South Africa’s Communications & Digital Technology Minister, Solly Malatsi has issued a “proposed policy direction” targeting to change BEE conditions for the issue of operating licenses to internet providers in the country.
The move is a workaround to have Starlink licensed in South Africa without necessarily meeting BEE conditions. Part of the proposed policy document says:
The focus of this policy direction is on lowering regulatory hurdles to investment in reliable broadband and ensuring access to the internet.
You can download a PDF of the Proposed Policy Direction here.
The development follows the much publicised meeting ealier this week in the USA between US President Donald Trump and SA President Cyril Ramaphosa. The meeting was also attended by billionaire entrepreneur and owner of Starlink, Elon Musk.
The idea of this change is not new, however. Back in October last year, Malatsi said he would issue the policy direction to the Independent Communications Authority of South Africa (Icasa) so Starlink can bypass the Broad-based black economic empowerment (BEE) rule.
He said then in part:
“It is my intention to issue a policy direction to Icasa in terms of section 3(2) of the Electronic Communications Act, to clarify the DCDT’s position on the recognition of equity equivalent programs, for urgent consideration.
“This is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country…
“Giving millions of South Africans access to broadband would therefore constitute one of the biggest empowerment programmes the South African government has ever undertaken.
South Africa is one of the few countries in Southern Africa that has still not licensed Starlink.
Musk, who has commented on the issue several times says his company is denied a license because of racist laws. He said last week in a post on X:
“South Africa has now passed 142 laws forcing discrimination against anyone who is not black!
Even though I was born in South Africa, the government will not grant @Starlink a license to operate simply because I am not black.
This is a shameful disgrace to the legacy of the great Nelson Mandela who sought to have all races treated equally in South Africa.”
Opposition to the relaxation of BEE Conditions
The change will not sail through without strong opposition however, both from within government as well as opposition political parties like EFF.
Following the meeting between Trump and Ramaphosa, the EFF posted on X:
Let it be clear — Starlink will not operate unless 30% is ceded to Black South Africans under true BEE. We will not allow foreign billionaires to profit while our people remain dispossessed.
And indeed, following the Minister’s issuance of the policy direction today, the EFF released a statement saying:
This policy is tailor-made to allow Starlink access to operate in South Africa without meeting the mandatory 30% local ownership requirement as per the Electronic Communications Act.
Musk has arrogantly refused to comply with our sovereign laws, and the ANC-led government has chosen to kneel.
This policy is clearly a capitulation in the face of an aggressive disinformation campaign of white genocide perpetuated by Musk. Musk, through Starlink is now essentially being rewarded after a pure case of corporate terror that undermines our sovereignty and necessary transformation polices.
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