Proposed ICT policy shift sparks black ownership debate
There has been mixed reaction from some groups
to a proposal to change the policy direction of investment programmes in the
information and communications technology sector.
On Friday, the draft policy was gazetted for public comment by Minister of Communications and Digital Technologies, Solly Malatsi.
It is widely thought the move will pave the way for Elon Musk's satellite internet service, Starlink, to enter the local market.
The directive came days after a tense meeting between President Cyril Ramaphosa and Donald Trump in the White House.
Currently, telecoms companies, including those with foreign investment, must comply with a 30% BEE ownership requirement.
READ: Starlink entry 'possible' as SA reviews ICT law
Under Malatsi's proposal, multinationals could meet the requirements through investments instead of local ownership.
The Economic Freedom Fighters has rejected the move.
Spokesperson Thembi Msane says it would create a backdoor for foreign groups to bypass BEE laws.
"The EFF will challenge this unconstitutional proposal in Parliament and explore all legal mechanisms to assert the supremacy of the Constitution and the rightful place of historically disadvantaged South Africans in the ICT sector.
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"We will not allow our laws to be rewritten in Washington."
However, Ernst van Zyl, who's with lobby group AfriForum, has welcomed the decision saying it would help close the internet access gap between rural and urban communities.
"Hopefully this development signals the beginning of the end for race laws in South Africa."
The draft policy is now open to public comments for a 30-day period.
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