Draft Policy Direction on ICT Investment and B-BBEE Issued for Comment

Posted 23 May 2025 Written by Acts Online
Category Communications & Digital Technologies

Brought to you by SA Legal Academy: The Department of Communications & Digital Technologies has invited public comment on a draft policy directive regarding the intersection of ICT investment and B-BBEE compliance.

In terms of the Electronic Communications Act, No. 36 of 2005, the Minister has published a draft policy direction aimed at facilitating investment in broadband infrastructure while upholding transformation mandates. The Department has set a deadline of 22 June 2025 for all interested parties to submit written representations on the proposed directive.

The draft policy specifically references the 2016 amended ICT sector B-BBEE code of good practice, emphasizing the need for regulatory certainty. It seeks to balance the requirement for increased foreign and domestic investment in the digital economy with the statutory obligations for black economic empowerment within the sector.

Key Objectives

  • Enhancing regulatory consistency for licensees governed by the Electronic Communications Act, No. 36 of 2005;
  • Aligning investment incentives with the transformation targets set out in the ICT Sector Code; and
  • Clarifying the criteria for equity equivalent programs or ownership requirements for international investors in the telecommunications space.

What this means for you, your business, or your clients

  • For yourself: Legal and compliance professionals must track the 22 June 2025 deadline to ensure any necessary client representations are filed timeously.
  • For your business: ICT firms should review their current B-BBEE strategies to determine if the proposed policy direction will alter the compliance burden for infrastructure-heavy investments.
  • For your clients: Clients in the telecommunications and digital infrastructure sectors should assess their current ownership structures against the draft directive to identify potential risks to license renewals or new applications.

Originally published at https://legalacademy.co.za/news/read/broadband-investment-b-bbee-draft-policy-direction-out-for-comment

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