The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms. Khusela Sangoni Diko, has issued a strong statement of support for the Independent Communications Authority of South Africa (ICASA).
The endorsement follows ICASA's recent decision to strictly uphold the legislative and regulatory requirements of the Electronic Communications Act (ECA), specifically regarding Broad-Based Black Economic Empowerment (B-BBEE) ownership provisions.
Firm stance on transformation
Central to the committee's position in the refusal to allow Equity Equivalent Investment Programmes (EEIPs) to replace direct ownership obligations. Under the ECA, the law mandates that at least 30% ownership in licensed telecommunications entities must be held by historically disadvantaged South Africans.
Ms. Diko emphasized that transformation is a “constitutional and developmental imperative” rather than a mere administrative hurdle. The committee clarified that any shift from these ownership requirements would necessitate formal legislative amendments through Parliament, rather than being left to regulatory discretion.
Protecting the local market
The committee highlighted that granting exemptions to multinational corporations would create an uneven playing field. It argued that such concessions would unfairly disadvantage local operators who have already invested heavily while complying with the established legal framework.
Ms. Diko noted that the domestic market is already successfully integrating global satellite capacity through compliant and innovative models. Companies such as Q-KON, Liquid Intelligent Technologies, Vox, and Paratus continue to play a significant role in this integration.
Furthermore, telecommunications operators like Telkom, MTN, and Vodacom are leveraging strategic partnerships to expand connectivity. Sentech also remains strategically positioned to provide affordable satellite services to rural and underserved communities.
A call for compliance
The statement concludes by commending ICASA for its “principled and legally sound position”. Ms. Diko called on all prospective market entrants to respect South Africa's legislative framework, asserting that the country possesses the expertise to expand broadband connectivity while simultaneously supporting local economic development and skills transfer.
“Transformation in the communications sector is not a procedural inconvenience that can be negotiated away through administrative mechanisms.” – Ms. Khusela Sangoni Diko.