Cape Town – The move to ease the broad black economy empowerment law to allow Starlink to film establishing a shop in South Africa has not only raised eyebrows, but also attracted the interests of Congress.
The Congressional Portfolio Committee on Communications and Digital Technology invited Solly Maratz and the Bureau of Communications and Digital Technology to explain “recent Gazette policy directions that appear to be in favor of low-Earth orbital satellite provider Spacex, which violated the Electronic Communications Act.”
On Friday, May 23, 2025, Minister Malatsi released the official gazette of proposed policy instructions to the Independent Communications Agency (ICASA) in South Africa regarding the ICT Sector Equity Equivalence Investment Program (EEIP) through a media statement.
The published Gazette policy did not mention SpaceX or its subsidiary Starlink, but analysts suggested that the proposed changes were tailored to Elon Musk, the billionaire owner of a low Earth-orbit satellite provider.
Starlink offers affordable internet access compared to other options. The service is provided through a network of low-orbit satellites that can provide broadband speeds anywhere in the world.
Starlink is currently available in 19 African countries, including Nigeria, Kenya, Mozambique, Rwanda, Malawi and Zambia.
Elon Musk wanted to set up his company Starlink in South Africa, but has publicly complained about “racial-based” laws.
Musk previously argued that Starlink was not black and was banned from working in South Africa because he accused the government of having “open and racist possession laws.”
In a notice on Friday, Minister of Communications Digital Technologies said he intends to issue policy instructions proposed on the South African Independent Communications Schedule regarding Section 3 of Section 3 of the Electronic Communications Act 2005 (Act No. 36 of 2005).
“The purpose of this policy direction is to have an effect on existing national and sector policies regarding broadband deployment and bridging digital disparities,” the notice states.
The notice further stated that the Minister “want to give an effect on the purpose”, including:
(i) Encourage investments, including strategic infrastructure investments and innovation in the telecommunications sector; (ii) promote competition within the ICT sector and (iii) promote, promote and harmonize the achievement of the law's objectives. 1.3
“To achieve these objectives, regulatory certainty and consistency must be applied to members of the ICT sector, including those with legal license holders,” the notice states.
“As a result, we need to harmonize the requirements and provisions of the law with other laws that apply to the recognition of ownership of members of the ICT sector, including the revised broad Black Economic Empowerment (BBBEE) ICT Sector Code.”
The notice stated that “achieving these objectives” would require regulators, independent communications agencies in South Africa, to implement certain amendments to regulations promulgated to meet other national law orders.
The Portfolio Committee on Communications, currently led by Chairman Khusela Sangoni Diko, invited Minister Malatsi on Tuesday, May 27, 2025.
