Ramaphosa denies Starlink 'backdoor deal'

The president’s comments come amid parliamentary scrutiny, with Communication and Digital Technologies Minister Solly Malatsi defending a proposed policy direction change to ICASA,  the Independent Communications Authority of South Africa.

The draft directive, published just a day after Ramaphosa returned from Washington, aims to ease regulatory barriers that have prevented Elon Musk’s Starlink from operating in South Africa.

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.

Speaking to the media on the sidelines of an infrastructure summit in Cape Town on Tuesday, Ramaphosa said his trip to the United States did not influence the policy shift.

"It never even came up in our discussions with President Trump, despite Elon Musk being part of the US delegation,” Ramaphosa told journalists.

He emphasised that the process of getting low-Earth orbit satellite internet to South Africa started a long time ago.

"We’ve been engaging with multiple companies, Chinese, European, Russian, and local,  all showing interest in entering this space. Unfortunately, public focus tends to fall on just one company, when in fact, several are ready to invest.”

Ramaphosa said the environment must be structured appropriately to enable fair investment across the board.

"The process initiated by the minister invites public input from various stakeholders and reflects the strength of our democracy. Major policy decisions must be guided by open discussion and the will of the people.

"We do not live in a land of emperors or dictators. Our democracy is built on participation, and that’s exactly what will happen in this case.”

Meanwhile, opposition parties have slammed the proposed policy direction, accusing the government of favouring foreign-owned businesses over local entities.

Build One South Africa (BOSA) deputy leader, Nobuntu Hlazo-Webster, said the move appears tailored to give Elon Musk’s Starlink an easy route into the South African market under favourable terms.

"This is not transformation, it’s capitulation. The message being sent is that if you are a powerful foreign billionaire, you can sidestep South Africa’s laws, while our local businesses are forced to jump through hoops.

"What begins with special concessions ends in state capture,” she warned.

Hlazo-Webster said while BOSA supports innovation and expanded access to connectivity, the government must apply the same flexibility to local businesses.

"We must reform the way we do redress, with a system that truly empowers black South Africans by removing the barriers to doing business, expanding access to markets, cutting compliance costs, and driving real inclusion. Now is the time.”

The Economic Freedom Fighters (EFF) also voiced strong opposition, labelling the gazette a deliberate backdoor attempt to bring Starlink into the country.

EFF spokesperson Thembi Msane said the party had anticipated what it called a betrayal by the Government of National Unity.

"We have consistently warned that the GNU is facilitating the erosion of transformation in the interests of white capital and Western imperialism.

"This policy direction is unconstitutional and driven by external pressure,  particularly from Elon Musk, a close ally of Donald Trump.

"Musk has arrogantly refused to comply with our sovereign laws, and the ANC-led government has chosen to kneel. This is a capitulation in the face of an aggressive disinformation campaign, including the narrative of white genocide, perpetuated by Musk.

"Starlink is now essentially being rewarded after what we see as corporate terror that undermines our sovereignty and transformation goals,” said Msane.

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