ANC Challenges Communications Minister's Amendments on ICT Ownership Rules

ANC Raises Alarm Over Ministerial Overreach

The African National Congress (ANC) has expressed significant apprehension regarding policy directions gazetted by the Minister of Communications and Digital Technologies, Solly Malatsi, on Friday, December 12, 2025. The ruling party contends that these amendments, which pertain to equity ownership rules within the Information and Communications Technology (ICT) sector, constitute an overreach of the Minister's legislative authority.

According to the ANC, laws such as the Electronic Communications Act, the Postal Services Act, the Independent Communications Authority of South Africa (ICASA) Act, and the Broad-Based Black Economic Empowerment (B-BBEE) Act can only be altered through parliamentary processes that include public participation, not via ministerial policy directives. The party has called for Parliament's Portfolio Committee on Communications and Digital Technologies to hold Minister Malatsi accountable and has urged ICASA to reject any directive deemed inconsistent with existing legislation.

Amendments Aim to Reshape ICT Ownership

The contentious policy direction focuses on the recognition of Equity Equivalent Investment Programmes (EEIPs) as an alternative mechanism for foreign satellite operators, such as Starlink, to meet empowerment requirements. Traditionally, the South African regulatory framework mandates a 30% local ownership stake by Historically Disadvantaged Groups (HDG) for telecommunications licensees. Minister Malatsi's directive instructs ICASA to align its licensing and ownership framework with the national ICT Sector Code, which already recognizes EEIPs.

Proponents of the amendments argue that they aim to remove investment barriers, expand access to high-speed internet, and promote digital inclusion, particularly in rural and underserved areas. Malatsi has defended his actions, stating that the Electronic Communications Act and ICASA Act grant him the authority to issue directives that align with national law, and that he is addressing regulations rather than amending legislation. He also cited an extensive public participation process, claiming that 90% of 19,000 submissions supported the policy direction.

Concerns Over Transformation and Foreign Dominance

The ANC, however, views the introduction of EEIPs as potentially weakening the hard-won transformation framework and threatening the integrity of the country's ICT and postal regulatory environment. ANC spokesperson Mahlengi Bhengu warned that weakening HDG ownership requirements could favor foreign satellite operators and lead to the entrenchment of foreign dominance in a strategic national industry. The party also questioned the legitimacy of the public submission figures cited by the Minister.

The dispute highlights a broader political tension, with the ANC alleging a 'troubling trend' of ministers from the Democratic Alliance attempting to bypass parliamentary processes. The Independent Communications Authority of South Africa (ICASA), as an independent regulator, now faces pressure to consider the directive while upholding its legal obligations and institutional independence.