Malatsi’s digital vision for SA blends DA and ANC ideals
The minister acknowledged significant obstacles, such as overregulation in the ICT sector, which hinder connectivity for millions of South Africans.
He focused on the need to reclassify smartphones and smart devices, currently considered luxury goods, to make them more affordable.
"Smartphones and smart devices should be a basic essential for learning, doing business, and even for personal entertainment. Yet one of the most obvious inhibitors to connectivity is the cost of smartphones and devices," he said.
"To this end, Minister (of Finance) Godongwa and I will be engaging with you to consider the introduction of a price threshold for the determination of as a luxury good."
Luxury tax
In 2018 the government, under the stewardship of then finance minister Malusi Gigaba, increased ad valorem excise duties, which are applied to purchases made mainly by wealthier households, such as cosmetics, electronics, and golf balls.
The maximum ad valorem excise duty for motor vehicles was increased from 25% to 30% and the classification of cellular telephones was then updated to include smartphones tighten up the regulations.
Additionally, the rates were increased to 7% and 9% to align with the progressive structure of the tax system and ensure that households spending more on luxury goods contribute proportionately more to revenue.
Towing the party line
Malatsi’s vision draws heavily on the DA's ICT policy which emphasises the critical role of the sector as an enabler of economic activity and development.
This policy also advocates for a dual strategy that combines a market-driven approach, blending private sector-led ICT infrastructure and services with a developmental approach where the state facilitates access in underserved areas and promotes developmental content.
Fortunately, Malatsi is shaping a policy within an existing ANC-led framework goal of providing all South Africans with access to high-speed, reliable ICT services for trade, collaboration, and entertainment.
Encourage investment
To this point, the minister had praise for President Cyril Ramaphosa's call to simplify legislation to encourage investment and vowed that his department would prioritise evidence-based decisions to remove regulatory barriers to investment and job creation in the digital sector.
Progress is not linear. It is a series of small steps, sometimes forward, sometimes sideways. But we know that progress always endures turbulence
He acknowledged the challenges but remained optimistic about the nation's potential for digital transformation.
In a call to action, he urged mobile network operators and telecommunications companies to collaborate with the government to provide devices to children across the country, to empower a generation of digital innovators.
Malatsi's vision for a digitally inclusive South Africa resonates, highlighting the importance of unity and forward-thinking policies in achieving national prosperity.
