In Picture: The Minister of Communications and Digital Technology Solly Malatsi Photo Credit; AwakeMzansi
By Zenzile Dlamini
Minister of Communications and Digital Technology, Solly Malatsi, has defended his department’s recently gazetted policy directive aimed at recognising Equity Equivalent Investment Programmes (EEIPs) on the ICT.
The directive from Malatsi, now opens the door for EEIPs, allowing multinationals to contribute through infrastructure development, digitisation, and skills training, rather than ceding direct ownership.
The timing of the directive has sparked a public debacle, coming soon after businessman Johann Rupert, who was part of the South African delegation to meet US President Donald Trump, said the country needed Starlink in all police stations to curb crime.
The gazette policy directions violates the Electronic Communications Act and seem to favour Starlink, a satellite internet constellation owned by Billionaire Elon Musk.
The Economic Freedom Fighters’ Sinawo Thambo accused Malatsi of using the language of “alignment” to avoid admitting the directive alters legislation. “Any alignment will inevitably lead to parliamentary amendments,” he said, questioning why the department would relax BEE rules for Starlink, which complies with stricter equity requirements in India and Taiwan.Tambo said the claim that Starlink would improve rural access to the internet was a myth, adding that local empowerment should not be compromised for tech companies.
Starlink has failed to get an operating license because Musk refused to meet Broad-Based Black Economic Empowerment (BBBEE) ownership requirements. Currently telecommunications companies must have at least 30% equity owned by historically disadvantaged people to obtain individual and broadcasting service.
Colleen Makhubele, of the uMkhonto weSizwe party (MKP) said Malatsi had not provided a stakeholder engagement report or regulatory impact assessment to support the policy directive, adding that the minister was focusing on bringing in a foreign company instead of empowering 490 local operators. “I think your reason for competition is flimsy, it’s frivolous. It should have not even have been raised in this platform,” said Makhubele.“What you should be doing is to ensure these 490 are empowered enough to create good competition for the dominant companies,” she added.
Speaking before Parliament’s Portfolio Committee on Communications, Malatsi defended the directive, stating that it is not gazetted to favour any individuals.
“We are not attempting to open a special dispensation for Starlink, or any other company or an individual. We are saying that the regulations in our sector must consistently make provision for the two choices that exist in any other sector, the 30% local ownership or the pathway of equity equivalence,” he said.
