Latest news with #EquityEquivalentInvestmentProgramme
IOL News
11 hours ago
- Business
- IOL News
Elon Musk's Starlink will have to wait for years – or find a way around B-BBEE laws ahead of G20
President Cyril Ramaphosa denied harbouring ideas of relaxing economic transformation laws to benefit tech billionaire Elon Musk after his recent visit to the US. In his recent weekly letter to the nation, Ramaphosa reaffirmed South Africa's commitment to broad-based economic policies that are central to fostering inclusive and sustainable economic growth. Image: Presidency Pretoria-born tech tycoon Elon Musk will have to wait for about two years before his Starlink satellite internet company can legally enter the South African market – a vital area for the service to operate optimally in the region. Starlink – already available in a number of Southern African Development Community (SADC) and other countries on the continent – is reportedly aiming to launch its services in SA ahead of the G20 conference hosted by South Africa and opening in November. But the company still intends to bypass the Broad-Based Black Economic Empowerment (B-BBEE) law and its 30% previously disadvantaged individual ownership laws that Musk has labelled as 'racist', preferring instead to go the Equity Equivalent Investment Programme route, which on its own is not enough to be granted a licence. 'The wheels of government don't mill that fast,' said Paul Colmer, an executive committee member of the Wireless Access Providers' Association (WAPA), a non-profit wireless industry association established in 2006. Speaking to the Pretoria News on Wednesday about their 2025 WAPALOZA conference held in Muldersdrift near Johannesburg from June 23-25, Colmer estimated that it would take about two years for the Electronic Communications Act to be amended. He based this on a presentation by a legal practitioner who made a presentation at the conference. He said as things stood, to 'sidetrack' the B-BBEE requirements there would need to be a change in legislation, which is a 'long process'. There were other ways Starlink could speed up its entry into South Africa, including through partnering with local entities that already have the required B-BBEE status, but Musk and Starlink reportedly "really, really do not like the idea of middle-men". The company and its representatives have also been accused of using Musk's proximity to US President Donald Trump and members of his administration to expand across Africa and in other countries. 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 Colmer said Starlink, which has been 'overhyped' when there were other similar service providers to choose from, was discussed at their conference but was not the main topic. The key points of discussion included spectrum sharing – a major source of opportunities for the smaller local wireless internet service provider (WISP) following Icasa's recent legislation amendment – and artificial intelligence (AI). However, Colmer said his personal highlight was the technical presentations or regulatory discussions – it was the inspirational human stories of innovation and perseverance, especially that of Songezo Mhambi from the underserved Eastern Cape who spoke on "How I Built a WISP". He said Mhambi started with network switches on his bed because the roof was leaking everywhere else, literally sleeping with his network equipment. He fought to get bank funding, overcame incredible hurdles, and now he's expanding and creating employment. Today, Songezo is, among other things, founder and CEO at Mdaswifi, founder at Vice-Tech, a renowned tech entrepreneur and a 'digital evangelist'. Colmer said he wished he could clone Mhambi because people like him are the solution to getting everyone in South Africa connected. A representative from the Independent Communications Authority of SA (Icasa) spoke about the connectivity ecosystem, emphasising how different forms of wireless technology can complement rather than simply compete with each other. Various connectivity solutions – from cellular to wi-fi to satellite – each have unique strengths and weaknesses that can together create a robust network ecosystem able to reliably and economically serve communities across South Africa's diverse landscape. Describing the conference as a success and welcoming the 'pragmatic optimism' displayed, Colmer reiterated his view that Starlink was 'overhyped' and dismissed concerns that Musk's constellation was going to kill the smaller wireless connectivity operators. In his conference summary he said: 'Yes, Starlink is coming, but OneWeb is already legally available in South Africa. Amazon's Project Kuiper is on the way. The Chinese are building their own constellation. 'But here's what I think got lost in all the hype: Starlink isn't the WISP killer some people fear it is. It has real limitations – downloading certain apps is problematic, WhatsApp calling isn't ideal. It's going to be complementary rather than primary. In countries that initially moved from WISPs to Starlink, many have actually moved back to WISPs.'
The Star
2 days ago
- Business
- The Star
Ramaphosa reaffirms B-BBEE and EEIP as essential to economic redress and transformation
Hope Ntanzi | Published 4 hours ago President Cyril Ramaphosa has reaffirmed South Africa's commitment to broad-based economic transformation, emphasising that the country's empowerment laws are practical, effective, and central to fostering inclusive and sustainable growth. In his weekly letter to the nation, Ramaphosa highlighted that the Broad-Based Black Economic Empowerment (B-BBEE) framework and the Equity Equivalent Investment Programme (EEIP) are key to both economic redress and development. 'Amongst the most salient features of our country's empowerment laws are their practicality, feasibility and responsiveness to economic conditions without deviating from the objective of redressing the economic injustices of exclusion of the past,' said Ramaphosa. He explained that South Africa's transformation agenda is guided by two complementary goals: changing the racial ownership and control of the economy, and ensuring inclusive, long-term economic growth that brings black South Africans, women, and the youth into the mainstream. The EEIP, designed for multinational firms whose global structures may not allow equity ownership transfers, enables impactful investments in skills development, enterprise support, and innovation. Addressing misconceptions about the programme, Ramaphosa clarified: 'Some in the public space have recently sought to suggest that the EEIP represents a circumvention of B-BBEE laws -and that it is a response to the conditions of a particular company or sector. ''Neither is factually correct. Firstly, the EEIP is not new and has been in existence for a decade.'' He reaffirmed that EEIP is 'firmly embedded in our laws' and comes with stringent requirements and government oversight to ensure meaningful, broad-based impact. ''The Broad-Based Black Economic Empowerment legal framework applies to all companies wishing to invest in and do business in our economy, whether they are local or foreign.'' This comes as Elon Musk's satellite internet company, Starlink, has expressed interest in entering the South African market, despite Musk's previous criticism of the country's B-BBEE legislation. Companies like Microsoft, Amazon, IBM, Samsung, and global automakers including Toyota and BMW have successfully used EEIP to fund socio-economic development, support black-owned enterprises, and advance South Africa's digital and industrial transformation, he said. ''By way of example, last year IT giant Microsoft announced a R1,32 billion investment over ten years in skills and supplier and 4IR research and development - under the EEIP. ''These firms have leveraged the EEIP to direct investment into local development, to incubate black, youth and women-owned businesses, and to fund skills development. This has in turn assisted government in achieving a number of policy and also infrastructure goals''. 'Equity Equivalents have been proven to be a practical B-BBEE compliance tool for multinationals operating in South Africa, and we will continue to leverage them in pursuit of economic growth and job creation.' Ramaphosa further highlighted that B-BBEE compliance should not be seen as a burden, but as an investment in the country's future. ''Not only do we have to move away from the perception that we must make a choice between growth and transformation – we also have to shift the mindset that compliance with B-BBEE is punitive or burdensome. 'By supporting firms with compliance they are able to embrace empowerment as a meaningful investment in South African's long-term economic stability. This is a sound strategy that recognises that a transformed South African economy is one in which their investments are safe and guaranteed.' He also highlighted the need for South Africa to adapt to changing global economic dynamics. 'Just as our economy has evolved since our B-BBEE laws were first conceptualised, so has the playing field.' 'The emergence of new industries, whether it is digital technology, advanced manufacturing, AI or renewable energy, means South Africa must actively position itself to attract greater foreign and domestic investment in these sectors or risk being left behind.' As the country works to strengthen competitiveness in emerging sectors, Ramaphosa reiterated that transformation remains non-negotiable. 'Our empowerment laws remain central to our goal of economic transformation in South Africa and are here to stay.' Ramaphosa called on all sectors, business, labour, and civil society, to unite in building an inclusive economy: 'Our focus going forward must remain creating an enabling policy environment, driving key structural reforms, supporting innovation, and reducing regulatory barriers to harness the potential of emerging industries and support existing ones.' [email protected] Get your news on the go, click here to join the IOL News WhatsApp channel IOL Politics
IOL News
2 days ago
- Business
- IOL News
Ramaphosa reaffirms B-BBEE and EEIP as essential to economic redress and transformation
President Cyril Ramaphosa says empowerment laws are here to stay, urging investors to view B-BBEE compliance as a strategic investment in South Africa's long-term economic stability and inclusive growth. President Cyril Ramaphosa has reaffirmed South Africa's commitment to broad-based economic transformation, emphasising that the country's empowerment laws are practical, effective, and central to fostering inclusive and sustainable growth. In his weekly letter to the nation, Ramaphosa highlighted that the Broad-Based Black Economic Empowerment (B-BBEE) framework and the Equity Equivalent Investment Programme (EEIP) are key to both economic redress and development. 'Amongst the most salient features of our country's empowerment laws are their practicality, feasibility and responsiveness to economic conditions without deviating from the objective of redressing the economic injustices of exclusion of the past,' said Ramaphosa. He explained that South Africa's transformation agenda is guided by two complementary goals: changing the racial ownership and control of the economy, and ensuring inclusive, long-term economic growth that brings black South Africans, women, and the youth into the mainstream. The EEIP, designed for multinational firms whose global structures may not allow equity ownership transfers, enables impactful investments in skills development, enterprise support, and innovation. Addressing misconceptions about the programme, Ramaphosa clarified: 'Some in the public space have recently sought to suggest that the EEIP represents a circumvention of B-BBEE laws -and that it is a response to the conditions of a particular company or sector. ''Neither is factually correct. Firstly, the EEIP is not new and has been in existence for a decade.'' He reaffirmed that EEIP is 'firmly embedded in our laws' and comes with stringent requirements and government oversight to ensure meaningful, broad-based impact. ''The Broad-Based Black Economic Empowerment legal framework applies to all companies wishing to invest in and do business in our economy, whether they are local or foreign.''
The Citizen
29-05-2025
- Politics
- The Citizen
Starlink proposal: Mashatile says Cabinet holds final say on policy changes
Deputy President Mashatile assured MPs that all policy changes, including EEIP ownership rules, must go through Cabinet. Nothing will be changed unless the Cabinet decides so. This is what Deputy President Paul Mashatile told parliament regarding Communications and Digital Technologies Minister Solly Malatsi's decision to gazette a policy directive, the Equity Equivalent Investment Programme (EEIP). It proposes to relax the longstanding requirement that foreign ICT investors must hold at least 30% equity in partnership with historically disadvantaged Black people in SA. Cabinet holds authority to approve changes — Mashatile Mashatile addressed oral questions from members of parliament (MPs) in the National Council of Provinces (NCOP) on Thursday afternoon. Answering a question from uMkhonto we Sizwe (MK) party's MP, Seeng Mmabatho Mokoena, the deputy president clarified the need for ministers to follow proper procedures when identifying issues with legislation, emphasising that the Cabinet holds the authority to approve any changes. Mashatile stated that any changes to legislation must be presented to Cabinet and then to parliament for approval, as the 30% ownership requirement for licences is enshrined in law. ALSO READ: 'I'm viewing my options,' says Lesufi on availability for ANC's top positions 'It may well be that as a minister, once you have made your determination, Cabinet may not agree that you are right,' he said. He added that no minister has the power to change any law through regulations. 'Nothing will be changed unless Cabinet decides it should be so,' the deputy minister said. Regression of social cohesion Mashatile was responding to questions about the regression of social cohesion in South Africa, as outlined in the 2024 SA Social Cohesion Index (SASCI) research report. The study revealed that South Africa's overall cohesion level was moderate at 53.3. This reverses a prior decline but with significant provincial and dimensional variations — Limpopo showed the highest provincial cohesion, while KwaZulu-Natal had the lowest. Chief Whip of the NCOP, Kenneth Mmoiemang, raised concerns about opposition to the government's efforts to address historical inequalities and promote economic transformation. Watch Mashatile respond to questions in the NCOP here: ALSO READ: South Africa needs more leaders like Mujica Mashatile responded by outlining various programmes and measures aimed at advancing transformation, including Broad-Based Black Economic Empowerment (BBBEE) and the National Development Plan. He reaffirmed the government's commitment to implementing transformative legislation enacted by the previous administration. 'Indeed, if someone wants to make some changes to any of these laws, that must then come to Cabinet and then back to parliament. There will be no shortcut, because laws are made and passed by parliament,' he said. 'There will be no shortcut' EFF MP Mathapelo Siwisa asked the deputy president about efforts to address income inequality since taking office. Mashatile said that growing the economy and providing opportunities for people to make a living are crucial for social cohesion. He emphasised the need for municipalities and mayors to work together to address local challenges. Mokoena later inquired about the deputy president's alleged accusations of corruption. Mashatile emphasised the importance of providing evidence in allegations and noted that courts of law are the appropriate forums for establishing authenticity. ALSO READ: MP claims Mashatile shooting used to justify VIP protection boost The deputy president acknowledged the existence of several allegations against him and mentioned the proactive steps he has taken, including presenting himself before the ethics committee in parliament and the ANC's integrity commission. 'But let me assure you, honourable members of the house, that I will continue to subject myself to the relevant institutions as established through our own constitution,' he said. There was an allegation that Mashatile did not declare certain things to remain transparent; he said the register in his office will be updated in a timely manner to prevent such issues. Corruption allegations He added that his office's media team is responsible for ensuring prompt responses to press and social media issues. 'I want to conclude by affirming my unwavering commitment to fully cooperate with the ethics and integrity committees of parliament as well as other law enforcement agencies or state institutions that may require clarity on any matter concerning these allegations,' Mashatile said.
IOL News
27-05-2025
- Business
- IOL News
Parliament to grill Minister Malatsi on controversial broadband policy favouring Starlink
Minister of Communications and Digital Technologies Solly Malatsi will brief Parliament on a draft policy easing B-BBEE rules for tech firms like Starlink, amid growing concerns over its impact on transformation laws. Parliament's Portfolio Committee on Communications and Digital Technologies will on Tuesday, hold a crucial briefing with Minister Solly Malatsi and his department amid mounting controversy over newly gazetted policy directions that could ease B-BBEE requirements for satellite operators like Elon Musk's Starlink. The focus of the meeting is a draft policy directive relating to the Equity Equivalent Investment Programme (EEIP) in the ICT sector. The directive, published on May 23, outlines a path for multinational companies to bypass traditional equity ownership rules, a move critics say undermines South Africa's transformation legislation. According to the Committee Chairperson Khusela Diko, 'The Portfolio Committee on Communications and Digital Technologies has invited Minister Solly Malatsi and the Department of Communications and Digital Technologies to appear before the committee and brief on the recently gazetted policy directions.' Diko further added: 'The recently gazetted policy directions appear to be in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX.' In a post on X (formerly Twitter), Malatsi confirmed his attendance, saying, 'I'll honour the invitation.'
