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I'm guessing she wants only people that look like her to own the cables![]()
In a reference to MTN’s Middle East expansion, she said: “Some of our companies have been paying half a billion dollars to do business elsewhere so I am not sure where the constraints for South African companies could be.”
The government had to make that investment itself “because business is now queasy about having to invest so much in infrastructure when they don’t know what’s going to happen on the continent,” Matsepe-Casaburri said.
Of course she isn't. Why would she be worried? It's not like we need foreign investment now do we?Matsepe-Casaburri said she was not worried that the regulations would deter investors, which could simply opt to bypass SA.
Cape Town - Cyril Ramaphosa's Shanduka Group is set to be one of the leading investors in South Africa's private undersea fibreoptic cable venture, Seacom.
Poison Ivy said:In a reference to MTN’s Middle East expansion, she said: “Some of our companies have been paying half a billion dollars to do business elsewhere so I am not sure where the constraints for South African companies could be.”
The comrades will be overjoyed I am sure.Local ownership for sea cable — minister
THE government’s attitude to private sector investment in infrastructure is becoming ever more bizarre.
It complains that the private sector is not coming to the infrastructure party. But as soon as private sector operators show their willingness to invest billions of rands in any kind of network infrastructure that SA desperately needs, the government hastens to put obstacles in place that seem aimed at driving private sector investors away. Even more bizarre is that if the private sector comes along with huge sums to invest, in a new fuel pipeline or an undersea telecommunications cable, the government says, in effect: “No, don’t you do that, we want it for ourselves.” After all, why should local and international financiers pay when SA’s taxpayers can be hit for the money instead?
The tangled undersea cable story is the latest instance of this peculiar approach to the world. There can be no question that SA and Africa desperately need more bandwidth to connect to the outside world, or that it needs to be a lot cheaper than what we have now if telecommunications costs in this country are to come down to anything close to an international norm.
If that’s not enough to drive potential international investors away, Shope-Mafole is also demanding that any private cable operators wanting to land in SA must have local investors. It’s not clear what this demand might do to the other private player planning to build an $500m undersea cable linking SA to Europe and Asia, Seacom.
“Those who want to partner with us can partner on our terms,” Shope-Mafole memorably said recently, sending the kind of signal that is almost sure to drive new potential competitors out of a mar-ket that has been strangled for years by a state-controlled monopoly.
Meanwhile, Public Enterprises Minister Alec Erwin’s new baby, Broadband Infraco, has grandiose plans to build two state-owned undersea cables linking SA to the world, one landing in London, the other in Brazil. Erwin claims Infraco can do it cheaper.
If the state had a good record we might be more sympathetic — but the best way to cut the costs of connectivity is to open up to competition. And the best way of doing that is to create a level playing field that makes it easier, not harder, for investors to put money into the necessary infrastructure.
Let the state compete, too, if it thinks it can do it efficiently and if it can justify the cost to taxpayers. If that means we end up with a collection of cables, private and public, and even with a surplus of bandwidth, so much the better. It can only serve to cut the cost of telecommunications and expand the market. Just what we need.