company was in danger of closing following the global pandemic, and is now close to launching an app that enables women to find employment and employees to vet domestic workers. Shibambo said her experience as a domestic worker was the impetus for her business, which also provides training for people who come from, for example, Soshanguve, who don’t know how to use a microwave. Maid4U used its winnings to hire developers to create an app, which is zero-rated, that will be available on Android and iPhone. The app has been designed “like a dating app” as it allows people to search based on specific criteria, noted Shibambo. Ndlovu said Old Mutual wants to help create “an economy where we have a zero unemployment rate”. Statistics South Africa’s latest Quarterly Labour Force Survey, released on Tuesday, showed that 95 000 fewer people had jobs this March than a year ago. Common goals Old Mutual is partnering with other corporates by providing the SMEgo solution as a white-label software-as-a-service to them. Ndlovu explains that other companies, which she could not name, can also add their own offerings to the platform. Lincoln Mali, CEO of Lesaka Technology, also speaking at the pitchathon launch, sees technology as an enabler of solutions that can be scaled to help solve SA’s “intractable problems” – such as the lack of education and housing, among others. Mali said the technology solutions that will enable small companies are those that solve issues. “It’s not the tech per se; it’s trying to understand the pain point and solve that pain point.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.itweb.co.za/article/old-mutual-pitchathon-offers-r42m-to-ict-fintech-smes/4r1ly7R98revpmda

Enterprise Development and Supplier Development  were designed to complement one another. Under the General Amended B-BBEE Codes of Good Practice, the aim is for an organisation to develop a Beneficiary through Enterprise Development, then procure a good or service from them, and then elevate them to a Supplier Development Beneficiary. Bonus Points are available for such a successful elevation.   To achieve the Bonus Points on offer, organisations must ensure that all these sub-elements are claimed in the same Measurement Period.   Technical Compliance Services are available to help members determine how to claim these Bonus Points.

Under Statement 400 of the Amended General B-BBEE Codes of Good Practice , there are allowable exclusions when calculating Total Measured Procurement Spend (TMPS) and one of those items include Imports. However, there are certain rules that need to be considered.   Clause 6.5 under Statement 400 of the Amended General B-BBEE Codes of Good Practice states the following:   6.5        Imports: the following imported goods and services: 6.5.1    imported capital goods or components for value-added production in South Africa provided that:   6.5.1.1 there is no existing local production of such capital goods or components; and 6.5.1.2     importing those capital goods or components promotes further value-added production within South Africa;   6.5.2    imported goods and services other than those listed in paragraph 6.5.1 if there is no local production of those goods or services including, but not limited to, imported goods or services that – 6.5.2.1     carry a brand different to the locally produced goods or services; or 6.5.2.2     have different technical specifications to the locally produced goods or services.   6.5.3    The exclusion of imports listed under 6.5.2 are subject to them having developed and implemented an Enterprise Development and Supplier Development plan for imported goods and services. This plan should include:   6.5.3.1 Clear objectives 6.5.3.2 Priority interventions 6.5.3.3 Key performance indicators; and 6.5.3.4 A concise implementation plan with clearly articulated milestones             6.5.4    The Department of Trade and Industry will from time to time consult with the industry and issue practice notes with regard to the provisions on import exclusion.   Enterprise & Supplier Development Services   are available to assist Members meeting the requirements for Import Exclusions.

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , a “Start-up Enterprise” means a recently formed or incorporated Entity that has been in operation for less than 1 year.  A start-up enterprise does not include any newly constituted enterprise which merely a continuation of a pre-existing enterprise.   Further rules applicable to Start- Up Enterprises include:   Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of Statement 000 of the Amended General B-BBEE Codes of Good Practice. A Start-up Enterprise may be measured in terms of the QSE scorecard, or the Generic scorecard should they choose to. A Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.     Technical Services are on hand to assist with the understanding the requirements of Start-Up Enterprises.

Lindsey Schutters | 24 June 2025 The satellite operator has dangled a deal: free high-speed connections for 5,000 isolated schools in South Africa. In a letter to Trade, Industry and Competition Minister Parks Tau, Starlink’s senior director of market access, Ryan Goodnight, made a simple case: let us in under the Equity Equivalent Investment Programmes (EEIPs) instead of the traditional 30% local ownership requirement, and we’ll transform rural education connectivity. “Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country,” Goodnight wrote. The deal? Fully funded Starlink kits and service for more than 5,000 rural schools, complete with installation and maintenance support through local South African companies. But the Starlink letter also reveals the company’s growing impatience. Despite being “interested in providing high-speed internet to South Africa since we first deployed our constellation”, efforts remain grounded by what it calls outdated ownership regulations – a requirement that Starlink says it cannot meet while maintaining operational control across its global network. But you know this already. Opening Malatsi’s box At the centre of the situation sits Minister of Communications and Digital Technologies Solly Malatsi, who has tried to thread the needle between transformation imperatives and technological pragmatism. During a parliamentary portfolio committee meeting on 27 May, Malatsi defended his policy directive allowing the Independent Communications Authority of South Africa (Icasa) to recognise EEIPs, arguing that the work “predates the events of last week [President Cyril Ramaphosa’s fateful visit to Washington]” and represents continuity rather than capitulation. “The intention is to ensure a whole and consistent application of the B-BBEE Act and the ICT sector codes,” Malatsi told the committee, explaining that the directive aims to bring telecommunications regulation in line with what already exists in other sectors. Microsoft, IBM and Amazon already use EEIPs successfully in South Africa – why not satellite internet providers too? Malatsi’s reasoning rests on section 3 of the Electronic Communications Act, which allows ministerial policy directives consistent with national policies. He argues that Icasa’s regulations have created a gap, failing to wholly consider the ICT sector code’s provisions for alternative pathways to transformation compliance. Defending the empowerment dream But if Malatsi thought his careful legal reasoning would satisfy critics, he was mistaken. The portfolio committee meeting descended into accusations of undermining South Africa’s transformation agenda. Committee member Oscar Mathafa argued that the directives “dilute or undermine those particular hopes” of voters for social justice and equity, and Colleen Makhubele described the approach as “a denial of a constitutional right of a historically disadvantaged group to own the economy”. Committee members also accused Malatsi of “trying to amend legislation using a ministerial policy directive”. Perhaps most damaging was an observation that “we are altering our legislation for Starlink whereas where it goes to operate in other countries it did not utilise this coercion”. An industry body, the Association of Communications and Technology, has tried to stake out middle ground, supporting the minister’s effort to resolve regulatory ambiguity while insisting on “regulatory parity” for all players. Its chief executive, Nomvuyiso Batyi, who was critical of Malatsi in her last conversation with Daily Maverick, sent a careful statement: “We’ve supported the roll-out of satellite technology in South Africa, within the same rules that everyone else follows.” The association’s support for EEIPs comes with a crucial caveat – implementation must be “transparent, consistent, and with an equal application of the law”. Network operator ground offensive Faced with potential satellite competition, South Africa’s network operators have been aggressive in demonstrating their commitment to reducing data costs and expanding connectivity. The numbers they presented to Parliament are impressive. MTN claims a 46% price reduction on 1GB bundles since 2019, whereas Vodacom reports that effective rates have decreased by 50% over two years. Telkom says that per-gigabyte costs have dropped from about R99 in 2010 to R79 today, and Cell C has reduced data rates by more than 28% since 2023. These operators are also making substantial infrastructure investments, spending more than R143-billion in the past five years alone – which means jobs, not just internet from the sky. MTN invests about R9-billion a year in capital expenditure, achieving 99% 2G coverage, 98.9% 3G coverage and 97.8% LTE coverage. Its 5G now covers nearly 45% of the population. Vodacom has pledged R60-billion over the next five years for network development, expanding 5G population coverage from 20.6% in 2022 to 51.7%. Telkom says its mobile network covers 85% of the population directly, extending to 99% through roaming agreements. Rural connectivity A focus on rural connectivity is particularly relevant in view of Starlink’s school promise. Vodacom’s rural coverage has risen from 89.63% in 2023 to 95.4%, with a target of 97%. Rain, despite being the smallest operator, covers 61 million people with 4G and 21 million (35% of the population) with 5G. Universal service obligation (USO) achievements also provide context. MTN claims a 100% USO scorecard achievement, having invested R380-million over the past decade. It has connected 1,360 mainstream schools and 140 special needs schools, also providing laptops, printers and projectors. Vodacom has connected 3,000 schools, 1,500 beyond its obligations, and 934 of the 4,000 institutions required by new spectrum-allocation obligations. Telkom works with the government on SA Connect to connect 40,000 government institutions, and Rain has connected 2,166 public service institutions. But there are problems that satellite providers like Starlink would largely avoid. MTN spent more than R4-billion in 18 months to secure its network against load shedding. Telkom reported more than 2,000 vandalised sites costing more than R300-million to repair. Starlink’s infrastructure in space is immune to load shedding and vandalism, potentially offering more reliable service to rural areas. But this advantage comes at a cost – about R900 a month, based on pricing in Botswana, plus equipment costs of R3,200 to R6,700. Operators want regulatory reform, fast-tracked spectrum access and infrastructure sharing. And they want OTT players (read: WhatsApp and Netflix) to finally pay up for riding their pipes. For now, Starlink remains in orbit. Whether it lands with a bang or a crash depends less on tech and more on who controls the regulatory runway. And if you’re in rural Limpopo waiting for decent download speeds, you probably don’t care if it’s a billionaire’s satellite or a homegrown telco – you just want it to work. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.dailymaverick.co.za/article/2025-06-24-starlink-promises-internet-for-rural-sa-schools-if-bee-rules-bend/

Siyabonga Sithole | 24 June 2025 Besides some of the most progressive laws aimed at advancing the interests of the people living with disabilities, South Africa is still lagging when it comes to implementing some of these legislative frameworks. According to Statistics South Africa, persons with severe disabilities experience difficulty in accessing education and employment opportunities, while households headed by persons with disabilities were found to have less access to basic services compared to households headed by persons without disabilities. The statistics also reveal that there are disparities in terms of access to assistive devices across population groups and geography. At the recent C20 South Africa Launch, which has mobilised 14 working groups to generate actionable policy considerations ahead of the G20 Summit, Sikelelwa Alex Msitshana, founder of the Deaf Empowerment Firm and chairperson of the National Council for Persons with Disabilities (NCPD), highlighted ongoing challenges. "We have come together to try and make sure the voice of people with disabilities is heard. People living with disabilities are still lacking in many respects, even though South Africa is a signatory to the Convention on the Rights of Persons with Disabilities. We have wonderful policies that are aimed at protecting the rights of persons with disabilities, but implementation is still lacking. "In all of that, there is a need to address issues faced by people living with disabilities. We are looking at inclusive education. We are saying early childhood development for people with disabilities should be prioritised early enough so that they can receive the care they need and be able to go to school and learn from an early age," she said. Msitshana, speaking on the sidelines of the three-day C20 South Africa launch on Monday, also stressed the importance of establishing Early Child Development (ECD) structures for people living with disability, saying this will help bring about an early start to young children with various disabilities, who are sometimes not catered for within the existing education system. "There are issues of employment that are affecting our young people. We are advocating for inclusive employment practices. Far too often, employers are still afraid to employ people living with disabilities and take in young people living with disabilities. This is more a factor of fear than anything. The programmes that we are driving are aimed at sensitising employers that there should not be a problem in employing someone living with a disability," she stated. Her outcry comes just hours after Deputy Minister of Women, Youth and Persons with Disabilities, Mmapaseka Steve Letsike, called on civil society organisations represented at the C20 South Africa launch in Sandton to make sure their voices are heard. Letsike, who delivered her message virtually directed at women, children, and persons with disability, said no one should be left behind in ensuring that South Africa's hosting of the G20 Summit later this year is a success. "The disability inclusion stream and all these working streams are not intended to be for a box-ticking exercise as we believe that those closest to the pain must be the closest to power, and the C20 South Africa must bring solutions that bring an integrated response to these communities," the deputy minister said on Tuesday. The Soweto-born activist Msitshana is the founder and managing director of the DEF, a social enterprise which aims to transform the lives of members of the deaf community. This comes after Msitshana lost her hearing in 2015, resulting in her making it her mission to help the deaf community and other minorities access jobs and opportunities. In 2023, the National Assembly amended Section 6 of the Constitution and approved the South African Sign Language (SASL) as the 12th official language. Msitshana celebrated, believing that soon the deaf community would experience a shift. However, she believes this policy has not been fully implemented to ensure sign language is taught in South African schools alongside other official languages. "After years of fighting and lobbying, we welcomed the recognition of sign language as an official language, but there has not been any full implementation of this policy to ensure that sign language is taught at schools like all the other official languages. On paper, this is good, but we have not seen its full implementation," she stated. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/news/south-africa/2025-06-24-are-south-africas-disability-laws-truly-making-a-difference/

Malcolm Libera | 22 June 2025 South Africa’s recently approved National Labour Migration Policy (NLMP) White Paper and Employment Services Amendment Bill (ESAB) have raised concerns that the country may be shooting itself in the foot. Experts have warned that the legislation,  designed to limit the employment of foreign nationals, may not only harm foreign workers but also undermine South Africa’s economic interests. At the end of May 2025, Cabinet announced that it had approved the National Labour Migration Policy (NLMP) 2025 White Paper and the Employment Services Amendment Bill, 2021 (ESAB) for implementation and submission to Parliament.  “The NLMP and ESAB have been under consideration for several years now and introduce significant changes to the employment of foreign nationals in South Africa,” Cliffe Dekker Hofmeyr (CDH) explained .  The firm noted that these changes aim to balance the need for economic growth and skills development while prioritising employment opportunities for South African citizens, permanent residents, and refugees. The policy introduces strict controls on the employment of foreign nationals. Among the most notable changes are the introduction of quotas in key economic sectors such as agriculture, hospitality, tourism, and construction.  These quotas will determine the maximum number of foreign nationals that employers can hire and will be set by the Minister of Employment and Labour following consultations and public input.  Employers may only exceed the quotas if the job requires critical skills or if they receive a special exemption from the Minister. CDH cautioned employers to start preparing now. “Employers operating in the identified sectors should prepare for the introduction of sectoral quotas by reviewing their current workforce composition and recruitment practices,” the firm said.  The requirements are extensive. Employers must verify that no South African citizen can do the job before hiring a foreign worker. Non-compliance could lead to fines of up to R100,000 and other penalties. Speaking with Newzroom Afrika , Professor Loren Landau, an expert in migration and development at the University of Oxford, believes these restrictions could have serious unintended consequences.  “There would definitely be risks for immigrants if they’re made even more illegal, let’s say, or driven further underground,” he said. “Those are risks about being attacked by the police or by their neighbours if they’re seen as working.” The legislation could hurt the economy Beyond these social tensions, Landau is worried about broader labour market implications. He said the policy could unintentionally fuel the informal economy and erode working conditions for everyone.  “It will probably drive the hiring of people illegally or outside of the legal sector, which might hurt the rights of all workers. This could result in further erosion of labour conditions not just for migrants but for South Africans as well.” While the policy is politically popular, addressing frustration over high unemployment and perceptions that migrants take jobs from locals, Landau said it risks alienating the very investors South Africa needs.  “Large companies, like BMW and Mercedes, have said they won’t invest further in South Africa, creating more South African jobs,” he said. “This is because it’s too difficult for them to get the engineers or the highly skilled people they need.”  He added that even when foreign professionals are approved, they face severe delays and inefficiencies at the Department of Home Affairs. “If that’s the case, this definitely is an own goal, one that is working against South Africa’s interests.” Landau added that it contradicts the African Union’s long-term vision of regional integration, including free movement and a continent-wide passport.  “It is out of step to some degree with the African Union’s goals, but it is an important nod to some of the politics in the country, which are anti-immigration.” CDH warned employers to monitor the legislative process and begin reviewing their employment policies and practices in anticipation of the new requirements in the employment of foreign nationals. Whether the policy delivers the promised benefits will depend heavily on how it is implemented. Landau stressed that implementation, especially the regulatory framework and permitting systems, will determine whether the policy is effective or damaging.  “The truth and how it works out will be in the regulations and permitting processes,” he said. Landau believes the country may benefit more in the long term by embracing its neighbours.  ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/government/828380/south-africa-shooting-itself-in-the-foot-2/