Parliament, Saturday, 13 December 2025 - The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms Khusela Sangoni Diko, has noted the policy direction issued by the Minister of Communications and Digital Technologies, Mr Solly Malatsi, to the Independent Communications Authority of South Africa (ICASA) on Broad-Based Black Economic Empowerment (BBBEE) and calls for the immediate withdrawal thereof.
These policy directives are an affront to the centuries old fight for equity and redress by the black majority in this country. They further unintelligibly obfuscate existing law in a spirited attempt to circumvent the mandatory 30% equity ownership by historically disadvantaged groups as a requirement for electronic communications services licensing as under section 9(2)(b) of the Electronic Communications Act (ECA).
Mr Malatsi, in his capacity as Minister, has neither the legislative nor moral authority to reverse the gains of democracy through this unilateral action, unsupported by the Regulator, ICASA, or the department he leads. To the best of our knowledge he has once again also not sought the approval of Cabinet to gazette the said Policy Directives, which could be reasonably expected given the import of the matter.
This is not the first time that Mr Malatsi has demonstrated the antagonistic relationship he has with the law and due process; clear expression of his commitment to undermining existing law and Parliament as the oversight body.
Mr Malatsi is once again reminded of the sanctity of the doctrine of separation of powers which enjoins that where there is a dispute on statutory interpretation, he may approach the courts for resolution or where he requires an amendment to legislation, that is the domain of the legislature.
While Ms Diko recognises the stated objectives of the policy direction-among them accelerating broadband rollout, promoting investment and aligning regulatory frameworks with the ICT Sector Code - she has recalled the resolutions of the 27th May 2025 Portfolio Committee meeting with the Minister on his then draft policy directives where the committee noted "with great concern what could be considered the Minister's overreach of his Executive powers and using policy directives to amend the Electronic Communications Act (ECA)…. that the state of the sector report by ICASA has placed a need for more equality and redress in the sector, and the promulgated policy direction seems to be going against the redress".
Ms Diko emphasised that transformation remains non-negotiable. The empowerment of historically disadvantaged individuals and the advancement of BBBEE are foundational to South Africa's democratic project. While EEIPs already exist in the ICT sector, hence Original Equipment Manufacturers (OEMs) such as IBM, Microsoft and others operate under those programmes, the distinction lies with the network services licence the likes of Starlink would require, which is prescriptive that licensees must have no less than 30% historically disadvantaged equity ownership as per the Electronic Communications Act (ECA).
This condition is peremptory because spectrum is a strategic, finite national resource underpinning almost every modern sector such as mobile broadband (4G, 5G, future 6G), public safety and emergency services, broadcasting and cultural content distribution.
Globally and domestically, spectrum is regarded as a sovereign asset similar to water, minerals, or land and thus must be protected, regulated, allocated it in the public interest to support national development priorities. Economic value to be derived from spectrum allocation must stay in our country, local ownership ensures that these gains circulate within the national economy rather than being extracted offshore and to protect national security and sovereignty.
"This legislative requirement cannot be wished away or amended through regulations, but only through an act of Parliament. Further, it cannot be that BBBEE only matters so long as it is not an inconvenience to investors while the statistics clearly demonstrate that voluntary compliance from the private sector to drive black economic empowerment has failed" said Ms Diko.
Furthermore, Ms Diko noted with grave concern the decision to terminate the less-than-1kg parcel reserved service for the South African Post Office (SAPO), cautioning that this development poses a direct threat to SAPO's sustainability.
She said: "SAPO remains a critical public service institution, particularly for rural and underserved communities who depend on affordable postal and parcel services. The implications of this termination for SAPO's turnaround strategy and its universal service obligations require urgent clarity.
Accordingly, Ms Diko reiterates the call for immediate withdrawal of these directives which go against the letter and spirit of not only the law but subsequent discussions the committee has had with the Minister in this regard.
Ms Diko will convene in the new year a meeting of the committee to consider these developments.
The committee remains committed to continuing to exercise its oversight mandate to ensure that national policy objectives-universal access, socio-economic transformation, and the viability of strategic state-owned entities-are fully upheld.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COMMUNICATIONS AND DIGITAL TECHNOLOGIES, MS KHUSELA SANGONI DIKO
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