Ramaphosa defends transformation laws, says SA not the only country that requires local ownership

CAPE TOWN - President Cyril Ramaphosa has again defended the country’s transformation laws, saying it was not the only country that requires international companies to transfer ownership to local investors.

Ramaphosa also said new regulations that won’t require global companies like Starlink to hand over 30% ownership were well within the law and should be welcomed.

Ramaphosa was responding to questions in the National Council of Provinces (NCOP) on Wednesday on transformation and its impact on foreign investment.

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The president said that new regulations on equity equivalence, which is investment without handing over ownership, should be welcomed.

This is despite opposition by his own party in the communications committee, which insists on 30% ownership for disadvantaged groups.

President Ramaphosa said the regulations, introduced by Communications Minister Solly Malatsi, were about finding new ways to trigger investment without doing away with transformation.

But Ramaphosa said that the transfer of shares to local investors was not unique to South Africa.

"And let me immediately say that we are not the only country in the world that requires that there should be local ownership."

He said that South Africa was probably the only country that promoted transformation through "equity equivalence".

"If you’re not able to have joint ownership, we want equity equivalence that will help to address the injustices of the past."

On the regulations on equity equivalence, Ramaphosa said that South Africans would have an opportunity to make public submissions before they’re finalised.