Equity equivalent programmes boost South Africa's digital inclusion

South Africa's Minister of Communications and Digital Technologies, Solly Malatsi, has issued a policy direction to align telecommunications licensing with broad-based black economic empowerment laws. This move introduces equity equivalent investment programmes for foreign multinationals, allowing contributions to economic inclusion without direct ownership. The policy aims to accelerate broadband access, particularly in underserved areas.

In May 2025, Minister Solly Malatsi published a draft policy direction mandating the Independent Communications Authority of South Africa (Icasa) to harmonize its licensing framework for communications operators with the Broad-Based Black Economic Empowerment Act (BBBEE Act) and the ICT Sector Code. This addresses regulatory gaps from Icasa's 2021 control and ownership regulations, amended in 2022, which emphasized strict equity ownership over broader empowerment measures.

The ICT Sector Code, approved by the Department of Trade, Industry and Competition (DTIC) in 2016, outlines multiple paths for black economic empowerment, including procurement from black-owned small, medium, and micro enterprises (SMMEs), management representation for black individuals, and share offerings. Under Statement 103, equity equivalent investment programmes (EEIPs) enable wholly foreign-owned multinationals to achieve full scorecard points by investing in skills development, enterprise and supplier development, and critical infrastructure, rather than selling equity stakes.

Malatsi defends the policy as a legal tool under the Electronic Communications Act (ECA) and Icasa Act, countering claims of executive overreach. Icasa's narrow focus on ownership, despite over a decade of sector consultations recommending alignment with the ICT Sector Code, has led to high industry costs, investor exclusion, and delays in broadband rollout. The ECA requires Icasa to promote broad-based empowerment, addressing needs of women, youth, and persons with disabilities.

Public consultation yielded over 19,000 submissions, with about 15,000 substantive ones; 90% supported the direction for unlocking high-speed internet in rural areas and ensuring regulatory parity. Opponents, including some fearing foreign operator dominance, were outnumbered. Mobile network operators, via the Association of Communications and Technology, stressed equal obligations for EEIP qualifiers, such as fees and universal service contributions—matters Icasa can enforce.

The gazetted policy promotes regulatory harmonization, enabling multinationals to aid universal connectivity without undermining transformation goals.

Mga Kaugnay na Artikulo

Ethiopia's Council of Ministers has approved a new regulation establishing the Universal Access Fund, funded by a 1.5% levy on telecom operators' annual gross revenue to connect rural areas. This policy aims to advance the country's digital economy goals. The Ethiopian Communications Authority will manage the fund to address infrastructure gaps in underserved regions.

Iniulat ng AI

Ethio telecom has signed an agreement with ericsson to expand its network and strengthen digital infrastructure. The pact was inked on the sidelines of the mobile world congress in barcelona. It covers expansions, upgrades, and new technologies across 1,500 mobile stations.

The latest BLSA Reform Tracker shows South Africa’s economic reforms reaching a 71.75% completion index, up 27% since March 2024, but quarterly progress has slowed and municipal dysfunction persists. Cooperative Governance Minister Velenkosini Hlabisa stated that local government failures are the main barrier to growth. National initiatives like Operation Vulindlela continue, yet execution at street level lags.

Iniulat ng AI

The Common Market for Eastern and Southern Africa (COMESA) has unveiled its Investment Map, an interactive digital platform presenting 180 nationally endorsed investment opportunities across seven priority sectors. The launch occurred at the COMESA Investment Forum 2026 in Nairobi, with participation from all 21 member states.

Cooperatives Cabinet Secretary Wycliffe Oparanya has required all Savings and Credit Cooperative Organisations (SACCOs) in Kenya to adopt digital systems and shared services for licensing. He announced this on April 9, 2026, at Lake Naivasha Resort in Nakuru County, aiming to improve transparency, efficiency, and internal controls. The measures form part of reforms under the Cooperative Bill.

Iniulat ng AI

Kenya has launched two digital trade platforms aimed at enhancing trade and investment across Africa. These platforms are set to turn African embassies into hubs under the African Continental Free Trade Area (AfCFTA). Developed by Real Sources Africa, they particularly support small and medium enterprises and women-led businesses.

Gumagamit ng cookies ang website na ito

Gumagamit kami ng cookies para sa analytics upang mapabuti ang aming site. Basahin ang aming patakaran sa privacy para sa higit pang impormasyon.
Tanggihan