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South Africa’s Communications and Digital Technologies Minister, Solly Malatsi, faces ongoing pressure from lawmakers over his decision to greenlight a massive economic empowerment proposal from American tech titan Dell Technologies.
The political heat intensified following a formal parliamentary inquiry by Sihle Joel Ngubane, an MP representing the Umkhonto weSizwe (MK) party. Ngubane questioned whether the ministry overstepped its bounds by intervening in Dell’s transformation obligations and asked if the minister was aware of friction and alleged interference regarding Black Economic Empowerment (B-BBEE) policies within the ICT Sector Council.
The political sparring centres on Malatsi’s endorsement of a fresh, 10-year Equity Equivalent Investment Programme (EEIP) for Dell, following the expiration of its previous agreement in 2025. Final approval for the certificate now rests with Parks Tau, the Minister of Trade, Industry and Competition.
Defending the initiative, Malatsi stressed that Dell’s proposal injects more than R230 million directly into the domestic market. According to the minister, the economic dividends stretch far beyond standard funding for youth and small businesses. He noted that the capital injection would offer sustainable corporate growth, fuel entrepreneurship incubators, expand digital skills training, and introduce artificial intelligence tools to optimize accounting, marketing, and operations.
Turning the tables on his critics, Malatsi pointed fingers at the ICT Sector Council, accusing the regulatory body of severe administrative inertia and failing to properly review Dell’s application. He revealed that a departmental probe uncovered a total lack of functional monitoring and evaluation structures within the council, noting that no performance reviews had been produced for Dell’s previous empowerment cycle.
With Dell anxious that its lapsed B-BBEE status posed a major operational risk, Malatsi explained that his department bypasses the council’s stagnation to conduct an independent audit.
This internal evaluation, formalised in a January 24, 2026 departmental memo, resulted in a strengthened proposal from Dell, including a broader geographic reach to lift underserved communities and mandatory twice-yearly progress reports to guarantee accountability.
Malatsi firmly dismissed allegations of procedural misconduct, asserting that the council’s feedback is purely advisory. He emphasised that the legal authority to evaluate and independently recommend multinational EEIP applications rests squarely with the communications minister before moving to the DTIC for final authorisation.
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