Minister Solly Malatsis Policy Direction on Broad-Based Black Economic Empowerment B-BBEE for the ICT industry has met resistance from the Independent Communications Authority of South Africa ICASA . In line with the Government of National Unitys mission to maximise prospects of attracting investment through regulatory reforms, the Minister of Communications and Digital Technologies, Solly Malatsi, last year gazetted the policy direction on the role of equity equivalent investment programmes EEIPs in the ICT sector as a mechanism to accelerate broadband access.
The policy direction seeks to provide the much-needed certainty to attract investment into the Information and Communication Technologies ICT sector, specifically with regard to licensing for broadcasters, internet service providers, mobile networks, and fixed and mobile networks.
Currently, the rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30 shareholding to be in the hands of historically disadvantaged individuals. These regulations do not currently allow companies that can contribute to South Africas transformation goals in ways other than traditional ownership to qualify for individual licences under the Electronic Communications Act ECA, including large international companies that do not usually sell shares to local partners.
