By

Examples of trade-offs

The examples of the trade-offs that we as South Africans have to think about abound. This week’s Business Times has an interesting story.

It is about South Africa’s 30% BEE ownership quota that has attracted the anger of Elon Musk and purportedly prevented Starlink from applying for a license in South Africa. Communications Minister Solly has gazetted a workaround in the forms of an equity equivalent investment programme (EEIP).

In simple terms, Starlink could invest in local projects uplifting black communities rather than ceding equity to black partners. Such concessions make sense. And the pay off for SA could be huge. Starlink’s low-orbit satellites promise to beam broadband into rural areas where connectivity is dire. It is a policy win-win on paper: appease a high-profile investor and tackle the digital divide in one stroke.

It seems like a compromise, but Mr. Musk must decide if investing in community broadband or tech training is an acceptable price of admission.

That brings one to the question: Are Starlink’s benefits in and of themselves not enough? Can you have the growth and the redress simultaneously? It is the stuff of a National Dialogue.

Leave a comment