Malatsi denies Starlink bias ahead of parliamentary grilling
Communications Minister Solly Malatsi has dismissed claims that the government is bending the rules to allow tech giant SpaceX’s Starlink service into South Africa under special conditions.
This comes after Malatsi released a proposed policy direction to the Independent Communications Authority of South Africa (ICASA) on Friday, seeking to amend licensing rules under the Electronic Communications Act.
The proposed amendment is part of the government's efforts to ease regulatory barriers that have prevented Elon Musk’s Starlink internet service from operating in South Africa.
A major policy shift could soon allow Starlink and similar satellite services to legally operate in South Africa without having to meet the 30% Black Economic Empowerment equity ownership requirement.
Malatsi says the regulation amendment aims to allow multinational companies to meet empowerment goals through equity equivalent investment programmes.
The changes come just after President Cyril Ramaphosa left the USA after his historic meeting with US President Donald Trump.
Under the new regulations, foreign operators could invest in broadband infrastructure, technology training, or rural connectivity programmes instead of giving away equity.
Speaking to SABC News on Monday, on the sidelines of the Sustainable Infrastructure Development Symposium in Cape Town, Malatsi said the government is not tweaking legislation or creating a separate framework for Starlink or any other multinational.
"We are looking at ways to harmonise the ICT sector codes and ICASA’s ownership regulations so they consistently reflect South Africa’s transformation goals.
"Transformation is non-negotiable; the country cannot compromise on this. The policy directive we’ve proposed aims to provide clarity on the role of equity equivalent programmes, which are already recognised as part of our broader empowerment framework,” he said.
Instead, he said the new policy directive aims to align existing ICT sector codes with transformation regulations set by the communications regulator ICASA.
He has now been summoned by Parliament's Portfolio Committee on Communications and Digital Technologies to explain his decision.
Committee Chairperson Khusela Diko was unhappy that the committee found out about the gazette through a media statement.
"Section 9 (2)(b) of the Electronic Communication Act 36 of 2005 provides the legislative framework for the application for and granting of individual licences in the ICT sector,” she said.
"It also mandates ICASA to regulate historically disadvantaged groups’ equity requirements at no less than 30%.”
Malatsi said he looks forward to appearing before the committee, adding that transformation is non-negotiable and South Africa cannot compromise on its empowerment agenda.
"These programmes form part of the provisions of the Broad-Based Black Economic Empowerment Act of 2003.
"They allow multinational companies that want to operate in South Africa, but, for various reasons, including their ownership structure, are unable to cede 30% equity, to invest through alternative avenues.
" These include training opportunities, partnering with local suppliers, conducting research, and investing in communities. We look forward to engaging with the portfolio committee on this matter,” he said.
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