- Sakeliga has approached the High Court in Pretoria to challenge ICASA’s interpretation of the 30 percent black ownership requirement for communications licences.
- The organisation argues that the law allows alternative empowerment measures, including equity-equivalent investment programmes.
- It wants ICASA’s refusal to implement a ministerial policy direction reviewed and set aside, or the relevant legislation declared unconstitutional if it imposes a fixed ownership quota.
Sakeliga has approached the High Court in Pretoria to challenge the 30 percent black ownership requirement that the Independent Communications Authority of South Africa says businesses must meet to obtain individual communications licences.
The organisation argues that ICASA is misinterpreting the Electronic Communications Act by insisting that at least 30 percent of a company’s shares must be held by people from historically disadvantaged groups.
It says this requirement creates a barrier for businesses seeking licences to provide internet services, operate communications networks and offer broadcasting services.
The 30 percent ownership requirement
The dispute centres on Section 9 2 b of the Electronic Communications Act 36 of 2005. The provision requires ICASA to include a minimum 30 percent equity ownership requirement for historically disadvantaged groups in its individual licensing conditions or such other conditions or higher percentage as may be prescribed.
ICASA maintains that the legislation requires individual licence holders to meet the 30 percent ownership threshold. It says recognising alternative empowerment measures would require Parliament to amend the Act. The requirement affects businesses applying for new individual licences, renewing existing licences or seeking permission to transfer licences or control of licences.
Sakeliga argues that ICASA’s interpretation makes the ownership threshold compulsory in every case, excluding businesses that cannot meet it regardless of their contributions to other empowerment objectives.
This especially affects multinational companies whose global corporate structures may not allow them to sell shares in their South African subsidiaries. Domestic businesses that do not meet the threshold are also affected.
Minister’s policy direction
The dispute follows a policy direction issued by the Minister of Communications and Digital Technologies on 11 December 2025. The Minister instructed ICASA to urgently consider aligning its ownership regulations with the amended Information and Communications Technology Sector Code.
The direction also called on the regulator to consider the contribution of international businesses to investment and competition as well as the expansion of broadband access to bridge the digital divide. However, on 13 May 2026, ICASA announced that full alignment with the ICT Sector Code would require an amendment to the Electronic Communications Act.
Sakeliga argues that ICASA failed to properly consider the Minister’s policy direction. It says section 3 4 of the Act requires the regulator to consider ministerial policy directions when exercising its powers and performing its functions.
Alternative empowerment measures
The ICT Sector Code recognises several ways in which businesses can contribute to economic empowerment. These include ownership, management control, skills development, enterprise and supplier development and socio-economic development.
Equity-equivalent investment programmes allow qualifying multinational companies that cannot transfer shares to invest in approved projects that support South Africa’s development objectives.
Sakeliga points to companies such as IBM, Amazon Web Services, Microsoft and JP Morgan, which it says have used these programmes to support skills development, enterprise growth and job creation without transferring shares. The organisation argues that ICASA should recognise these contributions when considering communications licence applications.
What Sakeliga wants
In its application filed on 9 November 2026, Sakeliga asks the High Court in Pretoria to review and set aside ICASA’s decision of 13 May 2026 not to implement the Minister’s policy direction.
It also wants the court to declare that section 9 2 b does not impose a fixed 30 percent ownership requirement as an absolute condition for granting or renewing an individual licence or approving the transfer of a licence or control of a licence.
Alternatively, if the court finds that the legislation does impose a fixed ownership requirement, Sakeliga wants the provision declared unconstitutional and invalid to the extent that it excludes other empowerment measures recognised under the ICT Sector Code.
The application is brought against ICASA, its chairperson, the Minister of Communications and Digital Technologies and the department’s director-general. The matter is registered under case number 2026 278597. The court has not yet ruled on the application.
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