Latest news with #B-BBEE)Act
IOL News
09-06-2025
- Business
- IOL News
'High promises, dololo delivery' – Economist slams Ramaphosa for doing nothing
According to Professor Jannie Rossouw from Wits Business School, President Cyril Ramaphosa has failed to deliver meaningful results ever since taking office. Image: GCIS Professor Jannie Rossouw of Wits Business School has described President Cyril Ramaphosa as an "ineffective" leader who has contributed "nothing" since taking office, and is now leaning on race-based policies like B-BBEE to win back support for the ANC. Speaking to IOL News on Monday, Rossouw said Ramaphosa is using race-based empowerment policies such as the Broad-Based Black Economic Empowerment (B-BBEE) Act and the Employment Equity Act to try and regain support for his party. The African National Congress (ANC), is currently the leader of the Government of National Unity (GNU), which includes other parties. 'Mr Ramaphosa is at the end of his presidency,' Rossouw said. 'His party is in trouble. It's losing support all the time. So he's making these statements in the hope that it will improve support for the ANC.' His comments came after Ramaphosa's recent weekly newsletter, in which he defended the B-BBEE and the Employment Equity Act. Ramaphosa rejected what he called a 'false notion' that South Africa must choose between economic growth and transformation. He said the country must remain committed to redressing historical injustices. 'Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country,' Ramaphosa wrote. 'For this reason, we reaffirm that broad-based Black economic empowerment is not just a policy choice but a constitutional imperative.' 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 ✕ He referenced the 70th anniversary of the Freedom Charter, which proclaimed, 'the people shall share in the country's wealth,' and argued that empowerment policies are key to ensuring inclusive growth. 'We must make our empowerment policies more meaningful,' he said. 'Economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable.' According to Ramaphosa, South Africa has made measurable progress since 1994, including improvements in ownership, management control, and enterprise and skills development, especially among women-owned businesses. However, Rossouw sharply disagreed. He argued that the current application of race-based policies has done little for ordinary citizens. 'It's obvious by now that the ANC government's economic policies are not working,' he said. 'Over the past decade, our growth rate has averaged around 1% per year, while population growth is 1.5%. That means on a per capita basis, South Africans are getting poorer.' He added that the benefits of B-BBEE have largely gone to a small, politically connected elite. 'I can give you five or six people who are now exceptionally wealthy, Mr. Ramaphosa himself among them... Think of people in the coal and mining industries. Meanwhile, we have a large group of very poor South Africans,' he said. 'We see it in the Gini coefficient. We see it in unemployment. These policies are clearly not delivering the results they were originally intended to deliver. There's no skills transfer. Few people get very wealthy, while unemployment is over 50%.' Rossouw said transformation is important, but not in the way the ANC is doing it. 'Transformation is necessary, but the current approach isn't helping. It's not creating jobs or reducing poverty. It's enriching a small elite. That's not a real transformation.' The ANC's economic policies have also come under fire from opposition parties. Both the Economic Freedom Fighters (EFF) and the uMkhonto weSizwe (MK) Party criticised a recent proposal to allow foreign companies to meet B-BBEE requirements through the Equity Equivalent Investment Programmes (EEIPs), including Elon Musk's Star Link. The EFF called it a 'backdoor for foreign multinationals' to avoid local empowerment laws, while the MK Party labeled it a 'treacherous blueprint' designed to dismantle state capacity and cut deals with foreign tech oligarchs. When asked to comment on the backlash, Rossouw declined to weigh in on specifics, especially following recent global controversies. 'Well, that's a difficult one for me to respond to because the official line is that structures will be in place to allow people like Mr. (Elon) Musk into the country. Given his fight with Mr. (Donald) Trump (US President), I'd rather refrain from commenting,' Rossouw said. Ramaphosa, for his part, argued that the world is in a 'polycrisis,' marked by global conflict, economic stagnation, and environmental degradation, and that South Africa must not retreat from its transformation agenda. 'We must dispense with the false notion that we must choose between growth and transformation,' he wrote. 'B-BBEE is not a cost to the economy; it is an investment in it.' However, Rossouw said he remains unconvinced. 'What has Mr Ramaphosa brought to South Africa since his presidency that we can be proud of?' he asked. 'He's brought us nothing. High promises, no delivery… He is an ineffective leader.' IOL Politics
IOL News
09-06-2025
- Business
- IOL News
‘Transformation is not a favour, it's a necessity,' Says Ramaphosa as Starlink fight heats up
President Cyril Ramaphosa, reiterating government's stance on economic transformation policies despite huge backlash from opposition parties. Image: ANC/X President Cyril Ramaphosa has once again defended South Africa's Broad-Based Black Economic Empowerment (B-BBEE) Act and the Employment Equity Act, saying the country must reject the 'false notion' that it must choose between economic growth and transformation. Ramaphosa's remarks, made in his weekly newsletter on Monday, after weeks of controversy over a policy proposal by Communications and Digital Technology Minister Solly Malatsi to ease B-BBEE requirements for satellite communication services such as Elon Musk's Starlink. The proposal sparked backlash from opposition parties, including the Economic Freedom Fighters (EFF) and the uMkhonto weSizwe (MK) Party, which argued that it would allow foreign companies to bypass empowerment laws. EFF described the proposal as a 'backdoor for foreign multinationals' to exploit Equity Equivalent Investment Programmes (EEIPs) to sidestep B-BBEE compliance. The MK Party called it a 'treacherous blueprint' to dismantle state capacity and strike deals with foreign tech oligarchs. Despite this, Ramaphosa stood by the policy, arguing that B-BBEE is not just a policy preference but a constitutional imperative. He invoked the 70th anniversary of the Freedom Charter, which proclaimed that 'the people shall share in the country's wealth.' 'Our Constitution reflects the promise we made to one another and to future generations to redress the injustices of our past and realise the full potential of our country,' Ramaphosa wrote. 'For this reason, we reaffirm that broad-based black economic empowerment is not just a policy choice but a constitutional imperative.' 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 Video Player is loading. 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Next Stay Close ✕ Ramaphosa said the world is currently in a 'polycrisis,' characterised by global conflict, economic stagnation, mistrust in institutions and environmental degradation, challenges that South Africa is not immune to. He argued that this is not the time to backtrack on empowerment but to double down. 'We must make our empowerment policies more meaningful,' Ramaphosa said. 'Economic growth without transformation entrenches exclusion, and transformation without growth is unsustainable.' He emphasised that South Africa has made measurable progress since 1994 through a 'robust legislative framework' anchored by the B-BBEE Act and the Employment Equity Act. 'We have seen real changes in ownership patterns, including more businesses owned by women. We have seen changes in management control, enterprise development and skills development,' he wrote. According to Statistics South Africa, between 2006 and 2023, real household income increased by 46% for black Africans, 29% for coloured households, and 19% for Indian households. However, Ramaphosa acknowledged that, on average, white households still earn nearly five times more than black African households. 'This is the gulf we must close through deliberate and sustained efforts to expand opportunity,' he said. 'Transformation is not a favor, it is a necessity.' Ramaphosa criticised those who continue to benefit from historical privilege while challenging B-BBEE in the courts, calling for national unity on the issue. 'We must dispense with the false notion that we must choose between growth and transformation,' he said. 'B-BBEE is not a cost to the economy; it is an investment in it.' He said this commitment underpins government programs like the Black Industrialists Programme and the newly established Transformation Fund, aimed at supporting innovative black-owned enterprises. 'There is a critical need for black-owned businesses to access funding on affordable terms,' he said. He called on private banks to review their lending practices. 'They have the resources to make the greatest impact.' Ramaphosa said the Public Procurement Act must be used to expand opportunities for businesses owned by women, youth and persons with disabilities. 'Transformation must reach into every sector, whether it is mining, construction, energy, IT or agriculture,' he said. 'The private sector should use their supply chains far more deliberately to empower more black-owned businesses, not just to improve their B-BBEE scorecard, but to grow and diversify their supplier base.' As the country develops infrastructure, green industries and localized manufacturing, transformation must remain central, he added. 'The transformation we seek is not about ticking boxes. It is about building a resilient, just economy for generations to come,' he wrote in the newsletter. 'I call on all South Africans, and in particular the private sector, to recommit to economic transformation.' Meanwhile, Starlink, owned by Musk's SpaceX, does not currently hold an operating license in South Africa. Its efforts to obtain one reportedly failed after Musk rejected the requirement that foreign telecommunications companies sell a 30% stake to historically disadvantaged South Africans in order to operate. In February, US President Donald Trump signed an executive order aimed at isolating South Africa, citing allegations of anti-white policies and accusing the government of harboring hostility toward the US and its allies, including Israel. This action was widely viewed as part of Musk's pushback against South Africa's empowerment regulations. In response, Ramaphosa led a delegation to Washington on May 21 in an attempt to salvage key trade agreements and attract new investment amid the diplomatic tension. IOL Politics
IOL News
28-05-2025
- Business
- IOL News
'We will fight corporate terror': EFF rejects Minister Malatsi's attempt to facilitate Starlink entry
EFF rejects Minister Malatsi's unlawful attempt to bypass South Africa's 30% local ownership law for Elon Musk's Starlink, saying legal compliance and transformation must be upheld to protect jobs, sovereignty, and national security. Image: AP Photo/Francois Mori, The Economic Freedom Fighters (EFF) has condemned Minister Solly Malatsi's recent actions aimed at enabling Elon Musk's Starlink satellite company to operate in South Africa without adhering to local ownership laws. The party expressed deep concern over what it described as an unlawful attempt to bypass legislation designed to protect local economic interests and transformation. On Tuesday, Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code. This 'alignment' would allow foreign entities to operate without complying with the 30% local ownership requirement mandated by law for previously disadvantaged groups. Instead, the EFF said Malatsi wants Starlink to use 'Equity Equivalents' under the Broad-Based Black Economic Empowerment (B-BBEE) Act, an approach the EFF describes as an 'anti-transformation participation' strategy. EFF spokesperson Sinawo Tambo said: "In what can only be described as an unlawful attempt at subverting the powers of the Parliament of South Africa by using a Ministerial Policy Directive, Minister Malatsi characterises the amendments he wants to make to two Acts of Parliament as regulatory alignment." 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 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. Next Stay Close ✕ When pressed by the EFF, Tambo said the Minister failed to adequately address whether his directive amounts to amending the law. More importantly, Malatsi admitted that the Independent Communications Authority of South Africa (ICASA) advised him that the correct path would be to amend the Electronic Communications Act itself, not circumvent it via policy alignment, he said. "The fact that the regulatory authority is alive to the legislative irregularity of the Minister's attempts means there is certainty that the only lawful mechanism for Starlink to exist in South Africa is through full compliance with our laws, or through a legally sound amendment of legislation. ''No other mechanism, including a Ministerial Directive, can ease conditions for Starlink to operate in our country." Beyond the legal issues, the EFF raised political concerns about allowing Starlink's entry. Elon Musk, who owns Starlink, has previously peddled disinformation about South Africa, expressed disdain for transformation, and proposed to operate without guarantees for local jobs in the telecommunications industry, said the EFF. Tambo noted that the Portfolio Committee echoed this sentiment with a 'resounding call' rejecting Starlink and any attempts to subvert legislation by abusing Executive powers and undermining the will of the people, which resides in Parliament. Tambo said: "The EFF vows, that over and above legislative requirements, we will fight tooth and nail against corporate terror that uses access to diplomatic channels and Presidents to pursue business interests." The EFF further links Starlink's push for entry in South Africa to demands made by Johann Rupert at the Oval Office and warns that Starlink represents a national security threat, a threat to local jobs, and a threat to the country's sovereignty and independence. The party reiterated its firm stance to oppose any introduction of Starlink that does not comply fully with South African law, both inside Parliament and, if necessary, through the courts. ''We Say No To Starlink in South Africa!'' Get your news on the go, click here to join the IOL News WhatsApp channel. IOL Politics
The Citizen
05-05-2025
- Business
- The Citizen
SA will host 'successful G20' whether US attends or not
The G20 summit is scheduled to kick off in Johannesburg on November 22. Deputy President Paul Mashatile says South Africa will host a 'successful G20' meeting, whether the United States decides to attend. Mashatile addressed a business breakfast hosted by Trade, Industry, and Competition Minister Parks Tau in Pretoria on Monday. The G20 summit is scheduled to kick off in Johannesburg on November 22. South Africa assumed the Presidency of the G20 in December last year, taking over from Brazil. US boycotting G20 In February, US Secretary of State Marco Rubio, in a social media post on X, said he 'will not' attend a summit of the grouping to protest the South African government's controversial land seizure bill. 'I will not attend the G20 summit in Johannesburg. South Africa is doing very bad things. Expropriating private property. Using G20 to promote 'solidarity, equality, & sustainability.' In other words: DEI and climate change. 'My job is to advance America's national interests, not waste taxpayer money or coddle anti-Americanism.'. WATCH: Paul Mashatile speaking about SA hosting a successful G20 meeting Deputy President Paul Mashatile said South Africa will host a 'successful G20' meeting whether the United States decides to attend or not. #G20 #PaulMashatile #US @TheCitizen_News — 𝙵𝚊𝚒𝚣𝚎𝚕 𝙿𝚊𝚝𝚎𝚕 ⚡️ (@FaizelPatel143) May 5, 2025 ALSO READ: US secretary Marco Rubio will not attend G20 summit because SA 'is doing very bad things' G20 without US Mashatile told the gathering that G20 meetings are taking place as the country prepares for the main event in November. 'I know that a number of meetings are already taking place. Ministers of Finance have met, Ministers of Foreign Affairs and Trade, and some of the business meetings have also taken place, with the meeting for heads of state taking place in November this year. 'We are looking forward to a very successful G20 meeting this year, even though the United States said they may not come, but we are proceeding, and we are going to make sure that it's a success,' Mashatile said to applause. ALSO READ: SA to prioritise food security, economic growth in G20 presidency, says Ramaphosa Transformation fund Mashatile also spoke about measures to prevent corruption from collapsing the Transformation Fund. The legislative rationale for the transformation fund is anchored in the Broad-Based Black Economic Empowerment (B-BBEE) Act, which mandates that the government increase the effective participation of black-owned and managed enterprises in the economy and enhance their access to both financial and non-financial support. According to Tau, the transformation fund will be capitalised at R20 billion per year over a five-year period and disbursed through a combination of grants, loans and equity support, complemented by technical assistance, pre- and post-investment support and market access facilitation. Some opposition parties like the DA do not support the fund in its current form and see a better shot at economic growth through providing resources purely based on merit and the prospective beneficiary's business viability and growth potential. Corruption Mashatile said the country will not achieve an inclusive economy as long as corruption persists, both in the public and private sectors. 'Corruption hinders the growth of Small and Medium-sized Enterprises (SMEs) by increasing costs, reducing profits, and creating uncertainty. 'To promote an inclusive economy, we must commit to addressing corruption by strengthening our institutions, fostering transparency and accountability, and promoting citizen engagement. This includes developing and implementing robust anti-corruption frameworks, strengthening our criminal justice system, and encouraging public participation and oversight,' Mashatile said. Mashatile added that the government is committed to fighting corruption, focusing on accountability, transparency, and the dismantling of corrupt networks. This effort, he said, includes establishing specialised 'investigative units and strengthening legislation to combat money laundering and fraud'. ALSO READ: WATCH: 'I would be ashamed', Mashatile slams DA ministers over budget
