South Africa’s minister of communications, minister Malatsi, has announced a new initiative aimed at making broadband connectivity one of the nation’s top empowerment goals
The initiative is set to clarify the Department of Communications and Digital Technologies’ (DCDT) position on recognising equity equivalent programs through a policy directive to the Independent Communications Authority of South Africa (ICASA). This move is expected to significantly expand broadband access to underserved populations, including those in remote and low-income areas.
The proposed policy, issued under section 3(2) of the Electronic Communications Act, highlights the importance of broadband in economic development. Citing World Bank research, Malatsi emphasised that every 10% increase in broadband penetration can lead to a 1.21% rise in GDP growth in middle-income countries like South Africa. He noted that broadband access can help individuals start and grow businesses, secure employment, work remotely, and market goods and services, making it a vital tool for economic empowerment.
“This policy will be one of the most impactful empowerment programs the South African government has undertaken,” said Malatsi. He outlined a two-part plan to achieve this goal. The first phase focuses on reducing regulatory barriers to attract investments in affordable, reliable broadband infrastructure. The second phase, which will be addressed in future announcements, aims to lower the cost of smart devices necessary for 4G and 5G data use.
The Minister also mentioned that, following consultations with ICASA, the proposed policy direction will be made available for public comment as required by section 3(5) of the Electronic Communications Act. This approach aligns with the Codes of Good Practice, which acknowledge the challenges faced by multinational companies in meeting equity ownership requirements and promote alternative equity equivalent schemes.
For years, the ICT industry has sought clarity on the recognition of such schemes, which could pave the way for increased investments in the sector. Minister Malatsi believes that this policy direction will provide the necessary certainty to attract investment and expedite the goal of universal internet access in South Africa, driving significant socioeconomic progress.
SA targets broadband for empowerment
