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IOL News
03-07-2025
- Business
- IOL News
Why South Africa needs an urgent ICT policy reform to leapfrog into global digital leadership
South Africa's digital future depends on how quickly and boldly we reform our ICT policy landscape, says the author. Having recently participated in the Global Internet Governance Forum (IGF), I left with one burning realisation: South Africa's digital future depends on how quickly and boldly we reform our ICT policy landscape. The IGF discussions revealed a sobering geopolitical reality: ICT infrastructure is no longer just about connectivity or convenience; it has become a strategic asset, a tool of control, and, in many ways, a modern currency in the global power play. Subsea cables, Low Earth Orbit (LEO) satellite networks, radio frequency spectrum, and hyperscale data centres are now at the heart of geopolitical influence. The Global North is rapidly consolidating control over these digital arteries, ensuring that data traffic, internet governance decisions, and emerging technologies remain within their sphere of influence. Sub-Saharan Africa, including South Africa, is heavily dependent on foreign-owned undersea cables and satellite services. Over 80% of South Africa's internet traffic is still routed internationally. Global content companies and Big Tech are increasingly dominating African digital spaces, often without contributing adequately to local economies. Without intentional ICT policy reform, South Africa risks remaining a digital consumer in a world where ownership equals power. South Africa's ICT history is complex. Under apartheid, ICT infrastructure was an exclusive domain, designed to serve a minority and reinforce state surveillance. Post-1994, South Africa made significant strides: • The Electronic Communications Act, • The Broadband Policy (SA Connect), • The establishment of regulatory bodies like Icasa and ZADNA. These were critical steps towards inclusivity and access. However, ICT policy in South Africa has not evolved at the pace required by technological advancements. Globally, ICT policy cycles average five years or less. In contrast, several key South African ICT laws remain over 15 years old. To illustrate this: South Africa has had more than 11 different ICT ministers since 1994, each introducing policy directions with limited continuity. This leadership churn, coupled with slow regulatory updates, has undermined investor confidence and delayed critical infrastructure investments. Technology is moving at a speed that no static policy can match. Consider developments like: • 6G spectrum planning (IMT-2030), • Artificial Intelligence governance models, • Quantum computing frameworks, • Satellite mega-constellations. These emerging areas require dynamic, agile and future-proof legislation. The longer we delay, the wider the gap becomes between South Africa and global digital leaders. Investor confidence is built on policy certainty. Currently, South Africa's unpredictable policy environment is a deterrent for both local entrepreneurs and global technology investors. For South Africa to attract data centre investment, subsea cable landing stations, and satellite gateways, we need a clear, stable, and forward-looking ICT policy framework. Equally critical is data sovereignty. With most government data currently stored in foreign-owned infrastructure, South Africa must prioritise the development of local, black-owned data centres, especially those hosting sensitive public sector data. This is not just a cybersecurity concern; it's a sovereignty issue. South Africa's ICT policy reform must focus on several strategic areas: • Artificial Intelligence (AI): Ethical use, innovation governance, and positioning South Africa for AI competitiveness. • AI Data Centres: Ownership models that ensure local control over high-density computing infrastructure and government datasets. • Next-Generation Connectivity (6G/IMT-2030): Preparing for spectrum allocation and next-generation mobile broadband services. • Optical and Non-Terrestrial Networks: Expanding fibre infrastructure and integrating satellite systems (LEO, MEO, GEO) for national coverage. • Subsea Infrastructure: Strengthening and diversifying ownership of subsea cable landing stations and promoting local investment. • Data Sovereignty: Developing legislation that mandates local data storage for public and sensitive private sector data. • Cybersecurity: Establishing robust national frameworks to address both global and domestic cyber threats.• Child Protection and Online Safety: Addressing emerging online harms and developing national frameworks for digital child protection. • Digital Diplomacy and Geopolitics: Preparing South Africa's position on space governance, suborbital policies, and international digital negotiations.• Content Platforms and Broadcasting: Addressing the impact of new media platforms on local content industries and ensuring protection of South African content. The South African Internet Governance Forum (ZAIGF), in partnership with the Department of Communications and ZADNA, has already demonstrated the capacity to convene multistakeholder dialogues that reflect the voices of government, business, academia, and civil society. However, South Africa must now institutionalise the IGF outcomes into formal policy processes. Annual ZAIGF recommendations should feed directly into national policy development frameworks, especially given the fast-changing global internet governance landscape. Furthermore, South Africa must closely monitor, implement and align with International Telecommunication Union (ITU) resolutions and World Radiocommunication Conference (WRC) outcomes to remain globally competitive and future-ready. We stand at a pivotal moment. The global digital divide is widening. With bold, inclusive, and visionary policy reform, South Africa can not only catch up but leapfrog into a position of global digital leadership. This is not just a policy exercise; it is a national development imperative.
Daily Maverick
24-06-2025
- Business
- Daily Maverick
Starlink promises internet for rural SA schools — if BEE rules bend
The satellite operator has dangled a deal: free high-speed connections for 5,000 isolated schools in South Africa. In a letter to Trade, Industry and Competition Minister Parks Tau, Starlink's senior director of market access, Ryan Goodnight, made a simple case: let us in under the Equity Equivalent Investment Programmes (EEIPs) instead of the traditional 30% local ownership requirement, and we'll transform rural education connectivity. 'Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country,' Goodnight wrote. The deal? Fully funded Starlink kits and service for more than 5,000 rural schools, complete with installation and maintenance support through local South African companies. But the Starlink letter also reveals the company's growing impatience. Despite being 'interested in providing high-speed internet to South Africa since we first deployed our constellation', efforts remain grounded by what it calls outdated ownership regulations – a requirement that Starlink says it cannot meet while maintaining operational control across its global network. But you know this already. Opening Malatsi's box At the centre of the situation sits Minister of Communications and Digital Technologies Solly Malatsi, who has tried to thread the needle between transformation imperatives and technological pragmatism. During a parliamentary portfolio committee meeting on 27 May, Malatsi defended his policy directive allowing the Independent Communications Authority of South Africa (Icasa) to recognise EEIPs, arguing that the work 'predates the events of last week [President Cyril Ramaphosa's fateful visit to Washington]' and represents continuity rather than capitulation. 'The intention is to ensure a whole and consistent application of the B-BBEE Act and the ICT sector codes,' Malatsi told the committee, explaining that the directive aims to bring telecommunications regulation in line with what already exists in other sectors. Microsoft, IBM and Amazon already use EEIPs successfully in South Africa – why not satellite internet providers too? Malatsi's reasoning rests on section 3 of the Electronic Communications Act, which allows ministerial policy directives consistent with national policies. He argues that Icasa's regulations have created a gap, failing to wholly consider the ICT sector code's provisions for alternative pathways to transformation compliance. Defending the empowerment dream But if Malatsi thought his careful legal reasoning would satisfy critics, he was mistaken. The portfolio committee meeting descended into accusations of undermining South Africa's transformation agenda. Committee member Oscar Mathafa argued that the directives 'dilute or undermine those particular hopes' of voters for social justice and equity, and Colleen Makhubele described the approach as 'a denial of a constitutional right of a historically disadvantaged group to own the economy'. Committee members also accused Malatsi of 'trying to amend legislation using a ministerial policy directive'. Perhaps most damaging was an observation that 'we are altering our legislation for Starlink whereas where it goes to operate in other countries it did not utilise this coercion'. An industry body, the Association of Communications and Technology, has tried to stake out middle ground, supporting the minister's effort to resolve regulatory ambiguity while insisting on 'regulatory parity' for all players. Its chief executive, Nomvuyiso Batyi, who was critical of Malatsi in her last conversation with Daily Maverick, sent a careful statement: 'We've supported the roll-out of satellite technology in South Africa, within the same rules that everyone else follows.' The association's support for EEIPs comes with a crucial caveat – implementation must be 'transparent, consistent, and with an equal application of the law'. Network operator ground offensive Faced with potential satellite competition, South Africa's network operators have been aggressive in demonstrating their commitment to reducing data costs and expanding connectivity. The numbers they presented to Parliament are impressive. MTN claims a 46% price reduction on 1GB bundles since 2019, whereas Vodacom reports that effective rates have decreased by 50% over two years. Telkom says that per-gigabyte costs have dropped from about R99 in 2010 to R79 today, and Cell C has reduced data rates by more than 28% since 2023. These operators are also making substantial infrastructure investments, spending more than R143-billion in the past five years alone – which means jobs, not just internet from the sky. MTN invests about R9-billion a year in capital expenditure, achieving 99% 2G coverage, 98.9% 3G coverage and 97.8% LTE coverage. Its 5G now covers nearly 45% of the population. Vodacom has pledged R60-billion over the next five years for network development, expanding 5G population coverage from 20.6% in 2022 to 51.7%. Telkom says its mobile network covers 85% of the population directly, extending to 99% through roaming agreements. Rural connectivity A focus on rural connectivity is particularly relevant in view of Starlink's school promise. Vodacom's rural coverage has risen from 89.63% in 2023 to 95.4%, with a target of 97%. Rain, despite being the smallest operator, covers 61 million people with 4G and 21 million (35% of the population) with 5G. Universal service obligation (USO) achievements also provide context. MTN claims a 100% USO scorecard achievement, having invested R380-million over the past decade. It has connected 1,360 mainstream schools and 140 special needs schools, also providing laptops, printers and projectors. Vodacom has connected 3,000 schools, 1,500 beyond its obligations, and 934 of the 4,000 institutions required by new spectrum-allocation obligations. Telkom works with the government on SA Connect to connect 40,000 government institutions, and Rain has connected 2,166 public service institutions. But there are problems that satellite providers like Starlink would largely avoid. MTN spent more than R4-billion in 18 months to secure its network against load shedding. Telkom reported more than 2,000 vandalised sites costing more than R300-million to repair. Starlink's infrastructure in space is immune to load shedding and vandalism, potentially offering more reliable service to rural areas. But this advantage comes at a cost – about R900 a month, based on pricing in Botswana, plus equipment costs of R3,200 to R6,700. Operators want regulatory reform, fast-tracked spectrum access and infrastructure sharing. And they want OTT players (read: WhatsApp and Netflix) to finally pay up for riding their pipes. For now, Starlink remains in orbit. Whether it lands with a bang or a crash depends less on tech and more on who controls the regulatory runway. And if you're in rural Limpopo waiting for decent download speeds, you probably don't care if it's a billionaire's satellite or a homegrown telco – you just want it to work. DM
IOL News
18-06-2025
- Business
- IOL News
Takealot challenges Post Office's monopoly on small parcel deliveries
Takealot Group is challenging SAPO's exclusive rights to deliver parcels under 1 k. Image: File E-commerce retailer Takealot has filed "a notice of intention to amend the notice of motion" in the marathon legal battle by the Independent Communications Authority of South Africa (Icasa) and SA Post Office (Sapo) to maintain a monopoly for Sapo in the delivery of sub-1 kilogram parcels. This comes as the pleading stage in the matter continues until mid-August, according to confirmation by the Acting Sapo CEO Fathima Gany and the Business Rescue Practitioners after an update to Parliament's Portfolio Committee on Communications and Digital Technologies. The monopoly, as outlined in the Postal Services Act, has been challenged and was extended to April 1, 2025. This comes as the private sector capitalises on Sapo's inability to enforce the monopoly due to its ongoing financial difficulties. Gany told Parliament that there had been ongoing meetings with Takealot, which has now filed a notice of intention to amend its legal position in the sub-1 kg dispute. Sapo, supported by Icasa initially took PostNet and the South African Express Parcel Association (Saepa) to court in 2018. The objective was to uphold the law and prevent these private players from delivering small parcels. However, the private courier firms won that round, especially after larger operators like Takealot joined the legal battle. Joint Business Rescue Practitioner of Sapo Anoosh Rooplal told Business Report, "The Post Office currently still has the exclusive licence to deliver sub-1 kg parcels, but this is being encroached upon by the private sector. The case is still pending, and the regulator, Icasa, is currently at the pleading stage, which is scheduled to conclude on 14 August 2025, as per the latest request. The Post Office supports Icasa in this case and will ultimately benefit if their arguments to preserve the monopoly are upheld." 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 case, led by Icasa as the regulator, is up against the courier sector, represented by Saepa, which is challenging Sapo's exclusive rights to deliver packages under 1 kg - a competitive advantage in the growing e-commerce and rural logistics markets. Sapo has acknowledged in its Corporate Plan to 2030 that it faces increasing competition from more agile and technologically advanced private courier services. Without a major overhaul of its digital capabilities, Sapo risks losing even more market share to these competitors, particularly in urban areas. "PostNet is our competition. It has our service offering. That is what a Sapo branch is - or should be. A futuristic Sapo branch is where you can walk in and get an array of services: internet café, access to Hotmail to look for jobs, anything that you want to do that you cannot do at home. You can walk in and collect our parcels. It's a central hub," Gany said. Meanwhile, the Department of Communications and Digital Technologies has indicated its intention to review Sapo's monopoly on certain postal services, including the delivery of parcels weighing less than 1 kg. According to Sapo, the South African Courier, Express, and Parcel market was valued at R48 billion in 2023 and is projected to reach R78bn by 2030. This growth is attributed largely to the e-commerce sector, which is expected to grow at an annual rate of between 10% and 15% over the next three years. BUSINESS REPORT
Zawya
18-06-2025
- Business
- Zawya
Starlink's bid for South Africa entry: Public still has time to weigh in on EEIP policy
In a previous article published in March, I examined Starlink's plans to enter the South African market and its dispute with the Independent Communications Authority of South Africa (Icasa), the country's telecoms regulator. The dispute relates to licensing requirements under the Electronic Communications Act 36 of 2005, which mandates that 30% of equity in licensed entities be held by historically disadvantaged South Africans, and is part of the country's Broad-Based Black Economic Empowerment (B-BBEE) policy. Image source: Freepik Starlink argued that its global policy does not allow for dilution of ownership, and that the 30% local shareholding requirement hinders foreign investment in South Africa. As an alternative, Starlink has proposed equity equivalent investment programmes (EEIPs), which have received support from the Minister of Communications and Digital Technologies, but not yet from Icasa. Public hearings This situation reflects broader tensions between promoting foreign investment and technological advancement, especially for rural connectivity, and upholding local transformation policies. Starlink's potential entry could also disrupt local telecommunications competition. In February 2025, Icasa held public hearings on a proposed new satellite licensing framework and received over 50 written submissions. SpaceX, Starlink's parent company, submitted written input but withdrew from the oral hearings. Icasa is reviewing all submissions and has indicated a willingness to find balanced regulatory solutions that support innovation and inclusivity. Although Starlink withdrew from making oral submissions at Icasa's public hearings in early February, its arguments appear to have been both heard and seriously considered. As mentioned in the previous article, the written representations by Starlink included support for EEIPs as an alternative to the 30% local shareholding requirement, stating that it will attract foreign investment in South Africa. A mere three months after holding the public hearings, the Minister has issued a new proposed policy direction offering alternatives to the 30% local shareholding requirement. The Broad-Based Black Economic Empowerment Act 53 of 2003 and ICT Sector Codes acknowledge the fact that some multinational companies have policies and practices which prevent them from having previously disadvantaged South African shareholders. Even though these multinationals cannot offer shareholding to qualifying South Africans, the Codes make provision for contributions to be recognised through EEIPs instead of a direct sale of an entity's shares. EEIPs EEIPs refer to public or private initiatives established to meet the ownership requirements of the B-BBEE framework. These programmes may also focus on investment or other initiatives that contribute to socioeconomic development within the South African economy. This can take the form of investing in infrastructure in rural areas, enterprise and skills development, job creation, as well as research and innovation. To be eligible for ownership points on the B-BBEE scorecard, such programmes must receive approval from the Minister of Trade and Industry. Once approved, the EEIPs and the associated ownership points cannot be applied to any other element of the multinational's B-BBEE scorecard. The value of the EEIP contributions can be measured against 25% of the value of the multinational's South African operations or may be measured against 4% of the total revenue from its South African operations annually throughout continued measurement. This new policy sees a shift in Icasa's stance regarding foreign investment. The Minister stated that this new policy was essential to attract investment, particularly in strategic infrastructure, and to drive innovation in the communications industry. It also aims to enhance competition in the information and communications technology sector and to support, enable, and align efforts to achieve the goals set out in the law. Despite the policy, it is clear that the commitment to transformation has remained the goal. The policy is still open for public comment until 7 July 2025. Only time will tell whether these EEIPs deliver meaningful returns to the B-BBEE beneficiaries, much like the 30% ownership requirement aimed to do, while unlocking greater foreign investment in South Africa's telecommunications sector. For now, the message from the government seems promising, but will the signal be clear?
The Citizen
04-06-2025
- Climate
- The Citizen
Top 10 stories of the day: Counterfeit alcohol in SA
Here's your daily news update for Wednesday, 4 June 2025: An easy-to-read selection of our top stories. In the news today, research shows how the illicit trade makes up 18% of the South Africa's overall alcohol market. Meanwhile, the Independent Communications Authority of South Africa says Elon Musk's SpaceX has been operating its Starlink satellite internet service illegally in the country. Furthermore, EFF leader Julius Malema has dismissed concerns over former party deputy president Floyd Shivambu's move to parliament with the MK party. Weather tomorrow: 5 June 2025 The weather service has warned of damaging winds in KwaZulu-Natal, while a weekend cold front is expected to deliver icy conditions, snow, and rough seas across inland and coastal areas. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. How you could be drinking counterfeit alcohol without knowing Illicit alcohol traders are making a fortune selling knock-off liquor to unsuspecting and desperate patrons. Euromonitor International, in partnership with Drinks Federation South Africa (DFSA), this week revealed the runaway popularity of the illicit alcohol trade. Image for illustrative purposes. Picture: iStock Between traders prioritising profits and consumers choosing cheaper options, the country is missing out on just over R10 billion, excluding Value-Added Tax (VAT), on untaxed spirits alone. Through desk research, store visits and surveys across multiple geographic and income demographics, Euromonitor illustrated how the illicit trade makes up 18% of the country's overall alcohol market. CONTINUE READING: How you could be drinking counterfeit alcohol without knowing Icasa seizes Starlink satellite-internet equipment in South Africa [VIDEO] The Independent Communications Authority of South Africa (Icasa) says Elon Musk's SpaceX has been operating its Starlink satellite internet service illegally in the country, and that it has recently confiscated equipment belonging to the company. Starlink has returned to the spotlight in the country following a policy directive from Communications and Digital Technologies Minister Solly Malatsi, which aims to pave the way for the satellite internet service's legal entry into the South African market. Starlink internet-satellite equipment. Picture: iStock Talks on launching Starlink in South Africa stalled earlier this year after Musk and US President Donald Trump ramped up public rhetoric against policies such as BEE laws, which mandate that foreign-owned telecoms companies allocate at least 30% of local equity to historically disadvantaged groups, primarily black South Africans. CONTINUE READING: Icasa seizes Starlink satellite-internet equipment in South Africa [VIDEO] 'Ayakwini yena?': Malema says EFF unfazed by Shivambu's parliamentary return EFF leader Julius Malema dismissed concerns over former party deputy president Floyd Shivambu's move to parliament with the MK party, rhetorically asking, 'Ayakwini yena?' (Where was he going?), while reaffirming that his party's 'superior' presence in parliament remains unchallenged Speaking to the media outside the home of late actor Presley Chweneyagae in Soweto, where he had come to pay condolences, Malema addressed several pressing political issues, including Shivambu's new role, calls for black unity, and local governance matters. EFF leader Julius Malema. Picture: Neil McCartney/The Citizen The MK party on Tuesday removed Floyd Shivambu as secretary-general of the party. This follows an investigation into Shivambu's trip to Malawi to visit fugitive Pastor Shepherd Bushiri's Enlightened Church. CONTINUE READING: 'Ayakwini yena?': Malema says EFF unfazed by Shivambu's parliamentary return Mashatile reveals he spent R2.3m on travel, food, and laundry for Japan trip Deputy President Paul Mashatile has disclosed that he spent R2.3 million on a single working visit to Japan in March 2025, with expenses including flights, accommodation, ground transport, restaurant services, and laundry costs. This latest revelation adds to previous travel expenditure totalling over R5.5 million since taking office in July 2024. Deputy President Mashatile. Picture: Gallo Images The revelation came in response to a parliamentary question from ActionSA MP Lerato Mikateko Ngobeni, who requested a complete breakdown of all official travel undertaken by Mashatile since assuming office on 3 July 2024. Mashatile confirmed that he undertook four official international trips since the specified dates. CONTINUE READING: Mashatile reveals he spent R2.3m on travel, food, and laundry for Japan trip Winter wonderland: Snow expected in Gauteng next week The last time it snowed in Johannesburg, Gauteng was on the 10th of July 2023 when the South African Weather Service (Saws) confirmed that various parts of the province was covered in a white. With the latest weather forecast and a cold front looming, Gauteng may once again be transformed into a winter wonderland next week. A snowman admires the snow that blanketed several areas in Gauteng. Picture: Twitter/@newslivesa According to Vox Weather, the mercury is expected to drop below 20°C as residents scurry to get their blankets out and keep warm. CONTINUE READING: Winter wonderland: Snow expected in Gauteng next week Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: Shivambu removed as MK Party SG | Fuel levy hike goes ahead | Presley Chweneyagae memorial
