Minister Solly Malatsi of the Department of Communications and Digital Technologies (DCDT) issued a government gazette notice on 23May 2025, outlining proposed amendments to South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) requirements for the telecommunications sector. This policy seeks to facilitate greater foreign investment in broadband structure, particularly satellite internet services.
· Encourage investment and innovation in the communications sector.
· Promote competition within the ICT sector.
· Align the Act with other legislation, including the Amended B-BBEE ICT Sector Code.
Through the policy amendment, the DCDT seeks to:
· Bridge the digital divide by expanding broadband access to underserved areas.
· Align with the World Bank's findings that increased broadband penetration can significantly boost GDP in middle-income countries.
· Provide multinational companies with alternative avenues to contribute to South Africa's socio-economic development through equity equivalent investment programmes.
Recognising that international corporations face complex challenges in complying with existing equity ownership requirements, the proposed policy would allow companies to fulfil B-BBEE obligations through alternative mechanisms, such as:
· Investing in local suppliers.
· Creating employment opportunities.
· Supporting small businesses.
The policy shift comes amid renewed interest in the entry of Elon Musk’s Starlink into the South African market. Starlink, a satellite internet service, has faced regulatory hurdles due to existing B-BBEE rules requiring foreign telecoms firms to cede 30% of local equity to historically disadvantaged groups.
Lungile is the Digital Editor for TechAfrica, with a knack for storytelling, technology and innovative ideas. Working with TechAfrica, she takes simple ideas and turns them into amazing stories.
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