Latest news with #BBBEE)Act
The South African
08-07-2025
- Business
- The South African
South Africa can cushion Trump's tariff blow, says Steenhuisen
Leader of the Democratic Alliance (DA) John Steenhuisen says President Donald Trump's 30% tariff will have devastating consequences. He says the African National Congress (ANC) must acknowledge the urgent need for economic reforms to cushion the blow of potential job losses resulting from the tariffs. According to Steenhuisen, billions of rands in export revenue could be lost, crippling key sectors of the economy. The DA leader also commented on the ANC's foreign policy. He said the party aligns itself with countries and policies perceived by the United States as being contrary to its interests. The Minister of Agriculture said South Africa must remove barriers that hinder private sector participation in the generation and transmission of electricity. He also called for increased efficiency at ports, greater private sector involvement in freight rail, and amendments to the Expropriation Act. He argued that the Broad-Based Black Economic Empowerment (BBBEE) Act must be reviewed to prioritise poverty alleviation over race-based criteria. In addition, he called for urgent interventions in failing municipalities to improve service delivery. The DA leader further urged President Cyril Ramaphosa to take decisive action against corruption across all levels of government. The Minister of Agriculture said he remains committed to expanding market access for South African products. He warned that the move by the US could signal the end of the African Growth and Opportunity Act (AGOA). The act currently grants South Africa duty-free access to the US market for more than 6,000 products. These include goods from the automotive, agricultural, and textile industries. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news
IOL News
04-07-2025
- Business
- IOL News
Minister Malatsi's policy direction on EEIPs faces backlash from Cosatu
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. Image: X/IOLGraphics 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 ✕ Ad loading 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. 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. 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." Malatsi, through his spokesperson Kwena Moloto, said 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.
IOL News
03-07-2025
- Business
- IOL News
Cosatu, BBC slam Elon Musk's R2 billion investment plan to avoid BEE
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 to the demands of Starlink would set the wrong precedent and open the floodgates by like-minded business people,' Seepe said.
Eyewitness News
30-05-2025
- Business
- Eyewitness News
Malatsi: Communications sector's proposed policy changes already provided for in law
CAPE TOWN - Minister of Communications Solly Malatsi has once again moved to defend proposed policy changes in the sector, saying he's not attempting to do anything not already provided for in law. Many believe the regulations are being designed to benefit foreign satellite company Starlink, the company of tech mogul Elon Musk. On Thursday, Minister in the Presidency Khumbudzo Ntshavheni, a former communications minister, said no discussions were had with Musk during government's visit to Washington last week. Malatsi has been at odds with political parties in Parliament this week - including the African National Congress (ANC), over regulations that would forego Black Economic Empowerment (BEE) requirements for communication operators in favour of equity equivalents. READ: Malatsi defends policy directive to ease company transformation targets and BEE requirements Responding to member's statements in the National Assembly on Thursday, Malatsi again sought to explain the move, telling the uMkhonto weSizwe (MK) Party that he was working within the prescripts of the Broad-Based Black Economic Empowerment (BBBEE) Act, passed during the administration of their leader, Jacob Zuma, in 2014. 'This is not some invention by a villager from Limpopo called Malatsi. It's there in the rules.' Answering questions at a post-Cabinet briefing earlier in the day, Ntshavheni also defended her actions as a former communications minister. 'We've never considered Starlink. I've never said that. I said South Africa considered developing or introducing satellite communication in the country.' Malatsi said the new regulations will create a more competitive environment for multiple operators.
