Government’s long-awaited ICT empowerment charter has been published in the Government Gazette, nine years after it was first mooted. The charter is intended to encourage and promote black ownership and participation in the ICT sector.

The finalised charter was released at the ICT Indaba in Cape Town on 6 June and is apparently in force with immediate effect, though it will take companies time to examine and meet its stipulations. It is intended to bring the ICT sector in line with the broader empowerment aims of government.

The charter affects both listed and unlisted companies, with the former expected to show that 25,1% of their equity is in the hands of empowerment partners up to a maximum of R7,5bn of the company’s value. Unlisted companies have to demonstrate 30% empowerment at the equity level.

Aimed at bridging the “digital divide” between those with access to technology and those without, the charter is meant to stimulate growth in the ICT sector. It is also hoped the stipulations companies are required to meet, which include skills development and training, will eventually contribute towards a reduction in unemployment and not merely a change in ownership to black hands.

Government says the charter has been developed with the assistance of sector stakeholders, including companies involved in broadcasting, electronics, IT and telecommunications. The sector regulator, the Independent Communications Authority of SA, has also provided input.

According to the charter, its stipulations are to be reviewed by the minister of communications in 10 years’ time, but its progress in realising its objectives is to be assessed on an annual basis.

The document has been under discussion since it was first proposed in 2003 and has undergone numerous revisions since then.

Companies with annual total revenue of R5m or less are exempted and classified as “micro enterprises”. Start-ups are similarly classified for their first year, regardless of their total revenue during the period.

Companies that don’t qualify for exemption will have to produce scorecards, with points awarded for measures such as ownership, management control, employment equity, skills development and preferential procurement.

Skills development is the third highest scoring category after ownership and preferential procurement, a move that seeks to encourage in-house training.

It appears the charter took effect on 6 June. This means companies that were previously compliant are now not and that many enterprises — particularly those that are unlisted — will need to prove their compliance once more.

Asked about the implications of the charter, Maya Makanjee, Vodacom’s chief officer for corporate affairs, said that although the company had been involved in the various stages of the process, there had been “some modifications to the final charter which was gazetted on Friday”. She said the company is “currently studying these changes” and is thus unable to offer further comment.