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Takealot challenges Post Office's monopoly on small parcel deliveries
Takealot challenges Post Office's monopoly on small parcel deliveries

IOL News

time2 days ago

  • 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

Starlink's bid for South Africa entry: Public still has time to weigh in on EEIP policy
Starlink's bid for South Africa entry: Public still has time to weigh in on EEIP policy

Zawya

time2 days ago

  • 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?

Top 10 stories of the day: Counterfeit alcohol in SA
Top 10 stories of the day: Counterfeit alcohol in SA

The Citizen

time04-06-2025

  • 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

Icasa seizes StarlinK's satellite intenet equipment in SA
Icasa seizes StarlinK's satellite intenet equipment in SA

The Citizen

time04-06-2025

  • Business
  • The Citizen

Icasa seizes StarlinK's satellite intenet equipment in SA

South Africans have found ways around the current restrictions by registering the kit and services in neighbouring countries. 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. BEE laws 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. Musk claimed Starlink was barred from operating in South Africa because he is not black, an allegation South African officials refuted. However, some South Africans have found ways around the current restrictions by registering the kit and services in other nearby nations, such as Lesotho, which allows the service, and then using the roaming option to access it in their home country. WATCH: Icasa chairperson Mothibi Ramusi speaking about Starlink ICASA Chairperson, Mothibi Ramusi says that Starlink has been operating illegally in SA. He says they have recently confiscated equipment belonging to SpaceX, which owns Starlink, from a company called ICASAsePush in the Northern Cape. The company has been providing Starlink… June 3, 2025 ALSO READ: Bad news for illegal Starlink users in SA Starlink's illegal equipment seized Icasa chairperson, Mothibi Ramusi, told Newzroom Afrika on Tuesday that they had conducted an investigation in the Northern Cape and had written to SpaceX to confirm that its services were being used in South Africa. 'Upon hearing all these issues, we actually went out on an investigation in the Northern Cape. We confiscated equipment which related to SpaceX, the company that owns Starlink. 'Anyone found in this country providing a service without the required authority, it's illegal. So, this company, IcasaSePush, has been providing equipment, and obviously, they have a commercial agreement with SpaceX,' said Ramusi. SpaceX's response Ramusi added that Icasa has written to SpaceX on 21 May 2025 to get confirmation regarding claims that people were using Starlink illegally in South Africa. 'SpaceX has since responded, and I must say that the response worried me as well as a chair[person], because whilst they recognise that operating in a country without proper permits, is not permissible the company IcasaSePush, they (SpaceX) indicated to us as an authority that they've now instructed them to seize operating or even distributing any equipment that is aligned to their business, especially in this country'. Internet With its wide coverage and increasing affordability, Starlink offers an opportunity to bridge the connectivity gap in rural areas while also appealing to urban users. Starlink operates thousands of low-earth orbit (LEO) satellites to provide high-speed internet globally. ALSO READ: Malatsi gazettes policy direction to possibly allow Musk to operate Starlink in SA [VIDEO]

Starlink orders ICASAsePush to halt operations in South Africa as regulator Icasa cracks whip
Starlink orders ICASAsePush to halt operations in South Africa as regulator Icasa cracks whip

IOL News

time03-06-2025

  • Business
  • IOL News

Starlink orders ICASAsePush to halt operations in South Africa as regulator Icasa cracks whip

Icasa chairperson Mothibi Ramusi wrote to SpaceX, seeking clarity on whether the international internet service provider was operating in South Africa without a licence. Image: Supplied Elon Musk's international internet service provider Starlink has informed ICASAsePush, a privately-owned company reported as the leading provider of Starlink internet services in South Africa, to cease its local operations following the intervention of South African authorities. The Starlink directive through its parent company SpaceX to ICASAsePush came after South Africa's Independent Communications Authority of SA (Icasa) wrote to Musk's company, seeking clarity after widespread allegations surfaced purporting that Starlink services are available in South Africa. IOL has recently reported that Starlink has not applied for a licence to operate in South Africa, despite claiming that broad-based black economic empowerment (BEE) laws are preventing his company from setting up. In South Africa, Starlink is listed at 'service date is unknown' while it is starting in 2025 in Lesotho, Namibia, Tanzania, Congo and the Democratic Republic of the Congo. Its services are available in eSwatini, Mozambique, Zimbabwe, Zambia, Malawi and Burundi, among other African countries. Speaking to IOL, Icasa chairperson Mothibi Ramusi said he has written to SpaceX, seeking clear answers on whether the international service provider was operating in South Africa without a licence. Get your news on the go, click here to join the IOL News WhatsApp channel. 'I must indicate and confirm that, as an authority, we wrote to the company SpaceX because we wanted to get affirmation ... because sometimes you have fake news and as an authority, with the limitations we have in terms of monitoring equipment and tools, I took it upon myself, supported by council and our exco, and SpaceX has responded, and I must say the response worried me as well, as the chair. 'While they recognise in a country without proper permits is not permissible, they indicated to us they have now instructed them, ICASAsePush, to cease operations and even distribute any equipment that is aligned to their business especially in this country. 'From a security point, that is an issue which should be a concern to us as an authority. Because we collaborate with other state institutions, I have immediately, on behalf of the authority, engaged with Sansa (South African National Space Agency) our national space agency and among other things they do, they providing tracking, tracing and control for those that launch satellites all over the world so we have a very good state of the art facility in this country. Ramusi said he has engaged with security cluster agencies in South Africa as well as Icasa being on the ground, engaging with different communities seeking to identify any illegal activities. 'Part of our collaboration is to bring in other institutions because this requires collaboration. If security is at risk, as an authority, being part of the international telecommunications union, all member states have made a commitment that, as and when you provide services in any country you must observe the local rules. In this instance, as an authority, we just want to instill discipline that as much as we encourage to come to South Africa, if you know that you have equipment that requires spectrum, come to the authority, and that;s what I would like to encourage. Ramusi said SpaceX has confirmed that Starlink services in South Africa have been provided through ICASAsePush. 'They have indicated a company called ICASAsePush. I have got the evidence. They (SpaceX) have written to them instructing them to cease whatever operations that they have. 'My worry is, obviously as an authority is, what kind of a workaround is making it possible for somebody, even when we have instructed SpaceX to cease their operations. With internet, you need to inform those that are providing the service your downlink and your uplink signals should be shut down. That is the instruction we have done as an authority, so I would be more worried if anyone comes today and says that they do have evidence that somewhere in this country, somebody has been able to connect. On its website, IOL found that ICASAsePush prides itself as a trusted facilitator helping South Africans access 'Sparkling' — 'quickly, simply, and without the usual hassle'. ICASAsePush's website also states: 'Diligent copyright lawyers have advised that we can't call a spade a spade - so we now proudly refer to it as Sparkling. Sparkling is a satellite-based internet service. It delivers fast, uncapped internet to homes and businesses - especially in rural or remote areas where traditional options fall short'. 'We source, import, test, and deliver Sparkling hardware directly to your door, handling everything from customs to courier. Whether you choose to buy outright or rent-to-own, we also facilitate your Sparkling account setup if needed — all while keeping you in full control.'

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