An Opportunity to Reform Competition Policy

Dear Editor

The Democratic Alliance (DA) welcomes the decision by Minister Parks Tau and the Department of Trade, Industry and Competition (DTIC) to appeal the Competition Tribunal’s ruling that blocked Vodacom’s proposed acquisition of a stake in Remgro’s fibre business, Maziv. This unprecedented move by the Minister offers an important opportunity not only to revisit this specific case but also to promote meaningful reform of South Africa’s competition policy more broadly.

The DA has consistently advocated for a competitive economic environment that prioritises inclusivity and social development. Minister Tau’s actions highlight the urgent need to rethink how competition policy can better serve South Africa’s developmental needs, particularly in fostering investment and expanding critical infrastructure like fibre connectivity.

The Vodacom-Maziv partnership, valued between R14 billion and R17 billion with an additional R25 billion earmarked for infrastructure expansion, promised significant socio-economic benefits. These included the rollout of fibre in underserved areas, affordable high-speed internet access, and the creation of up to 10,000 jobs. By facilitating digital inclusion, this partnership could have empowered low-income households with access to online education, remote healthcare, and digital employment opportunities.

While the Tribunal’s decision raised concerns about competition, the DA believes that in sectors like fibre, collaborative investments can drive down costs and accelerate service delivery. The blocked deal risks reinforcing existing inequalities and denying millions of South Africans the chance to participate meaningfully in the digital economy.

To ensure competition policy evolves to meet South Africa’s challenges, the DA offers the following constructive proposals, as outlined in our economic policy document:

1. Balance Competition with Developmental Goals: Recognising the importance of collaborative investments in reducing infrastructure duplication and delivering affordable services efficiently. Prioritising inclusive policies that expand access to underserved communities while safeguarding consumer interests.
2. Promote Pro-Market, Not Pro-Business Policies: Shifting focus from protecting incumbent players to fostering innovation and removing barriers to entry for smaller businesses and entrepreneurs.
3. Enhance Regulatory Transparency: Requiring clear, data-driven justifications for decisions by competition authorities to build trust and encourage private sector investment.
4. Incorporate Public-Private Partnerships (PPPs): Leveraging PPPs to co-invest in digital infrastructure projects, ensuring both competitiveness and inclusivity.
5. Expand Oversight and Accountability: Strengthening the Competition Commission and Tribunal’s capacity to assess the broader economic and social impacts of their rulings.

The DA is committed to working constructively with Minister Tau, the DTIC, and all stakeholders to ensure competition policy supports South Africa’s developmental goals. Accessible and affordable internet is a cornerstone of economic upliftment and social equality. It is imperative that competition policy evolves to unlock the full potential of collaborative investments that address the country’s urgent infrastructure and connectivity needs.

Regards

Mlondi Mdluli MP
DA Deputy Spokesperson on Trade, Industry & Competition