MPs reject Malatsi’s Starlink policy ‘workaround’

Malatsi appeared before Parliament to clarify a proposed policy directive issued to ICASA.

 The directive seeks to ease regulatory barriers that have prevented Elon Musk’s Starlink satellite internet service from operating in South Africa.

The draft directive, released shortly after President Cyril Ramaphosa’s return from Washington, signals a potential shift in government policy, one that could permit satellite service providers like Starlink to operate without complying with the current 30% Black Economic Empowerment (B-BBEE) equity ownership requirement.

EFF MP Sinawo Thambo accused Malatsi of circumventing legislative processes and aiding foreign companies in bypassing local empowerment laws.

"Minister, you’re using the word alignment as a disguise; it’s a de facto amendment to the Electronic Communications Act and the ICT Sector Code, both of which require legislative processes. 

"One of these frameworks is under your department, the other isn’t. That raises serious concerns about executive overreach,” Thambo said.

"Let’s not pretend we’re talking generally, this is about Starlink. We’re making legislative exceptions for one company when they comply with stricter rules in countries like India, Taiwan, and Japan. Why should South Africa bend its laws when others don’t?"

"There’s this myth that Starlink will create jobs and bring rural connectivity. But how does a satellite company, operated remotely from outside the country, meaningfully contribute to local employment?”

"Instead of supporting local telecoms, we’re allowing global companies to bulldoze in, at what cost, and for whose benefit?"

Thambo’s remarks were echoed by MK Party MP Colleen Makhubele, who said the minister’s directive neglects over 400 historically disadvantaged local licensees struggling to survive in a market dominated by major telecoms players.

"Minister, your actions are sidelining the very people the government should be empowering. Where is the support for small and medium enterprises in the sector? These licensees were given permits but no funding, no training, and no assistance,” Makhubele argued.

"Now you’re proposing that multinational corporations bypass these 490 local operators completely. You talk of opening competition, but in truth, you’re widening the gap and entrenching inequality.”

Makhubele questioned whether the directive followed proper consultation processes.

"What consultations have taken place with the Department of Science and Innovation, which runs several programmes in this space? Has there been genuine stakeholder engagement, or was this decision made in isolation, or worse, driven by political pressure?”

"Chairperson, we must also ask: was this minister’s decision made independently or influenced by the political party line? It appears to serve foreign interests while South Africans are pushed aside.”

She warned the directive could create a “backdoor” for international companies to enter the South African market without being held accountable to local development goals.

"This directive seems to benefit businesses, especially multinationals, far more than the South African people. Are economic opportunities reaching our communities, or are they being handed off to international players without any tangible return for citizens?”

Makhubele also raised concerns about the department's recent international travel.

"What discussions took place abroad? Was Starlink involved? Are GNU members and other political figures leveraging their access to advance private international agendas behind closed doors?”

"If we’re serious about governance, these questions need clear and transparent answers. We demand to know what risk assessments have been conducted, and whether the department even has the legal and financial capacity to defend this directive in court if challenged.”

Calling the policy “unjustifiable,” Makhubele criticised what she described as a secretive and unilateral process.

"Policy changes like these must be open to the public and adhere to Section 9 of our Constitution. There must be meaningful consultation, yet we’ve seen none.”

"The minister has tried to justify this decision by referring to historically disadvantaged license holders. But what kind of support have these licensees actually received? None. They’re clinging to survival while MTN and Vodacom dominate.”

"Your claim that this move will increase competition is paper-thin. It’s not competition, it’s colonisation through code.”

Turning to the department’s broader failures, Makhubele issued a scathing rebuke:

"Your department has achieved no measurable digital inclusion, no job creation, and no universal access. Billions have been spent across your entities with almost no return. Where is the ICT revolution we were promised?

"Even SA Connect, a flagship promise since 2015, has failed. Of 4,000 schools promised connectivity, fewer than 600 have been connected.”

"Your legacy, minister, is one of missed deadlines and broken promises. From 2011 to 2025, every digital migration deadline has passed without delivery. South Africa deserves better.”

Referencing the recent controversial Oval Office meeting, Makhubele said:

"That meeting, meant to pitch investment, became an international embarrassment. We were portrayed as violent and lawless—all in the name of courting companies like Starlink.”

"Meanwhile, your department has failed to deliver even basic digital tools to police stations or remote learning technology for schoolchildren. Where is the progress? Where is the accountability?”

She concluded: "We’re not just disappointed, we’re alarmed. This directive appears to be serving foreign interests at the expense of our people. We urge Parliament to urgently intervene before irreversible harm is done to South Africa’s digital future.”

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