Parliament, Wednesday, 4 March 2026 – The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Ms Khusela Sangoni-Diko, has written to Minister Solly Malatsi seeking detailed clarity regarding the recommendation to approve Dell Technologies’ Equity Equivalent Investment Programme (EEIP) renewal for the 2025–2034 period.
While acknowledging the reported R230 million investment commitment towards SMME development and digital skills advancement, Ms Diko believes that the renewal of an EEIP, which substitutes for direct ownership under the ICT Sector Code, must be supported by verifiable evidence of past performance and measurable transformation outcomes.
In her correspondence, she has requested clarity on four key areas:
- Performance Review of the Previous EEIP – The Chairperson has asked whether a formal audit or independent performance evaluation of Dell’s previous EEIP was conducted prior to recommending renewal.
- Verifiable Projects and Beneficiaries – The Chairperson has underscored that the legitimacy of an EEIP rests not on headline investment figures, but on demonstrable outcomes.
- Extent of Commitment Fulfilment – The letter further requests clarity on whether all milestones under the previous EEIP were achieved within agreed timeframes, whether any instances of non-compliance or under-performance occurred, and what corrective actions were implemented. The Chairperson has also asked whether lessons from the prior cycle informed the structure and design of the renewal proposal.
- Basis for Supporting the Renewal Recommendation – Given that EEIPs substitute for ownership obligations under the ICT Sector Code, the Chairperson seeks clarity on the criteria used by the department in forming its recommendation; whether the proposed R230 million commitment is proportionally aligned with Dell’s South African revenue footprint; and how the renewal proposal advances technology sovereignty, strengthens local capacity, and promotes meaningful participation within the ICT value chain.
Ms Diko reiterated that transparency, accountability and procedural integrity are essential to maintaining both investor confidence and the credibility of South Africa’s transformation framework. “The integrity of the EEIP instrument depends on a rigorous approval process grounded in evidence, compliance and measurable impact. Renewal cannot be a routine administrative exercise; it must be justified by demonstrated performance and clear developmental value,” she said.
Lastly, Ms Diko underscored the committee’s commitment to ensuring that empowerment instruments within the ICT sector deliver substantive transformation outcomes while preserving regulatory certainty and investment stability.
ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COMMUNICATIONS AND DIGITAL TECHNOLOGIES, MS KHUSELA SANGONI-DIKO
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Justice Molafo (Mr)
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Email: jmolafo@parliament.gov.za
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