Minister’s Starlink push hits resistance in South Africa

Communications and Digital Technologies Minister Solly Malatsi’s efforts to introduce Elon Musk’s Starlink satellite internet service to South Africa have hit a major roadblock, as telecom regulators oppose the move.

Despite interest from local officials, Starlink – a division of Musk’s SpaceX – has yet to apply for an operating licence in the country. According to Musk, the delay stems from South Africa’s regulatory requirements, including Black Economic Empowerment (BEE) laws, which mandate local ownership for foreign businesses – rules Musk has controversially labelled as “racist.”

Minister Of Communications Backs Starlink in SA

In recent months, Communications and Digital Technologies Minister Solly Malatsi has expressed intentions to introduce a policy directive focused on equity equivalent investment programmes (EEIPs) within the information and communications technology (ICT) sector.

The proposed directive aims to support initiatives that expand broadband access and make it easier for global companies like Starlink to invest in South Africa, particularly those unable to meet local ownership requirements set by BEE and the Electronic Communications Act.

The minister stated that his proposal was “permissible by law” and has “been the source of major investments in our economy” in other sectors.

Malatshi also denied claims that his proposal “undermined transformation.”

Late last year, SpaceX argued that South Africa’s BEE requirement would drive away foreign investors, who have global policies that prevent local shareholding. The company reportedly handed in a written submission to ICASA to “rethink” its BEE legislature. 

‘BYPASSING’ LAWS PROMOTING ECONOMIC TRANSFORMATION?

Following Minister Solly Malatsi’s bid in favour of Starlink, the Portfolio Committee on Communications and Digital Technologies responded with strong opposition.

Chairman Khusela Sangoni Diko claimed that the minister was attempting to “bypass the Electronic Communications Act to appease recalcitrant business interests.”

In a statement last week, Diko declared: “Minister Malatsi should know that when it comes to transformation in the ICT sector, the law is clear on compliance and that cutting corners and circumvention is not an option — least of all to appease business interests.”

Diko pledged to “fiercely oppose” the directive, adding that the minister attempted to “undermine empowerment legislation by stealth.”

NO LICENCE TO OPERATE

According to new information, Starlink did not apply for a license to operate in South Africa, despite Elon Musk’s BEE and “racism” rant suggesting it had hindered the process.

The Independent Communications Authority of SA (ICASA) stated last month that the internet satellite company had not yet applied for a license.

Although Starlink is available in other neighbouring countries, ICASA Chairperson Mothibi Ramusi stated that licenses must be issued for potential service providers.

Ramusi told ITVWeb: “When we issue those licenses, there are specific conditions. There are issues in this country when you talk about black empowerment to the extent that there’s a 30% BEE requirement – it’s a policy.

“Our licensing process is fairly clear and one will just have to conform to the requirements. Should they decide to come through any other person, those people must have a license as well.”