By: Pamella Majola
Communications and Digital Technologies Minister, Solly Malatsi, has officially gazetted a policy direction concerning Equity Equivalent Investment Programmes (EEIPs) within the Information and Communications Technology (ICT) sector.
The draft policy aims to stimulate foreign and local investment, expand broadband access particularly in underserved areas, and ensure that spectrum and service licensing align with the requirements of the ICT Sector Broad-Based Black Economic Empowerment (B-BBEE) Code.
EEIPs provide an alternative mechanism for multinational companies, such as Elon Musk’s satellite internet firm Starlink, to contribute meaningfully to South Africa’s transformation objectives without the need for direct equity ownership. Instead, these firms can invest in initiatives that support skills development, infrastructure expansion, innovation, and inclusion in the digital economy.
The Department of Communications and Digital Technologies has invited public comment on the proposed directive for a period of 30 days from its date of publication in the Government Gazette.
