Cheaper Internet access for South Africa

For South Africa to see its investments into broadband infrastructure pay off and have citizens, especially those in rural areas, generate revenue through the digital economy, smart devices and Internet access need to become more affordable.

This is according to the Department of Communications Digital Technologies (DCDT) Director General Nonkqubela Jordan-Dyani, attending the G20 working group meeting on AI and the digital economy.

“In yesterday’s discussion, we thought about how to ensure that the connectivity we invest so much in can see a return,” Jordan-Dyani told Newzroom Afrika.

“To do this, we first need to ensure that the access to this infrastructure is affordable.”

Jordan-Dyani said that ensuring affordable access refers to making mobile data more affordable and to “the tools of the trade,” which would be devices such as smartphones.

She said her department intends to help with affordable access by zero-rating relevant content on government, educational, and health websites.

Zero-rating refers to not charging for the data consumed to access certain websites.

“For instance, this could assist children who have perhaps missed out on lessons or provide information to people about infrastructure following natural events like floods,” said Jordan-Dyani.

Regarding device prices, communications minister Solly Malatsi’s efforts to lower smartphone prices by removing the ad valorem duty charged on tech devices imported into South Africa finally paid off last month.

The luxury tax or ad valorem is a tax on products deemed luxury items such as motor vehicles, electronic equipment, and cosmetics.

However, in his budget speech on 12 March, Finance Minister Enoch Godongwana said that the 9% duty would be removed from smartphones under R2,500 from 1 April.

However, as Malatsi mentioned in a Sunday Times column, making devices affordable is only one part of the minister’s plan to bridge the country’s digital divide.

“First, we need to make it easier for businesses, both domestic and international, to offer affordable, fast, reliable broadband to every South African,” he said.

“That is why one of the key targets for my department in the government’s Medium-Term Development Plan is a decision to allow businesses to contribute to empowerment through equity equivalent programmes (EEPs).”

Malatsi added that he hopes South Africa’s communications regulator, the Independent Communications Authority of South Africa (Icasa), will seize the opportunity.

He explained that EEPs allow multinational firms to invest directly in initiatives that empower previously disadvantaged people and businesses.

This could include connecting schools, clinics, and other government services, skills training for young people, and business development opportunities for small enterprises.

The move could also ultimately help clear the barriers that have prevented SpaceX’s low-earth orbit satellite service, Starlink, from launching locally.

Minister calls for South African creator fund

Jordan-Dyani said that during talks at the G20 working group meeting, it was discussed that local content creation could be used as a barometer to measure the return on investment in increasing Internet access.

“One way to see this return is by having adequate local content on platforms like TikTok and Facebook,” said Jordan-Dyani.

“That’s where the youth comes in as your innovators because they drive content creation on these platforms in South Africa.”

Malatsi recently spoke with TikTok leadership at their Safer Internet Summit, where he advocated for the social media platform to introduce a creator fund for South Africans using the app.

“South Africa has over 17 million TikTok users and trendsetters shaping global culture, making it the ideal place to expand TikTok’s Creator Fund in Africa,” Malatsi said.

“South African creators deserve full access to monetisation offerings on the platform. TikTok has committed to taking this feedback on board, and our engagements will continue.”

“Let’s recognise our creators. Let’s reward their impact adequately,” he added.

TikTok has seen meteoric growth in South Africa. Brand intelligence consultancy Ornico and market research house World Wide Worx revealed in their 2023 South African Social Media Landscape study that TikTok had seized second place in the market from Instagram that year.

“The youth audience is key to social media in South Africa,” World Wide Worx CEO Arthur Goldstuck said at the time.

“When a platform like TikTok, which has deep reach among those aged under 15, breaks through to this extent in the older youth market, as well as among young adults, we can see the landscape undergoing a significant shift.”