It added that the regulations prevent companies that can contribute to the nation’s transformation goals from acquiring individual licences under the
EEIPs, provided for under the Broad-Based Black Economic Empowerment (BBBEE) Act and the ICT Sector Code, enable multinationals to meet empowerment obligations through alternatives to the 30% ownership rule.
These programmes can include investing in local suppliers, enterprises, and skills development, job creation, infrastructure support, research and innovation, and digital inclusion initiatives.
However, enabling EIPPs will require the Independent Communications Authority of South Africa to amend specific regulations.
“Despite the legal standing of the ICT Sector Code under the BBBEE Act, Icasa’s ownership regulations don’t fully reflect its provisions, particularly regarding deemed ownership and EEIPs,” the DCDT said.
“Therefore, this policy direction aims to ensure consistency, unlock investment, and give practical effect to the ICT Sector Code in line with national development goals, including transformation.”
Once finalised, the draft policy direction will enable Malatsi to direct Icasa to:
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Align its ownership regulations applicable to licensing under the ECA, with the full scope of the ICT Sector Code, including recognition of EEIPs and deemed ownership mechanisms;
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Apply the same BBBEE criteria to the ICT sector, ensuring alignment with national priorities, transformation objectives, and investment attraction; and,
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Engage with various departments and the ICT Sector Council to define acceptable EEIP contributions in the ICT space.
It also clarifies that new entrants will not be exempt from transformation obligations.
“Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa’s socio-economic development goals,” the DCDT said.
All players must contribute meaningfully to equity, skills development, and economic inclusion.
“Icasa’s regulations may continue to require 30% equity ownership by historically disadvantaged individuals, but must also permit commitments in the ICT Sector Code as valid conditions for applications for individual licences,” the department said.
Stakeholders are invited to submit comments on the draft policy direction within 30 days of the notice’s publication in the Government Gazette, which was on Friday, 23 May 2025.
