On 23 May 2025, Communications and Digital Technologies Minister Solly Malatsi unveiled a draft policy direction in the Government Gazette proposing an alternative to the stringent Broad Based Black Economic Empowerment B-BBEE
ownership requirements for the ICT sector.
The new model would allow companies to meet empowerment obligations through equity equivalent programmes (EEPs) rather than direct ownership transfers.
This move could facilitate the entry of global players like Starlink into South Africa’s telecommunications market while still advancing economic transformation.
The draft regulation is now open for 30 days of public comment before finalisation.
If approved, it could significantly shift South Africa’s approach to B-BBEE compliance in the ICT sector, prioritising economic growth without abandoning empowerment goals.
Furthermore, South Africa’s proposed equity equivalent model represents a pragmatic compromise between attracting foreign investment and advancing economic transformation.
While critics question its motivations, the policy follows established precedents and could help stabilise the country’s tech and telecommunications landscape amid growing global economic pressures.
The next month will be crucial in shaping its final form and impact on South Africa’s digital future.
Source: https://spaceinafrica.com/2025/05/25/south-africa-proposes-equity-equivalent-model-to-ease-b-bbee-requirements-for-ict-sector/
