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    3Sep, 2025
    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.

    12Jun, 2025
    Leaving No One in the Cold❄️

    Leaving No One in the Cold❄️ – Winter Compliance Update
    June 2025 | EconoBEE

     As we settle into the chill of winter, it’s a good time to reflect on what it means to ensure that no one gets left out—especially when it comes to transformation and compliance. This edition of our newsletter brings you the latest on Employment Equity developments, the B-BBEE landscape and important submission deadlines that you won’t want to miss.

     

     📍EEA12 Analysis: Laying the Groundwork for Your EE Compliance

    Employment Equity compliance begins with understanding your workforce’s current makeup. That’s where the EEA12 comes in. This form requires designated employers to conduct an analysis of their staff across all occupational levels.

    The goal is to identify under-representation or over-representation of population groups, using the national Economically Active Population (EAP) data and your sector-specific targets as benchmarks.

    Once that analysis is complete, employers must use the findings to develop a forward-looking Employment Equity Plan (EEA13). This plan can span up to five years, which aligns with the deadline to meet sector targets introduced in the revised Employment Equity Act.

    Here’s how the timeline unfolds:

    • Now to 1 September 2025: We can help you perform your EEA12 analysis and start preparing your EE Plan.
    • 1 September 2025: The Department of Labour portal opens for submitting your EEA2 (progress report) and EEA4 (income differentials).
    • In these submissions, you’ll be required to set your numerical targets for 2026.
    • September 2026: The Department will review whether the targets you submitted have been met.

    If you haven’t started with your EEA12 analysis yet, now is the right time. Our team can support you every step of the way, from analysing your workforce to submitting your reports and plans through the online portal.

     

     📌 New Direction for the ICT Sector: EEIPs Now in Focus

     Minister Malatsi recently issued a policy directive focused on Employment Equity Instruments and Programmes (EEIPs) within the ICT sector. This is a clear move toward holding digital and tech companies more accountable for transformation.

     Whether you’re in software development, telecoms, or digital services, this policy matters. It will influence how EE and BEE performance is evaluated and enforced in your sector.

     If your business operates in the ICT space, now is the time to review your equity plans and make sure they align with the new expectations. Our team is already helping companies in your industry navigate this change.

      

    📍What’s Changed in the Employment Equity Act?

     There have been key updates to the Employment Equity Act, and they directly affect many of our clients. Here’s a quick summary of what’s changed:

    • The term “designated employer” now applies to businesses with 50 or more employees, regardless of turnover
    • Sector-specific numerical targets have been introduced
    • A valid EE Compliance Certificate is now required if your business wants to work with the state

    These changes are not just about ticking boxes—they’re about ensuring real progress. If you haven’t reviewed your Employment Equity Plan lately, now is the perfect time.

      

    📌 Let’s Keep Transformation on the Agenda

     Compliance can feel overwhelming, especially with constant changes to legislation and sector requirements. But you’re not alone. Whether you need help with B-BBEE strategy, EEA12 submissions, or understanding your obligations as a designated employer, EconoBEE is here to help.

     Let’s work together to make sure no one gets left in the cold this winter, especially when it comes to equity and inclusion.

    4Nov, 2024
    November News: B-BBEE Updates and Our Big Move!

    We’ve got some exciting updates for you this month, plus some important insights on B-BBEE compliance and fronting practices to keep you in the know!

     Getting Real About B-BBEE Compliance

    As a distinguished B-BBEE practitioner put it, “Fronting practices are deceptive actions that sidestep the purpose of the B-BBEE Act. While they may look like true B-BBEE initiatives, they actually block real transformation.” Fronting can take many forms, including:

     Blocking Black Participation – Preventing Black employees from taking part in meaningful roles

    • Withholding Benefits – Claiming compliance while not passing on the real benefits to Black beneficiaries
    • Misleading Partnerships – Forming or colluding in “B-BBEE partnerships” without offering genuine economic benefits

     The consequences? Businesses found guilty of fronting can face penalties, loss of state contracts, and even prison time for responsible individuals. (read this article about a group of directors that have been arrested for fronting).

     Authentic transformation is at the heart of B-BBEE, and that is where we come in—helping you ensure compliance, protect your business, and promote meaningful change.

     Heads-Up for ICT Sector Clients

     If you’re in the ICT sector, don’t forget that annual contribution fees are due by December 1, 2024:

    ICT Generic Entities (Turnover > R50M): 0.015% of NPAT or R2,500, whichever is higher
    ICT QSEs (Turnover > R10M and < R50M): R1,250
    ICT EMEs (Turnover < R10M): R650

     We’ve Moved to Our New Home!

    EconoBEE has a brand-new, permanent home! Our new space is designed to give us room to grow, serve you better, and create more impact. Feel free to stop by and check out the new place! We’re located at 25 Loots Road, Blairgowrie, Randburg.

     Let’s Connect and Keep Things Compliant!

    When B-BBEE gets too hectic, EconoBEE is always around the corner. Drop us a line, and let’s talk about keeping your business strong, compliant, and ready for the future.

     Warm regards,
    ECONOBEE TEAM

    17Aug, 2021
    The ICT Sector: the complexity of definitions
    The relatively new Information and Communication Technology (ICT) sector is made up of the manufacturing and services sectors whose main activities are linked to development, production, commercialisation, and intensive use of new technology. This sector is the fastest-growing sector within South Africa, however, there does exist a scarcity of participation of Black female-owned entities. The Amended ICT Sector draft codes were gazetted on the 27th of October 2015 and, subsequently, the finalized Amended Sector Code was published in the Government Gazette on the 7th of November 2016. However, the most alarming fact about the Amended ICT Codes is that a lack of definition exists within it. Hence, in the areas where the Amended ICT sector is silent, we refer to the DTI Codes. This has sparked several debates as the DTI (Amended Codes of Good Practice) were again amended on the 31st of May 2019. A few examples of areas in contention include:
    1. The SDF calculation
    2. The absorption definition
    3. The 2.5% learnership indicator
    We had a meeting with the ICT council to discuss the above issues of debate and we were able to get an acceptable consensus on these and other issues.

    Do you fall under the ICT codes? Would you like to have guidance on the above in terms of the priority element of skills development and in other matters?

    Contact us and we can help you maximise your scorecard with minimal fuss!