A draft policy direction by Malatsi calls for the introduction of equity equivalents in licensing so companies don't have to sell equity to black investors and can instead direct spending into efforts such as skills development and education.
"As others, including the president have noted, the proposed EEIP Equity Equivalence Investment Programme is not only consistent with current laws, it is an innovative way to take empowerment to another level while enabling greater investment in the economy, particularly by multinationals," said Ispa chair Sasha Booth-Beharilal.
Industry players, including Ispa, have the opportunity to comment on the draft policy direction before it is finalised and issued formally. Ispa said it supports the finalisation of the draft policy directive in its current form.
Malatsi, an MP for the Democratic Alliance, was criticised by some ANC MPs after issuing the draft policy direction. Chair of parliament's portfolio committee on communications, the ANC's Khusela Diko, accused Malatsi of bypassing the law and favouring Elon Musk-owned Starlink. Malatsi has consistently denied favouring Starlink or any other company.
President Cyril Ramaphosa has voiced his support for Malatsi's move, saying it will lead to the alignment of South Africa's black economic empowerment laws with ICT sector regulations.