logo
Cosatu, BBC slam Elon Musk's R2 billion investment plan to avoid BEE

Cosatu, BBC slam Elon Musk's R2 billion investment plan to avoid BEE

IOL News4 days ago
Cosatu has slammed Minister Solly Malatsi's attempt to bypass South Africa's 30% local ownership law, purportedly for Elon Musk's Starlink.
Image: AP Photo/Francois Mori
The Congress of South African Trade Unions (Cosatu) has expressed concerns over the proposed policy direction on equity equivalent investment programmes (EEIPs) in the Information and Communications Technology (ICT) sector.
Communications and Digital Technologies minister Solly Malatsi gazetted a policy direction on the role of EEIPs in the ICT sector, aiming to provide policy certainty and attract investment.
The policy direction allows companies to meet empowerment obligations through alternatives to 30% ownership, such as investing in local suppliers, enterprise development, and job creation according to Malatsi.
However, Cosatu spokesperson Matthew Parks, said the Broad-Based Black Economic Empowerment (BBBEE) Act provides two options for investors that include a 30% shareholder option or an equity equivalent option.
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
Next
Stay
Close ✕
The trade federation giant believes that the BBBEE Act is inclusive and provides accommodating options for all investors and not only for the wealthy.
The federation is concerned that the proposed policy direction might allow companies like Starlink to bypass BBBEE requirements.
"It's critical that Starlink, like all other investors, comply with the BBBEE Act, whether it is the shareholder or equity equivalent option," Parks emphasised.
The BBBEE Act requires companies to offer 30% shareholding opportunities to historically disadvantaged individuals or offer equity equivalents, such as supporting local manufacturers, creating jobs, upgrading worker skills, or investing in local communities.
Parks cited examples of companies like IBM and Microsoft that have utilised the equity equivalent option.
Cosatu argues that exempting one company from BBBEE requirements would be unfair.
"It would not be sustainable to exempt one company as this would be unfair to other companies and undermine the law," Parks said.
Cosatu proposes that the government ensures BBBEE reaches those who most need empowerment, namely workers and working-class communities.
The federation advocates for worker empowerment through Employee Shareholder Ownership Programmes and support for locally produced goods.
The Black Business Council's (BBC) spokesperson Masedi Sesele also shut down the idea saying it would be 'bending of legislation' to accommodate an individual or company.
'Legislation is there for all to comply with, no exception. Otherwise, the country will become lawless…The BBBEE legislation together with the Codes of Good Practice prescribes that any company wanting to do business in South Africa should implement all the elements of the BBBEE codes being ownership, management control, skills development, enterprise and supplier development, and socio-economic development. We don't know how the rumoured R2 billion is going to implement those important elements.
'Anyone who wants to invest in any country must comply with the ownership legislation of that country. This is happening worldwide and is not unique to SA. So BBBEE regulations should never be exempt. Black people, who constitute 97% of the population and own only 3% of the economy, can't continue to be sidelined in the name of foreign investments,' said Sesele.
Malatsi through his spokesperson Kwena Moloto said that the policy direction sought to provide the 'much-needed' policy certainty to attract investment into the Information and Communication Technologies (ICT) sector, and specifically with regards to licensing for broadcasters, internet service providers, mobile networks, or fixed and mobile networks.
Communications and Digital Technologies Minister Solly Malatsi defends ICT policy, denies special treatment for Starlink, and stresses the need to align sector regulations with transformation laws through equity equivalent investment options.
Image: X/IOLGraphics
Moloto, on Thursday, saidthat Starlink was not the only company being considered.
Starlink, owned by Elon Musk, reportedly plans to launch its services in South Africa ahead of the G20 conference.
However, the company intends to bypass the BBBEE law and its 30% ownership requirement, preferring instead to go the Equity Equivalent Investment Programme route where they have offered to invest R2 billion.
Political parties such as the EFF, the African Transformation Movement (ATM) and the uMkhonto weSizwe Party (MKP) have been opposed to the proposed changes, citing concerns about Starlink's compliance with BBBEE laws.
Political analyst Professor Sipho Seepe criticised the government and president Cyril Ramaphosa for 'forging ahead' with allowing Starlink to operate in South Africa, saying it would set the wrong precedent..
'The imbroglio regarding Starlink is further proof that South Africa is up for sale under the Ramaphosa administration. This is what you should expect when you have a prepaid presidency.
'Every penny given to support his presidential candidacy was a future investment to ensure that the South African government would succumb to business demands…The very fact that the Ramaphosa regime is willing to suspend legislation and regulations for pieces of silver is not only shameful but also points to a lack of conviction and commitment by the ANC elites...Succumbing to the demands of Starlink would set the wrong precedent and open the floodgates by like-minded business people,' Seepe said.
mashudu.sadike@inl.co.za
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

AARTO rollout set for October 2025 in 69 municipalities
AARTO rollout set for October 2025 in 69 municipalities

IOL News

time2 days ago

  • IOL News

AARTO rollout set for October 2025 in 69 municipalities

The Administrative Adjudication of Road Traffic Offences system will be rolled out in phases according to municipal readiness from October 1, 2025, for the 69 municipalities that are ready for the rollout. Image: Ayanda Ndamane / Independent Newspapers The Transport Department has announced October as the new date for the national rollout of the Administrative Adjudication of Road Traffic Offences (AARTO) system in 69 municipalities. This was announced by Transport Deputy Minister Mkhuleko Hlengwa during the department's budget vote debate in Parliament earlier this week, when he said 69 municipalities will be ready to implement AARTO, and 144 were not yet ready. 'The AARTO will be rolled out in different phases according to municipal readiness from October 1, 2025, for the 69 municipalities, which are ready for the rollout,' Hlengwa said. 'This is Phase 2 of the AARTO rollout programme, while Phase 3 will be rolled out on February 1, 2026, for the 144 municipalities that will only be ready then,' he said. 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 Next Stay Close ✕ The AARTO Act was confirmed as constitutional by the apex court, and the department intends to use it to change the behaviour of motorists. Hlengwa said research has shown that more than 80% of road crashes were due to human error, and that was why there was a call for behaviour-changing efforts on their part. 'To ensure positive changes in road user behaviour, the department will roll out the Administration and Adjudication of Road Traffic Offences (AARTO) Act, central to which is the demerit system that systematically aims at containing road user behaviour,' he said. The new date for the national roll out of AARTO comes a month after a fake report suggested the imminent roll out of the demerit system that will see motorists lose points for offences and stand to have their driving licence suspended or cancelled should they lose many. In June, the Road Traffic Infringement Agency (RTIA) dismissed any claims suggesting an imminent wider national rollout as incorrect. However, RTIA confirmed that AARTO was currently operational only in Johannesburg and Tshwane. The agency said it was working with the Department of Transport on a draft proclamation of the AARTO Amendment Act. While the draft AARTO regulations have been developed, a selection process towards the appointment of members of the public to serve in the AARTO Appeals Tribunal was at an advanced stage. RTIA also stated that service outlets have been created across the country, and education and community awareness have been ongoing in all nine provinces and on all digital platforms. 'AARTO connectivity of issuing authorities to the e-Natis is under way. Training of the more than 25,000 traffic officers across the country is under way. Preparations to implement the Points Demerit System and the AARTO rehabilitation programme as part of Phase 3 are under way.' According to RTIA, strengthening laws for road traffic compliance was paramount, and the AARTO Act was a vital tool in achieving this. 'Its effective implementation will play a critical role in enforcing these laws and ultimately making our roads safer for all road users.' Meanwhile, the department is moving closer to implementing the 24-hour campaign of visible traffic law enforcement. Hlengwa reiterated the department's commitment to accelerating the implementation of a 24-hour campaign of visible traffic law enforcement across all three spheres of government, aiming to change road user behaviour towards greater compliance with road rules. He said the visibility of law enforcement has proven to be a major contributor to recent achievements in the reduction of road deaths. 'We have thus worked to speed up the resolution of most issues that have delayed the implementation of a 24-hour, seven-day a week and 365 days a year campaign of visible traffic law enforcement,' he said. 'While the country waits for all remaining provinces to finalise their processes and implement a 24-hour shift traffic law enforcement system, the National Traffic Police (NTP) will continue to be deployed to provide support to provinces and ensure greater traffic law enforcement operations across South Africa.' Hlengwa also said the department was reviewing the National Road Safety Strategy that will be submitted to the Cabinet by the end of this financial year. 'The revised strategy will inform engineering interventions, such as the development and promotion of safer road infrastructure designs, safer vehicle technologies, and continuous improvements in traffic management systems. The overall reviewed strategy will include the implementation of stricter traffic laws, vigorous law enforcement operations, and comprehensive road safety education campaigns.' He also said their approach was to improve harmonisation of operations between the three spheres of government through joint planning, inter-agency collaboration, consistency, and shared resources and services throughout the year. 'This will be supported by visible policing through force multiplication and smart deployments on critical routes, focusing on top traffic offences and violations, while intensifying partnerships and collaboration with civil society and media influencers.'

The HONOR 400 & 400 Pro launch underscores
The HONOR 400 & 400 Pro launch underscores

The Citizen

time3 days ago

  • The Citizen

The HONOR 400 & 400 Pro launch underscores

Following strong uptake of its AI-powered innovations in South Africa, HONOR has introduced the new HONOR 400 and HONOR 400 Pro. This is a launch that could further entrench the brand's momentum in the local mid-to-premium market. Unveiled at Kyalami Racecourse, the event brought together government and industry voices, including Communications Minister, The Honorable Mr. Solly Malatsi, underscoring the growing alignment between mobile innovation and digital policy. The HONOR 400 & 400 Pro marks a notable shift in normalising access to premium technology. These devices bring high-end features into a more accessible range, including: The first global rollout of Google Cloud's Veo 2 Image-to-Video tool , built directly into the phone's gallery , built directly into the phone's gallery AI Deepfake Detection and on-device call translation to meet the privacy and productivity demands, which can detect whether the participant in a video call is using deepfake technology. and to meet the privacy and productivity demands, which can detect whether the participant in a video call is using deepfake technology. HONOR's 50× AI SuperZoom , intelligent editing tools and the incredible 200MP main sensor , intelligent editing tools and the incredible 200MP main sensor A 6000mAh silicon-carbon battery, IP-rated build quality and MagicOS 9.0 across the range and a big storage of 12+512G. The HONOR 400 is powered by a Snapdragon, while the 400 Pro introduces Snapdragon 8 Gen 3 performance. Both devices are supported by Android updates and security patches, a rare commitment in this segment. The HONOR 400 Series is launched with a promotional offer: Buyers will receive R8000 worth of additional value in the form of the HONOR Choice Watch 2i, HONOR Choice Earbuds X7 Lite and an HONOR Choice Powerbank 10000mAh until 31 July 2025. Available from Vodacom, MTN, Telkom and Cell C, the HONOR 400 is priced from 12,999 and the HONOR 400 Pro from R17,999. With hardware innovation backed by long-term AI investment, HONOR is further positioning itself as both a product leader and a strategic player in South Africa's mobile economy. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

Springboks launch first official flagship fan store
Springboks launch first official flagship fan store

The South African

time4 days ago

  • The South African

Springboks launch first official flagship fan store

The launch of the first official Springbok store marks the start of an exciting new chapter for South African rugby merchandise. And it fulfils SA Rugby's 2024 goal to meet growing fan demand, curb counterfeit sales, and strengthen the Springbok brand both locally and internationally. The ground-breaking development was inaugurated at a special ceremony on Thursday featuring Gayton McKenzie, Minister of Sport, Arts and Culture, and Solly Malatsi, Minister of Communications and Digital Technologies, and is planned to be followed by further store openings elsewhere in the country. The store will feature the official Nike replica teamwear as well as an exciting new range of off-field supporters clothing, called Springboks, designed to be worn everywhere – from the office to the braai. 'In retrospect, it is amazing that we have not had such an offering before now,' said Mark Alexander, president of the South African Rugby Union, at the shop launch. 'Before today, if you'd asked the question 'where is the Springbok shop?' you'd have been met by blank faces. 'Famous sports teams around the world have club shops. If you're in the Champs Elysee in Paris, you can visit the Paris St Germain club shop; if you're passing through Munich airport you can visit the Bayern Munich club shop and if you're in the Old Trafford area of Manchester you can visit United's megastore. 'But if a visitor to South Africa wants to take home with him or her a memento of one of Africa's most famous sports teams where was the Springboks store? Now we have an answer.' The new store's offering is also available online for fans both in SA and overseas and can be found at The opening marks the successful completion of a goal set by SARU's Executive Council at the start of 2024 to answer South Africa's hunger for the Springbok brand. Rian Oberholzer, SA Rugby CEO, said: 'The explosion of counterfeiters and imitators since 2019 has flooded e-commerce channels with fake product, borrowing from the colours and iconography of the Springboks. 'The Exco recognised there was a gap in the market that others were exploiting and that there was an opportunity and a need for SA Rugby to meet that demand and retain the value for the benefit of rugby. 'The intention is that this store will be followed by others in due course with a range of clothing that will allow rugby fans to show their support for the Springboks in many different items of clothing – it's not just for Saturdays. 'That we have got here so quickly – within 18 months of setting the goal – is a tribute to the hard work of the team that has gone on behind the scenes. 'This is the start of an exciting new chapter for the Springboks and will take the brand into places it has never been before.' The store is located at Protea Court in Sandton City and can be most easily reached from the Rivonia Road entrance. Fans can shop the full range ARE YOU READY TO SPEND YOUR MONEY AT THE SPRINGBOKS STORE? Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store