By Simona Nare
Communication and Digital Technologies Minister Solly Malatsi has proposed policy amendments to relax Broad-Based Black Economic Empowerment (B-BBEE) licensing requirement for satellite services in a move widely seen to open the door for Starlink.
The gazette, posted on Friday, comes just days after a South African delegation led by President Cyril Ramaphosa met US President Donald Trump and his close ally Elon Musk, Starlink owner and South African born businessman.
During the heated meeting where the delegation was caught off guard by video footage and photographic evidence of alleged “White Genocide,” billionaire Johan Rupert, credited with organising the gathering, appealed to Trump that South Africa urgently needed Starlink to combat rising crime.
Previously, Musk had claimed that bureaucratic hurdles, allegedly racially motivated, had blocked his company’s efforts to obtain an operating license.
The latest developments following the meeting with Trump have sparked speculation about potential legislative changes.
In the official gazette, Malatsi said that the proposed amendments are intended to align with existing national and sector policies on broadband expansion and bridging the digital divide.
He added that the proposed regulatory relaxations are aimed at encouraging investment, particularly in strategic infrastructure and innovation within the communications sector.
They also seek to promote competition in the ICT sector and to support, facilitate, and harmonise the implementation of objectives outlined in legislation related to the Act, he said.
“To accomplish these objectives, it is necessary for regulatory certainty and consistency to apply to members of the ICT Sector, including the holders of licences under the Act.”
“Consequently, there is a need to harmonise the requirements and provisions of the Act with other legislation that applies to the recognition of ownership of members of the ICT Sector, including the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code,” the Minister said in the gazette.
In a press statement explaining the move, Malatsi said that under current regulations, any company eligible for a licence to provide electronic communications services or operate an electronic communications network must have a minimum of 30% of its shares controlled by historically disadvantaged individuals.
“These regulations do not currently allow companies that can contribute to South Africa’s transformation goals in ways other than traditional ownership to qualify for individual licences under the Electronic Communications Act, whether or not they are big international companies that do not usually sell shares to local partners,” he said
Malatsi said the B-BBEE Act (Act 53 of 2003) allowed qualifying multinational to meet empowerment obligations through alternatives to 30% ownerships.
This could be through investing in local suppliers, enterprise and skills development, job creation, infrastructure support, research and innovation among others.
The EFF slammed the policy directive, saying the proposed changes were tailor-made to allow Starlink access to operate in the country without meeting the mandatory 30% local ownership requirement as per the law.
“Musk has arrogantly refused to comply with our sovereign laws, and the ANC-led government has chosen to kneel,” said the EFF.
“This policy is clearly a capitulation in the face of an aggressive disinformation campaign of white genocide perpetuated by Musk. Musk, through Starlink is now essentially being rewarded after a pure case of corporate terror that undermines our sovereignty and necessary transformation polices.”
The red berets have threatened to challenge the proposal in parliament and will explore legal avenue to make sure it does not see the light of day.
However, the DA on Saturday welcomed the draft regulations released by Malatsi to introduce new mechanisms to expand internet access across South Africa.
The party’s spokesperson on Communications and Digital Technologies, Tsholofelo Bodlani, said reliable and affordable internet access is a crucial driver of economic growth.
“Currently, most South Africans must travel to metropolitan areas for reliable internet,” Bodlani said.
“According to 2022 statistics from the Independent Communications Authority of South Africa (ICASA), only 10% of households had access to internet, beyond mobile devices, where they live.”
She added that this limited access acts as a barrier to commerce in non-metropolitan areas and excludes schools, hospitals, and police stations from dependable, fast, and affordable internet.
“To foster economic growth, social upliftment, and job creation throughout the country, the government must adopt an all-hands-on-deck approach, something Malatsi’s draft regulations aim to achieve,” said Bodlani.
“While the requirements of the Electronic Communications Act still apply, these new regulations lower barriers for investors and encourage further social investment in South Africa.”
Meanwhile, Parliament has summoned Malatsi and his department to appear before it on Tuesday in response to his gazetted policy directive.
The Portfolio Committee on Communications and Digital Technologies said on Saturday that Malatsi’s directives seem to be in contravention of the Electronic Communications Act.
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