Malatsi defends policy directive to ease company transformation targets and BEE requirements

CAPE TOWN - Communications and Digital Technologies Minister Solly Malatsi has taken to Parliament to defend his policy directive to ease company transformation targets and black economic empowerment (BEE) requirements.

Political parties have slammed Malatsi for his decision, which will allow companies to contribute to South Africa in other ways than the traditional ownership model of 30% local ownership, as required by Broad-Based Black Economic Empowerment (BBBEE) legislation.

But Malatsi and his department said the decision was not targeting Elon Musk’s Starlink and instead, they wanted to increase competition in the sector to lower prices.

Malatsi accepted the committee’s invitation to explain to members the rationale behind his decision to issue the policy directive.

Malatsi believes current regulations do not allow companies that can contribute to South Africa’s transformation goals in ways other than traditional ownership to qualify for individual licences under the Electronic Communications Act (ECA).

On Tuesday, he stood by his decision and told Members of Parliament (MPs) that transformation was a non-negotiable government policy but there must be choices to encourage economic growth.

"Transformation is sacrosanct and non-negotiable. But we are not attempting to open a special dispensation for Starlink. Regulations must consistently make way for two choices when it comes to the role of multinationals."

Parties, except the Democratic Alliance (DA), all voiced their opposition to the directive, with some calling on him to resign and withdraw the gazette.

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