South Africa is preparing to ease local ownership requirements for Starlink and other foreign satellite service providers, following high-level diplomatic engagements with the United States.
- South Africa plans to ease local ownership requirements for foreign satellite service providers.
- This initiative responds to concerns over restrictions imposed by the current Electronic Communications Act.
- Elon Musk’s Starlink has faced challenges under existing laws, sparking diplomatic discussions between South Africa and the United States.
South Africa’s government is preparing to relax local ownership rules for foreign satellite service providers, with a particular focus on facilitating entry for companies like Elon Musk’s Starlink, which has encountered regulatory barriers.
The proposed policy shift aims to “encourage investment, including strategic infrastructure investment, and innovation in the communications sector” and “promote competition within the ICT sector” while harmonizing legislation affecting the industry, according to Minister of Communications and Digital Technologies, Solly Malatsi.
The current contention centers around the Electronic Communications Act requirement for licenses to include a minimum 30% equity ownership by historically disadvantaged groups.
However, the government gazette acknowledges that this requirement may not fully align with the ICT Sector Code, which measures empowerment more broadly.
To address this, the policy instructs ICASA to urgently align regulations with the Amended B-BBEE ICT Sector Code, promoting broad-based black economic empowerment through “equity equivalent investment programmes“.
Malatsi emphasized the importance of “regulatory certainty and consistency” to support broadband rollout and bridge the digital divide.
The proposed exemption for Starlink could signal a shift in how South Africa balances economic empowerment with attracting foreign investment and modernizing infrastructure.
The White House Connection
The move follows behind-the-scenes diplomatic engagement between U.S. and South African officials, driven by growing American concerns over regulatory barriers affecting U.S. tech firms — particularly Elon Musk’s Starlink.
Billionaire Elon Musk had previously criticized South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) laws, which effectively barred Starlink from operating in the country. In a post on X (formerly Twitter), Musk claimed his company was denied entry because he is white, calling the laws exclusionary.
Clayson Monyela, a senior official at South Africa’s Department of International Relations and Cooperation, responded firmly on social media.
“Sir, that’s NOT true & you know it! It’s got nothing to do with your skin colour. Starlink is welcome to operate in South Africa provided there’s compliance with local laws,” Monyela wrote. “This is a global international trade & investment principle.”
The timing of South Africa’s proposed relaxation of local ownership rules appears to coincide with intensified bilateral discussions aimed at mending strained relations between Pretoria and Washington.
South African President Cyril Ramaphosa was recently hosted at the White House as part of ongoing efforts to reset diplomatic ties.
Among the topics discussed during these engagements were the sensitive and controversial issues surrounding alleged attacks on white farmers.
The recently published government gazette, proposing the easing of local ownership requirements for satellite service providers, further highlights this shift.
This move not only aims to accommodate tech innovators like Elon Musk but also signals a broader diplomatic gesture toward the United States.
