Category: South Africa Government

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B-BBEE Commission, BMF establish framework for cooperation and information sharing

Source: Government of South Africa

B-BBEE Commission, BMF establish framework for cooperation and information sharing

The B-BBEE Commission and the Black Management Forum (BMF) will today concretise their partnership through a Memorandum of Understanding (MoU).

The MoU is a culmination of years of close cooperation between the B-BBEE Commission and the BMF. 

The MoU signing ceremony will coincide with a dialogue entitled, “Safeguarding B-BBEE amidst challenges in implementation” and will feature an expert panel who will explore the status of Broad-Based Black Economic Empowerment (B-BBEE) and the challenges that need to be resolved in order for it to achieve its objectives as per the B-BBEE Act. 

President of the BMF, Mpho Motsei, said Black Economic Empowerment was conceived from grassroots movements of black business and professional associations, which included the BMF. 

“It is therefore appropriate for BMF to play a part in the enhancement and safeguarding of the legislation that we helped to conceive, more than 30 years ago,” Motsei said. 

“We are therefore delighted to work with the B-BBEE Commission, as a regulator that provides oversight on the implementation of the legislation that was designed to elevate black people from social and economic subjugation.

“This event occurs at a time when B-BBEE and other transformation policies have been under attack both in the media and the public space. Views on B-BBEE remain divided and there continues to be a lack of understanding with regard to the crucial role B-BBEE plays in bringing about a society that is equitable and inclusive, as mandated by the Constitution of the Republic of South Africa,” he said. 

The dialogue seeks to reframe the discussion on B-BBEE and transformation, by paying particular focus on building an inclusive economy through B-BBEE policy and legislation. 

In doing so, the commission and BMF hope to re-ignite public discourse around the crucial issues of nation building, economic inclusion and compliance with the legislation, thereby safeguarding the objectives of B-BBEE policy. 

The MoU will seek to establish a framework of cooperation and sharing of information and ideas, within the parameters of the B-BBEE legislation, specifically in the following areas: 

• Strategies meant to promote economic transformation in the public interest; 

• Sectoral dynamics which may hinder or promote the prospects of economic transformation;

• Advocacy and awareness programmes on transformation and B-BBEE;

• Developments related to the racial composition of ownership and management structures, as well as skill occupations in the private and public sectors of the economy; and 

• and jointly monitor the effectiveness and gaps in the B-BBEE legislation, and any other policies related to economic transformation.

The B-BBEE Commission and the BMF believe that the MoU will serve as a solid foundation from which to advance the transformation agenda. 

Tshediso Matona, Commissioner of the B-BBEE Commission said the B-BBEE Commission considered the relationship with BMF a necessary step in strengthening ties with transformation advocates and practitioners in business, who are committed to realising the Constitutional provision of redress.

“As the commission, we hold a firm view that the implementation of B-BBEE is a collective responsibility of all stakeholders in the economy and our collaboration with the BMF seeks to promote this view.

“We look forward to a productive partnership with BMF and we are excited about what it will achieve,” Matona said. – SAnews.gov.za

Edwin

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Nzimande places science and innovation at core of long-term sustainability

Source: Government of South Africa

Nzimande places science and innovation at core of long-term sustainability

The Minister of Science, Technology, and Innovation, Professor Blade Nzimande, says South Africa must prioritise science, technology and innovation (STI) to achieve long-term sustainability.

“We deliver this Budget Vote against the background of a complex set of national and global challenges, some of which include economic stagnation, rising social inequality, a breakdown of social cohesion, the negative impact of climate change, technological disruption and new tensions arising from changes in the international economic and political system,” said the Minister while tabling the department’s Budget Vote on Wednesday in Parliament.

He committed to taking STI to the villages, townships, and all the corners of South Africa. 

“We hold the view that our country must place science, technology, and innovation at the centre of government, education, industry, and society if we are to secure our sovereignty and future sustainability.” 

Nzimande highlighted his department’s dedication to speeding up the transformation and growth of human resources and the research workforce in STI.

The Minister stated that this commitment includes advancing the Presidential PhD Programme, which was launched in 2023.

“We will scale up the implementation of the Innovation Fund programme. During this financial year, our target is to support between 10 and 15 venture capital funds through strategic partnerships with, among others, our entity, the Technology Innovation Agency (TIA).”

He stressed that the development of critical scientific skills remains central to the department’s mandate.

According to the department, 288 Research Chairs to 22 universities and national research facilities in various research disciplines have been awarded.

“I am, however, deeply concerned that black researchers and historically disadvantaged institutions (HDIs) have not benefited from this initiative in the manner that we had anticipated,” the Minister said.

To tackle this issue, his department is collaborating with the National Research Foundation (NRF) to establish Research Chairs aimed at addressing these and other deficits in transformation.

“Further to this, our National System of Innovation (NSI) is still characterised by several other transformation deficits, including the low participation of women at the highest levels.”

The department is also strengthening the coordination and direction of the NSI through the Inter-Ministerial Committee on STI, Presidential Plenary for STI, and policy coordination instruments.

In March this year, South Africa hosted its first NSI Transformation Summit. 

The Minister announced that under the leadership of the department’s Director-General, the resolutions of this summit are being incorporated into their strategic plan. 

In addition, he has vowed continued support for Palestinian institutions and researchers, adding that this project is making steady progress.

As part of South Africa’s G20 Presidency, the department is committed to advancing STI priorities for both the nation and the African continent.

The department is also working tirelessly to increase the Gross Expenditure on Research and Development to 1.5%. 

This includes establishing a strategic agreement among organised business, government, and labour to determine future funding.

In addition, the department is focused on maintaining and upgrading crucial science infrastructure and projects, including the Square Kilometre Array (SKA), Nuclear Medicine Research Infrastructure (NuMeRi), and the development of reliable pandemic preparedness capacity.

Another priority is to build strategic innovation partnerships, which involves aligning the key focus areas of the STI Decadal Plan with the relevant line function departments and mobilising additional funding and resources. 
He said significant programmes in areas such as artificial intelligence, energy security, space exploration, vaccine manufacturing, and indigenous knowledge systems (IKS) will be scaled up.

Nzimande stressed that efforts are underway to raise public awareness about the important contributions of the NSI to human development, supported by a vigorous public engagement and communication campaign. – SAnews.gov.za

Gabisile

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SAPS warns young women of drug trafficking syndicates

Source: Government of South Africa

Thursday, July 10, 2025

The South African Police Service (SAPS) has warned young women not to fall prey to drug trafficking syndicates, as this can have dire consequences. 

This follows the sentencing of a 30-year-old female Namibian drug mule by the Kempton Park Magistrate’s Court. She was sentenced to eight years direct imprisonment for drug dealing, of which three years were wholly suspended.

Pauline Mbangula was arrested on 22 September 2024 shortly after landing at OR Tambo International Airport from São Paulo, Brazil.

At the time, she was found to have swallowed at least 68 bullets – packets filled with cocaine. A medical examination confirmed that there were drugs in her stomach, which she was later made to release.

“At the time of her arrest, she claimed that she was taken to Brazil by a man she recently met under false pretenses that they were going on holiday,” the South African Police Service said in a statement. 

Upon arrival in Brazil, she was forced to swallow the drugs and traffic them to South Africa. 

More than 22 drug mules have been arrested by police at OR Tambo International Airport in the past year. 

“The regular arrests of drug mules at the OR Tambo International Airport should send a stern warning that police in South Africa, and in particular at this port of entry, are always on high alert to clamp down on criminality,” the police said. – SAnews.gov.za

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City of Polokwane granted level two accreditation for housing

Source: Government of South Africa

Thursday, July 10, 2025

Human Settlements Minister Thembisile Simelane will on Thursday attend the official launch of the City of Polokwane’s level two accreditation for housing.

On 1 February 2024, the provincial Department of Cooperative Governance, Human Settlements and Traditional Affairs accorded the Polokwane Local Municipality level two housing accreditation. 

This means the city was given the authority to plan, budget, appoint an implementing agent, and manage housing projects.

The launch coincides with the start of construction for 404 low-cost houses.

The houses will cover 21 wards within the municipality, while 254 of the units will be built in rural areas and 150 will be built in urban areas.

“As part of the City of Polokwane’s obligation to increase the number of households with access to basic electricity, Polokwane Extension 133 will be connected to the electricity grid in phases; 251 houses are already connected to the electricity and 235 will be linked on the day of the launch,” said the department.

Simelane will be accompanied by the Mayor of Polokwane, John Mpe. – SAnews.gov.za

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Treasury allocates emergency funding of R750m towards HIV and TB after US funding cuts

Source: Government of South Africa

National Treasury has allocated R753 million to the Department of Health — under Section 16 of the Public Finance Management Act (PFMA) — to help bridge the shortfall caused by the United States’ decision to cut HIV and tuberculosis (TB) grants.

Health Minister Dr Aaron Motsoaledi made the announcement on Wednesday during the Budget Vote presentation in Parliament.

According to the Minister, R590 million of the total of R753 million will be allocated for service delivery in the provinces, distributed through the comprehensive HIV/Aids component of the District Health Programme Grant.

In addition, R32.1 million will be given to the National Department of Health to support the Central Chronic Medicine Dispensing and Distribution (CCMDD) Programme, as well as pharmaceutical supply chain management.

Furthermore, R132 million will be transferred to the South African Medical Research Council (SAMRC) to enhance health research across the country.

“This is how it is going to work: the Bill and Melinda Gates Foundation and the Wellcome Trust have pledged R100 million each. 

“They put a condition that each R100 million they contribute be matched by R200 million from our own Treasury, and that money be given to researchers. Treasury duly agreed.” 

This means South Africa will receive a total of R600 million allocated to researchers, even though the President’s Emergency Plan for AIDS Relief (PEPFAR) has withdrawn support. 

The United States government’s withdrawal of funding to key health initiatives, including PEPFAR, which was established by former President George W Bush in 2003, led to a loss of R7.9 billion spent on HIV/Aids programmes annually.

“Hence, the Bill and Melinda Gates Foundation and the Wellcome Trust will together immediately release R200 million. On the other hand, the matching R400 million by Treasury will be released over three years, hence the first tranche of R132 million I have mentioned.“

According to the Minister, these funds are meant to address the most urgent needs, with the possibility of additional allocations being considered later.

This week, he stated that the South African Medical Research Council , along with researchers from various institutions and universities, are discussing how they will distribute funds, which will be transferred to the SAMRC.

“We are determined more than ever before to end the scourge of HIV/Aids as a public health threat. Today is a historic day in this regard. As I am speaking to you now, the Global Fund in Geneva is announcing… that it has signed an access agreement with Gilead Sciences to procure lenacapavir,” the Minister said. 

The Minister has referred to lenacapavir, a long-acting injection for HIV prevention, as one of the most significant advancements in HIV prevention in decades. 

This is the first long-acting injectable treatment for pre-exposure prophylaxis (PrEP), administered twice a year. 

According to the Minister, lenacapavir significantly expands the options available for HIV prevention, offering the most choices ever.

“For South Africa, we regard this as a game changer in our fight against HIV/Aids.

“As such, as South Africa, we have agreed to be one of the first countries in the starting blocks for lenacapavir.” 

According to the Minister, the first shipment is expected to arrive in at least one African country by the end of 2025.

“We intend to be such a country, and we have already started putting the plan together. We plan to offer lenacapavir to young women and everyone at risk to stay HIV-free.

“We all know that for far too long, women and girls in our country have carried the greatest burden of this epidemic.” – SAnews.gov.za

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Teen pregnancy a threat to social and economic development

Source: Government of South Africa

Deputy Minister in the Presidency responsible for Women, Youth, and Persons with Disabilities Steve Letsike says the scourge of teenage pregnancy is not only a health concern but a threat to the nation’s social and moral fibre and future prosperity.

“Teenage pregnancy is robbing too many of our girls of their childhood and their future, and it will take all of us working together to turn the tide,” Letsike said.

Addressing a stakeholder engagement in Pretoria earlier today aimed at addressing the persistent ongoing scourge of teenage pregnancy in South Africa, Letsike said in 2024 alone, over 90 000 pregnancies were recorded among girls aged 10 to 19 and 2 328 of those pregnancies were in girls between 10 and 14 years old.   

“To call this alarming would be an understatement. These are children, some barely in their teens, some not even teenagers, now forced into motherhood,” Letsike said.

Letsike said a child as young as 10 becoming pregnant was not just a statistic but evidence of a profound societal failure and a horrific crime because a girl that young cannot legally give consent.

“This crisis threatens the very foundation of our social and economic development as teenage pregnancy poses a serious threat to the health, rights, education and socio-economic well-being of girls.

“When a young girl becomes a mother, her chances of finishing school plummet, her job prospects diminish and she often becomes trapped in a cycle of poverty.

“In other words, today’s teen pregnancy is tomorrow’s poverty and inequality. We must recognise this as not only a public health issue but a social justice emergency,” the Deputy Minister said.

Letsike said the high incidence of adolescent pregnancy in the country was interlinked with other scourges of HIV and other STI infection rates, child sexual abuse, statutory rape, gender-based violence and femicide (GBVF), poverty, educational exclusion, substance abuse and even toxic elements of popular culture.  

“To craft effective solutions, we must honestly confront how and why so many young girls are getting pregnant,” Letsike said.

Deputy Minister in the Presidency Nonceba Mhlauli said teenage pregnancy in South Africa has reached deeply concerning levels with more than 90 000 births recorded among girls aged 10 to 19.

“These are not just numbers, they are a stark reflection of our socio-economic challenges and a call to action. Teenage pregnancy is more than a health crisis,” she said.

Mhlauli said the response to teenage pregnancy must be urgent, coordinated and compassionate.

“Government cannot do this work alone. We need the support of all pillars of society, parents, faith leaders, educators, civil society, the media and the private sector.

“As the Presidency, we are committed to supporting this cause through improved coordination, targeted interventions and policy coherence because the future of our country depends on the safety, empowerment and well-being of our children,” she said.

Chairperson of the National Youth Development Agency (NYDA) Board Asanda Luwaca said “young girls are our sisters, our classmates, our cousins, our peers and children”.

“It is an indictment of our inability, as a collective, to fully protect the bodies, rights and dreams of girls, especially those from poor, rural and marginalised communities, especially differently abled.

“We know that teenage pregnancy is not a standalone issue. It is deeply interwoven with child sexual abuse, gender-based violence and femicide (GBVF), educational exclusion, toxic gender norms, substance abuse, and the predatory dynamics of poverty,” she said.

Luwaca said teenage pregnancy was not just about health, but injustice.

“It is about gender inequality, poverty, exploitation, broken family systems, absent accountability and a dangerous silence that protects perpetrators more than it protects girls.

“And until we confront these intersecting issues head-on with honesty, bravery and unflinching determination, we will continue to fail the young women of this nation. South Africa has the policies. We have the frameworks. What we need now is unapologetic implementation across every level of society,” Luwaca said.

The engagement with stakeholders is part of an initiative to establish a Roadmap to South Africa’s Teenage Pregnancy Prevention and Management Response. – SAnews.gov.za

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Police Commissioner reiterates commitment to rule of law

Source: Government of South Africa

National Commissioner of the South African Police Service (SAPS), General Fannie Masemola, has welcomed President Cyril Ramaphosa’s commitment to addressing the serious allegations of corruption within SAPS.

“Members of the media, we are ready to brief the President and wish to undoubtably reaffirm the operational independence of the South African Police Service, and the resolve to uphold the Constitution of the Republic and enforce the law, according to Section 205(3) of the South African Constitution, which outlines the core functions of the South African Police Service (SAPS),” said Masemola on Wednesday.

READ | Ramaphosa commits to address KZN police corruption allegations

Speaking at a firearm destruction ceremony in Gauteng’s Vanderbajlpark, the Commissioner said some of these functions include preventing, combating, and investigating crime; maintaining public order; protecting and securing inhabitants and their property, and upholding and enforcing the law.

The Commissioner said additionally, Section 207(2) of the Constitution states that the National Commissioner of the police service must control and manage the police service in accordance with the national policing policy and the directions of the Cabinet member responsible for policing. 

“Ladies and gentlemen, I stand before you today not to dwell on divisions, but to forge unity. I pledge to you, the people of South Africa, and to every dedicated member of this service, that we will strive for unity in the police service. Together, we will root out any force, internal or external, that seeks to fracture us or compromise our sacred duty.

“The SAPS is not factional property. It is the guardian of every South African’s safety and security. Our focus, our unity, and our unwavering commitment must be singular: it is to serve and protect the citizens of this country. That is our covenant, and that is the resolve you see burning brightly here today as we conclude the firearm destruction,” said the Commissioner.

Masemola said the destruction of the firearms was not merely a “symbolic act”. 

“It is a strategic blow against the violence that threatens our nation’s soul.”

In February, 16 049 firearms were destroyed.

“… Including today’s operation, the total number of firearms and parts obliterated by SAPS over the past five years stands at 291 993. Each one represents a potential life saved, a family spared from grief, and a community fortified against chaos.”

With the firearms that we are destroying today, Gauteng brought in the majority of firearms with 5 099, followed by the Western Cape with 2 333, KwaZulu-Natal with 1 574, while 1 432 firearms were from the Eastern Cape and 460 were from the Free State.

Limpopo brought in 343 and Mpumalanga contributed 519. The North West contributed 417 and Northern Cape 322.

From April 2019 to date, a total of 292 092 firearms have been destroyed through firearm destruction operations.

“Firearms remain the most preferred weapon used in serious and violent crime ( murder and attempted murder) and that’s why it’s important to ensure we remove them permanently of our streets,” said the Commissioner. – SAnews.gov.za 

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Home Affairs to submit ‘Digital ID’ policy to Cabinet for approval

Source: Government of South Africa

Home Affairs to submit ‘Digital ID’ policy to Cabinet for approval

Minister of Home Affairs Leon Schreiber says government is laying the foundation for an ambitious plan to create South Africa’s first ever Digital ID system.

“Home Affairs will shortly submit a Digital ID policy to Cabinet for approval to conduct public hearings. Beyond the material benefits, such as clamping down on fraud and enhancing inclusion, the Digital ID system will also restore the integrity and pride of our cherished South African identity,” said the Minister.

He was delivering the department’s Budget Vote in Parliament on Tuesday.

Schreiber said the department plans to deliver digital versions of enabling documents that can be accessed online and on smart devices.

“[The] Digital ID will also enable users to remotely authenticate themselves, laying the foundation for a digital revolution not only for government services, but also for critical private sector services like banking, finance and insurance.”

The Minister said government was committed to the digital transformation of the department – called Home Affairs @ home.

“We call this vision Home Affairs @ home… Our goal is nothing less than revolutionising the way citizens interact with their government by moving from manual to digital,” said the Minister.

He said building a new reform model – based on decentralisation, modernisation, digital transformation and remote access – will “restore the hope that South Africa as a whole can work”.

The constant investments being made in the reform of Home Affairs, the Border Management Authority and Government Printing Works, is starting to compound and grow.

“During the past year, we have delivered nearly 3.6 million Smart IDs – almost half a million more than the previous annual record. We cleared a visa backlog of over 306 000 applications dating back over a decade.

“We deported over 46 000 illegal immigrants, the highest number in five years and more than countries like France and Germany combined. We used drones and body cameras to increase the number of attempted illegal crossings that were detected and prevented by up to 215%.

“We empowered naturalised citizens and permanent residents to obtain Smart IDs for the first time, expanding inclusion and making our country less reliant on the green ID book that is 500% more vulnerable to fraud than the Smart ID.

“If this is just some of what Home Affairs could do in one year. Just imagine what we can do in five,” said Schreiber.

Now that the department is enabling all qualifying categories of persons to obtain Smart IDs, “the next step will be to dramatically scale up access to this critical and more-secure enabling document”.

In line with the Medium-Term Development Plan adopted by Cabinet, the department will do so by expanding the successful pilot project that currently delivers Smart ID and passport services in about 30 bank branches across the country.

“We will use digital transformation to integrate the Home Affairs IT platform onto banks’ networks, thereby enabling many more bank branches to deliver this service around the country.

“Our target for this financial year is to expand this service to at least 100 more branches.”

This same technology reform will enable South Africans to order Smart IDs and passports through their banking app, just like they already when buying electricity or data.

The department will further introduce the option of home delivery for Smart IDs and passports, using advanced facial recognition technology to secure the process.

“Through scaling up the existing collaboration with banks, we will rapidly accelerate access to Smart IDs with the goal of ending the production of new Green ID books by the end of this year.

“This will be a momentous step towards delivering dignity for all, while simultaneously clamping down on fraud,” said the Minister.

He announced that, by the end of this month, Home Affairs will launch new facilities abroad to assist South Africans living and working overseas. These new facilities will ensure a five-week turnaround time for IDs and passports.

“We are starting in Australia, New Zealand and the United Arab Emirates, followed by France, Germany and The Netherlands later this year, and North America in the new year.”

He said the ultimate aim is to deliver “Home Affairs @ home”, which will enable every South African, no matter where they are in the world, to obtain services from their government online. – SAnews.gov.za

Janine

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Government to ensure that the SANDF is well resourced 

Source: Government of South Africa

In spite of the ongoing financial constraints which affect the planning and operations of the South African National Defence Force (SANDF), government has assured the troops that they will have the resources needed to defend and protect the country.

“This includes ensuring soldiers are properly equipped with the uniforms, boots, protective gear, and habitable facilities catering for the needs of all including women soldiers and persons with disabilities,” the Minister of Defence and Military Veterans, Angie Motshekga, said on Wednesday in Parliament.

Selected “Model Units” will receive priority upgrades ensuring safety and security, well- maintained bases, sports and recreation facilities, and training areas.

Soldiers on deployment will also get priority support for all their needs during deployment.

“Efforts are underway to rejuvenate the SANDF’s human resource profile, modernise, maintenance, repair and overhaul of the prime mission equipment, with the South African Defence Industry (SADI) as the key national defence partner,” the Minister said during the debate of the budgets of the Departments of Defence and Military Veterans.

The Department of Defence Human Resources Plan for the 2025 Medium Term Expenditure Framework reflects a deliberate and phased approach to sustaining a capable, rejuvenated, and cost-efficient defence workforce within existing budgetary constraints.
The Department of Defence has received a total budget allocation of R57 183 billion for 2025/26.

Of this budget allocation, R36 703 billion has been set as the ceiling for the Compensation of Employees (COE), constituting approximately 64% of the defence allocation.

Furthermore, approximately R8 359 billion is earmarked, which includes, among others:
• R2 773 billion for accommodation charges, leases and municipal services;
• R2 556 billion for the Southern African Development Community (SADC) Mission in the Democratic Republic of Congo (SAMIDRC);
• R1 464 billion transfer payment to Armscor;
• R487 million for the Republic’s assessed contribution to SADC for the SAMIDRC deployment;
•  R480 million for the repair and maintenance of maritime defence systems;
•  R300 million for day-to-day maintenance and emergency repairs and
•  R200 million-rand for the procurement of vehicles and technology for border safeguarding.

The Defence Force has been allocated R12 billion to meet its constitutional mandate.

Repositioning the South African Defence Industry

The Department of Defence is working on repositioning the SADI to pursue the strategic goal of economic growth and job creation.

“In this regard the SADI must be positioned as a vital economic asset, ready for expansion to drive national development and support government priorities for a capable state and become a strong local defence industry that creates jobs, develops new technologies, and ensures that the SANDF is well-equipped.

“Cooperation between Denel, local companies, and international partners will be expanded to boost exports and attract investment. The centrality of Denel is critical in the maintenance and support of the SANDF,” the Minister said.

She called for the repositioning of Armscor as an entity for SANDF Equipment and Capability Modernisation, to be intensified to make sure that Maintenance, Repair, and Overhaul (MRO) for midlife upgrades and modernisation of PME (air, land, naval domains) guarantees the longevity and mission effectiveness for the SANDF.

Military veterans

The military veterans has been allocated R878 million for the 2025/26 financial year.

“In collaboration with sister departments, we have embarked on a project to repatriate the remains of our fallen heroes and heroines in Zambia and Zimbabwe during 2024. A total number of 35 mortal remains have been repatriated thus far and further work is underway,” the Minister said.

Over the past three audited financial years the Department of Military Veterans Education Support Benefit provided learners and students as follows:
• During the 2021/22 financial year, 3 711 learners and students at a cost of R88 million.
• In the 2022/23 financial year, a total number of 4 114 learners and students at a cost of R126 million.
• 3 690 learners and students cost the department R135 million during the 2023/24 financial year.

The unaudited information for the 2024/25 financial year, shows that 2 738 learners and students were provided with education support to continue with their studies.

To date at least 100 have graduated. – SAnews.gov.za

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Trade Minister welcomes developments in Vodacom-Maziv merger

Source: Government of South Africa

Trade, Industry and Competition Minister Parks Tau has welcomed the agreement reached between the merging parties and the Competition Commission in the Vodacom-Maziv merger deal.

“The substantial public interest commitments made by the merging parties will significantly improve access to affordable internet for underserved communities, thus enabling easier participation in economic activity, particularly for young people,” the Department of Trade, Industry and Competition (dtic) said on Wednesday.

In October last year, the Minister noted the order issued by the Competition Tribunal prohibiting the proposed merger between Vodacom (Pty) Ltd and Maziv (Business Venture Investments No. 2213 (Pty) Ltd).

The order followed the Competition Commission’s initial recommendation to prohibit the merger, citing significant concerns that it could substantially reduce competition in critical markets, particularly within the 5G Fixed Wireless Access (FWA) and fibre infrastructure sectors.

READ | Minister notes Competition Tribunal’s decision on Vodacom, Maziv merger

In a statement on Tuesday, the Competition Commission said it had reached an agreement with the parties on revised conditions that substantially remedy the competition concerns raised by the Commission in its recommendation to the Tribunal that the Vodacom/Maziv merger be prohibited.

This agreement follows constructive engagements between the Commission and the merger parties to remedy the deficiencies in the previous conditions identified by the Tribunal in its prohibition of the merger.

There were three primary competition concerns that were not adequately addressed by the proposed conditions at the time of concluding the Tribunal hearings.

The first of these was the horizontal reduction in competition between Fixed Wireless Access (FWA) and Fibre to the Home (FTTH).

According to the Commission, the revised conditions address these shortcomings by improving the capex commitment by Maziv and extending it to a five-year period post-merger to ensure that Maziv remains incentivised to service third party network operators.

The second issue was the horizontal overlap in FTTH infrastructure and potential price increases post-merger.

“The previous conditions were inadequate insofar as they included a ‘weak’ divestiture condition that did not adequately incentivise the merging parties to divest the overlapping infrastructure. The revised conditions put in place a standard divestiture arrangement whereby the failure to sell the assets within a particular period result in a trustee divestiture process to ensure the assets are divested and pre-merger competition is restored,” said the Commission.

It further added that the condition follows the standard formulation used in other merger transactions and requires that a transparent and competitive process be followed to identify a proposed purchaser.
The third issue was over vertical foreclosure concerns with the commission stating that although there were fairly comprehensive conditions in place to address foreclosure, there were notable challenges with monitoring and enforcing the conditions with the resulting concern that action would not be sufficiently timely to prevent foreclosure from occurring and harming competition.

“The revised conditions introduce some structural changes to Maziv’s governance structure that limit the merged entity’s incentives to foreclose competitors. The conditions now also incorporate an enhanced fast-track interim relief process that will address potential foreclosure concerns while the lengthier formal process to investigate any alleged foreclosure is underway. This ensures that any attempt to get a first-mover advantage that will have an enduring effect in the market can be prevented through fast-track interim relief,” it said.

Public interest

The Commission added that there are significant improvements to the public interest commitments which increase the substantiality of these commitments.

These include additional capex spend to roll-out new (Fibre-to-theBusiness (FTTB), FTTH and Fibre-to-the-Site (FTTS) infrastructure, free access to 1Gigabit per second fibre lines for public libraries and clinics passed by FTTH infrastructure, an increase in the number of police stations that Vodacom will provide with FWA products, an additional commitment to enterprise development and an increase in the employee share ownership plan previously agreed.

“Access to reliable, high-speed internet is the cornerstone of a dynamic economy and a democratic society. The Commission is confident that the revised conditions agreed with the merger parties will ensure that South Africa will benefit from the continued competitive prices and product choices in this critical sector,” Commissioner Doris Tshepe said.

This as Minister Tau further welcomed the investment committed by parties.

“This commitment will ensure that South Africa participates meaningfully in the global economy through new sectors like Generative Artificial Intelligence, the Internet of Things and other ICT related sectors which will propel the world into the future.

“The matter will proceed, unopposed, at the Competition Appeal Court where the agreement will be placed before the Court for its final consideration. The Minister thanks all parties involved for their constructive engagement throughout this process,” said the dtic.

The Commission as one of the the three independent statutory bodies established in terms of the Competition Act to regulate competition between firms in the market, it is the investigating and prosecuting agency in the competition regime while the Tribunal is the court. – SAnews.gov.za