STARLINK BEE SHOWDOWN IN SOUTH AFRICA
- BEE NEWS
- May 26
- 3 min read
Daniel Puchert | 25 May 2025
Communications Minister Solly Malatsi denies that his proposed policy direction, which would offer an alternative path for Starlink to legally operate in South Africa, is due to political pressure.
This follows criticism of the white paper gazetted on Friday that provides alternatives to South Africa’s BEE ownership requirements in the ICT space.
Starlink is currently unable to launch in South Africa because it must have a local entity that is 30% owned by historically disadvantaged groups.
Malatsi has since been summoned by Parliament’s Portfolio Committee on Communications and Digital Technologies, led by the ANC’s Khusela Diko, to brief it on his proposal.
According to a statement by the committee on Saturday, it holds the position that the policy direction contravenes the ECA and favours the SpaceX-owned company.
“Section 9 (2) (b) of the Electronic Communication Act 36 of 2005 provides the legislative framework on the application for and granting of individual licences in the ICT sector,” the statement reads.
“It mandates the Independent Communications Authority of South Africa(Icasa) to regulate historically disadvantaged groups’ equity requirement at no less than 30%.”
However, Malatsi, a DA member, told the Sunday Times that, as minister, he has the power to issue policy directions under the Electronic Communications Act (ECA).
He added that while the proposal’s publication coincided with President Cyril Ramaphosa’s return from his visit to the US, he and his team have been working on it since 2024.
Ramaphosa met with US President Donald Trump at a publicly broadcast meeting in the White House, where Starlink owner Elon Musk was in attendance.
While the meeting focused on controversial matters between the two states, billionaire Johann Rupert mentioned Starlink as a US technology that South Africa desperately needs.
DA leader John Steenhuisen, who was part of Ramaphosa’s delegation in the US, said that the policy direction was not specifically for Starlink but for the industry as a whole, according to the Sunday Times.
The Times also quoted an anonymous senior ANC leader that this is a win for the DA, as the party has proposed it for some time.
“The DA has long questioned why we are imposing a 30% ownership on Starlink, which would likely benefit only a few comrades,” the ANC leader said.
“This is instead of having an equity share project that will benefit small businesses. So, this kind of compromise works for the DA, and they jumped at it.”
Malatsi’s policy proposal
Malatsi’s proposed policy direction suggests harmonising the ECA with other legislation that recognises ownership in the ICT sector.
“The objectives of this policy direction are to give effect to existing national and sector policy pertaining to the rollout of broadband and the bridging of the digital divide,” it reads.
Additionally, Malatsi believes the policy direction will help encourage investment and promote competition in the sector.
A Department of Communications and Digital Technologies (DCDT) statement said the directive aligns with the Government of National Unity’s mission to attract investment through regulatory reforms and accelerate broadband access.
The notice focuses on the role of equity equivalent investment programmes (EEIP) in the ICT sector.
“The rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30% shares to be in the hands of historically disadvantaged individuals,” the DCDT said.
It added that the regulations prevent companies that can contribute to the nation’s transformation goals from acquiring individual licences.
EEIPs, provided for under the Broad-Based Black Economic Empowerment (BBBEE) Act and recognised by the ICT Sector Code, enable multinationals to meet transformation obligations through alternatives to ownership.
These programmes include investing in local suppliers, enterprises, skills development, job creation, infrastructure support, research and innovation, and digital inclusion initiatives.
Once finalised, the draft policy direction will enable Malatsi to direct Icasa to:
Align its ownership regulations applicable to licensing under the ECA, with the full scope of the ICT Sector Code, including recognition of EEIPs and deemed ownership mechanisms
Apply the same BBBEE criteria to the ICT sector, ensuring alignment with national priorities, transformation objectives, and investment attraction
Engage with various departments and the ICT Sector Council to define acceptable EEIP contributions in the ICT space
It also clarifies that new entrants will not be exempt from transformation obligations.
“Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa’s socio-economic development goals,” the DCDT said.
‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’.