This, could pave the way for investment from global technology firms such as Starlink.

The government gazette released today outlines changes to the existing 30% equity requirement for historically disadvantaged individuals in new investments within the Information and Communications Technology (ICT) sector.

The draft policy aims to facilitate investment by introducing an equity equivalent investment programme, which allows multinational companies to meet empowerment requirements through alternatives such as investment in local suppliers, enterprise development, skills training, job creation, research, and innovation, rather than direct ownership.

Malatsi emphasised that the proposed amendments seek to maintain transformation objectives while attracting crucial investment into the sector.

“Currently, the rules require a minimum of 30% equity in the hands of historically disadvantaged individuals for any ICT services licence. The new equity equivalent investment programme under B-BBEE and ICT sector codes allows qualifying multinationals to fulfil empowerment obligations through alternative mechanisms. This policy directive aims to ensure consistency, unlock investment, and give practical effect to ICT sector codes in line with national development goals,” Malatsi explained.

The draft policy is expected to be debated by stakeholders in the public and private sectors before final approval.

--SABC/ChannelAfrica--