The Internet Service Providers’ Association (Ispa) has voiced its support for communications minister Solly Malatsi’s plan to reform empowerment rules in ICT sector licensing.
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.
“What he has announced is very much in line with our laws,” Ramaphosa said in response to a question by Economic Freedom Fighters MP Meisie Kennedy.
Socioeconomic development
“There is no violation – as far as he concerned and as far as I am concerned – with regard to our laws. And it is not specifically aimed at one or any company; it is aimed at ensuring those who would want to participate in this process, be they local or from any other country, may find greater ease in doing so.”
Ispa said extending EEIPs to the ICT sector is a welcome development, adding that it looks forward to a speedy resolution of the process that “hints at welcome innovation and flexibility in official ICT policy”.
The association said EEIPs take a broader approach to empowerment and also focus on initiatives that contribute to greater socioeconomic development such as rural infrastructure programmes, skills development, job creation and research & innovation.
Read: Starlink to South Africa: ‘We are ready to invest’
“In the medium term, Ispa is hopeful that a finalised EEIP policy direction will see its members and others being able to take advantage of wholesale satellite service opportunities, increasing the country’s penetration of digital voice and data services with all the associated benefits,” said Ispa. – © 2025 NewsCentral Media
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