Comms Minister Malatsi sticks to policy directive allowing multinationals to improve SA's infrastructure
CAPE TOWN - The Communications and Digital Technologies Minister, Solly Malatsi, says people should not obsess over Starlink, saying his new regulations will involve other companies.
Malatsi again defended his policy directive, which allows multinationals to contribute to the economy through infrastructure development and other means, instead of ceding 30% ownership.
On Tuesday, he told the Cape Town Press Club that the new regulations aren't intended to give Elon Musk's company, Starlink, a free pass.
He further added that the new regulations are not akin to ministerial overreach.
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Malatsi says his policy directive is not a scheme to give Starlink a backdoor into South Africa or circumvent the country's transformation laws.
He says the directive is one of a range of interventions to grow the sector and transform it through other initiatives and involves other companies besides Starlink.
"Whether it is Spacex, Starlink, Amazon's Project Kuiper, or Eutelsat OneWeb . Any other entrant offering alternative connectivity models, our objective remains the same."
Malatsi says the regulations will consider all the written comments and public submissions before the process closes later this month.
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Daily Maverick
17 hours ago
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Musk apologised, but didn't say which part was 'too far' – the bill or the hint at a connection to an accused paedophilia celebrity? Musk's objection to the bill is real. Musk believed most fervently in that part of the Maga agenda that would cut America's mushrooming debt. With this bill, that goal has been abandoned and may be hard to resurrect. But what does the Trump-Musk feud mean for South Africa's trade negotiations, particularly in light of these recent developments? More directly relevant since the White House meeting is the still uncertain status of US-South Africa trade talks. Ramaphosa has announced that he will meet Trump this weekend in Canada on the sidelines of the G7 meeting. However, Trump is running the policy for South Africa directly from the White House, and sources in the State Department said nothing from the White House meeting has trickled down to them to indicate that negotiations are under way. 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a day ago
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Shawn Campbell, adviser and investor at Camelthorn Investments, said the relationship between Musk and Trump could be restored but also said it was unlikely it would return to where it once was. 'The stakes between the richest man in the world and leader of the most powerful nation in the world are just so big, with billions of dollars of government contracts at stake, not to mention the power to investigate and regulate and tax,' said Campbell, who personally holds Tesla shares. Musk took credit for Republicans retaining a majority of seats in the House of Representatives and retaking a majority in the Senate with his cash infusion last year. Trump then named him to head an effort to downsize the federal workforce and slash spending. He left the role late last month. Declaring their relationship over on Saturday, Trump said there would be serious consequences if Musk decided to fund Democrats running against Republicans who vote for the tax and spending bill. 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IOL News
2 days ago
- IOL News
The impact of Malatsi's EEIP on rural connectivity and economic growth
Communications and Digital Technologies Minister Solly Malatsi. The writer says his recent policy direction to recognise EEIPs in the ICT sector must be applauded. Image: X/IOLGraphics THERE is an old saying: Repeating the same actions and expecting different results is the definition of futility. For decades, South Africa under ANC rule has tried to marry economic growth with rigid, quota-based transformation policies. The results of which are, unfortunately, low growth, soaring unemployment, deepening poverty, and worsening inequality. The Western Cape has taken a different path while in support of transformation, one based on merit, capability, and performance. Transformation here is not a tick-box exercise but a tangible outcome of appointing people who are fit for purpose and investing in what works. The results speak volumes: efficient service delivery and a resilient economy that consistently outperforms other provinces. It is within this context that Minister Solly Malatsi's recent policy direction to recognise Equity Equivalent Investment Programmes (EEIPs) in the ICT sector must be applauded. This move represents a significant shift away from box-ticking compliance toward meaningful inclusion by facilitating investment in digital infrastructure rather than enforcing ownership quotas. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Crucially, connectivity is no longer a luxury — it is a prerequisite for economic participation. High-speed internet, particularly through satellite services such as Starlink and other alternative providers, can bring previously disconnected rural areas into the digital economy. Such access opens up transformative opportunities in education, entrepreneurship, employment, and service delivery. The Business Process Outsourcing (BPO) sector, particularly call centres, offers a clear example of what is possible with the right infrastructure. According to a 2021 Wesgro report, 74% of Africa's BPO economic activity occurs in Cape Town, which is leading the charge. The city's appeal lies in its diverse economy, deep talent pool, and robust infrastructure. It offers 65% to 70% lower operational costs than tier-2 cities in the UK, making it a magnet for international investment. There is compelling evidence that improved internet access leads to higher productivity, increased wages, and better employment prospects. Studies show that in developing countries, firms with reliable internet connections are more likely to increase sales and export volumes. A recent study in Colombia found that rural firms located in areas where high-speed internet infrastructure was rolled out experienced a significant rise in exports. In South Africa, towns such as Beaufort West exemplify the unrealised potential of rural communities. With youth unemployment sitting at about 55% in the Central Karoo and with infrastructure like the unused Land Bank building readily available, the town could be a natural candidate for BPO investment. However, the current lack of reliable, high-speed internet is a major barrier. It is not for a lack of willingness or resources — it is the digital infrastructure that is holding these towns back. By contrast, Cape Town's digital ecosystem enables businesses and individuals to thrive. Faster speeds, higher bandwidth, and stable connectivity are not just conveniences — they are economic enablers. For towns like Beaufort West and broader regions such as the Karoo, challenges like poor soil conditions limit large-scale crop production. Improved digital infrastructure would empower farmers with tools such as remote livestock monitoring, GPS tracking, health diagnostics, and access to real-time market prices, enabling better herd management, reduced losses, and improved productivity. Connectivity also plays a vital role in rural safety, offering digital surveillance systems and rapid communication channels to help combat livestock theft and other forms of farm-related crime. Bridging the digital divide is therefore not just about economic growth; it is about long-term sustainability for rural livelihoods. This is where Minister Malatsi's initiative becomes pivotal. EEIPs that allow international technology investors and innovators to support South African connectivity goals without navigating outdated B-BBEE ownership constraints. This is exactly the kind of progressive thinking the country needs. The broader economic imperative cannot be ignored. The Government of National Unity (GNU) has made a clear commitment to growing the economy and creating jobs. Outdated legislation and failing infrastructure must not be allowed to stand in the way. The country's economic future depends on urgent reform and enabling environments. Recent data from Statistician-General Risenga Maluleke provides a sobering picture. Household reliance on social grants rose from 21.3% in 2009 to 28.8% in 2020, before marginally decreasing to 23.8% in 2024. In provinces such as the Eastern Cape (38.9%), Northern Cape (34.4%), and Limpopo (33.8%), grants remain the primary source of income. This entrenched dependence is a reflection of how deeply economic exclusion runs, particularly in rural South Africa. In contrast, the Western Cape recorded the lowest grant reliance at 14%, with 68.2% of households earning their income through employment. This is not a coincidence — it is the result of policies that prioritise economic growth and individual empowerment over bureaucratic box-ticking.
