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Electronic Communications Act, 2005 (Act No. 36 of 2005)

Regulations

Amendment Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDGs) and the application of the ICT Sector Code, 2021

4. Application of B-BBEE Requirements on Licences

 

(1) An Individual Licensee must have a minimum of 30% of its ownership equity held by Black People, determined using the Flow Through Principle.

 

(2) An Individual Licensee must comply with both the Black Equity Requirement and the HDG Equity Requirement..

 

(3) Notwithstanding regulation 4(2), compliance with the Black Equity Requirement by an Individual Licensee will also constitute compliance with HDG Equity Requirement.

 

(4) Individual Licensees and Class Licensees must have a minimum B-BBEE Contributor Status Level of four.

 

(5) Subject to regulation 7, existing Class Licensees will not be required to comply with the minimum B-BBEE Contributor Status Level requirement set out in regulation 4(4) until the renewal, transfer or amendment of their Class Licences.

[Regulation 4(5) substituted by section 4(4.1) of Notice No. 983, GG46245, dated 14 April 2022]

 

(6) Individual Licensees and Class Licensees are required to provide the Authority with proof demonstrating compliance with regulations 4(1) and/or 4(4) on an annual basis in accordance with the Compliance Procedure Manual Regulations.

 

(7) Proof of compliance with regulations 4(1) and 4(4) will, subject to regulation 4(8), be by way of a B-BBEE Verification Certificate.

[Regulation 4(7) substituted by section 4(4.2) of Notice No. 983, GG46245, dated 14 April 2022]

 

(8) Individual Licensees and Class Licensees that are recognised as EMEs or QSEs under the ICT Sector Code may submit a sworn affidavit or CIPC issued certificate, issued in accordance with the ICT Sector Code confirming:
(a) the Licensee’s annual Total Revenue
(b) the Licensee’s B-BBEE Contribution Status Level; and
(c) in the case of Individual Licensees, level of ownership equity percentage held by Black People determined using the Flow Through Principle.

 

(9) Individual Licensees that have, as proof of compliance with the HDG Equity Requirement, submitted a B-BBEE Verification Certificate in accordance with regulation 3(6)(a), or a sworn affidavit or a CIPC issued certificate in accordance with regulation 3(7), which confirms both the Individual Licensee’s level of ownership equity percentage held by Black People determined using the Flow Through Principle and B-BBEE Contributor Status Level, will not be required to submit an additional B-BBEE Verification Certificate, sworn affidavit or a CIPC issued certificate in accordance with regulations 4(7) or 4(8) in order to show compliance with regulations 4(1) and 4(4).

 

(10) Notwithstanding regulation 4(6), Individual Licensees are required to provide the Authority with proof of compliance with regulations 4(1) and 4(4), and Class Licensees are required to provide the Authority with proof of compliance with regulation 4(4) when making any kind of application pertaining to a licence (including new applications, transfers, renewals and amendments).