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- FRONTING PRACTICES | THE IMPACT ON COMPLIANCE AND ECONOMIC TRANSFORMATION
In the realm of economic empowerment, Broad-Based Black Economic Empowerment (B-BBEE) stands as a cornerstone initiative aimed at redressing imbalances of the past and fostering inclusive growth. However, even with its noble intentions, there lies a persistent challenge: Fronting Practices. Fronting Practices refer to the practice of misrepresenting the true nature of B-BBEE compliance, often undermining its objectives and perpetuating economic inequality. At its core, B-BBEE seeks to empower Black People and promote their meaningful participation in the economy. It encompasses various measures such as Ownership, Management Control, Skills Development, Enterprise and Supplier Development, and Socio-Economic Development; all aimed at broadening economic participation and socio-economic empowerment. However, Fronting Practices undermine these objectives by creating a facade of compliance while circumventing the spirit of B-BBEE and transformation initiatives. Fronting Practices manifests in various forms, ranging from the creation of superficial empowerment structures to the exploitation of loopholes in B-BBEE legislation. One common tactic involves the establishment of so-called "front companies" or "token Black Ownership" structures, where Black individuals or entities are used as figureheads without genuine involvement or control in the business operations. In other instances, companies may engage in window-dressing tactics, such as inflating Procurement Spend with Black-Owned suppliers without genuine economic empowerment outcomes. The prevalence of Fronting Practices poses significant challenges to B-BBEE compliance and undermines the credibility of the entire empowerment framework. It not only erodes trust between stakeholders but also perpetuates a culture of non-compliance and impunity. Moreover, Fronting Practices distort market dynamics by allowing entities to unfairly compete for business opportunities meant for genuinely empowered enterprises, thereby stifling economic transformation and exacerbating inequality. Addressing Fronting Practices requires a multifaceted approach that combines robust enforcement mechanisms, increased transparency, and enhanced public awareness. Regulatory authorities such as the B-BBEE Commission and the Department of Trade, Industry and Competition ( the dtic ) must strengthen enforcement measures to detect and penalise instances of Fronting Practices effectively. This may involve conducting thorough investigations, imposing severe penalties on offenders, and implementing measures to deter future violations. Moreover, collaboration between government agencies, industry associations, and civil society organisations is essential to share best practices, raise awareness, and promote compliance with B-BBEE principles. Transparency and accountability are critical in combating Fronting Practices and restoring trust in the B-BBEE framework. Companies must adopt a culture of transparency and disclosure, providing clear and accurate information about their empowerment initiatives and outcomes. This includes publishing detailed B-BBEE Scorecards, where possible, disclosing Ownership structures, and demonstrating genuine efforts towards economic empowerment. By driving transparency, companies can mitigate the risk of Fronting Practice allegations and demonstrate their commitment to genuine transformation. Furthermore, public awareness and education play a vital role in addressing Fronting Practices and promoting compliance with B-BBEE principles. Stakeholders across the public and private sectors must engage in proactive outreach efforts to educate businesses, investors, and the general public about the importance of economic empowerment and the consequences of Fronting Practices. This may involve hosting workshops, disseminating informational materials, and leveraging digital platforms to raise awareness about B-BBEE compliance requirements and best practices. Ultimately, Fronting Practices represents a significant challenge to B-BBEE compliance and undermines efforts to achieve meaningful economic transformation in South Africa. Addressing Fronting Practices requires a concerted effort from regulatory authorities, businesses, and civil society to strengthen enforcement measures, promote transparency, and public awareness. When we tackle Fronting Practices head-on and uphold the principles of genuine economic empowerment, we can pave the way for a more inclusive and equitable society, where every citizen can thrive.
- WORKER'S DAY
Worker's Day will be celebrated on May 1 st, and it holds a profound significance. It commemorated the struggles and achievements of workers, particularly in their fight for fair labour practices and rights. Originating from the historic struggle against Apartheid, it is a reminder of the solidarity and resilience of the workforce. This day honoured the contributions of workers across industries, acknowledging their role in shaping our Country’s socio-economic landscape. It is a time to reflect on progress made in labour rights and to advocate for ongoing improvements in working conditions, wages, and equality. In terms of B-BBEE (Broad-Based Black Economic Empowerment), Worker's Day underscores the importance of economic inclusivity. B-BBEE initiatives aim to address historical injustices by promoting the participation of Black South Africans in the economy. On days like Worker's Day, the commitment to B-BBEE principles is reaffirmed, emphasising the integration of marginalised groups into all facets of economic activity.
- MTN MAINTAINS LEVEL 1 B-BBEE STATUS FOR SEVENTH CONSECUTIVE YEAR
Likho Mbuka | 16 April 2026 Group highlights procurement spend and skills development as key drivers of sustained top rating. MTN Group and its major subsidiary MTN South Africa have maintained their Level 1 Broad-Based Black Economic Empowerment (B-BBEE) contributor status in 2025, marking six consecutive years for the group and seven for its South African unit. The rating, verified by an independent agency, reflects continued performance across key elements of the B-BBEE scorecard, including skills development, enterprise and supplier development, and socio-economic development. MTN said its procurement spend remains a central lever in driving transformation. During 2025, the group spent R8.8 billion with 51% Black-owned suppliers and R11.6 billion with 30% Black women-owned suppliers, reinforcing its role in supporting local enterprise development. Investment in skills development also remained a focus, with 492 learnerships, graduate programmes and targeted interventions supported during the year, aimed largely at building digital and technical capabilities. Group CEO Ralph Mupita said the sustained Level 1 status reflects the link between business performance and broader economic inclusion. “Maintaining a Level 1 B-BBEE status over many years reflects our commitment to long-term business success and societal progress,” he said. MTN South Africa CEO Ferdi Moolman added that procurement, skills development and partnerships are being used to drive economic participation beyond compliance requirements. Through its foundation initiatives, MTN said it reached more than 905 000 learners via its online school platform and over 25 000 beneficiaries through its skills academy, with a focus on youth and women. The group said it will continue to embed transformation across its value chain as part of its broader strategy to drive inclusive growth and digital participation in South Africa. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/companies-and-deals/mtn-maintains-level-1-b-bbee-status-for-seventh-consecutive-year/
- ‘OUR LAWS ARE NOT RACIST,’ RAMAPHOSA SAYS B-BBEE GOING NOWHERE AMID MUSK BACKLASH
Simon Majadibodu | 15 April 2026 President Cyril Ramaphosa has dismissed criticism from Elon Musk over South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) laws, insisting the policy is not racist, despite being labelled “extremely racist” by the billionaire. Musk, who was born in South Africa, claimed his satellite internet service, Starlink, was denied a licence because he is not Black. He described the regulations as “extremely racist” and a “shameful disgrace” to the legacy of Nelson Mandela, and called for sanctions against officials supporting B-BBEE. However, the Independent Communications Authority of South Africa (ICASA) confirmed in March 2025 that Starlink had not formally applied for the required licences, despite raising concerns about the regulatory framework. Under the Electronic Communications Act, aligned with B-BBEE policy, companies are required to have at least 30% equity ownership by historically disadvantaged individuals. Musk also alleged that his company was offered opportunities to bypass the requirement by misrepresenting ownership, which he said he refused. Speaking on the sidelines of the National Local Economic Development Summit 2026 in Boksburg, Ramaphosa said he paid little attention to Musk’s remarks. “Our laws are not racist. They are empowerment laws meant to uplift people who were discriminated against,” he said. Ramaphosa said that apartheid-era policies explicitly restricted Black South Africans’ rights, including where they could live and work. He said current legislation is rooted in constitutional provisions aimed at redressing historical inequalities. “What we are seeking to do is implement the constitutional imperative to correct the imbalances of the past,” he said. He added that companies unable to meet equity ownership requirements can comply through “equity equivalent” programmes, such as investments in enterprise development, education and community initiatives. Ramaphosa said hundreds of international firms, including Google, Amazon, Microsoft and General Electric, comply with South African regulations. “Singling out our BEE laws is quite dishonest,” he said. “These are empowering laws designed to benefit all South Africans, including women who were disadvantaged under previous systems.” Meanwhile, tensions between South Africa and the United States have intensified. Advocacy group AfriForum has called for sanctions against ANC secretary general Fikile Mbalula. The situation follows renewed scrutiny of US-South Africa relations under President Donald Trump, who returned to office in January 2025. His administration has criticised South Africa’s land reform policies and foreign relations with Russia, China and Iran, and threatened sanctions alongside a proposed US-South Africa Bilateral Relations Review Act of 2025. The US has also imposed 30% tariffs on certain South African goods as part of its broader trade strategy. Last week, Mbalula said in August 2025 that ANC leaders were prepared to face sanctions rather than abandon policies aimed at economic transformation, including B-BBEE. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/news/politics/2026-04-15-our-laws-are-not-racist-ramaphosa-says-b-bbee-going-nowhere-amid-musk-backlash/
- AFRIKA TIKKUN CELEBRATES 30 YEARS OF EMPOWERING YOUTH IN MFULENI
Phiri Cawe | 14 April 2026 While birthdays are typically marked by festive gatherings and decorated cakes, Afrika Tikkun, a non-profit organisation based at the Zolile Malindi Centre, has chosen to celebrate its milestone by continuing its mission to uplift and empower disadvantaged children, youth, and families. For many in the Mfuleni community, the organisation has become a beacon of hope, particularly for families struggling to make ends meet, with its ongoing commitment to transforming lives rather than relying on occasional donations such as food hampers. With more than 30 years of experience in driving social change, the organisation focuses on education, skills development, youth empowerment, and community-based programmes. Marketing coordinator Malibongwe Zitho highlighted the centre’s impact, noting that it has expanded its services over the years to include early childhood development. “We started as a soup kitchen, but we have grown into an organisation that equips both young and old with the skills to become self-sufficient. Our main focus is on young people. We support their academic development and offer programmes in digital literacy, career guidance, creative arts, and fitness activities such as soccer, netball, running, and swimming. We also partner with Manzomthombo Primary School, where we teach physical science, mathematics, and English on Saturdays,” he said. To keep children engaged and inspired, the centre also hosts events such as talent shows and spelling bees. Mr Zitho added that the organisation honours the legacy of its chief patron, the late statesman Nelson Rolihlahla Mandela, by commemorating his birthday each year. “The impact of the centre in the community has been immense. We have helped many young people secure employment and supported their education by raising funds to ensure they complete their schooling. We also participate in the Spirit of Belron Challenge, where people from around the world walk, run, cycle, swim, or use wheelchairs. For every kilometre covered, Belron donates €1 to Afrika Tikkun, supporting youth development programmes that empower underserved communities,” he said. As the centre celebrates 30 years of existence, Mr Zitho said the organisation remains committed to expanding its reach and impact. He emphasised the importance of working closely with local communities, volunteers, partners, and stakeholders to create sustainable opportunities for young people to thrive. Community members have also shared positive feedback about the centre’s work. Nombentsha Mdingi from Bardale said that although she has never visited the centre, she has heard many success stories. “People speak highly of it. I have not been there myself, but I hear good things. My neighbour’s child learned computer skills there and is now employed. I would love to visit one day,” she said. Another resident, Mandilakhe Mboqo from Extension Four in Mfuleni, praised the organisation for its long-standing support. “We have never gone hungry since it started. When it was still a soup kitchen, we relied on it for food. It has grown to meet the needs of the community, and we are grateful to have an organisation like Afrika Tikkun,” he said. He also expressed appreciation for the non-profit's continued efforts to share valuable information and opportunities with young people, adding that he hopes to see it grow from strength to strength. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://vukaninews.co.za/vukani/news/2026-04-14-afrika-tikkun-celebrates-30-years-of-empowering-youth-in-mfuleni/
- PIC PUSHES FOR PUBLIC-PRIVATE PARTNERSHIP INVESTMENT STRATEGY TO TRANSFORM TVET SECTOR
Siphelele Dludla | 14 April 2026 South Africa’s struggling Technical and Vocational Education and Training (TVET) sector is being repositioned as a cornerstone of inclusive growth, with a new policy proposal placing public-private partnerships (PPPs) at the heart of a sweeping reform agenda aimed at tackling youth unemployment and unlocking long-term investment. A research paper, compiled by sector specialists and published by the Public Investment Corporation (PIC) on Tuesday, argues that the country’s persistent mismatch between high unemployment and scarce technical skills is not a failure of concept, but of institutional design and funding structure. The paper proposes a fundamental shift: transforming TVET colleges into investable social infrastructure through coordinated partnerships between government, private operators, industry, and institutional investors. At the core of the proposal is a blended PPP model in which government retains ownership of land and infrastructure while conceding operations to private sector partners. These operators would be responsible for managing institutions, upgrading facilities, aligning curricula with labour market needs, and delivering measurable employment outcomes. Industry, meanwhile, would play a direct role in co-designing training programmes and providing workplace-based learning, while long-term investors would finance infrastructure upgrades and expansion through structured, risk-mitigated vehicles. The paper highlights that South Africa’s current TVET system is constrained by fragmented funding, weak industry alignment, and limited capital investment, with more than 95% of public funding going toward operational costs rather than infrastructure. This has left colleges under-equipped and unable to deliver the practical, work-ready skills demanded by employers. Under the proposed PPP framework, funding would be restructured to align incentives across stakeholders. Government support, including National Student Financial Aid Scheme (Nsfas) funding, would be tied not just to enrolment but to progression, completion, and employment outcomes. Private operators would be paid based on performance metrics such as graduate employment rates and employer satisfaction, introducing accountability and competition into the system. For investors, particularly the PIC, which is already a significant investor in education-focused social infrastructure with investments exceeding R7 billion across the sector, the model presents a new asset class with both financial and developmental returns. The paper notes: “For long-term institutional investors, such as the PIC, a revised TVET model would present a compelling opportunity. It would offer structural, enduring demand driven by demographics, industrial policy, and government commitments.” It adds that the model would provide “multiple investment entry points across infrastructure, operational platforms, and outcome-linked instruments,” alongside “downside protection through government participation, predictable annuity-like cash flows, and potentially outcome-linked payments.” This framing positions TVET not merely as an education intervention, but as a scalable investment platform capable of delivering stable, long-term returns while addressing one of the country’s most pressing socio-economic challenges. The PPP approach also seeks to address systemic inefficiencies by integrating existing funding streams, including Sector Education and Training Authority (SETA) grants and employer contributions, into a unified financing framework. This would reduce fragmentation and ensure that training is directly linked to workplace demand. Crucially, the model introduces outcome-based funding as a central accountability mechanism. Institutions would be rewarded for producing employable graduates rather than simply enrolling students, marking a significant departure from the current input-driven system. The proposal draws on international examples, including dual vocational training systems in countries such as Germany and Switzerland, where strong collaboration between the public and private sectors has led to high employment absorption rates. If implemented, the reforms could significantly expand artisan training, improve youth employment outcomes, and attract domestic pension capital into productive infrastructure. Over time, this could boost tax revenues and reduce pressure on social grants. Around 60% of young people (15–24) are unemployed, driven by skills mismatches, poor education quality, and a stagnant economy, impacting nearly 9 million young people not in education, employment, or training. However, the success of the PPP model will depend on careful design, particularly in balancing risk between stakeholders and ensuring that access and equity are preserved. Safeguards such as portable student funding, transparent performance metrics, and equal regulatory standards for public and private providers are seen as critical to maintaining system integrity. Ultimately, the paper argues that South Africa already has the institutional footprint needed to deliver large-scale skills development. The challenge now is to unlock its potential through smarter partnerships, better incentives, and sustained investment. “The scale already exists,” it concludes. “The challenge and the opportunity is to unlock its performance.” ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://iol.co.za/business-report/companies/2026-04-14-pic-pushes-for-public-private-partnership-investment-strategy-to-transform-tvet-sector/#google_vignette
- CLAIMING EARLY PAYMENTS
Changes to B-BBEE Legislation in 2013 closed a loophole that allowed early payment terms for Black Owned businesses in exchange for Enterprise Development points. The amendments meant that an organisation may only claim early payment terms from Supplier Development Beneficiaries. Therefore, the following applies to an invoice on which a claim for early payment is going to be made: 1. The invoice payable for goods or services must appear in an organisation’s TMPS; 2. Only the amount for early payment terms must reflect. Enterprise & Supplier Development Services are available to assist with claiming early payments.
- NOTICE: SUBMISSION OF ANNUAL REPORTS
On 25 March 2026, the Legal Sector Charter Council issued a Notice to all Legal Sector Entities regarding the Submission of Annual Reports. The notice stated the following: 1. NOTICE TO LEGAL SECTOR MEASURED ENTITIES 1.1 This notice serves to remind all LSMEs and advocates that the annual reports required in terms of paragraph 13.8, read with paragraph 13.10 of LSC are due. 1 1.2 Attention is drawn to the relevant provisions of the LSC and Clarification Notice CN01 of 2025, wherein the provisions with respect to the measurement periods and the due date for submission of the requisite annual reports are highlighted. 1.3 In terms of the aforementioned, LSMEs and advocates must file their annual reports on the first anniversary of the commencement of the Measurement Period, being the commencement of a LSME or advocate’s current financial year where possible. 1.4 However, in light of the provisions of paragraph 13.8 of the LSC, which provide that the annual report must include a scorecard audited by an accredited verification agency, it is anticipated that annual reports will be submitted only after such verification or no later than 6 months after a LSME’s financial year end. LSMEs are requested to ensure that such annual reports are filed not later than 6 months after the end of their financial year end. Technical Services are available to assist Members with understanding these requirements.
- SCRAP BEE LAWS TO UNLOCK ‘BILLIONS OF DOLLARS’ – US AMBASSADOR
Nokukhanya Mntambo | 10 April 2026 The US government continues to put pressure on South Africa to scrap its redress policies – including the controversial broad-based black economic empowerment (B-BBEE) legislative framework, which has been at the centre of a rift between the two trade partners . US Ambassador to SA Brent Bozell doubled down on Washington’s calls on Wednesday, after President Cyril Ramaphosa received letters of credence from 20 ambassadors at an official credentials ceremony. “There are serious issues between our two governments that need to be resolved,” the diplomat told journalists outside the Sefako Makgatho presidential guest house in Tshwane, after the cordial meeting. “The United States is ready to pour money into investments in South Africa, and it’s not just the private sector that’s doing it, but the government that is doing it,” he said. “There are billions upon billions of dollars that we want to invest in this country, but there are issues that we have.” The ownership issue SA’s B-BBEE laws broadly require international companies operating in the country to have 30% ownership by previously disadvantaged local groups. This has invoked the ire of US President Donald Trump and SA-born billionaire Elon Musk, who pushed a false narrative about white genocide in the country in an attempt to strong-arm Ramaphosa into abandoning the redress policies. Musk’s internet satellite company Starlink has struggled to secure an operating licence in SA, with an Equity Equivalent option touted as an alternative to open the door for the service provider. “It’s very difficult for a major corporation to come here and be told it has to surrender 30% of its ownership or some such thing,” Bozell said. While he says the criticism about South Africa’s domestic laws is in no way meant to interfere with the country’s sovereignty, he notes that the US will continue to have a difference of opinion on the matter. SA won’t fold Speaking at a separate event on Wednesday, Minister of Trade, Industry and Competition Parks Tau again defended B-BBEE as a critical policy tool in taking the country forward. “Instead of dismissing the need for B-BBEE, shouldn’t we be strengthening our policy and implementation instruments to ensure we measure output and outcome?” said Tau. “Shouldn’t we be asking questions like how we reach more people at the level of participation, how do we ensure access to capital?” Last year, Tau announced a two-part process to review the B-BBEE policy in what he said would refine legislation and allow it to function more efficiently. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/economy/scrap-bee-laws-to-unlock-billions-of-dollars-us-ambassador/
- CITY OF JOHANNESBURG INCREASES INTERN STIPEND TO SUPPORT YOUTH DEVELOPMENT
Thembelihle Radebe | Joburg Newsroom | 7 April 2026 The City of Johannesburg Council has taken a significant step toward strengthening youth development and economic inclusion by approving an increase in the monthly stipend for undergraduate interns. This decision was made during its 48th Extraordinary Council meeting on 31 March 2026. Effective from 1 July 2026, the monthly stipend for student interns will increase from R3,500.00 to R4,951.88. The adjustment aligns with the current national minimum wage and reflects the City's commitment to ensuring fair compensation for young people entering the workforce through structured development programmes. This initiative forms part of the City's broader contribution to South Africa's National Skills Development Agenda. By investing in youth through learnerships, internships, and bursaries, the City demonstrates its commitment to empowering unemployed individuals within the Johannesburg community. These programmes are designed not only to provide financial support but also to equip participants with practical skills and workplace experience that enhance their employability. The City's internship programme, as defined in its Group Training and Development Policy Framework, is a strategic intervention aimed at bridging the gap between academic learning and real-world work experience. Interns are placed in structured environments where they gain hands-on exposure under the guidance of experienced workplace mentors. This mentorship plays a crucial role in supporting their professional growth and preparing them for future employment opportunities.Importantly, the stipend increase will apply to both current and future interns, ensuring that all participants benefit from the improved conditions. The City has also indicated that stipend levels will be reviewed periodically, taking into account financial sustainability and subject to approval by the Mayoral Committee. City departments are also required to allocate budgets for youth development as part of their Workplace Skills Plans. This ensures that internship programmes remain a priority across all departments and continue to contribute meaningfully to skills development objectives. The initiative aligns with national legislation, including the Skills Development Act (1998) and the Skills Development Levies Act (1999) , both of which aim to transform workplaces into active learning environments and promote continuous skills development across the country. The increase represents more than just a financial adjustment but a reaffirmation of the City of Joburg's commitment to nurturing young talent, reducing unemployment and building a more skilled and inclusive workforce for the future. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://joburg.org.za/media_/Newsroom/Pages/2026-News-Articles/City-of-Johannesburg-increases-intern-stipend-to-support-youth-development.aspx
- ICT SECTOR BEE CODE UNDER THE MICROSCOPE AS STARLINK CIRCLES
Duncan McLeod | 8 April 2026 A decade after it was first published, the ICT sector's black economic empowerment code is heading for a full review. The B-BBEE ICT Sector Council has launched a formal review of the 2016 ICT sector code and published an updated framework governing equity equivalent investment programmes (EEIPs) – the very mechanism at the heart of the political storm over Elon Musk’s Starlink and its attempts to enter the South African market. In a statement on Wednesday, the council, established under section 9 of the Broad-Based Black Economic Empowerment Act as the statutory body responsible for overseeing the implementation of B-BBEE in the ICT sector, invited the public to submit written comments on the existing code by 20 May 2026. The review notice, signed by deputy chair Katharina Pillay, formally opened the first round of public consultation on 1 April. A second phase of hybrid stakeholder engagement will follow, with dates still to be confirmed. The more immediately consequential development, however, is the council’s updated EEIP framework, which sets out clearer guidance on application requirements, defined processes and timelines, provisions for confidential information, and new provisions for ongoing compliance monitoring. EEIPs allow multinationals that refuse to dilute local ownership to meet empowerment obligations through investment in skills, enterprise development or infrastructure instead. They have been a feature of other sectors of the economy for years, but their application in ICT has been contested, most notably through communications regulator Icasa’s licensing rules. The framework spells out the two measurement options available to multinationals seeking ownership recognition under statement 103 of the ICT sector code: contributions equivalent to 30% of the value of the applicant’s South African operations (using a standard valuation method), or 4% of annual turnover over the agreed measurement period. The framework notes that ICT targets are “traditionally more stringent than the generic codes to reflect the sector’s strategic importance” – a point that may prove contentious as the code review gets under way. EEIP framework Applicants will also be required to produce an affidavit from the global head of the entity – and, in some instances, independent auditor verification – confirming the multinational’s worldwide policy of not diluting local equity. In Starlink’s case, that would mean a sworn declaration from parent SpaceX, whose CEO is Musk. A striking feature of the new framework, however, is the weight it places on administrative law compliance. It devotes substantial sections to the Promotion of Administrative Justice Act (Paja), setting out detailed procedural fairness requirements, conflict-of-interest and recusal rules, the applicant’s right to written reasons for any adverse decision, and the grounds on which an EEIP decision could be taken on judicial review. The document states explicitly that “the legal defensibility of the EEIP framework depends on the council’s ability to demonstrate that every application was subjected to an evaluative process that was thorough, impartial and based on the facts presented”. That emphasis is unlikely to be accidental. Malatsi’s policy directive has already drawn threats of court action from the MK Party, and the council appears to be building its procedural armour in advance – ensuring that any future recommendation it makes on a Starlink (or other multinational) EEIP application can withstand legal challenge. The framework also sets clear limits on the council’s own discretion. It describes the council’s role as “advisory and facilitative in nature, unless otherwise expressly authorised by law”, and states that the council “must not impose mandatory conditions that are not supported by the act, the code, or a lawful delegation or directive”. In other words, the council is signalling that it will not freelance on transformation terms beyond what the law permits – a likely comfort to multinational applicants wary of moving goalposts. The framework’s emphasis on monitoring and transparency addresses a longstanding industry complaint. Speaking to TechCentral in December, Association of Comms & Technology CEO Nomvuyiso Batyi warned that EEIPs in other sectors have lacked transparency, with multinationals touting big investment numbers without clarity on how the funds are spent or whether the programmes actually deliver. Batyi said she had “never seen” an annual report from the ICT Sector Council setting out who was doing what under EEIPs, despite the council’s mandate to produce one. The updated framework, which promises to build a “robust evidence base to support meaningful and sustainable transformation”, appears to be a direct response to those criticisms. It also lands at a politically charged moment. In December, communications minister Solly Malatsi issued a final policy directive asking Icasa to align its ownership regulations with the ICT sector code and to recognise EEIPs as an alternative to the regulator’s strict 30% black equity requirement. The move was seen as clearing a potential path for Starlink, which has repeatedly said it will not sell equity in any of its local subsidiaries, though Malatsi has repeatedly said the decision is not aimed specifically at Starlink but at encouraging greater foreign investment. The directive triggered fierce political backlash from the ANC, MK Party and EFF, with the latter two accusing Malatsi of using policy to hand Starlink a “soft landing” and threatening to take the fight to the courts. Draft President Cyril Ramaphosa has backed the minister, a senior member of the DA, with his spokesman, Vincent Magwenya, noting that “four or five” satellite operators beyond Starlink have expressed interest in the South African market. Following the 20 May deadline and the hybrid stakeholder engagement, the ICT Sector Council will develop a draft amended code, which will then be published for a further round of public comment before being finalised. The council’s tightened EEIP framework – and its review of the underlying sector code – could prove consequential in shaping how, and whether, transformation obligations are met by foreign entrants into the market. – (c) 2026 NewsCentral Media ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techcentral.co.za/ict-sector-bee-code-under-the-microscope-as-starlink-circles/279886/
- WHY DO B-BBEE SECTOR CODE OF GOOD PRACTICE TARGETS MATTER?
Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice. In choosing a Supplier that is measured outside the B-BBEE Sector Code of Good Practice on which an organisation is measured, one must be aware of each B-BBEE Sector Code of Good Practice’s targets and expectations. An example is that qualification criteria for EMEs & QSEs differ under Sectors such as Construction and Media, Advertising & Communication. Without being aware of each criterion of each B-BBEE Code of Good Practice, this could, at the time of a B-BBEE Verification , impact an organisation’s Preferential Procurement Scorecard. Certificate Collection Services are available to assist Members with validating B-BBEE Statuses.












