Starlink's role in bridging the digital divide in South Africa
Image: Leon Nicholas/Independent Newspapers
The anticipated potential entry of Elon Musk's Starlink into the South African telecommunications market has ignited a flurry of strategic considerations among industry players, regulators, and policymakers.
Vodacom, the giant South African network operator, has waded into the debate saying satellite technology should be seen a complementary force in expanding digital inclusion rather than a direct threat to its core operations.
This comes amid recent government developments, including the gazetting of a new B-BBEE policy that could potentially facilitate the entry of companies like Starlink, shortly after a high-profile meeting between President Cyril Ramaphosa and US President Donald Trump, whose campaign was partly funded by Musk.
Responding to IOL, a Vodacom spokesperson clarified the company's position on satellite internet providers like Starlink.
'We recognise satellite networks as a valuable addition to our existing infrastructure. They are instrumental in bridging the connectivity gap, particularly in remote and hard-to-reach areas where terrestrial networks face limitations.
'We focus on investing in and expanding our 4G and 5G networks to serve urban and semi-urban communities.'
The company said its strategy aligns with a broader industry trend of viewing satellite networks as enablers of digital inclusion rather than outright competitors.
The Vodacom media team added that the telecom giant has partnered with global satellite providers such as AST and Amazon's Project Kuiper to extend its network reach across Africa and Europe.
'These collaborations leverage low Earth orbit (LEO) satellite technology to enhance coverage and resilience, especially in underserved regions.'
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 ✕
Ad Loading
Starlink's potential entry into South Africa raises significant questions about the country's regulatory landscape and market dynamics.
ICASA, the national telecommunications regulator, has been examining a proposed satellite framework. Industry stakeholders have urged a balanced approach that promotes innovation while ensuring fair competition.
Vodacom has welcomed ICASA's consultation process, advocating for a licensing framework that aligns with existing laws and maintains a level playing field.
Mofihli Ramari, spokesperson for the B-BBEE Commission, emphasised that the ICT Sector Charter Council and ICASA oversee the B-BBEE Act and related sector codes.
'Any potential changes to B-BBEE legislation or the entry of new players like Starlink should be carefully examined within the current regulatory and transformation framework,' Ramari stated.
'The focus remains on ensuring that transformation goals - such as black ownership and enterprise development - are upheld, regardless of the nature of technological advances or new entrants.'
Regarding employment, Vodacom reassured that technological innovation will not threaten existing jobs.
'Satellite networks serve specific use cases and do not replace the cost-effective, high-capacity terrestrial infrastructure that supports urban centers,' the company noted.
"Vodacom's long-term vision emphasises investment in local workforce development, skills training, and support for black-owned enterprises through the ICT Sector Code.
Amid fears of disruption, Vodacom said reiterated that it remained optimistic about satellite technology's transformative potential, as CEO Shameel Joosub highlighted at the 2024 UN General Assembly.
'Harnessing satellite and mobile technology together can finally close the digital divide—reaching rural communities, farmers, students, and underserved populations. We aim to ensure no one is left behind in South Africa's digital journey.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
an hour ago
- IOL News
Motor manufacturers under threat: SA mulls incentive revisions, but are tariffs the answer?
File picture: Mercedes-Benz SA. Deindustrialisation remains a major threat to the South African vehicle manufacturing industry. Image: Supplied South Africa's automotive manufacturing industry is facing an existential crisis as affordable imports from India and China flood the market and export contracts come under threat. Although the imposition of US tariffs only affects Mercedes-Benz at present, this is expected to take a significant toll on that company, while elsewhere in the industry, a gradual deindustrialisation is eroding local output. While industry leaders such as Toyota SA CEO Andrew Kirby have previously sounded the warning bells about industrial decline, the Minister of Trade, Industry and Competition, Parks Tau, added to the chorus this week when he stated that the abovementioned pressures have resulted in 12 component company closures and over 4,000 job losses in the last two years. Speaking at an industry showcase held by the National Association of Automotive Component and Allied Manufacturers (Naacam) on Wednesday, Tau stated that local vehicle production, at 515,850 units in 2024, was far below the Automotive Masterplan 2035 target of 784,509. Equally worrying is that local content for vehicle production remains stagnant at 39%, well below the 64% target. Imports remain a threat, as just 37% of the vehicles that South Africans purchase are locally produced, according to Lightstone, while 36% are sourced from India and 11% from China. Minister Parks Tau said his department was currently reviewing the APDP incentive programme. Image: Supplied 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 ✕ Ad loading 'Localisation is not merely policy compliance - it is existential. A 5% increase in local content would unlock R30 billion in new procurement, dwarfing the R4.4 billion US export market. To achieve this, we must act collectively to address some of the bottlenecks to growth,' Tau said. He revealed that the Department of Trade, Industry and Competition (DTIC) was reviewing the current Automotive Production Development Programme (APDP) as a comprehensive way of responding to the sector's challenges. Among these reforms would be shifting the duty credit incentive structure to place a greater emphasis on rewarding full manufacture, rather than just assembly. The government is also planning to incentivise electric vehicle (EV) and battery manufacturing. As announced earlier this year, carmakers will be able to claim a 150% tax deduction on investments related to EV production. The government is also considering adding locally mined minerals to the list of Items that qualify as local content under the APDP. In addition, a comprehensive skills gap analysis has been completed, resulting in EV-specific curricula and certification programmes now being developed in conjunction with numerous universities. The Minister said the government was also working hard to eliminate compliance burdens and reduce the red tape currently inhibiting investment into the auto sector. This includes a General Laws Amendment Bill that aims to fast-track high-impact investments and projects within 90 days. A call for punitive tariffs However, when it comes to protecting the local manufacturing industry from a flood of affordable imports, it appears the DTIC is not in favour of punitive measures such as tariffs. This is in spite of widespread calls for this, including from manufacturers such as BMW SA and industry organisations. Speaking at a separate event held on Tuesday, in response to Trump's tariff imposition, Tau said: 'With regards to Chinese and Indian auto, it is a discussion that we're currently having with the intention of taking a less punitive approach, but rather taking a more proactive approach of getting some of those products manufactured in the country.' 'So we're not holding the stick as a starting point. We start with the carrot and then balance it with the stick," Tau added.
eNCA
an hour ago
- eNCA
JSE Hits Highs as Rand Strengthens
South Africa's Johannesburg Stock Exchange (JSE) continued its bullish momentum this week, reaching record highs on the back of strong performances from key tech counters and buoyant investor sentiment. Joining us for a closer look at the markets, Odwa Magwentshu from Momentum Securities highlighted the drivers behind the surge, citing standout performances from NASPERS and Prosus. 'The rally was mainly supported by Tencent's impressive earnings in China,' Magwentshu said. 'As NASPERS and Prosus are heavily exposed to Tencent, we saw nearly 3% gains in those stocks alone.' Investor optimism was further buoyed by local corporate resilience and improving sentiment indicators. 'We're still seeing positive company news, which shows South African corporates are holding up well,' he added. 'Business confidence data was also released, painting a stronger economic picture.' Rand Rally Gains Momentum The rand has continued to strengthen, trading around R17.50 to the US dollar. According to Magwentshu, there's room for further appreciation. 'It's very plausible to see it strengthen even more. The weakness in the dollar, along with easing tensions between the US and China, are favouring emerging markets like South Africa.' Improved investor sentiment has translated into renewed appetite for rand-denominated assets, a trend that could continue if global conditions remain favourable. Oil Prices Under Pressure On the commodities front, Brent crude remains subdued at around $65 a barrel. 'The outlook suggests more downside,' said Magwentshu. 'OPEC has announced increased production, and with global GDP growth slowing and ongoing trade concerns.' Corporate Updates: Capitec and Blue Label Telecoms Shine In company news, Capitec Bank issued a strong trading statement, expecting a significant increase in interim earnings. 'We're seeing solid growth in both net interest income and business income,' Magwentshu explained. 'Importantly, Capitec has managed to stabilize its capital loss ratio, indicating that its client base is in relatively good financial health.' Meanwhile, Blue Label Telecoms announced a major restructuring involving the unbundling of Cell C, an initiative expected to unlock considerable value. 'They're anticipating a R5 billion increase in valuation,' said Magwentshu. 'This mirrors trends we've seen with companies like Pick n Pay and Transaction Capital, where similar unbundling strategies created shareholder value.' The market responded favourably, with Blue Label's share price surging on the news. Outlook With strong corporate earnings, a resilient currency, and potential relief from oil prices, South African markets appear to be on solid footing heading into the final quarter of the year. However, analysts caution that global uncertainties, particularly surrounding US interest rates and geopolitical tensions remain key risks to monitor.
The Citizen
2 hours ago
- The Citizen
Provinces surrender R923m in unspent funds
Gauteng's R465.4 million surrender dwarfed other provinces, representing nearly half of all surrendered funds. South African provinces surrendered R923 million in unspent conditional grant funds during the 2023-24 financial year, according to Finance Minister Enoch Godongwana. The surrendered amount represents funds that provinces were unable to utilise within the allocated timeframe across critical sectors, including health, education, and human settlements. Gauteng province recorded the highest surrender at R465.4 million, while KwaZulu-Natal was the only province that did not surrender any funds. Provincial breakdown reveals disparities The provincial breakdown, revealed in a parliamentary response to DA MP Wendy Alexander, shows stark differences in spending capacity across South Africa's nine provinces. Gauteng's R465.4 million surrender dwarfed other provinces, representing nearly half of all surrendered funds. The Western Cape surrendered R224.4 million, making it the second-highest contributor to unspent funds. Limpopo followed with R68.6 million, while the North West province surrendered R66.6 million. The Eastern Cape surrendered R62.7 million, while the Free State's unspent amount totalled R19.3 million. Mpumalanga surrendered R10.5 million, and the Northern Cape recorded the smallest surrender at R5.6 million. ALSO READ: Here's how much National Treasury has spent on consultants in two years Human settlements sector records highest underspending According to information provided by Godongwana, analysis by sector revealed that human settlements experienced the most significant underspending, surrendering R409.1 million of allocated funds. This represented nearly 45% of all surrendered provincial grant money. Health sector underspending reached R193.3 million, while roads and transport surrendered R155.9 million. The education sector returned R92.3 million in unspent funds. Sports, arts and culture surrendered R32.7 million, while agriculture returned R24.4 million. The public works sector recorded the smallest surrender at R15.5 million. ALSO READ: Godongwana hits back at Reserve Bank's 3% inflation target Systemic challenges behind underspending Godongwana outlined specific challenges that prevented provinces from utilising allocated funds across different sectors. Human settlements faced particularly severe constraints that hindered project delivery. 'Unfilled vacancies, such as planners, engineers and project managers, led to projects not being delivered on time, resulting in the under expenditure, and subsequent surrender of funds,' Godongwana explained regarding human settlements underspending. Meanwhile, the health sector encountered procurement delays that significantly impacted spending capacity. 'Delays in procurement on the National Tertiary Services grant. A large part of health technology is imported,' the minister noted. ALSO READ: 'Barrelling towards collapse': Concerns mount as Godongwana gives Morero deadline to fix Joburg's finances Education and infrastructure sectors face implementation delays The education sector underspending stemmed from procurement and staffing challenges that delayed programme implementation. 'Delays in the procurement of laptops for officials and the non-appointment of personnel under the School Nutrition Programme' contributed to the R92.3 million surrender, according to Godongwana. Public works struggled with employment programme timelines that affected the utilisation of funds. 'Contracts of EPWP workers not finalised on time, hence unspent funds were surrendered and not rolled over,' the minister stated. Transport sector challenges included legal obstacles and contractor performance issues. 'Delays in project completion due to legal action that halted implementation, and poor contractor performance, which resulted in the project not being completed,' Godongwana explained. ALSO READ: Macpherson suspends all EPWP funds to municipality Agriculture sector hampered by community unrest The agriculture sector's R24.4 million surrender resulted from external disruptions. 'Projects not completed due to community unrest, and planned training of farmers not completed on time' prevented full fund utilisation, the minister revealed. Bus subsidy allocations within the transport sector also contributed to underspending due to contracting delays. 'Regarding bus subsidies, some contracts were only finalised in the 2nd quarter, resulting in the funds being unspent,' Godongwana noted. National Treasury response and oversight measures According to Godongwana, the National Treasury has implemented regular engagement mechanisms to address provincial underspending challenges. These interventions aim to improve grant performance across all sectors and provinces. 'The National Treasury regularly engages with departments responsible for administering conditional grants,' Godongwana stated. The treasury's approach includes active participation in sector-specific review processes. 'The National Treasury officials frequently participate in sectoral meetings where grant performance is reviewed,' the minister explained. He said the treasury provides ongoing support to enhance implementation capacity. 'During these engagements, issues of non-performance are raised with both provincial and national departments and the National Treasury provides guidance to support improved implementation,' Godongwana stated. READ NEXT: R279 million budgeted for National Treasury's building rentals and parking spaces
