South Africa’s USAASA Publishes Framework for Universal Service and Access Fund
USAASA will act as administrator of the Fund. It is responsible for issuing procedural guidelines and managing subsidy processes once the Manual is finalised, and for governance, reporting and oversight.
The Universal Service and Access Agency of South Africa (USAASA) has published the Universal Service and Access Fund (USAF) Manual under section 82(4)(d) of the Electronic Communications Act, 2005. The Manual sets out a strategic and administrative framework for how the Fund will be run. It covers the subsidies provided under section 88 of the Act and the incentives awarded as project grants under section 90(1). The Agency says that procedural guidelines on how to apply for assistance and how payments are made will be issued separately under section 88(1A).
The Manual is a framework document and does not prescribe detailed operational procedures. It states that it must be read consistently with the Act and with related determinations. These include the Minister’s determinations of universal access and universal service and of “needy persons”, as well as the Independent Communications Authority of South Africa’s (ICASA) definition and list of under-serviced areas. It also says it does not extend the Agency’s mandate beyond what the Act provides.
The Manual’s stated objectives are to promote equitable access to electronic communications and broadcasting services and to support schools, further education and training institutions and community access centres. It also aims for efficient, transparent and sustainable use of public funds, with measurable developmental outcomes. It is aligned with the National Development Plan, South Africa Connect, the Medium-Term Development Plan and the Digital Economy Masterplan.
Project grants will be guided by nine principles: transparency and procedural fairness, competition and value for money, technology neutrality, performance-based funding, sustainability after the grant ends, proportionality and risk management, legal compliance, support for SMEs and transformation, and coordination with other national, provincial and sectoral initiatives. Grants are to be awarded through competitive processes, including least-subsidy approaches, and linked to defined outputs and milestones. The Manual also requires clear provisions on asset ownership, operation and maintenance once subsidy support ends. Allocations must comply with the Electronic Communications Act, the Public Finance Management Act and Treasury Regulations.
The Manual covers grants to electronic communications network service licensees for building, operating and maintaining networks in under-serviced areas. It does not apply to subsidies governed by section 73 of the Act (e-rate), to support mechanisms outside the Fund unless the Act expressly authorises them, or to internal administrative and procurement processes unrelated to the Fund. Subsidies and project grants are treated as distinct but complementary instruments, and grants may be allocated through competitive, incentive-based and outcome-based mechanisms.
USAASA will act as administrator of the Fund. It is responsible for issuing procedural guidelines and managing subsidy processes once the Manual is finalised, and for governance, reporting and oversight. The Agency will also publicly disclose funding allocations, beneficiaries and project performance, subject to applicable law.
