Page 127 - SAMENA Trends - June-July 2025

REGULATORY & POLICY UPDATES SAMENA TRENDS

South Africa Proposes Equity Equivalent Model to Ease B-BBEE Requirements

for ICT Sector

The South African Communications and the Electronic Communications Act (ECA), use of the word “or” in the ECA allows for
Digital Technologies Minister Solly Malatsi 2005, individual telecom licensees must alternative empowerment mechanisms, as
unveiled a draft policy direction in the Gov- allocate at least 30% equity ownership to prescribed under Section 4(3)(k) of the ICA-
ernment Gazette proposing an alternative Historically Disadvantaged Groups (HDGs), SA Act. The draft policy introduces an eq-
to the stringent Broad-Based Black Eco- ‘or’ such other conditions or higher per- uity equivalent model, enabling companies
nomic Empowerment (B-BBEE) ownership centage as may be prescribed by the gov- to fulfil B-BBEE obligations through alterna-
requirements for the ICT sector. The new ernment. This mandate aligns with South tive investments, such as:
model would allow companies to meet Africa’s broader B-BBEE framework, which Funding black-owned small businesses
empowerment obligations through equity seeks to redress apartheid-era economic Supporting local ICT suppliers
equivalent programs (EEPs) rather than di- imbalances. The Independent Communi- Investing in skills development and job cre-
rect ownership transfers. This move could cations Authority of South Africa (ICASA) ation
facilitate the entry of global players like has further reinforced these requirements This approach mirrors exemptions previ-
Starlink into South Africa’s telecommunica- through the HDG Equity Ownership Regu- ously granted to multinational corporations
tions market while still advancing econom- lations (2021), which apply the ICT Sector like Microsoft, Hewlett-Packard, and Sam-
ic transformation. Under Section 9(2)(b) of Code to ensure compliance. However, the sung, as well as the automotive industry
(2019), where direct ownership transfers
were deemed impractical. The ministry ar-
gues that the policy shift will:
Attract foreign investment by reducing reg-
ulatory barriers
Encourage market participation from glob-
al tech firms (e.g., Starlink)
Maintain empowerment goals through al-
ternative economic contributions
Minister Malatsi stated: “The policy seeks
to provide the much-needed policy certain-
ty to attract investment into the ICT sector.”
The move is also seen as part of Presi-
dent Cyril Ramaphosa’s broader strategy
to stabilise US trade relations, which have
deteriorated under the Trump administra-
tion. Recent US actions, such as cutting
aid, expelling South Africa’s ambassador,
and threatening tariffs, have heightened
economic pressures, making invest-
ment-friendly reforms more urgent.

Oman’s TRA Cracks Down on Unauthorized Wireless Networks to Protect

Telecom Infrastructure

The Telecommunications Regulatory statement, these inspections followed of unauthorised equipment and initiating
Authority (TRA) of Oman has intensified the detection of several violations that legal proceedings against offenders in
field inspections in collaboration with jeopardize information security and the cooperation with other agencies. TRA
relevant authorities targeting unauthorised integrity of communication networks. called on individuals and institutions
wireless networks that redistribute Illegal networks have been found to to adhere to telecom regulations and
internet services without proper licenses. cause technical interference, degrade avoid setting up or using unlicensed
This initiative is part of ongoing efforts service quality and speed in adjacent communication networks. The regulator
to safeguard the security and stability areas, and expose users’ personal data to reaffirmed its commitment to ongoing
of the sultanate’s telecommunications risks including misuse and hacking. The inspection campaigns to ensure a safe,
infrastructure and maintain high-quality authority confirmed that it is enforcing secure, and reliable telecommunications
service for users. According to a TRA strict measures, including the removal environment throughout Oman.
127 JUNE-JULY 2025