The Independent Communications Authority of South Africa (ICASA) will get new policy guidelines from Minister of Communications and Digital Technologies Solly Malatsi in an effort to reduce obstacles to investment in the nation.
Malatsi said in a statement that he plans to give ICASA a policy directive outlining the department’s stance on the recognition of equity equivalent programs, and that it should be given immediate thought.
Under the Government of National Unity, Malatsi, a member of the Democratic Alliance, was named minister of communications in June. He says that this is a part of an endeavour to greatly increase the number of impoverished South Africans and residents of rural areas who have access to broadband connectivity.
According to World Bank data, middle-income nations like South Africa see an average 1.21% GDP growth for every 10% rise in internet coverage.
“Having access to broadband makes it simpler for people to look for work, launch and expand businesses, work remotely, and promote products and services. Thus, providing broadband access to millions of South Africans would be one of the largest empowerment initiatives the country has ever launched.
The minister continues, “There are two components to the initiative.” “First and foremost, we must remove regulatory barriers to low-cost, dependable broadband investment. Second, we must reduce the cost of the smart gadgets that are required to access 5G and 4G internet. “I’m concentrating on the first section today. Details on the second portion will be released when they are ready. The proposed policy direction will be made public for discussion under section 3(5) of the Electronics Communications Act following consultation with ICASA.
He notes that this is consistent with the Codes of Good Practice, which acknowledge that multinational corporations may face challenges in meeting equity ownership requirements due to the worldwide scope of their operations. Recognised in other industries, equity equivalents offer a means of accounting for several ways in which businesses might influence the socioeconomic development of South Africa. “Parties in the ICT industry have long sought policy clarity on the recognition of equity equivalency schemes. This will give the assurance required to draw in more ICT investment and quicken the rollout of universal internet access.
Malatsi’s new policy approach is a result of disagreements over the BEE requirements for foreign businesses operating in the nation. A prerequisite for licence approval is that the business must have thirty percent of its ownership come from historically under-represented communities.
One such business, Elon Musk’s Starlink, has yet to introduce its satellite-based internet services in the nation; according to reports, the empowerment regulations are the main obstacle.
