Communications Minister Solly Malatsi has clarified the new policy direction with a new filing and full statement.

The statement reveals that it is more nuanced than Daily Maverick first reported.

On paper, it's a "Proposed Policy Direction on Broad-Based Black Economic Empowerment". But dig a little deeper, and it's now clear that Minister Solly Malatsi is trying to get some investment gains in exchange for ruffling some equity feathers.

This isn't about ditching transformation. It's about reinterpreting it, and, in the process, rewiring South Africa's (SA's) digital future.

Here's what's really going on behind the policy jargon, and why it matters whether your internet comes from a cellphone tower or a low-earth-orbit satellite:

Jumping off the edge

The "Proposed Policy Direction on Broad-Based Black Economic Empowerment", gazetted today on Friday, 23 May 2025, instructs the Independent Communications Authority of South Africa (Icasa) to align its licensing regulations with Equity Equivalent Investment Programmes (EEIPs).

Currently, companies seeking individual licences under the Electronic Communications Act must ensure that historically disadvantaged groups hold at least 30% equity ownership.

Think of EEIPs as the "transformation debit card" for multinationals. Instead of giving up equity, companies can invest in South African economic empowerment through...