Communications and Digital Technologies Minister Solly Malatsi has dismissed criticism of his newly issued policy directive aimed at easing Black Economic Empowerment (BEE) requirements for foreign investors in the information and communications technology (ICT) sector, describing the opposition as politically motivated.
The directive, published last week, introduces an alternative investment pathway for foreign ICT companies, including satellite internet providers such as Starlink.
It allows these entities to invest in South Africa without being compelled to sell a 30 percent equity stake to local partners, provided their investments align with existing empowerment frameworks.
Malatsi has argued that critics have overlooked a key aspect of the directive, namely that it requires full compliance with the country’s empowerment legislation and sector-specific codes.
He maintains that the policy does not weaken transformation objectives but instead makes use of provisions already contained in the Broad-Based Black Economic Empowerment Act and the ICT sector codes, which allow for equity-equivalent investment programmes.
Despite this, the directive has drawn resistance from across the political spectrum. Opposition parties in Parliament have criticised the move, while concerns have also emerged from within the ministry, including from Deputy Minister Mondli Gungubele.
The Economic Freedom Fighters (EFF) have condemned the directive, accusing the minister of using executive authority to circumvent South African laws in order to accommodate Starlink’s entry into the local market.
The MK Party has also criticised the move, arguing that it sidelines Parliament’s role in policy formulation.
Malatsi has further stated that public submissions on the matter were largely supportive of the directive.
He has since requested the communications regulator, the Independent Communications Authority of South Africa (ICASA), to take these submissions into account as it considers the implementation of the policy.
Facebook Comments