Communications and digital technologies minister Solly Malatsi is seeking to facilitate foreign investment in the ICT sector.
He is to issue a policy direction on the department’s position on the recognition of equity equivalent programmes to the Independent Communications Authority of SA (Icasa) for urgent consideration.
Equity equivalent programmes can be claimed by multinationals that are unable to comply with the equity ownership requirements of BBBEE. Allowing them to do so would lower the regulatory hurdles to investment in cheap, reliable broadband.
Examples of equity equivalents are investments in schools, hospitals or community centres.
“Equity equivalents, recognised in other sectors, provide an avenue for factoring in alternative ways for companies to make an impact on SA’s socioeconomic development,” Malatsi said in a statement.
“Policy clarity on the recognition of equity equivalence schemes has long been sought by players in the ICT industry. This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access.
“After consultation with Icasa the proposed policy direction will be published for comment,” Malatsi said.
He said his approach to Icasa was part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country.
“World Bank research shows that, on average, every 10% increase in broadband penetration results in 1.21% GDP growth in middle income countries such as SA. Broadband access makes it easier for people to start businesses, grow businesses, seek employment, work remotely and market goods and services.
“Giving millions of South Africans access to broadband would therefore constitute one of the biggest empowerment programmes the SA government has ever undertaken,” Malatsi said.
Another initiative in the offing the minister said was to lower the price of the smart devices needed to use 4G and 5G data.
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