By Nqobile Dludla
A senior South African lawmaker on Monday accused the communications minister of seeking to erode the country’s laws on local ownership to appease foreign businesses looking to work in the country, which include Elon Musk’s Starlink.
Last year Communications Minister Solly Malatsi said he would issue a policy directive on the recognition of equity equivalent programmes in his sector to accelerate broadband access and bring in multinationals who could not comply with local equity ownership requirements.
The Electronic Communications Act states that historically disadvantaged groups must hold at least 30% equity in any potential licensee seeking to operate in South Africa’s telecommunications, broadcasting or postal sectors.
Starlink’s parent company SpaceX wrote to telecommunications regulator ICASA that local shareholding laws were a significant barrier and that it should rethink the 30% ownership requirement for licensees by introducing equity equivalent programmes as an alternative.
The Chairperson of the Portfolio
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