Image Source: The South African
Local – Despite growing suspicion that South Africa’s government is giving preferential treatment to Elon Musk’s satellite internet service, Starlink, officials have moved to dispel fears that recent policy developments are designed to benefit any specific company.
On 23 May 2025, Communications and Digital Technologies Minister Solly Malatsi issued a proposed policy direction in the Government Gazette. The directive outlines how equity equivalent investment programmes (EEIPs) can be formally recognised within the ICT sector.
The announcement followed President Cyril Ramaphosa’s high-profile visit to the United States, where he met with U.S. President Donald Trump. Also present at the Oval Office meeting was Elon Musk, founder of Starlink, which sparked speculation about possible political or commercial alignment.
Musk is reportedly considering launching Starlink’s satellite-based services in South Africa. This has led to concerns that the government may be adjusting regulations to enable the company’s entry into the market.
Malatsi dismissed the claims during a briefing to the Portfolio Committee on Communications and Digital Technologies stating that, “We are not attempting to open a special dispensation for Starlink or any other company or an individual. There is no conspiracy on our part in relation to the policy direction. There is no underhanded effort in darkness to railroad the South African public.”
The directive seeks to clarify licensing criteria for broadcasters, internet service providers, and mobile and fixed network operators.
Under current ICASA regulations, at least 30% ownership must be held by historically disadvantaged individuals. This requirement excludes many global companies that are unable to meet equity transfer rules due to international ownership structures.
“These regulations do not currently allow companies that can contribute to South Africa’s transformation goals in ways other than traditional ownership to qualify for individual licences,” Malatsi explained.
EEIPs Are Not a New Invention
Malatsi stressed that EEIPs are not a recent creation. He pointed out that the Department of Trade, Industry and Competition (the dtic) approved them in 2016. These programmes offer alternative ways for multinational firms to meet B-BBEE ownership obligations where direct shareholding by black South Africans is not feasible.
Approved EEIP contributions include investments in enterprise development, digital skills, job creation, infrastructure, and broader socio-economic upliftment.
Although EEIPs are recognised under the B-BBEE Act and ICT Sector Code, they have yet to be fully incorporated into ICASA’s ownership regulations. The proposed policy aims to address this regulatory gap.
“My duty is to ensure that there is alignment between the codes and regulations in fulfilment of all our national laws, in this case, the BBBEE Act. In terms of the process that we have followed from the formulation of the policy directive, leading ultimately to the gazetting, we have followed the prescripts a Ministerial policy directive should follow,” Malatsi said.
Stakeholders have 30 days from the publication date to submit their input. During this period, all interested parties, including industry players, civil society groups, and the public, are encouraged to review the proposed policy direction and submit their comments.
These contributions will be considered in finalising the directive before it is formally submitted to the regulator, ICASA.
“What is incumbent of the department and the Ministry is that in the consideration of inputs from the public, they must inform the final formulation of the policy direction, which will be shared with the regulator as it is required.
“I am pretty clear that transformation is sacrosanct in our country; that it is a non-negotiable in order for the country to achieve its aspirations, but most importantly to live up to the provisions of the BBBEE Act as it was articulated and envisaged,” the Minister said.
