Equity Equivalents in ICT: A Step Forward or a Potential Shortcut?
Spring Newsletter | Opinion Piece
Spring is a season of renewal and growth, and this year it comes with fresh policy developments that could reshape transformation in South Africa’s ICT sector. The draft policy introducing Equity Equivalent Investment Programmes (EEIPs) in place of the strict 30% BEE ownership requirement is a bold and pragmatic move. It reflects government’s willingness to adapt transformation policies to modern realities, especially in industries where international investment and global participation are critical.
So, what exactly are EEIPs? Instead of transferring equity to meet BEE targets, companies can commit to programmes that deliver equivalent value to transformation. This could include investing in skills development for young South Africans, supporting black-owned enterprises, expanding digital access in underserved areas, or funding socio-economic initiatives. In practice, EEIPs allow companies to contribute to empowerment without giving up direct ownership.
There are clear advantages. EEIPs could attract global players into South Africa’s ICT sector, encourage innovation, and create opportunities for communities that might otherwise be overlooked. At the same time, they keep empowerment firmly on the agenda by redirecting resources into measurable initiatives.
Yet, there are also valid concerns. Some argue that nothing can replace actual black ownership, and that EEIPs risk watering down the very spirit of transformation. The challenge will lie in ensuring accountability, transparency, and genuine impact, rather than allowing EEIPs to become a box-ticking exercise.
The next step is public consultation. Business leaders, policymakers, and civil society must contribute their voices to shape this framework in a way that balances investment with meaningful transformation.
We believe that this policy shift deserves close attention. If designed well, it has the potential to redefine how empowerment is achieved in ICT and possibly serve as a model for other sectors in the future.
🌸 Spring Reminder: The Employment Equity submission period is now open, running from the 1st of September to until the 15th of January 2026. Just as spring invites us to prepare for growth, this is the time to ensure your EE submissions are completed on time and with precision. Many companies delay until the last moment, leading to unnecessary stress. As Employment Equity experts, we are here to assist you with your submissions during this period, contact our consultants to get started.
The ruling by the Constitutional Court has forced the government to review both the PPFA Act and its regulations to ensure alignment with the Constitutional mandate stated above and the B-BBEE Act. This does not invalidate the B-BBEE act. The framework of the B-BBEE and how it’s practicable is clear and therefore not affected by the recent constitutional ruling.
The commission has consulted most of the business sectors to set sectorial targets. The finance and business sector has finalised the discussions. Based on these developments, all designated employers should be proactive and review their EEA12 and EEA13 to be prepared. More changes are yet to come; give us a call to find out how best you can stay compliant with Employment regulations. Did you Know? 
During the month of May, EconoBEE will be running specially tailored full-day and half-day B-BBEE workshops with an added twist! Our Directors will be unpacking extra information which includes, but is not limited to, the following:
