Stephen Grootes | 28 May 2025 For reasons involving both the Trump administration and the inclusion of the DA and the FF+ in our national coalition, the issue of BEE is again becoming increasingly prominent. President Cyril Ramaphosa’s robust defence of BEE suggests there could be an important political fight in the offing, while proposals from the Department of Mineral Resources suggest some in government will not retreat. On Tuesday, President Cyril Ramaphosa told Parliament he would not back down from the implementation of BEE, attacking those who oppose it. He said BEE was not holding back the economy, but rather that the concentrated nature of our economy was. He also defended using racial designations (that have their roots in apartheid and the National Party’s Race Classification Act of 1950) as a means to do this (although he also said he does believe the day will come when this is no longer necessary). On the same day, Communications Minister Solly Malatsi (of the DA) was explaining to MPs why he would no longer require satellite services such as Starlink to give up some of their ownership for a license to operate here. At the same time, as previously mentioned , the political forces that oppose BEE have become much stronger in the past few months. That the DA is now in government (and has a deputy minister in the Department of Trade, Industry and Competition) and US President Donald Trump’s assault on race-based redress means this issue is becoming much more contested. In some ways, an attempt to redress the problems of our past, which have created our racialised inequality, is always going to be controversial. Considering that BEE includes measures that give preference to people of a particular race, it is almost surprising that we do not argue about it more. It goes to the heart of the South African project and is enshrined in our Constitution. For the moment, it seems that Ramaphosa, and others, may well be energised by this opposition. If you have benefited from a practice (as Ramaphosa and others have), you will defend it. There is plenty of evidence that people in the ANC, leaders both current and former, have benefited from BEE. This has become one of the strongest criticisms against it, that it is only because of their political links that some people have been made very wealthy. The DA has always been aware that much of its constituency opposes BEE. Even white people who agree with racial redress are allowed to feel frustrated when they are passed over for promotions, or their firms are ignored in certain deals, just because of their race. It may also create a situation where people, both white and black, feel they are not getting the deals or making the money they should, just because of their racial identity. While white people might blame BEE when their firms do not get deals, black people might well feel they are ignored because they are not part of the right network, or because decision-makers reward those who look the most like them. This can then allow everyone to blame factors other than their own competence or ability when they do not get what they aspire to. Those from the ANC who are in government also appear prepared to further extend the practice. Doubling down Recent proposed changes to the Mineral Resources Development Act, coming from the ministry headed by ANC chair Gwede Mantashe, go further than ever in demanding BEE – and some of its suggestions do not appear to make sense. For example, the draft suggests the mineral resources minister would have to be consulted before there is a change of ownership in a mining company. As mining lawyer Peter Leon told The Money Show on Tuesday evening, it would mean that companies listed on foreign exchanges, or owned by foreign nationals, would need permission to sell their companies, or stakes in them. Critics of the proposals (and there are many) suggest this has never happened anywhere. Also, it would insist that there be an empowerment partner just for a prospecting right. In other words, just for the right to see if a possible mineral deposit is economically viable to mine, a black person would have to be given a stake. This would increase the cost of prospecting and make it less likely that people will invest here. The Minerals Council also says that all its suggestions on the issue were ignored. If this is the case, why did the ministry bother speaking to the council at all? This might well indicate that the ministry, and perhaps the minister, do not care for the views of the industry, and that they intend to impose these changes. As our mining industry has shrunk, many people have made the point that among the reasons for this is simply government policy (and yet mining still matters. During the pandemic, it was royalties from the high price of our platinum that for a time helped to pay for the SRD grant). It may well be possible that some in the ANC would relish a fight with the DA on this issue. Like the National Health Insurance, it can be useful for both parties. It allows them to remind their constituencies why they should vote for them. Considering that the axis of our politics may be moving away from race in some ways, this could be very important for the ANC, which is looking for a reason to remind people to stay with the party. New opposition Meanwhile, it is clear that Ramaphosa is correct to remind us of the high levels of concentration in our economy. In 2021, the Competition Commission found that “of the 144 sectors of the economy examined by the study, 69.5% were found to be highly concentrated, with 40.3% of sectors being highly concentrated with a presumptively dominant firm. Only 9.7% of sectors were found to have unconcentrated markets.” This is staggering, and a reminder of how little our economy has changed in some respects since 1994. It also confirms the thesis of those who believe our country is divided into “insiders” and “outsiders” and how difficult moving “inside” the economy has become. While many things need to be done to grow our economy, finding ways to change this concentration might be one. In the meantime, the real political risk to BEE does not come from the DA or people who lose out from the practice. The opposition will come from people who stand to benefit from it. There may be a slow change under way that suggests more people are now beginning to oppose it. Professor William Gumede has recently outlined why he believes BEE is harming our economy , while others, such as ActionSA leader Herman Mashaba (and former chair of the Free Market Foundation), have always criticised it. Often, the main critique from these voices, and others, is that the same politically connected individuals have benefited again and again. The perception, created entirely by the ANC, that there can be some kind of link between BEE and cadre deployment, might well cause more damage to the perception of BEE than anything else. But to many millions of people in our country, the argument around BEE is almost meaningless. They do not ever hope to have ownership in any company, or even control over who does. They simply want a job, to create a sustainable income for themselves and their families. As the coalition keeps promising to create jobs, questions about whether BEE really does harm our economy will become more prominent for some time to come. ‘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.dailymaverick.co.za/article/2025-05-28-bee-the-beginning-of-a-new-phase-in-an-old-fight-thanks-to-trump-and-ramaphosa/

Thabo Mashongoane | 28 May 2025 The employment equity regulations can be seen as a catalyst for investment, in people, institutions and long-term prosperity. SA has reached a critical moment in its transformation journey. The newly gazetted employment equity (EE) regulations — designed to increase representation across sectors by 2030 — mark an important step towards a more inclusive economy. But achieving these ambitious targets will require more than compliance checklists or short-term fixes. It demands a deep and sustained investment in skills development.  After more than 40 years in vocational education and training — and as someone who began their own career as an artisan — I’ve seen that transformation not rooted in skills is unsustainable. Equity cannot exist in a vacuum. It must be underpinned by a deliberate, co-ordinated approach to workforce development, especially in technically demanding sectors such as mining and manufacturing.  For companies navigating the EE landscape the starting point should be a robust human resource development strategy. This means going beyond demographic targets to assess training pipelines, internal capacity and future role readiness. EE cannot be reduced to hiring statistics — it must be about enabling South Africans to grow within their roles and industries.  At the Mining Qualifications Authority (MQA) our learnerships, internships and artisan development programmes are delivering real results. Feedback from the Minerals Council SA and other stakeholders confirms that our interventions are helping mines improve productivity, accelerate onboarding and, crucially, reduce workplace incidents. When workers are properly trained  — both theoretically and practically — safety improves, and so does operational performance. This is not abstract policy; it’s a lived reality in mining operations across the country.  Admittedly, the EE targets present a challenge — particularly in industries historically shaped by exclusion. In many eyes mining remains a male-dominated and physically demanding space. But that’s changing. Automation, digitisation and innovation are redefining work on the ground. Roles once reliant on strength now require analytical and digital expertise. This shift creates an opportunity to welcome more women, people with disabilities and youth into the sector — not as token hires but as geologists, engineers and safety specialists equipped to lead the industry forward.  That’s why the technical & vocational education & training (TVET) system is so critical to our future. At MQA we invest more than R250,000 annually to support students in TVET institutions. And yet vocational education continues to be seen as second-tier to university pathways. This mindset must shift. For every engineer in the mining value chain the sector needs up to 15 artisans. These are the people who keep operations running, maintain safety standards and apply innovations in real time. Elevating TVET colleges, properly resourcing them and embedding them in workforce planning is not just good policy, it’s a national imperative.  Transformation will not be achieved in silos. Meeting the 2030 EE targets requires co-ordination across government, industry, the Sector Education & Training Authorities (Setas), and educational institutions. Encouragingly, platforms like the Seta Sectoral Integrated Human Resource Development Strategy are beginning to bridge these divides, allowing knowledge and capacity to flow across sectors. For smaller employers without the infrastructure to develop talent pipelines alone, these kinds of partnerships will be essential.  At MQA our mission is not only to drive demographic change, it’s to build competence, safety and dignity across the mining workforce. Our vision is a responsive system that understands the evolving demands of the sector, prepares workers for modern roles, and reduces the human cost of undertraining.  Let us not view the new EE regulations as a compliance burden. Let us embrace them as a catalyst for investment, in people, institutions and long-term prosperity. When transformation is powered by skills it moves from a policy goal to a lived economic reality.  ‘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.businesslive.co.za/bd/opinion/2025-05-28-thabo-mashongoane-why-skills-must-lead-the-transformation-agenda/

Small, Medium, and Micro-sized Enterprises (SMMEs) are an aspect of the South African economy that should not be overlooked or ignored. They play a key role in driving economic growth, job creation and encouraging and promoting inclusivity. When we look at SMMEs from a Broad-Based Black Economic Empowerment  (B-BBEE) perspective, they hold significant value as catalysts for transformation and Socio-Economic Development.   The Role of SMMEs in Economic Transformation SMMEs are an integral part of the transformation objectives of South Africa, especially in redressing historical economic disparities. They provide Black People with an opportunity to enter the formal economy, create employment opportunities for others and stimulate local economic activity. Supporting and empowering SMMEs can allow South Africa to diversify its economic base and reduce dependency on traditional sectors. The Value of SMMEs in B-BBEE Initiatives B-BBEE recognises the critical role that SMMEs play in achieving their objectives of B-BBEE. Small businesses contribute directly to achieving B-BBEE Scorecard targets, particularly the Enterprise and Supplier Development (ESD ) element.   Through ESD initiatives, larger businesses are given an avenue to support the growth and sustainability of SMMEs, which allows them to enhance their B-BBEE Score while also building a more inclusive and diverse business environment.   Empowering SMMEs through the Youth Employment Service (Y.E.S) Initiative One of the standout initiatives that can help grow SMMEs is the Y.E.S Initiative . This programme specifically targets the challenge of youth unemployment by creating jobs within SMMEs. When businesses participate in the YES programme, they not only contribute to social upliftment but also improve their B-BBEE Score. This mutually beneficial relationship between SMMEs and initiatives like the YES programme underscores the broader socio-economic impact that small businesses can have when effectively supported and integrated into national development strategies.   The Purpose of SMMEs in Socio-Economic Development When we look beyond the economic contributions of SMMEs, they also play a part in advancing Socio-Economic Development . They act as drivers of innovation; they promote healthy business competition and help improve service delivery in various sectors. In addition, they play a role in addressing unemployment, particularly among the youth and marginalised communities where they can offer entry-level jobs and skills building opportunities.   Challenges and Opportunities Despite their significance, SMMEs in South Africa face numerous challenges, which include limited access to finance, skills shortages, regulatory complexities, market access barriers as well as mentorship. When we address these challenges, we should look at collaborative efforts between the public & private sector stakeholders and other support organisations to create an enabling environment for SMME growth and sustainability.   SMMEs are not only economic entities, but they are also agents of transformation and empowerment in South Africa. Their role in advancing B-BBEE goals, promoting economic inclusivity, and driving Socio-Economic Development cannot be overstated. As stakeholders continue to recognise and support SMMEs, the country can harness their full potential to build a more equitable and prosperous future for all.

In terms of the B-BBEE Act, on 18th May 2021, a Practice Note under Gazette #44591 was published by the Minister of Trade Industry & Competition. The notice outlines the rules for discretionary Collective Enterprises. The purpose is to clarify how Ownership by Collective Enterprises is defined as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not for Profit Companies, Co-operatives, Trusts should be interpreted under the B-BBEE Codes of Good Practice.   Ownership Services  are available to assist members with Ownership structures.

Section 3.7, under Statement 400  of the Amended General B-BBEE Codes of Good Practice , allows an active Enterprise or Supplier Development Beneficiary that is an EME or QSE, which is at least 51% Black Owned, to continue as a Beneficiary when their annual turnover increases to elevate them to the Large Enterprise threshold. However, it is critical to note that an organisation may not support a Large Enterprise as an Enterprise or Supplier Development Beneficiary unless there was previous support for the Beneficiary when they were a QSE or EME. Notwithstanding, such recognition for those measured under the Amended General B-BBEE Codes of Good Practice is for five years only from the first instance assistance was provided. Enterprise & Supplier Development Services  are available to guide members on the implementation of sustainable ESD Strategies.

Pieter Steyn | 27 May 2025 South Africa stands at a pivotal moment.  Two months ago the Department of Trade, Industry and Competition (Dtic) unveiled a draft Transformation Fund Concept Document, sparking a bold conversation about the future of Broad-Based Black Economic Empowerment (BBBEE).  This proposed R100 billion fund, to be raised over five years, isn’t just a policy proposal - it’s a potential catalyst for reshaping economic inclusion, empowering black-owned businesses, and redefining corporate responsibility. But with great ambition comes great scrutiny. Will this fund deliver transformative impact, or will it stumble under its own complexity? A Vision for Empowerment Announced by the Minister of Trade, Industry and Competition in January 2025, the Transformation Fund aims to channel R100 billion into firms that are majority black-owned and controlled, as defined by the BBBEE Act. Administered through a tax-exempt Special Purpose Vehicle (SPV), the fund will operate as a registered Financial Services Provider, overseen by an eight-member board appointed by the Minister, including two private-sector representatives. Funding will come from a mix of government, public entities, international donors, development banks, and—crucially—the private sector. The private sector’s role is where the fund’s innovation shines. Companies can contribute through two key mechanisms: Equity Equivalent Investment Programme (EEIP): Multinationals without black shareholding can earn BBBEE ownership points by investing in Dtic-approved initiatives. The fund could become a new destination for these contributions, though it’s unclear whether existing EEIPs will be required to redirect funds or if this applies only to new programs. Enterprise and Supplier Development (ESD) Points: The Dtic plans to amend the BBBEE Codes of Good Practice, allowing firms to earn ESD points by contributing to the fund. This could streamline compliance for companies while funneling capital to black-owned businesses. These mechanisms promise to align corporate incentives with national transformation goals, but they also raise questions about execution and impact. A Simpler Path to Compliance—or a Missed Opportunity? Under the current BBBEE framework, firms earn ESD points by directly supporting black-owned businesses with annual revenues of R50 million or less. This involves monetary contributions (like loans, grants, or investments) and non-monetary support (such as mentoring or training), fostering direct relationships that integrate beneficiaries into supply chains. The system incentivises swift action, as contributions must be delivered within the firm’s financial year to count toward its ESD score. The Transformation Fund, however, introduces a tantalising shortcut: companies could earn ESD points “immediately” by contributing to the SPV, bypassing the need to design and implement their own ESD programs. This could save time and resources, especially for firms struggling to meet ESD targets (2% of net profit after tax for supplier development and 1% for enterprise development). Tax incentives, including exemptions under section 56(1)(h) and deductions under section 18(A) of the Income Tax Act, sweeten the deal. But here’s the catch: simplicity comes at a cost.  Direct relationships between firms and ESD beneficiaries drive tangible benefits, like tailored support and supply-chain integration. By interposing the SPV, the fund risks diluting these connections, potentially slowing the delivery of benefits to black-owned businesses. The concept document’s vagueness on the “participation agreement” with the SPV adds another layer of uncertainty—will contributions come with strings attached? Voluntary Contributions, Strategic Choices The Dtic emphasises that contributions to the fund are voluntary, suggesting firms can stick with their existing ESD programs. But the proposed amendments to the BBBEE Codes could shift incentives, nudging companies toward the fund for its efficiency. The flexibility of the current system, where firms can scale ESD spending based on their strategy (while risking a downgrade if they fall below 40% of ESD points), may be constrained if the fund becomes the default path to compliance. Investors and business leaders should watch closely. The fund’s success hinges on its governance, efficiency, and ability to complement—rather than compete with - existing BBBEE programs like the National Empowerment Fund, the Industrial Development Corporation, or the DTIC’s Black Industrialist Scheme. Why create a new entity when established programs could be scaled up? The SPV must prove its value through transparency and measurable outcomes, or it risks becoming another layer of bureaucracy. An Investment in South Africa’s Future The Transformation Fund is more than a policy - it’s a bet on South Africa’s economic potential. If executed well, it could unlock unprecedented opportunities for black-owned businesses, driving growth and inclusion. For investors, it signals a maturing market where transformation and profitability are increasingly aligned. Companies that embrace the fund strategically could strengthen their BBBEE ratings, reduce compliance costs, and build goodwill in a nation hungry for progress. Yet, the fund’s promise depends on its delivery.  Will the SPV operate with the agility and accountability needed to distribute R100 billion effectively? Can it amplify existing BBBEE efforts without overshadowing them? And will the private sector see contributions as an investment in shared prosperity rather than a compliance checkbox? South Africa’s transformation journey is at a crossroads. The Transformation Fund could be a bold step toward economic justice—or a cautionary tale of ambition outpacing execution. As the Dtic gathers public comments, businesses, investors, and policymakers must engage to ensure this R100 billion vision delivers real, lasting impact. Pieter Steyn is a director at Werksmans Attorneys. ‘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/opinion/2025-05-26-transforming-bbbee-the-potential-of-the-r100bn-fund/

Daily News Reporter | 26 May 2025 In a fiery address to supporters in Koppies, Free State, on the eve of a crucial by-election, Economic Freedom Fighters (EFF) leader Julius Malema vehemently opposed the government’s proposal to relax Broad-Based Black Economic Empowerment (B-BBEE) requirements to facilitate Elon Musk's Starlink's entry into the South African market. Malema’s comments came in the wake of a high-profile meeting between President Cyril Ramaphosa and former US President Donald Trump, another signal of shifting dynamics in the nation's policy-making Malema directly accused the government of catering to foreign interests at the expense of local economic transformation, stating, “Today, a tender is given in the White House without advertisement, where (Johann) Rupert stands up and says, why is Elon Musk's Starlink not given an opportunity in South Africa?” This assertion highlights the potential undercurrents of international influence that may be affecting local policy decisions. The proposed changes, which Malema labelled an affront to South Africa’s transformation efforts, were launched by Minister of Communications and Digital Technologies, Solly Malatsi, who is a member of the Democratic Alliance (DA). In an official gazette, Malatsi argued that relaxing B-BBEE rules for multinational organisations like SpaceX—Starlink's parent company—was essential for accelerating broadband access towards economic growth. Malema, however, refuted this rationale, contending that such a move would undermine the principles of B-BBEE by undermining local empowerment. “There is no such law in South Africa. That Starlink will not come into South Africa if it is not complied with the BEE,” he affirmed, underscoring that at least 30% of ownership must be distributed among Black South Africans, which he believes is paramount for inclusive economic benefits. He articulated a vision of broad-based empowerment, asserting, “That 30% must go to black people, as many as possible, because we want to benefit from our own economy.” Malema’s criticisms were echoed across various political circles, particularly when it became clear that regulatory easings were tabled less than 48 hours following the high-level meeting where Rupert urged the fast-tracking of Starlink's market entry citing pressing issues of crime, economic stagnation, and the imperative for technological advancement. The Portfolio Committee on Communications and Digital Technologies has since summoned Minister Malatsi to provide clarity on the policy directives intended to ease B-BBEE requirements specific to satellite services, amid claims of contravening the Electronic Communications Act in favour of the low earth orbit satellite provider. Committee Chairperson Khusela Diko highlighted the growing concerns regarding this shift in policy, indicating it warrants immediate investigation, as its repercussions could resonate throughout South Africa's ICT landscape. The pressure on the South African government is mounting as economic stakeholders and political parties alike scrutinise policies that may cater to international business over local empowerment. With tensions rising, the future of broadband access and transformation in South Africa hangs in the balance, underscored by the nation’s ongoing struggle for economic equity. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://dailynews.co.za/news/2025-05-26-malema-condemns-governments-push-to-relax-b-bbee-rules-for-starlink/

North Coast Rising Sun | 27 May 2025 Although South African Sign Language is now an official language, little to no practical accommodation has been made for the deaf in healthcare, employment, or basic daily communication. In a bid to address the longstanding challenges faced by the deaf community, the Phoenix Deaf Club was established in November 2024. Founded by seasoned sign language interpreter, Keven Govender, who has spent over 35 years working closely with the deaf, the club is quickly becoming a beacon of hope and empowerment for a group that remains underserved despite sign language being officially recognised in South Africa. With just eight members at its inception, the club has since grown to 39 active participants and continues to expand. The organisation is overseen by a passionate team led by Govender and a deaf leadership panel including president, Yogaveli Shunmugam, secretary, Dayadran Naidoo, and treasurer, Applesamy Naidoo. Together, they are changing lives – one sign, one skill, and one act of kindness at a time. Although South African Sign Language is now an official language, little to no practical accommodation has been made for the deaf in healthcare, employment, or basic daily communication. The Phoenix Deaf Club was formed to bridge this gap and has already made impressive strides. Members have taken part in four successful blood drives, with many donating for the first time. The club has facilitated full health checks, access to spectacles, assistance with driver’s licences, and interpreted for the South African National Blood Service on various communication issues. They’ve also supported the deaf community through church services, baptisms, Bible studies, affidavits, and private events by offering sign language interpretation. Beyond advocacy and community support, the club is working to economically empower deaf individuals. Their core mission is to help members become self-sufficient and less reliant on social grants. Skills ranging from plumbing and painting to laptop repair and elderly care are advertised on social media platforms like Facebook to attract employment. Each job opportunity is supported with an interpreter to ensure effective communication and work compliance. “We want the world to see the ability in the deaf, not the disability. This club is not just about assistance – it’s about empowerment,” Govender said. To further uplift the community, the Phoenix Deaf Club offers sign language workshops to religious institutions, medical and government staff, and any interested groups. They also run personal sign language lessons aimed at breaking down communication barriers and saving lives in emergency scenarios. However, with its growing outreach comes increasing needs. The club is appealing to the public, businesses, and community groups for assistance in the form of food hampers, sponsorships, tools, and equipment. These contributions will not only help feed struggling deaf families but also equip members to better serve their communities through their trades. The club is also creating a comprehensive database of all members, recording their career skills, medical needs, and services offered. A dedicated WhatsApp group provides members with updates on job opportunities, grant dates, new laws, and other vital information. Anyone interested in supporting or partnering with the Phoenix Deaf Club can contact Keven Govender on 062-033-2403 or email govenderkeven5@gmail.com . You can also follow and engage with the club on Facebook by searching for the Phoenix Deaf Club. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://risingsunnewspapers.co.za/311130/offering-a-lifeline-to-the-deaf-community/

Nokukhanya Mntambo | 26 May 2025 Last week, Malatsi’s department published a policy directive for public comment sparking speculation that government had been swayed to bend the rules for Musk. JOHANNESBURG - Communications Minister, Solly Malatsi could be in for a grilling in Parliament after the communications portfolio committee summoned him over a directive that could see billionaire Elon Musk’s Starlink land in South Africa. This, after Malatsi’s department published a policy directive for public comment last week, sparking speculation that government had been swayed to bend the rules for Musk. If passed, the policy will loosen Affirmative Action laws requiring foreign investors in telecoms to sell 30% of equity in their local entity to historically disadvantaged groups in order to qualify for operating licences. The Department of Communications and Digital Technologies said the proposed policy is not meant to subvert the country’s transformation agenda. Instead, it would include a clause for companies to take part in equity equivalence programmes. This would see foreign firms invest in programmes geared towards equity, skills development and economic inclusion. In a statement published on X, communications portfolio committee chairperson Khusela Diko, said Malatsi must come before parliament to account for what she said appears to be a contravention of the Electronic Communications Act. Diko further described it as attempts to circumvent the law through policy directives not worth the paper they are written on and a glaring invitation for litigation. In a reply on X, Malatsi said he would honour the invitation for Tuesday's meeting. ‘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.ewn.co.za/2025/05/26/malatsi-to-appear-before-parliament-committee-over-new-draft-ict-policy

Daniel Puchert | 25 May 2025 Communications Minister Solly Malatsi denies that his proposed policy direction, which would offer an alternative path for Starlink to legally operate in South Africa, is due to political pressure. This follows criticism of the white paper gazetted on Friday that provides alternatives to South Africa’s BEE ownership requirements in the ICT space. Starlink is currently unable to launch in South Africa because it must have a local entity that is 30% owned by historically disadvantaged groups. Malatsi has since been summoned by Parliament’s Portfolio Committee on Communications and Digital Technologies, led by the ANC’s Khusela Diko, to brief it on his proposal. According to a statement by the committee on Saturday, it holds the position that the policy direction contravenes the ECA and favours the SpaceX-owned company. “Section 9 (2) (b) of the Electronic Communication Act 36 of 2005 provides the legislative framework on the application for and granting of individual licences in the ICT sector,” the statement reads. “It mandates the Independent Communications Authority of South Africa(Icasa) to regulate historically disadvantaged groups’ equity requirement at no less than 30%.” However, Malatsi, a DA member, told the Sunday Times that, as minister, he has the power to issue policy directions under the Electronic Communications Act (ECA). He added that while the proposal’s publication coincided with President Cyril Ramaphosa’s return from his visit to the US, he and his team have been working on it since 2024. Ramaphosa met with US President Donald Trump at a publicly broadcast meeting in the White House, where Starlink owner Elon Musk was in attendance. While the meeting focused on controversial matters between the two states, billionaire Johann Rupert mentioned Starlink as a US technology that South Africa desperately needs. DA leader John Steenhuisen, who was part of Ramaphosa’s delegation in the US, said that the policy direction was not specifically for Starlink but for the industry as a whole, according to the Sunday Times. The Times also quoted an anonymous senior ANC leader that this is a win for the DA, as the party has proposed it for some time. “The DA has long questioned why we are imposing a 30% ownership on Starlink, which would likely benefit only a few comrades,” the ANC leader said. “This is instead of having an equity share project that will benefit small businesses. So, this kind of compromise works for the DA, and they jumped at it.” Malatsi’s policy proposal Malatsi’s proposed policy direction suggests harmonising the ECA with other legislation that recognises ownership in the ICT sector. “The objectives of this policy direction are to give effect to existing national and sector policy pertaining to the rollout of broadband and the bridging of the digital divide,” it reads. Additionally, Malatsi believes the policy direction will help encourage investment and promote competition in the sector. A Department of Communications and Digital Technologies (DCDT) statement said the directive aligns with the Government of National Unity’s mission to attract investment through regulatory reforms and accelerate broadband access. The notice focuses on the role of equity equivalent investment programmes (EEIP) in the ICT sector. “The rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30% shares to be in the hands of historically disadvantaged individuals,” the DCDT said. It added that the regulations prevent companies that can contribute to the nation’s transformation goals from acquiring individual licences. EEIPs, provided for under the Broad-Based Black Economic Empowerment (BBBEE) Act and recognised by the ICT Sector Code, enable multinationals to meet transformation obligations through alternatives to ownership. These programmes include investing in local suppliers, enterprises, skills development, job creation, infrastructure support, research and innovation, and digital inclusion initiatives. Once finalised, the draft policy direction will enable Malatsi to direct Icasa to: Align its ownership regulations applicable to licensing under the ECA, with the full scope of the ICT Sector Code, including recognition of EEIPs and deemed ownership mechanisms Apply the same BBBEE criteria to the ICT sector, ensuring alignment with national priorities, transformation objectives, and investment attraction Engage with various departments and the ICT Sector Council to define acceptable EEIP contributions in the ICT space It also clarifies that new entrants will not be exempt from transformation obligations. “Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa’s socio-economic development goals,” the DCDT said. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://mybroadband.co.za/news/telecoms/596099-starlink-bee-showdown-in-south-africa.html

Kgothatso Madisa | 23 May 2025 Minister of communications and digital technologies Solly Malatsi has issued a policy directive that seeks to relax black economic empowerment (BEE) policies in the ICT sector, a move that may open the door for billionaire Elon Musk’s Starlink to operate in SA.  Malatsi issued the directive to the Independent Communications Authority of SA (Icasa) in a government gazette on Friday, days after President Cyril Ramaphosa met US President Donald Trump and his close adviser Musk.  It is believed that behind closed doors with the Trump team, the government conceded to paving the way for Starlink to operate in the country.  Starlink, developed by SpaceX, is a satellite service designed to provide high-speed, low-latency internet access, especially in remote areas. It uses thousands of low earth orbit satellites that communicate with ground stations and user terminals to deliver broadband internet. Musk has refused to comply with licensing conditions that require a foreign company seeking to enter the ICT sector to give away 30% shareholding to black economic empowerment partners. Malatsi has issued a policy directive to Icasa which could pave the way for the BEE laws to be relaxed in favour of equity equivalents that will allow foreign investors to enter the ICT sector by scoring BEE points for undertaking activities such as investing in infrastructure in rural areas.  In the gazette, Malatsi said the objectives of the directive are to give effect to existing national and sector policy pertaining to the rollout of broadband and bridging the digital divide.  He said this was necessary to encourage investment, including strategic infrastructure investment, and innovation in the communications sector, to promote competition within the ICT sector and to promote, facilitate and harmonise the achievement of the objectives of law.  “To accomplish the objectives, it is necessary for regulatory certainty and consistency to apply to members of the ICT sector, including the holders of licences under the act. Consequently there is a need to harmonise the requirements and provisions of the act with other legislation that applies to the recognition of ownership of members of the ICT sector, including the amended broad-based black economic empowerment ICT Sector Code,” read the gazette.  “The achievement of the objectives will require Icasa to implement certain amendments to regulations promulgated by it to meet the imperatives of other national laws.” Musk has used his influence with Trump to put pressure on SA to ease its black empowerment regulations. Trump ambushed Ramaphosa in a tense meeting at the Oval Office in Washington on Wednesday, showing him videos of EFF leader Julius Malema chanting “kill the Boer, kill the farmer”, and pictures of crosses on the side a road which Trump incorrectly claimed was evidence of a “white genocide” in SA.   ‘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.timeslive.co.za/politics/2025-05-23-malatsi-issues-ict-regulations-relaxing-bee-laws/

Gugu Lourie | 21 May 2025 History is a great teacher, and those who ignore it are doomed. Would South Africa be creating new “Elon Musk regulations” if it exempts Starlink from Broad-Based Black Economic Empowerment (B-BBEE) compliance? The answer lies in understanding how US giants like IBM, Microsoft, and Amazon already comply: through Equity Equivalent Programmes (EEPs). What is B-BBEE and Why Do Multinationals Use Equity Equivalents? South Africa’s B-BBEE Act of 2003 aims to redress apartheid-era economic disparities by promoting black ownership, skills development, and enterprise growth. However, foreign companies often cannot transfer direct ownership. Instead, they leverage Equity Equivalent Programmes – approved by the Department of Trade, Industry, and Competition (DTIC) – to earn B-BBEE points. How Does It Work? Alternative to Ownership: Instead of selling equity, firms invest in skills development, SMME growth and infrastructure. Government Approval: Programmes must align with national policies (NDP, Industrial Policy) and be approved by the Minister. 25 B-BBEE Points: Companies earn full ownership points for approved initiatives. Case Studies: Microsoft, IBM, and Amazon Microsoft’s R1.32 Billion Investment (2024) Focus: Black-owned SMMEs, 4IR skills, and R&D. Impact: Supports tech and non-tech enterprises over 10 years. IBM’s R700 Million Skills Development (2015) Focus: Training small business owners in digital skills. Amazon Web Services (AWS) EEIP (2019) Focus: Accelerating 100% black-owned IT businesses. Could Starlink Use an Equity Equivalent? If South Africa permits Starlink to operate via an EEP, it would not be a new law – just an application of existing B-BBEE mechanisms used by other US firms. Key Benefits of Equity Equivalents: No equity dilution for multinationals. Boosts local SMMEs and skills development. Aligns with South Africa’s economic goals. Equity equivalents are a proven B-BBEE compliance tool for global companies. If Starlink follows the path of Amazon, IBM, and Microsoft, South Africa wouldn’t be making exceptions—just enforcing existing policy. Herewith below EEP outlined by Department of Trade and Industry in a 2022 Presentation: ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://techfinancials.co.za/2025/05/21/equity-equivalent-how-amazon-ibm-microsoft-comply-with-b-bbee/