Companies who benefit from easing of BEE requirements need to invest in equity equivalent - Communications Dept

JOHANNESBURG – The Communications and Digital Technologies Department said that international companies that benefited from the easing of Broad-Based Black Economic Empowerment (B-BBEE) requirements would still need to invest an equity equivalent.

Minister Solly Malatsi gazetted a draft policy direction for public comment on Friday.

If passed, this will allow companies in the ICT sector to operate without complying with a 30% black ownership requirement.

The announcement comes just days after United States (US) President Donald Trump met with President Cyril Ramaphosa, with the owner of satellite internet company Starlink, Elon Musk, in the room.

The departments said the companies must, however, still invest in local suppliers' skills development and job creation.

Spokesperson Kwena Moloto said: "Then these international companies must still invest an equity equivalent into projects of government that speak to our transformation goals. This still ensures your previously disadvantaged South Africans receive benefit from these large multinationals entering the ICT space."