AI policy gets a second chance

The department of communications & digital technologies will get a second chance at drafting a white paper on artificial intelligence next month, after the previous iteration was exposed as an AI-generated document riddled with hallucinations.

Communications & digital technologies deputy minister Mondli Gungubele said he had been told the final draft was due for ministerial input before the end of November, ahead of going to the cabinet by the end of the financial year.

“My understanding is it’s at an advanced stage … I was briefed three weeks ago … before it goes to [the relevant ministerial] clusters, and then finally to cabinet [before the end of] November,” Gungubele told Business Times this week.

Earlier this year, the AI draft policy was released but was found to have been generated using AI, including hallucinated citations, prompting communications & digital technologies minister Solly Malatsi to withdraw it.

Gungubele was speaking on the sidelines of Bloomberg’s 2026 Africa Business Media Innovators (ABMI) gathering in Hermanus in the Western Cape on Monday. During a panel discussion at the event, he was grilled about whether the government would allow Elon Musk’s SpaceX access to the South African market — and on what terms.

Asked whether he was concerned about the apparent fixation on SpaceX’s Starlink satellite internet service provider entering the local internet market — despite South Africa having about 140 internet service and infrastructure companies — Gungubele said such questions were inevitable. He pointed out that many multinational companies operated in South Africa and had no problem complying with the country’s laws and policies.

“We always expect that, especially at an international forum like this ... The problem is that people don’t want us to talk about multinational corporations; they want us to talk about Starlink,” he said. “There are a lot of multinational corporations in South Africa who are working well with our policies.”

Gungubele said a failure by countries to agree, bilaterally or multilaterally, on how AI should be managed and regulated could lead to a lot of “mischief” by malefactors. At the same time, he said developing AI capacity had become an imperative for economic modernisation and national sovereignty.

“If you accept that you want to leapfrog in terms of economic transformation, AI is critical. There’s no doubt that cabinet is interested in exploiting the potential of AI. But what cabinet is awaiting is the tabling of the policy. You know, AI is already operating in South Africa, with or without policy, but the policy is there to ensure that it operates within the confines.”

During the panel discussion, Gungubele said Starlink would enhance the government’s ambitions to expand connectivity but urged Musk to respect the nation’s equity laws in the process.

“There’s a lot of private operators in Africa … We always need more. That’s why the president is ... saying we are ready. [Recently] in Greece, the president was saying we’re ready for business.”

Musk has been highly critical of broad-based BEE as a policy that aims to address past economic injustices by making patterns of ownership more representative of the country’s demographic, even going as far as calling it “racist”.

Gungubele said it would be beneficial if Musk stopped to consider the urgent need for South Africa’s patterns of economic ownership to be transformed.

“It should not be ridiculous, therefore, to say, when we invest here, can you get along with us, walk with us in this journey of improving, minimising inequality, reducing all the discriminatory laws and all the affinities that are unequal. We are saying, for instance, 30% here.”

According to a paper by Maria Lungu of the University of Virginia and Kennesaw State University, African governments’ growing reliance on foreign vendors for AI-enabled surveillance raises questions about enforcing constitutional protections when such systems remain technically and legally beyond domestic oversight.

Lungu states: “The theoretical contribution is the concept of the algorithmic sovereignty gap, which names the persistent disjunction between constitutional guarantees and the operational realities of vendor-controlled tools.”

Wamkele Mene, secretary-general of the African Continental Free Trade Area (AfCFTA), told Business Times that the continent’s digital infrastructure requirements were a significant challenge but also an opportunity to grow its economies and provide skills and jobs to young Africans.

“Africa’s digital economy by the year 2035 is estimated to bring in over $700bn [R11.7bn],” he said. “That digital economy will largely be driven by AI. We have rules. We have a protocol on digital trade that enables investment in new technologies, emerging technologies.”

Mene said Africa would need more than 700 data centres by 2035, but for now these centres were concentrated in Cape Town, Lagos and Nairobi.

Business Times