Zuko Komisa

Communications Minister Solly Malatsi has unveiled a proposed policy direction aimed at providing alternatives to South Africa’s existing Black Economic Empowerment (BEE) ownership requirements in the Information and Communications Technology (ICT) sector.
The move seeks to attract international investment, including major players like SpaceX’s Starlink, which has been unable to launch due to current regulations.
Currently, the Electronic Communications Act (ECA) mandates that entities seeking an ICT license must have 30% ownership by historically disadvantaged groups. This requirement has been a barrier for multinational companies, such as Starlink, which are keen to enter the South African market.
Minister Malatsi is championing the implementation of Equity Equivalent Investment Programmes (EEIPs) as an alternative pathway.
These programs, recognized under the Broad-Based Black Economic Empowerment (BBBEE) Act and the ICT Sector Code, would allow multinational companies to meet empowerment obligations through investments in local suppliers, skills development, job creation, and infrastructure support, rather than direct equity ownership.
The proposed policy, outlined in a recent Government Gazette notice, aims to harmonize the ECA with other legislation to recognize these alternative ownership structures. Malatsi emphasized that this policy direction aligns with the Government of National Unity’s mission to attract investment and accelerate broadband access, ultimately bridging the digital divide and fostering competition within the sector.
Stakeholders have 30 days from the notice’s publication (May 23, 2025) to submit comments on the proposed policy direction.

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