Samsung and the Department of Trade, Industry and Competition (DTIC) have opened applications for the third edition of the Equity Equivalent Investment Programme (EEIP), inviting black-owned ICT and service centre SMEs across South Africa to apply.
The South Korean-based electronics giant says the R280 million enterprise development initiative aims to support the growth of small businesses in the ICT sector, while contributing to South Africa’s economic transformation goals.
EEIPs provide an alternative for multinational companies that cannot sell governance equity as required under the broad-based black economic empowerment regulations. Instead of direct ownership, EEIPs enable these companies to meet empowerment obligations through direct investments in South African enterprise and skills development, infrastructure, research and development, local supplier support and job creation.
The announcement comes as communications minister Solly Malatsi recently gazetted a draft policy direction on the role of EEIPs in the ICT sector as a mechanism to accelerate broadband access.
South Africa’s current Electronic Communications Act mandates that foreign telecoms companies must allocate 30% local equity to historically disadvantaged individuals to gain a licence.
This has seen companies like Elon Musk’s Starlink failing to obtain an operating licence in the country, as they have not complied with this requirement.
In its statement, Samsung notes this year’s call follows two previous cycles of the programme, which have supported black entrepreneurs and promoted job creation.
“This programme has, in the last few years, seen great success and has also had a positive impact on the lives of entrepreneurs in the ICT space,” says Nicky Beukes, Samsung EEIP project manager.
“As part of our transformation objectives, our EEIP programme continues to contribute to the sustainable development goals of the National Development Plan.”
Beukes adds. “And together with the DTIC, we have in the last few years re-affirmed our commitment to ICT development and economic transformation which are aligned to South Africa’s Vision 2030. This third edition of EEIP, and its success to date, is a clear indication that Samsung’s significant investment in SMME development is yielding tangible results.”
Click here to apply.
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