Minister Gazettes New B-BBEE Policy Amendments for Telecoms

Minister Solly Malatsi of the Department of Communications and Digital Technologies (DCDT) issued a government gazette notice on 23 May 2025, outlining proposed amendments to South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) requirements for the telecommunications sector. This policy seeks to facilitate greater foreign investment in broadband structure, particularly satellite internet services.

The policy direction is issued under Section 3 of the Electronic Communications Act, aims to:

· Encourage investment and innovation in the communications sector.

· Promote competition within the ICT sector.

· Align the Act with other legislation, including the Amended B-BBEE ICT Sector Code.

Through the policy amendment, the DCDT seeks to:

· Bridge the digital divide by expanding broadband access to underserved areas.

· Align with the World Bank's findings that increased broadband penetration can significantly boost GDP in middle-income countries.

· Provide multinational companies with alternative avenues to contribute to South Africa's socio-economic development through equity equivalent investment programmes.

B-BBEE Equity Equivalent Investment Policy Options

Recognising that international corporations face complex challenges in complying with existing equity ownership requirements, the proposed policy would allow companies to fulfil B-BBEE obligations through alternative mechanisms, such as:

· Investing in local suppliers.

· Creating employment opportunities.

· Supporting small businesses.

The policy shift comes amid renewed interest in the entry of Elon Musk’s Starlink into the South African market. Starlink, a satellite internet service, has faced regulatory hurdles due to existing B-BBEE rules requiring foreign telecoms firms to cede 30% of local equity to historically disadvantaged groups.