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Communications and Digital Technologies Minister Solly Malatsi faced fierce push back from lawmakers on Tuesday to his proposed policy direction opening the way for multinational broadband service providers to secure the empowerment credit required for licensing by way of equity-equivalent investment programmes (EEIPs) rather than through the sale of 30% equity to black investors.

On May 23, Malatsi published for a 30-day comment period a proposed policy direction seeking to "harmonise" the requirements and provisions of the Electronic Communication Act (ECA), which stipulates that licensed telecoms firms have 30% black ownership, with other legislation that allows multinationals to use EEIPs as an alternative to the sale of shares.

The Gazette notice makes specific reference to ownership of members of the information and communication technology (ICT) sector, where EEIPs have been used by companies such as Microsoft, IBM and Amazon, in line with the Amended Broad-Based Black Economic Empowerment (BBBEE) ICT Sector Code.

Interest in the changes has been heightened by the fact that Elon Musk's Starlink, which is operated by SpaceX, has strongly opposed the 30% equity requirement, as well as suggestions that South Africa may have offered to compromise on the requirement as it sought to "reset" its fraying relations with the US and President Donald Trump, who has close ties with Musk.

While the issue was not raised during the televised Oval Office meeting between President Cyril Ramaphosa and Trump, who ambushed the South African delegation with a multimedia presentation purportedly supportive of his discredited claims of a "white genocide" in South Africa, Musk was in the room and reportedly met with the South African delegation ahead of the meeting.

Malatsi insisted that there was no direct correlation between the release of the draft directive for comment and the meeting at the White House, stressing that the process to consider the integration of EEIP in the sector had been initiated in October.

He also argued that the proposed change was not designed to benefit a single individual or company, such as Starlink, but to ensure alignment between various pieces of legislation, including the ECA and BBBEE Act.

Malatsi also dismissed suggestions that he was seeking to undermine black empowerment, saying: "I'm pretty clear that transformation is sacrosanct in this country; that it's non-negotiable."

The use of EEIP, he added, did not represent a deviation from broad-based black empowerment, but offered multinationals an alternative way to meet their empowerment commitments.

The decision to proceed on the basis of a direction rather than an amendment to the ECA itself was defended as the most "effective" and "timeous" way to seek alignment between the legislation.

The Minister did not rule out an amendment of the ECA, however, indicating that he would be guided by the comments received on the draft policy direction.

He also confirmed that the Independent Communications Authority of South Africa (Icasa) had expressed a preference for an amendment to the Act over a policy direction.

Lawmakers who are not members of the Democratic Alliance, to which Malatsi belongs, were highly critical of the directive, the timing of its publication and the way it was released.

Several questioned whether the Minister was seeking to subvert both the ECA and the Icasa, while others suggested that the change would not only undermine transformation but also established and emerging participants in the sector.

Questions were also asked about the correlation between the draft policy directive on EEIPs and another draft policy direction published in a May 21 Gazette relating to the possible reopening of applications for Individual Electronic Communications Services Licences.

The potential reopening of licensing by Icasa to new participants could be correlated indirectly to the EEIP direction, the Department of Communications and Digital Technologies acknow...

Infrastructure South Africa (ISA) is currently preparing and packaging 34 projects with an estimated capital value of R259-billion, says ISA acting head Mameetse Masemola, with these projects "hopefully coming to market" over the next 12 to 18 months.

Speaking at a media briefing this weekend to kick off the yearly Sustainable Infrastructure Development Symposium South Africa (SIDSSA) held in Cape Town, she noted that these projects cut across all spheres of government.

She said the feasibility studies and related business case studies had been completed on ten of the 34 projects currently being prepared, with some of these also unlocking additional fiscal support from National Treasury.

These ten projects are valued at R93-billion and include the expansion of the Tygerberg Hospital in Cape Town, the rollout of the Dr Kenneth Kaunda District Water and Sanitation Programme in the JB Marks local municipality, and the implementation of Project uKuvusela with Transnet, valued at R9.4-billion.

Project uKuvusela aimed to create a high-capacity, cost-effective rail link between the Gqeberha port and Gauteng for the transport of cars and related automotive goods.

The Eastern Cape and Gauteng are two of the country's main vehicle assembly nodes, with an improved railway link line to especially benefit high-volume manufacturers such as Ford, in Pretoria, and Volkswagen, in Kariega.

On the whole, ISA's main goal was to select strategic infrastructure projects and prepare and package these projects so that they were "viable and bankable" undertakings, explained Masemola.

The State agency currently oversaw a total 305 projects on an ongoing basis, with most of these in the energy (171 projects), water and sanitation (54) and transport (32) sectors.

All ISA projects must be valued at R1-billion and above and must be able to leverage private-sector involvement, blended finance, or be commercially viable on their own.

"Our work includes ensuring that projects are assisted with the multiple authorisations, permits and licences, et cetera, that are required across government," said Masemola.

"We know, for example, that one renewable-energy project requires almost 85 types of permits, licences and authorisations, whether it is from the Civil Aviation Authority, the South African National Defence Force and the Department of Public Works and Infrastructure."

Masemola added that projects to the value of R13.52-billion were completed last year, while projects valued at R51.9-billion were currently under construction.

She also provided an update on the 12 priority infrastructure projects announced during SIDSSA 2024, valued at an estimated R180-billion.

She said seven of the 12 projects had been contracted already, with private-sector participation, and that they were in various stages of completion.

The 12 projects include the Rooiwal Wastewater Treatment Works (Phase 2), in Pretoria; the Amatola Water Bulk Supply Augmentation Project, the Eskom Tubatse Storage Scheme, the Port of Ngqura Liquified Natural Gas project, and the development of the Namakwa and Nkomazi special economic zones.

"The goal is clear - we must accelerate delivery, stimulate growth and turn South Africa into a construction site," said Minister of Public Works and Infrastructure Dean Macpherson during the media briefing.

"One of the biggest reforms we have made is to prioritise project preparation funding.

"Through ISA, we are ensuring public-sector projects no longer fail at the first hurdle due to weak planning, poor structuring or lack of compliance.

"Over R600-million is now being committed to prepare strategic infrastructure projects.

"That means real funding for feasibility studies, regulatory compliance, bankable designs and community consultations - they are now taking place at pace and with a hands-on approach.

"Projects are now moving from planning to procurement, and from procurement to breaking ground," said Macpherson.

Mineral and Petroleum Resources Minister Gwede Mantashe has indicated that he wants the newly launched South African National Petroleum Company (SANPC) to play a central role in reviving domestic refining activity, which has shrunk dramatically in recent years as refineries have ceased operating.

The new State-owned enterprise has been formed through the merger of three Central Energy Fund (CEF) subsidiaries, namely iGas, the Strategic Fuel Fund (SFF), and PetroSA.

Although the so-called legacy and mostly financially distressed components of PetroSA will be integrated into SANPC in phases, at what speed will depend on turnaround progress.

A 'legacy' PetroSA board and executive team remains in place to oversee the turnaround, including a mooted resumption of refining activity at the gas-to-liquids (GTL) refinery at Mossel Bay, in the Western Cape.

Operations at the GTL plant were suspended after it was unable to secure new sources of natural gas, following the well-publicised failure of a multibillion-rand exploration and development initiative known as Project Ikhwezi, which left the entity close to financial ruin.

As of May 1, a total of 388 employees have been transferred directly to SANPC from the three entities, along with assets such as the Rompco pipeline from Mozambique to South Africa, previously held by iGas, the Saldanha trading and storage facilities and associated infrastructure, previously owned by the SFF, and PetroSA's upstream asset in Ghana.

Speaking at the official launch ceremony in Sandton, Mantashe again lamented the decline of domestic refining, which is currently undertaken only at the Astron refinery, in the Western Cape, and the Natref refinery, in the Free State, while Sasol continues to produce fuels using its coal-to-liquids process at Secunda, in Mpumalanga.

"We cannot be complacent with a situation where local refining capacity accounted for about 80% of finished product consumed in 2010, compared to less than 35% in 2022," Mantashe said.

"It is against this background that we fully support the SANPC in its concerted efforts to reinstate the PetroSA's GTL refinery in Mossel Bay and to rebuild the erstwhile South African Petroleum Refinery (Sapref) in Durban," he added.

Sapref, which ceased operations in 2022, had a nameplate capacity of 180 000 bbl/d, and was considered too small to remain competitive and also required significant investment to meet cleaner-fuel specifications.

The refinery was previously owned jointly by Shell and BP, but was sold to the CEF in May 2024 for about R1.

"The revitalisation of these assets underscore South Africa's investment and growth strategy in the energy value chain geared to lay a solid foundation to address the challenges that lie ahead in the security of South Africa's energy future," the Minister said.

SANPC CEO Godfrey Moagi endorsed the Minister's view that the new entity should play a role in refining, but also indicated that there was an intention to reinstate some of the tanking assets at Sapref more immediately to begin playing a role in the importation of petroleum products.

Chairperson Sipho Mkhize added that it planned to reach out to the authorities to seek permission to convert the single buoy mooring infrastructure, in Durban, which was established historically to facilitate the importation of crude oil, into a facility that could handle multiple products.

The new entity would also seek to play a larger role in the Western Cape liquid petroleum gas market and was assessing, together with PetroSA, two possible feedstock supply options to facilitate the resumption of refining activities in Mossel Bay.

It would also seek to play a role in the development of liquefied natural gas import infrastructure, including at Coega in the Eastern Cape.

No details were provided about the financial position of SANPC, nor was any indication given as to how it planned to fund its growth plans.

However, emphasis was given to partnerships with the private sector, ...

State-owned Transnet has welcomed Transport Minister Barbara Creecy's announcement of a R51-billion government guarantee facility to support its sustainability and long-term growth.

Creecy this week approved this guarantee facility for Transnet, with the concurrence of Finance Minister Enoch Godongwana.

The guarantee facility is effective immediately in support of Transnet's capital investment programme and to enable it to meet its debt obligations.

Transnet says the facility will enable it to refinance maturing debt and ensure the organisation's continued access to adequate resources and facilities to be able to continue its operations as well as fund the capital investment programme for the foreseeable future.

It will also enable Transnet to focus on operational improvements and strategic reforms.

In line with existing Guarantee Framework Conditions, Transnet says it has made significant strides in implementing rail and port reforms.

In pursuit of enhanced partnerships and collaboration, several key private sector participation (PSP) transactions are being implemented, the utility says, describing PSPs as a key element of the organisation's strategy to modernise its operations and infrastructure and grow the logistics sector for the benefit of the economy.

"With Government's commitment to support its recovery and strong collaboration with customers and industry partners, Transnet is on course to recover and fulfil its strategic role in the South African economy," it says.

In a media release, the Department of Transport (DoT) notes that Transnet plays a central role in the South African economy and the government's goal of inclusive growth.

It explains that the entity is currently engaged in a wide-ranging reform programme with the aim of improving operational performance in the short and medium term.

This programme aims to overcome operational, financial, and governance challenges, hampering its ability to fulfil its strategic role.

At the end of March, the DoT notes that Transnet had succeeded in moving the equivalent of 161-million tons of freight on its rail network.

Additionally, in December 2024, the entity released the 2024/25 Network Statement, which facilitates private-sector operators on freight rail. Announcements of the first successful bidders are expected by the end of July.

In March, the DoT issued a request for information (RFI) for private investors on five key freight corridors and associated ports with the intention of promoting private investment in the Transnet infrastructure while the network remains State-owned.

The RFI closes on May 31 and Transnet is expected to issue requests for proposals by September this year.

The department notes that interim solutions to meet capital investment needs by the entity include project-based applications to the Budget Facility for Infrastructure.

Transnet is also working with National Treasury and the Presidency to develop a joint collaboration and funding policy to support immediate capital improvements by the private sector in priority freight corridors.

"In recognition of the progress made to date, the National Treasury and the DoT have been working with Transnet to find a solution to the company's immediate needs and the decision to grant the guarantee facility is a result of these discussions," the DoT says.

The financial support package provided for the entity is a R41-billion guarantee facility for its funding requirements over the 2025/26 and the 2026/27 financial years.

This package also includes a R10-billion guarantee that Transnet will have to use for its liquidity management as it relates to the servicing of its maturing debt and capital investments.

On December 1, 2023, a guaranteed support facility of R47-billion was announced. This enabled Transnet to execute its Recovery Plan over the 2023/24 - 2024/25 financial years, which has seen increased capital investments and improved liquidity.

A Guarantee Framework Agreement between the DoT and the Nation...

Engineering News editor Terence Creamer discusses Finance Minister Enoch Godongwana's tabling of Budget 3.0 after two previous failed attempts; the withdrawal of the previously proposed value-added tax (VAT) hikes and the tax implications as a result of that withdrawal; increased

Finance Minister Enoch Godongwana indicated that major reforms are being considered to both State spending and the actual Budget process when tabling a third version of the contentious 2025 Budget in Parliament on Wednesday.

The first two versions failed to secure political support inside and outside of the Government of National Unity (GNU), creating an unprecedented Budget crisis for the country and raising the spectre of a possible collapse of the multiparty GNU itself, formed only months earlier.

As anticipated, the latest version excludes earlier proposals to increase the value-added tax (VAT) rate, which lay at the heart of both the abandonment of the initial tabling on February 19, as well as the legal and political fights that ensued after the March 12 tabling.

This, despite a big reduction in the VAT proposal in the March version to a one percentage point hike over two years, rather than the two percentage point immediate hike contained in the February Budget Review.

In a briefing, Godongwana said there had been a failure to anticipate the changes that political parties expected with regards to the Budget following the reality that no single party won a majority in the 2024 elections.

He added that a new process of consultation was required, and that parties had also learned a significant amount about what was involved in legally amending a Budget over the past few months.

The process he said was necessarily "cumbersome", as any change needed to meet the same thresholds of fiscal prudency and rationality to which the National Treasury had to comply when drafting a Budget.

"The debate and negotiations have deepened our understanding of policy trade-offs and institutional processes, while giving citizens unprecedented visibility into our democracy's evolution.

"Negotiation, debate and comprise, as we have seen unfold over the last weeks, has been a necessary, if sometimes painful investment in the productivity of future government reform in the new political environment," he added in his speech.

The documentation released with 'Budget 3.0' confirmed that efforts would be made to enhance the Budget process, with director-general Duncan Pieterse acknowledging that it had not been a "normal" Budget.

"For its part, the National Treasury is committed to learning from and building on this experience to ensure that our budget process remains highly transparent, accountable and faithful to our constitutional mandate," Pieterse stated.

The National Treasury indicated that government was also developing a framework for public participation as part of its review of the Budget process.

"The review will help clarify the role of structures that provide inputs to the budget and enhance public consultation," the National Treasury said, indicating that changes to the process would be implemented over time.

"These reforms will be designed to strengthen government and institutional commitment to fiscal sustainability, refine budget prioritisation and the functioning of budget structures, and improve data systems and capital budgeting, monitoring and reporting."

Priority would also be given to improving the efficiency and effectiveness of public spending, highlighting that previous reviews by the National Treasury and provincial treasuries of R312-billion-worth of spending programmes since 2013 had identified savings of R37.5-billion.

These savings could be achieved by changing operating models, improving oversight, or closing programmes that no longer achieved their intended objectives, with specific reference made to greater efficiency in procurement, information and communication technology and infrastructure management.

Reforms flowing from the recent review of public employment programmes and active labour market programmes would also be implemented, after that review pointed to a "mixed" performance of the individual programmes.

A process was also under way to identify ghost workers and other payroll irregularities using a new dat...

Energy and chemicals group Sasol has announced a dramatic 70% cut to the capital expenditure (capex) budget associated with its greenhouse-gas emission reduction roadmap to 2030, while still insisting that its 30% reduction target remains intact.

CEO Simon Baloyi outlined the revised roadmap at the JSE-listed group's 2025 Capital Markets Day, announcing that it would invest between R4-billion and R7-billion on emission-reduction projects over the coming five years, compared with a previous range of between R15-billion and R25-billion.

The revision comes amid growing frustration from within the investor community over Sasol's financial and operational underperformance, but will also raise fresh concerns about whether the coal-heavy group is serious about tackling its large environmental footprint.

The revised plan has eliminated a previous option to potentially reduce production at Sasol's Secunda Operations, in Mpumalanga, to meet its decarbonisation commitment.

Instead, Baloyi announced Sasol's intention to restore production at Secunda to above 7.4-million tons, from below 7-million tons currently, and position it to break even by 2028 at an oil price of only $50/bl.

The plan hinges largely on addressing the coal quality problems that have been bedevilling Secunda for several years.

Sasol's Twistdraai export coal plant is being repurposed into a 10-million-ton-a-year destoning operation to improve the quality of coal being used in the Secunda gasifiers and the group has abandoned a capex-heavy plan to briquette its coal fines.

ELECTRICITY TRADING

The revised emissions reduction roadmap also includes a higher renewable-energy target of 2 GW, up from 1.2 GW, which Sasol will pursue through a combination of power purchase agreements with independent power producers, with 575 MW having already been signed up, and projects in which it takes an equity position.

Executive VP for business building, strategy and technology Sarushen Pillay reported that the company would build solar PV plants on land in close proximity to its Secunda and Sasolburg operations to take advantage of existing grid infrastructure and to avoid wheeling costs.

In addition, Sasol would be applying to the National Energy Regulator of South Africa for a trading licence to help it derisk its renewables investments by having multiple offtakers, rather than relying solely on its own demand.

The licence would enable it to approach larger businesses, while also targeting smaller firms through Ampli Energy, which it launched jointly with Discovery Green in mid-May.

The new plan still includes Sasol's earlier energy-efficiency projects, but also integrates so-called carbon-market mechanisms, such as carbon credits or renewable-energy credits.

It does not include the turndown of the boilers used to produce electricity. This, after Sasol controversially succeeded in securing permission from South Africa's environmental authorities to reduce the sulphur dioxide (SO2) emissions from its coal boilers on an overall load basis, rather than reducing the SO2 concentration of each individual boiler.

A large portion of the capex revision, however, relates to the group's abandoning of the coal briquetting plan, as well as its reassessment of the economic viability of using imported liquefied natural gas (LNG) to replace coal at Secunda.

LNG IMPORTS?

As has been widely reported, the group will also not seek, for economic reasons, to use LNG as a replacement for dwindling natural gas from Mozambique to produce fuels and chemicals.

Nevertheless, it remains a strong proponent of LNG imports to shore up supply for those downstream industries in Gauteng and KwaZulu-Natal that are reliant on the gas it imports from Mozambique, the supply of which will stop in 2028.

Sasol has entered a partnership with Eskom to assess aggregation options and supports emerging proposals to use gas-to-power to help "anchor" demand for LNG imports at scale.

However, Baloyi confirmed that it would also see...

Engineering News editor Terence Creamer discusses what South Africans can expect this winter in light of the latest bout of loadshedding; new wheeling and curtailment rules announced by the National Energy Regulator of South Africa; and the creation of an entity to wheel green el

The market for a pioneering solar-battery solution tailored to meet the needs of informal businesses such as spaza shops, salons, tailors, mechanics and restaurants operating in South Africa's so-called 'township economy' is beginning to take shape.

Launched by Wetility in mid-2024, the innovation has been designed to address the specific challenges faced by township entrepreneurs, including chronic 'load reduction' and cable theft, as well as unstable building structures and limited access to finance.

Known as LUXE, the offering is already in use in areas such as Katlehong, Soweto and Tembisa, in Gauteng, as well as parts of the Western Cape and KwaZulu-Natal.

Wetility chief of staff Johanna Horz reports that the "plug-and-play" energy system was designed from the ground up, with the company's engineering team having used the problems identified by entrepreneurs as design inputs.

These included the risk that systems could be stolen, that rooftops may not be able to bear the weight of the solar panels, and the reality that many potential customers were unbanked and also did not have the resources to insure and maintain their solar systems.

"Township businesses face realities that are vastly different from suburban areas.

"Traditional solar solutions often just don't work, because either they're unaffordable or simply incompatible with the infrastructure.

"That's why we built something new - purposefully, boldly, and with the township economy in mind," Horz tells Engineering News.

The upshot is a system that includes upwards of eight solar panels, alongside backup battery storage upwards of 5 kWh, and inverters upwards of 6 kW. Solutions are modular and stackable, with entrepreneurs and businesses able to scale their LUXE system as their power demand changes.

Offered as part of Wetility's 'Beast Bizness Bundle', and starting from R149 a day, the LUXE system can be bundled with a new point of sale (POS) device and up to R10 000 in stock credit for qualifying merchants, as an additional revenue-enabling booster for entrepreneurs.

Always included are remote monitoring, theft-resistant enclosures, and a payment model based on a daily subscription that eliminates the need for upfront payments.

Wetility collaborated with A2Pay, a POS company active in over 7 000 informal retail stores, to engineer a new model of solar financing that does not involve banks, brokers, or traditional credit application mechanisms.

"Through the POS system, we are able to make LUXE available on a daily subscription, removing the need for upfront capital or formal credit.

"This includes installation, maintenance, insurance, and 24/7 remote support," Horz adds, stressing the model is not only about powering businesses but also financial inclusion.

Wetility reports strong uptake since the product's roll-out, with installations increasing on the back of community referrals, which has turned what was initially a pilot project into a full-scale commercial operation.

LUXE is said to be powering a widespread and rapidly expanding network of township businesses, mostly concentrated in Gauteng, and which now depend on the solution as their core source of reliable energy.

While the primary motivation is to provide small township businesses with stable and affordable electricity, Wetility believes LUXE could also play a role in relieving pressure on municipal electricity networks and reducing the financial strain on utilities such as Eskom.

"By shifting township businesses off their sole reliance on the grid, the solution supports energy resilience while promoting a culture of payment for reliable service," says Horz.

The solution has also piqued the interest of commercial banks and development finance institutions, which view LUXE as a climate-aligned investment with measurable social impact.

"As the demand for reliable, affordable, and accessible power grows, Wetility's LUXE is set to become a transformative force in reshaping how energy is delivered to South Afr...

When President Cyril Ramaphosa and his delegation travels to the US next week to meet with the Trump administration, they will do so with some guidance in hand from the local automotive industry.

naamsa | The Automotive Business Council CEO Mikel Mabasa says the industry has already engaged with special envoy to the US, Mcebisi Jonas, on the challenges the local industry faces in relation to the new tariff regime announced by US President Donald Trump.

"We definitely want to continue to export vehicles to the US," said Mabasa during the online launch of the naamsa 2025 Automotive Trade Manual.

"It's a very attractive market."

Mabasa said that while a number of analysts had already delivered the funeral rites on Africa's preferential access to the US under the African Growth and Opportunity Act (Agoa), the South African automotive industry was hopeful for a different outcome when the current agreement came to an end in September.

"We are working with our partners in government to push for that conversation."

According to the 2025 Automotive Trade Manual, the US was South Africa's third biggest export destination in 2024, with new-vehicle and component exports valued at almost R29-billion, up from 2023's R27.94-billion.

New-vehicle exports were valued at R24.6-billion (up from R19.59-billion in 2023) and component exports at R4.4-billion, down sharply from 2023's R7.8-billion.

The trade manual notes that South African automotive exports to the US increased by 500.8% between 2001 and 2024, while automotive imports from the US increased by 741.1%.

South Africa imported vehicles and components from the US to the tune of R22-billion last year, slightly down from the R23.8-billion recorded last year. Around R4-billion of this number were vehicles and the rest components.

"The benefits stemming from Agoa for South Africa are much broader than mere duty- and quota-free access into the US. It also stimulates opportunities for a chain of collaborative arrangements with manufacturing companies from sub-Saharan African countries to access the US duty free," notes the document.

naamsa chief trade and research officer Dr Norman Lamprecht noted that automotive exports to the US had a rocky start this year on the back of the hawkish on-off tariff regime threatened by the new US President.

"This is a very fluid and volatile situation that creates a lot of uncertainty.

"We have seen a first-quarter decrease in vehicle exports [to the US]. Our [vehicle manufacturers] have already adapted, with one new model by a big exporter not going to the US since the fourth quarter of last year."

Lamprecht believes that the South African automotive industry should push for Agoa to survive.

"[Political] parties come and go… Before the US elections it was tabled for Agoa to be extended to 2041."

He noted that import duties had a ripple effect, as they caused higher inflation, slowed down interest rate cuts and created more competition for South African exports.