B-BBEE: Parliamentary Committee Briefed on ICT Sector Transformation and EEIP Dispute

Posted 02 June 2026 Written by Acts Online
Category Broad-based Black Economic Empowerment

Brought to you by SA Legal Academy: In terms of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, and the Amended ICT Sector Code of Good Practice, the National Assembly’s Portfolio Committee on Communications and Digital Technologies has been briefed on systemic governance challenges within the ICT Sector Charter Council and a contentious policy directive regarding ownership requirements.

Department of Trade, Industry and Competition (DTIC) officials briefed the parliamentary committee on several operational hurdles undermining the ICT Sector Charter Council. These challenges include poor council governance, erratic monitoring and reporting, inadequate funding, and internal tensions, which have collectively slowed the pace of transformation across the sector.

The Policy Directive and EEIP Dispute

The briefing occurred amid ongoing debate surrounding a policy direction gazetted in December 2025 by the Minister of Communications and Digital Technologies, Solly Malatsi. The directive urged the Independent Communications Authority of South Africa (ICASA) to consider aligning its March 2021 regulations on the limitations of control and equity ownership by historically disadvantaged groups (HDGs) with the Amended ICT Sector Code of Good Practice.

Specifically, the policy direction highlighted the code’s provisions for Equity Equivalent Investment Programmes (EEIPs). ICASA responded formally to the directive on 13 May 2026, followed by a statement from the ICT Sector Charter Council expressing strong reservations about the proposed alignment.

The ICT Sector Charter Council raised the following key concerns regarding the integration of EEIPs:

  • Risk to Transformation: Allowing EEIPs as an alternative to the mandatory 30% historically disadvantaged individuals (HDI) ownership requirement, particularly for new licences, could reverse fragile transformation gains.
  • Market Domination: The council warned that the shift risks re-entrenching exclusion by allowing historically privileged entities to dominate the market under the guise of investment or innovation.
  • Industry Resistance: Committee members noted widespread frustration with the level of resistance to ownership and control elements among both multinational and domestic ICT companies.

A joint meeting involving the Minister of Communications and Digital Technologies, ICASA, the ICT Sector Charter Council, and the DTIC is expected to be convened to resolve these policy misalignments.

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

  • For yourself: No direct individual compliance obligations; however, professional advisors must stay informed of the evolving definitions of ownership compliance within the ICT sector.
  • For your business: ICT firms and compliance officers must monitor whether ICASA will amend its licensing criteria to accept EEIPs, which could significantly alter corporate structuring and empowerment strategies.
  • For your clients: Clients seeking new telecommunications or broadcasting licences must prepare for potential regulatory shifts regarding the 30% direct HDI ownership threshold and evaluate the viability of equity equivalent programs as a contingency.

Originally published at https://legalacademy.co.za/news/read/b-bbee-parliamentary-committee-briefed-on-ict-sector-transformation-woes

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