Elon Musk's Starlink to SA? Minister reveals 'alternatives' to BEE

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Minister of Communications and Digital Technologies Solly Malatsi has fuelled reports that South Africa is one step closer to granting Elon Musk’s Starlink an operating licence in the country, and effectively bypassing of Black Economic Empowerment (BEE) legislation.

This comes days after President Cyril Ramaphosa led a delegation to the White House to address President Donald Trump, in a meeting also attended by Musk.

According to reports, Ramaphosa and Musk also met this week to discuss the possible operation of the internet satellite service in the country.

In recent months, Musk has claimed that his company was snubbed over “racist laws”, as he was “not black”. SpaceX, the holding company, has also called on the Independent Communications Authority of South Africa (ICASA) to rethink local equity legislation as it could potentially deter foreign investments.

MINISTER BACKS STARLINK TO SA?

Just days after SA and the US’s bilateral meeting, Minister of Communications and Digital Technologies Solly Malatsi issued a statement on a draft “policy direction on equity equivalent investment programmes” (EEIPs) in the Information and Communication Technology (ICT) sector.

In the statement, the minister revealed that he had gazetted the draft policy direction as a “mechanism to accelerate broadband access”.

Without mentioning Starlink, the minister claimed that the policy would “attract investment” , specifically to operating licencing.

The minister revealed that a 30% local shareholding BEE requirement for foreign investments “did not allow companies to contribute to transformation goals in ways other than traditional owneership”.

As such, Malatsi revealed that the EEIP policy direction would allow qualifying multinationals to engage with the department thought “alternatives to 30% ownership”.

This included investments in :

Local suppliers
Enterprise and skills development
Job creation
Infrastructure support
Research and innovation,
Digital inclusion initiatives,
and funding for SMMEs.

Malatsi added: “This policy direction aims to ensure consistency, unlock investment, and give practical effect to the ICT Sector Code in line with national development goals, including transformation”.

EMBRACING THE NEW?

Minister Solly Malatsi added that the draft policy direction would be open to comments for the next 30 days. Once finalised, it would enable him to direct ICASA to “align” its transformation objectives.

Malatsi added that he hoped the policy direction would “also permit commitments envisaged by the ICT Sector Code as valid conditions for applications for individual licenses”.

MIXED REACTIONS FROM SOUTH AFRICANS

On social media, many South Africans took the announcement as a sure sign of Starlink in the country. While many were excited about the prospect, others were concerned and angry about Elon Musk sidestepping local ownership laws.

Popular entrepreneur Vusi Thembekwayo posted on X: “Something seems off, or perhaps there’s been a lack of thoroughness”.

Here’s what others had to say:

@still_Thato: “Businesses and multinationals have a history of navigating regulatory frameworks to their advantage. Often at the expense of transformative goals.”

@nellaf21: “This is a betrayal of the South African people.”

@WYNNDOWN: “Y’all will move mountains for everyone but South Africans.”

@Nomsa_Siba: “Bathong, we don’t want Starlink!”

@floodssky: “So next time Elon Musk wants something that is against the law, what will he do? A government that bends the law depending on how many damaging treasonous actions they are willing to pursue”.

@Tshepang_011: “The very same Elon Musk who has been spreading misinformation about our country? Come on now.