Communications & digital technologies minister Solly Malatsi received support from the GNU’s main players, the ANC and DA, when he made a case for his department's budget in parliament.
Malatsi, however, is in the crosshairs of many policymakers for his department’s move to issue a directive that would enable foreign telecoms operators to enter the SA market using equity equivalent investment programmes (EEIPs).
This is largely seen as a way to allow Elon Musk’s Starlink to operate in SA without having to offer equity in terms of BEE.
A budget vote debate about the department of communication & digital technologies’ financial allocation was held in parliament on Friday with policymakers making cases for and against the unit’s strategy and plans.
Budget vote debates are parliament’s opportunity to formally discuss and shape departmental plans and how funds are allocated. During these debates, parliamentary committees scrutinise departmental budgets and annual performance plans, ensuring promises from the previous year were kept and taxpayer money was spent responsibly.
Malatsi said the total budget allocation to the department over the 2025 medium-term expenditure framework (MTEF) period, the 2025/26 to 2027/28 financial years, amounted to R7.8bn.
Of this, R5.4bn, 69.1%, is allocated to transfers to entities and project-specific funding. In the 2025/26 financial year, estimated expenditure is R2.545bn, with 69.5% earmarked for transfers and subsidies “to support the work of our key entities”.
Key entities in the department are allocated the following:
- Icasa receives R588m this year, which includes an additional R102m for the second phase of the spectrum licensing auction;
- The Film and Publication Board is allocated R338m;
- The SABC will receive R704m over the MTEF; and
- The SA Post Office is allocated R1.8bn over the MTEF to fulfil its universal service obligations and improve service delivery.
Malatsi received full support from his party, the DA.
According to the party, the minister “has set in motion bold reforms to transform his department into a driver of jobs, connectivity and opportunity. Key steps include merging Broadband Infraco and Sentech into a streamlined State Infrastructure Agency, modernising outdated legislation, and enabling faster ICT infrastructure rollout.
“Plans to secure the Post Office and Post Bank through sustainable partnerships are also under way. These efforts position the department to lead SA into a more inclusive, digitally enabled future.”
GNU partner the ANC was less flattering, giving conditional support for the department’s budget. The party’s study group on communications and digital technologies said it was “deeply concerning that the department seems to be dismantling this progress”.
“The minister’s silence on establishing a State Bank using Post Bank infrastructure reveals a regressive approach. The progress made in connecting underserved areas stands as a testament to what can be achieved when the government prioritises people-centred development.
“We are deeply concerned by attempts to undermine our public institutions and reverse the gains we have made in building state capacity.
“We will vigorously oppose any efforts to weaken entities like SABC, the Post Office and State Information Technology Agency, which play vital roles in service delivery and digital inclusion. These institutions must be strengthened as they are crucial to realising our vision of a digitally empowered nation.”
The party said it supported the budget conditionally, insisting on strict portfolio committee oversight “to prevent further derailment of our digital transformation agenda”.
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