South Africa’s Communications Minister, Solly Malatsi, has clarified that the newly proposed draft policy recognizing alternatives to Black ownership requirements in the country’s telecommunications sector is not designed specifically to benefit Elon Musk’s Starlink or any individual company.
Speaking during a parliamentary briefing on Tuesday, Malatsi emphasized that the intention behind the policy is broader and rooted in national goals of economic transformation.
“I am pretty clear that transformation is sacrosanct in our country. It’s a non-negotiable for achieving our aspirations,” he said. “We are not attempting to open a special dispensation for Starlink or any other company or an individual.”
Last week, the Department of Communications and Digital Technologies introduced a draft policy that allows for “equity equivalent” investment programmes as an alternative to the mandatory Black ownership requirements in the information and communication technology (ICT) sector.
This move could potentially open the door for foreign-owned firms, including SpaceX’s satellite internet service, Starlink, to operate in South Africa without ceding equity. Under South Africa’s Electronic Communications Act, foreign communications firms must currently divest 30% of equity in their local subsidiaries to historically disadvantaged groups to qualify for an operating licence.
Starlink and similar companies have previously raised concerns over the strict equity rules, arguing that they pose a barrier to entry.
However, the proposed changes have sparked backlash from the opposition and some lawmakers, including Khusela Diko, the Chairperson of the Portfolio Committee on Communications and Digital Technologies, who accused the government of yielding too much to foreign interests.
Despite the criticism, Malatsi maintained that the proposal aligns with national transformation goals while also making room for international investment in the ICT space.
The draft policy is still open for public comment and may undergo revisions before it is finalized.
