The Minister of Communications and Digital Technologies, Solly Malatsi, has announced a new policy direction designed to attract investment in South Africa’s ICT sector while accelerating transformation efforts.

Published today in the Government Gazette, the draft policy outlines how equity equivalent investment programmes (EEIPs) can be used by multinational companies to meet empowerment obligations under the Electronic Communications Act.

EEIPs offer alternatives to traditional equity ownership, enabling companies that do not typically sell local shares, such as Elon Musk’s Starlink, to invest in initiatives that support South Africa’s transformation goals. These include local enterprise development, digital inclusion projects, skills training, infrastructure support, and SMME funding.

“Digital infrastructure and access to the internet open a world of opportunity — from applying for jobs and studying, to accessing government services or even starting a business,” Malatsi said.

The move could potentially enable Starlink to secure a licence to operate in South Africa. Musk has previously stated that local black ownership requirements have been a barrier to entry for the satellite internet service.

Currently, ICT licensing regulations require a minimum of 30% ownership by historically disadvantaged individuals. This has proven a challenge for international tech companies looking to enter the South African market.

The new policy aims to close this gap by recognising alternative contributions through EEIPs, in line with the ICT Sector Code under the Broad-Based Black Economic Empowerment (BBBEE) Act. It also reaffirms that transformation obligations will remain in place for all entrants, regardless of their size or technology model.

“Transformation is non-negotiable — all players must contribute meaningfully to equity, skills development, and economic inclusion,” Malatsi emphasised.

Once finalised, the policy will empower the Minister to direct the Independent Communications Authority of South Africa (ICASA) to align its ownership regulations with the full provisions of the ICT Sector Code.

The public has 30 days from the gazette publication to comment on the draft policy. Feedback can be submitted to the Ministry via email at kmoloto@dcdt.gov.za.