Latest news with #B-BBEEAct
The Citizen
6 days ago
- Business
- The Citizen
Cosatu says debate on B-BBEE is needed for beneciaries' benefit
Cosatu calls for reform of B-BBEE to ensure real empowerment for workers and disadvantaged communities, not just political elites and business insiders. The debate about the broad-based black economic empowerment (B-BBEE) is needed on how to ensure it benefits the beneficiaries. This is according to union federation Cosatu spokesperson Matthew Parks, who was reacting to the ongoing debate on whether the B-BBEE policy is aimed at being biased against whites. Inequality persists 'While we support the B-BBEE Act, we believe a debate is needed on how to make sure it reaches its intended beneficiaries, in particular historically disadvantaged individuals and communities,' he said. 'We support the objectives of B-BBEE. These are necessary given three and a half centuries of systematic discrimination and disempowerment under colonial and apartheid rule. South Africa is 31 years into democracy but remains the world's most unequal society.' Parks said the policy was a necessity to help historically disadvantaged persons and communities to enter the economy, not only as wage earners but also as owners of businesses. He said Cosatu cannot remain satisfied with progress when the colour of one's skin still largely determines one's economic status. ALSO READ: Minister extends date for comments on R100 billion transformation fund 'Ticking time bomb' He added the majority of shares on the Johannesburg Stock Exchange are owned by whites, similarly with regards to ownership patterns of businesses. 'This is a ticking time bomb that we must address. It's not racism against whites and, in fact, white women and white South Africans with disabilities are included. White South Africans and investors are not excluded,' he said. 'All the policy seeks to do is to boost the economic empowerment of those still disadvantaged. It has helped to begin the journey of building a nonracial society. While some progress has been made in building a black middle class and black industrialists, it is not enough given the inequalities still so prevalent.' Parks said more must be done to ensure 'it benefits workers and not just the elite and worker ownership and employee shareholder ownership programmes should be ramped up'. He added more must be done to ensure investors honour their B-BBEE shareholders and equity equivalents. Equity equivalents offer alternative for foreign investors When asked if Cosatu supports the equity equivalents, Parks agreed and said that has been one of two options under the B-BBEE Act for many years. He said they provide a useful option for international investors who are not able to do the B-BBEE shareholders' option. ALSO READ: DA transformation policies stance dents its image and may lose it votes, says expert 'Equity equivalent option allows investors to support local manufacturers, create jobs, skill workers or invest in local communities,' he said. 'These have benefited many local businesses, workers and communities. They have been successful in many sectors, including clothing and motor manufacturing. Many companies have utilised this option before.' Malatsi's draft policy Communications and Digital Technologies Minister Solly Malatsi was recently criticised for unveiling a draft policy direction in the Government Gazette 'proposing an alternative to the B-BBEE ownership requirements for the ICT [Information and Communication Technology] sector'. 'The new model would allow companies to meet empowerment obligations through equity equivalent programmes rather than direct ownership transfers,' one critic said. The proposed amendment to the Act could facilitate the entry of investors such as Elon Musk's Starlink into South Africa's telecommunications market and contribute to the empowerment of the previously disadvantaged people without having done a direct transfer of ownership. Malatsi's critics said he was trying to pave a way for Starlink to do business in SA. Musk has previously criticised the B-BBEE policy, saying it was racist. NOW READ: Proposed Starlink deal 'wrong in principle and practice'
IOL News
26-05-2025
- Business
- IOL News
The impact of Starlink on South African digital inclusion
Elon Musk's Starlink: A New Era for South Africa's Telecommunications? 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.' 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.'
