Chance for people to really benefit
A common practice in the defence sector to sweeten deals with governments is to offer 'counter-trade' or 'offset' provisions, which effectively return part of the purchase price to the buyer or to people in the form of investment.
The concept is also one of the most abused in international trade, as our own country can testify, having seen only fractions of the R20 billion promised by European weapons makers in our arms deal in the '90s.
That's why the suggestion by Communications Minister Solly Malatsi for equivalent investment programmes as a way to get around the broad-based black economic empowerment (B-BBEE) rules in the communications sector needs to be assessed very carefully.
His proposal would make it easier for Elon Musk's Starlink satellite internet product to be sold in South Africa, because the company would not have to be 30% owned by black people or companies. Instead, an amount would have to be spent on programmes or projects which would offer a direct, empowering benefit for black people.
ALSO READ: Malatsi summoned to Parliament to explain Starlink policy directive
The ANC, via communications portfolio chair Khusela Diko, is apparently up in arms – backed by local communications companies – because Malatsi's proposal is allegedly illegal.
Would we be too cynical to wonder whether Malatsi's idea – allegedly put together by his party, the DA, behind the backs of its government of national unity (GNU) partners – is offensive to the ANC because it would keep the comrades away from the Starlink feeding trough?
Interesting that a company run by Diko's husband was linked to massive corruption in personal protective equipment tenders during Covid-19… although she was cleared of any wrongdoing by the ANC…
This, though, could be much bigger than just Musk. It could be a whole new way of creating genuine grassroots black economic empowerment, rather than just lining the pockets of the chosen political few
ALSO READ: Malatsi gazettes policy direction to possibly allow Musk to operate Starlink in SA [VIDEO]
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