South Africa’s Communications Minister Solly Malatsi has dismissed claims that a proposed policy change is designed to benefit Elon Musk’s satellite internet firm, Starlink, asserting that the policy applies broadly across the communications sector.
Speaking during a parliamentary briefing on Tuesday, Malatsi clarified that the draft policy—introduced last Friday—aims to allow “equity equivalent” investment programmes as an alternative to existing Black ownership requirements in the information and communication technology (ICT) sector.
“The principle of transformation remains non-negotiable in South Africa,” Malatsi stated. “We are not creating a special dispensation for Starlink or any other individual or company.”
Under current regulations, the Electronic Communications Act mandates that foreign-owned telecom firms must sell 30% of their local equity to historically disadvantaged South Africans to be granted an operating licence. This rule has drawn criticism from Starlink and other international companies seeking entry into the market.
While the draft policy could potentially open doors for companies like Starlink, it has sparked opposition. Critics, including Khusela Diko, Chairperson of the Portfolio Committee on Communications and Digital Technologies, argue that the move could be seen as bending too far to accommodate foreign interests.
Malatsi, however, maintained that the proposal is aimed at broadening investment options while upholding the country’s commitment to economic transformation.