03.06.2025
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Malatsi clarifies EEIP policy directions

5 mins



  • The South African Ministry of Communications and Digital Technologies has unveiled a draft policy direction…

3 minutes

Communications and Digital Technologies Minister Solly Malatsi has clarified the policy directions regarding Equity Equivalent Investment Programmes (EEIP) and the application of licencing in the Information Communication Technology (ICT) sector.

The clarification follows reports suggesting that the recently gazetted policy directions were favouring SpaceX, the low Earth orbit satellite provider owned by Elon Musk, and its Starlink satellite internet service.

Appearing before Parliament’s portfolio committee, Malatsi stated that the work on the policy directions began last year.

He emphasised that the EEIP is not a new initiative by his department but is provided for under the Broad-Based Black Economic Empowerment (B-BBEE) Act, which requires a minimum of 30% ownership by persons from historically disadvantaged groups.

“I’m pretty clear that transformation is sacrosanct in our country, that it’s non-negotiable in order for the country to achieve its aspirations, but most importantly to live to the provisions of the Triple BEE Act, as it was articulated and envisaged. So we are not attempting to open a special dispensation for Starlink or any other company or an individual,” says Malatsi.

According to the EEIP report, the EEIP was designed for multinationals whose global policies prevent them from complying with the ownership element of B-BBEE through the traditional sale of equity or shares.

These companies must prove that they have not entered into ownership partnership arrangements in other countries.

The B-BBEE policy allows for recognition of alternative contributions, which may be measured against 25% of the multinational’s operations in South Africa or 4% of its total turnover from South African operations, states the report.

The EEIP is aimed at promoting investment in small, medium, and micro enterprises (SMMEs) and fostering broad-based participation in the economy. The EEIP should not replace other B-BBEE initiatives, the report further states.

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