COMMUNICATIONS COMMITTEE SLAMS SLOW PACE OF TRANSFORMATION AND POOR B-BBEE COMPLIANCE IN ICT SECTOR
- BEE NEWS
- Oct 29
- 2 min read
Justice Molafo | 29 October 2025
The Portfolio Committee on Communications and Digital Technologies has raised serious concerns about the slow pace of transformation and weak progress in broad-based black economic empowerment (B-BBEE) across the information and communications technology (ICT) sector.
This follows a briefing the committee received on Tuesday from the B-BBEE ICT Sector Council, which painted a troubling picture of discretionary compliance and limited enforcement among industry players. According to the sector council, overall compliance with sector reporting requirements stands at a mere 0.003%.
Many companies reportedly exploit loopholes in the non-punitive legislative framework by filing under the Generic Amended Codes of Good Practice (2019) instead of the ICT Sector Codes, which are meant to take precedence. The ICT Sector Code is designed to measure transformation across several critical areas, including ownership, management control, employment equity, skills development, preferential procurement, enterprise and supplier development and socio-economic development.
While the sector council reported modest gains in management control – achieving around 60% of the target – progress in ownership remains particularly poor. The sector performed relatively well in enterprise and supplier development, reaching about 40% of the 50% target, but skills development efforts have stagnated. In 2021, skills development investment fell to between 54% and 61% of payroll, down from the previous year’s 60% to 61%, suggesting a slowdown in workplace training initiatives.
The committee noted with concern the B-BBEE ICT Sector Council’s financial challenges. Under Statement 003 of the B-BBEE Act, sector charter councils are required to be jointly funded by the private sector and the relevant government department. However, the Department of Communications and Digital Technologies has not fulfilled this obligation, aside from providing initial start-up funding during the fourth administration.
Members warned that the lack of sustainable funding hampers the council’s ability to conduct verification and audit processes, particularly in relation to the Equity Equivalent Investment Programme for multinational companies. The committee emphasised that consistent and adequate funding is vital for the council to effectively fulfil its mandate of monitoring transformation across the sector.
To address the matter, the committee plans to engage the Department of Trade, Industry and Competition next month to gain a broader understanding of the obstacles and to explore potential policy interventions.
Committee Chairperson Ms Khusela Sangoni Diko said the committee remains deeply concerned about the slow pace of meaningful transformation in the ICT industry. “True economic empowerment in the ICT sector is fundamental to achieving inclusive growth and innovation. We cannot allow transformation to stagnate while technology continues to shape the country’s economic future.
The sector must demonstrate genuine commitment to equity and accountability,” Ms Diko said.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.