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Minister, South Africa has a narrow window. The global AI infrastructure buildout is
happening now. Capital is being deployed, talent is being recruited, and supply chains are
being secured. The US alone is failing to deploy half its planned data centre capacity because
it cannot find the power. We have the power. We have the location. We have the talent…for
now.
Countries that move decisively on infrastructure and investment incentives in the next 24
months will participate in this economy. Countries that spend those 24 months designing
ethics boards and ombudsperson offices will find, when they finally look up, that the race
has been run without them.
I have put my own money where my conviction is, repeatedly, in this country, in this sector. I
have earned the right to say that this draft, while well-intentioned, does not yet reflect the
urgency or the commercial reality of the moment. It reads like a document written by people
who study AI, not by people who build it, fund it, and fail at it.
In a country with the highest inequality on earth and unemployment that constitutes a
permanent social crisis, getting AI policy wrong is not an abstract risk. It is a path to deeper
poverty, accelerating brain drain, and permanent relegation to the margins of the global
digital economy. Getting it right (infrastructure first, incentives second, governance third)
could be transformative.This policy attempts to govern an AI economy that South Africa has not yet built and risks
regulating away the very conditions required to create it. South Africa will not regulate its way
into the AI economy. It must build its way into it.
I respectfully urge the Department to use the public comment period to fundamentally
rebalance this draft. I am available to engage further on any of these points.
Stafford Masie
AI Investor, Infrastructure Builder, and Advisor
Johannesburg, South Africa
This open letter is published in the public interest and submitted to the Department of Communications and Digital
Technologies in response to the invitation for public comment on the Draft South Africa National Artificial Intelligence
(AI) Policy, Government Gazette No. 54477, Notice 3880 of 2026. The deadline for public submissions is 10 June
2026.
Today I read @StaffordMasie’s letter to @SollyMalatsi
It's high signal. Forged in experience
The message is clear:
🇿🇦 can't regulate its way into AI. We must build. Jobs depend on it.
We have the energy, demand & people. Now is the opportunity.
Will SA respond? @PresidencyZA
9. Seven Recommendations from the Field
These are not theoretical proposals. They are drawn from what I have seen work, what I have
seen fail, and what founders and investors in this ecosystem actually need.
First - Declare AI infrastructure a national strategic priority. Frame this alongside energy
security and job creation. Commit in Year 1 to a national AI infrastructure plan with
measurable targets: petaflops of compute available domestically, megawatts ringfenced for
data centre operations, and connectivity to designated AI development zones.
Second - Capture the energy surplus before it closes. Work with the Department of
Mineral Resources and Energy to publish a data centre energy allocation framework within
Year 1. Include wheeling, self-generation, and dedicated renewable procurement
provisions. Position South Africa as a destination for the US and European hyperscaler
capital that cannot find power at home.Third - Build real incentive instruments. Table a draft AI Investment Incentive Regulation
within 12 months. Specify R&D tax credits, compute subsidies for startups and universities,
accelerated depreciation for AI-related capital expenditure, and Special Economic Zone
designations for data centre clusters. Create the conditions that would make a company like
Nvidia choose South Africa.
Fourth - Consolidate the institutions. Replace the seven proposed bodies with a single
National AI Office reporting directly to the Minister, supported by lean advisory committees.
Fund it with a ring-fenced budget. Staff it with people who have (REALLY) built and shipped
AI products, not only people who have studied them.
Fifth - Launch an emergency talent retention programme. Competitive research grants,
compute access for university labs, diaspora return incentives, and the creation of a signal,
economic and cultural, that South Africa values its AI builders and wants them to stay.
Sixth - Make open-source AI a strategic pillar. Subsidise local deployment of open-weight
models. Fund fine-tuning for indigenous languages and priority public services. Reduce API
dependency on offshore providers as both an economic and sovereignty measure.
Seventh - Measure what matters. The draft contains no quantified targets. Commit to
specifics: AI startups receiving government-backed support by 2028, total venture capital
deployed, regulatory sandbox approvals processed, citizens completing AI literacy
programmes, and data centre capacity online. What gets measured gets managed. What
gets left vague gets forgotten.
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