Daniel Pucharto | May 25, 2025
Communications Minister Solly Malatsi has denied that his proposed policy direction, which provides an alternative pathway for Starlink to legally operate in South Africa, is due to political pressure.
This follows criticism of the white paper viewed on Friday, offering an alternative to the South African bee ownership requirements in the ICT space.
Starlink is currently not available for release in South Africa. This is because we need local entities that are 30% owned by historically disadvantaged groups.
Malatsi explained his proposal by the Congressional Portfolio Committee on Communications and Digital Technology, led by ANC Khusela Diko.
According to a statement from the committee on Saturday, it holds a position that policy directions violate the ECA and are in favor of SpaceX-owned companies.
“Section 9(2)(b) of Electronic Communications Act 36, 2005, provides a legislative framework for the application and grant of individual licenses in the ICT sector,” the statement reads.
“The South African Independent Communications Agency (ICASA) requires that stock requirements for historically underprivileged groups be regulated to 30% or more.”
However, DA member Malatsi told the Sunday Times that as minister he has the authority to issue policy directions under the Electronic Communications Act (ECA).
He added that the proposal's publication coincided with President Cyril Ramaphosa's return from a visit to the US, but that he and his team have been working on it since 2024.
Ramaphosa met with US President Donald Trump at a public White House meeting attended by Starlink owner Elon Musk.
The conference focused on controversial issues between the two states, but billionaire Johann Rupert mentioned Starlink as a US technology that South Africa desperately needs.
According to the Sunday Times, DA leader John Steenhuisen, who was part of the US Ramaphosa delegation, said the policy direction was industry-wide, not specifically Starlink.
The Times also cited anonymous senior ANC leader that this was a victory for the DA.
“The DA has long questioned why it imposes 30% ownership on Starlink.
“This is in place of having a stock share project that benefits small businesses. So this kind of compromise worked for DAs and they jumped at it.”
Malatsi's policy proposal
Malatsi's proposed policy direction suggests harmonizing the ECA with other laws that grant ownership of the ICT sector.
“The purpose of this policy direction is to have an effect on existing national and sector policies regarding broadband deployment and bridging digital disparities.”
Furthermore, Malatsi believes that policy directions will help promote investment and promote competition in the sector.
A statement from the Ministry of Communications and Digital Technology (DCDT) said the directive is in line with the government of the national unification mission to attract investment and accelerate broadband access through regulatory reforms.
This notice focuses on the role of equity equity investment programmes (EEIPs) in the ICT sector.
“The rules that allow you to provide electronic communication services or obtain a license to operate electronic communication networks require a minimum of 30% stake in the hands of historically disadvantaged individuals,” DCDT said.
He added that regulations will hinder the national transformation goals for companies that can obtain individual licenses.
EEIP is provided under the broad Black Economic Empowerment (BBBEE) Act, recognized by the ICT sector code, allowing multinational companies to fulfill their transformational obligations through ownership replacement.
These programs include investments in local suppliers, businesses, skills development, job creation, infrastructure support, research and innovation, and digital inclusion initiatives.
Once confirmed, the draft policy allows Malatsi to direct ICASA as follows:
Align ownership regulations applicable to licenses under the ECA to the full scope of the ICT sector code, including ownership mechanisms considered EEIP recognition or
Apply the same BBBEE standards to the ICT sector to ensure alignment with national priorities, change objectives and investment attractions
Interact with various departments and ICT sector councils to define acceptable EEIP contributions in the ICT space
It also makes it clear that new entrants will not be exempt from their transformational obligations.
“Even if companies are not deploying large infrastructure, they need to make commitments that are substantially and clearly align with South Africa's socioeconomic development goals,” DCDT said.
“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”
