The Congress of South African Trade Unions (COSATU) notes the proposed policy direction on equity equivalent investment programmes in the Information and Communications Technology sector released for public comment by the Minister for Communications and Digital Technologies, Mr. Solly Malatsi. The Federation will be engaging with the relevant Departments for Communications and Digital Technologies as well as Trade, Industry and Competition to seek assurance that any such proposals remain in line with existing legislation, in particular the Broad Based Black Economic Empowerment (BBBEE) Act, as well as the constitutional imperative to advance transformation across all sectors of the economy.
COSATU notes the excitement on social media about Starlink but as a Federation we remain guided by the law and will at all times jealousy guard its supremacy, and our transformation journey as mandated by the electorate and guided by the Constitution. The Federation’s primary concerns remain defending and creating badly needed jobs, spurring economic growth, tackling anti-competitive monopolistic practices, advancing socio-economic transformation and affirming the rule of law.
The Federation’s fundamental mandate is to tackle our dangerously high levels of unemployment, currently at 43.1% overall and 72% for youth. We have worked closely with government and business to attract international investors as well as to unlock local investment. This includes resolving obstacles to economic growth. We encourage investors to invest in South Africa, and in fact have long demanded that the private sector abandon its investment strike which has condemned millions to poverty and misery. We do not only want jobs, but decent jobs that pay workers a living wage, and enable millions to attain a better life.
Mobilising domestic and international investment is key to unlocking economic growth, which has remained stagnant at 1% for the last 15 years. If we are to win the war against unemployment, poverty and inequality, then we need to reach nothing less than 3%. Otherwise, we are condemning a generation to unemployment and despair.
Whilst we welcome investors, we remain a constitutional democracy where the rule of law is supreme, not social media incitement by right wing cranks and race baiting hustlers (AfriForum please note). Investors must comply with our laws, in particular labour laws protecting the hard-won rights of workers, tax laws funding the infrastructure and public services required for a growing economy, and investment laws, in particular the BBBEE Act as well as the Competition Act to prevent monopolies developing in any sectors or other anti-competitive behaviour.
BBBEE remains a fundamental necessity for South Africa which continues to grapple with our still entrenched levels of poverty and inequality, largely determined by the colour of one’s skin, gender or disability. Compliance with the BBBEE Act is critical and should not be undermined, lest it present unfair advantages to companies who have complied with it or undermine its progressive objectives.
Contrary to fake news on social media, the BBBEE legislation is inclusive and provides accommodating options for all investors. Investors seeking to enter the South African market are requested to offer 30% shareholding opportunities for historically disadvantaged persons or where that is not possible, to offer equity equivalents. These include supporting local manufacturers, creating jobs, upgrading the skills of workers, or investing in local communities. Equity equivalents have long been an important part of the BBBEE agenda and provided a positive boost for many local companies and jobs.
Whilst COSATU supports the objectives of BBBEE and is unapologetic in its defence of transformation, we believe a discussion needs to be had on ways to ensure BBBEE reaches those who most need empowerment, namely workers and working-class communities, and not simply deracialising the bourgeoisie. Workers’ empowerment, in particular through Employee Shareholder Ownership Programmes, as well as support for locally produced goods is fundamental if we are to breakdown the legacies of apartheid and capitalist induced inequality, to create a just and inclusive society, and to unlock badly needed economic growth.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Cell: 082 785 0687
Email: matthew@cosatu.org.za