Communications minister Solly Malatsi said on Friday that he intends issuing a policy direction to communications regulator Icasa that could lead to an overhaul of black economic empowerment rules governing the ICT sector.
He said he plans to issue a policy direction to Icasa seeking to “clarify” government’s position on the empowerment rules. Many telecommunications and broadcasting licensees are required to have black shareholders to meet licensing conditions, something that has been criticised by some rolepayers in the past for impeding investment in the sector.
Specifically, Malatsi has said he would like to see equity equivalence programmes be made an option in the sector to encourage investment.
Malatsi said in the statement that he will make it his top priority as minister to deliver affordable broadband communications to all South Africans.
“This is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country,” he said.
The move comes just weeks after Malatsi met with representatives of Starlink, the low-Earth-orbit satellite provider owned by Elon Musk’s SpaceX. President Cyril Ramaphosa met with Musk in New York last week, too. Starlink is yet to be launched in South Africa, and some commentators have speculated that this is because of the equity participation required by Icasa. Starlink has not commented on the matter.
To get more South Africans connected to the internet, Malatsi has proposed:
- Lowering regulatory hurdles to investment in cheap, reliable broadband; and
- Lowering the price of the smart devices needed to use 4G and 5G data.
The minister delved into more detail about the plan in an interview with the TechCentral Show in an episode that will be published early next week.
He said in his statement on Friday that he will make a further announcement regarding his plans to reduce the cost of smart devices soon.
Foreign direct investment
The move to seek a possible amendment to Icasa’s empowerment rules is designed to encourage foreign direct investment in the sector, with multinational companies sometimes constrained in their ability to comply with equity requirements, according to Malatsi.
“Equity equivalents, recognised in other sectors, provide an avenue for factoring in alternative ways for companies to make an impact on South Africa’s socioeconomic development,” the minister said.
“Policy clarity on the recognition of equity equivalence schemes has long been sought by players in the ICT industry. This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access.” — © 2024 NewsCentral Media
