Communications and digital technologies minister, Solly Malatsi, is planning to issue new policy direction to the Independent Communications Authority of South Africa (ICASA) to lower regulatory hurdles that inhibit investment in the country.
In a statement, Malatsi says he intends to issue a policy direction to ICASA to clarify the department’s position on the recognition of equity equivalent programmes, for urgent consideration.
The Democratic Alliance’s Malatsi was appointed communications minister in June under the Government of National Unity.
This is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country, he notes.
“World Bank research shows that, on average, every 10% increase in broadband penetration results in 1.21% GDP growth in middle income countries such as South Africa,” Malatsi says.
“Broadband access makes it easier for people to start businesses, grow businesses, seek employment, work remotely, and market goods and services. Giving millions of South Africans access to broadband would, therefore, constitute one of the biggest empowerment programmes the South African government has ever undertaken.”
There are two parts to the initiative, he minister adds. “First, we need to lower regulatory hurdles to investment in cheap, reliable broadband. Second, we need to lower the price of the smart devices needed to use 4G and 5G data.
“Today I am focused on the first part. Announcements on the second part will follow in due course. After consultation with ICASA, the proposed policy direction will be published for comment as per section 3(5) of the Electronics Communications Act.”
He points out that this is in line with the Codes of Good Practice which recognise that the global nature of their operations may constrain multinationals in their ability to comply with equity ownership requirements.
“Equity equivalents, recognised in other sectors, provide an avenue for factoring in alternative ways for companies to make an impact on South Africa’s socioeconomic development.
“Policy clarity on the recognition of equity equivalence schemes has long been sought by players in the ICT industry. This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access.”
Malatsi’s new policy direction comes as BEE conditions for international companies to operate in the country have been a bone of contention.
One of the requirements for licence approval is that the company must be 30% owned by historically disadvantaged groups.
Elon Musk’s Starlink is such a company which is still to launch its satellite-based internet services in the country, with reports citing the empowerment regulations as the major stumbling block.
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