South Africa’s Parliament has stepped into the fray after Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy proposal that many believe could pave the way for Elon Musk’s Starlink to operate in South Africa—potentially sidestepping Broad-Based Black Economic Empowerment (B-BBEE) requirements.
The Portfolio Committee on Communications and Digital Technologies, led by Chairperson Khusela Sangoni Diko, has officially invited Minister Malatsi and his department to appear before it on Tuesday, 27 May 2025, to provide clarity on the controversial policy direction.
While the gazetted proposal did not explicitly mention SpaceX or Starlink, industry experts have raised concerns that the language and intent behind the directive appear to align closely with Elon Musk’s previously stated frustrations about South Africa’s “race-based laws.”
“The recently gazetted policy directions appear to be in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX,” read a statement from the Committee.
Starlink and the South African Context
Starlink, the satellite-based internet service owned by Elon Musk’s SpaceX, currently operates in 19 African countries, including Nigeria, Kenya, Zambia, and Rwanda. Known for offering affordable, high-speed internet access via a network of low-earth orbit satellites, Starlink has been eyeing entry into the South African market for years.
However, Musk has publicly criticized B-BBEE ownership requirements, claiming they have blocked Starlink’s launch in his country of birth. In a past social media post, Musk stated that Starlink was “barred from doing business in South Africa because I am not black”, calling the laws “openly racist.”
What the Policy Direction Says
Published on Friday, 23 May 2025, the proposed Policy Direction to ICASA (Independent Communications Authority of South Africa) invokes Section 3 of the Electronic Communications Act and outlines the following objectives:
- Encourage investment and innovation in the ICT sector.
- Promote competition and expand broadband access.
- Align ICT regulations with broader national policies, including transformation imperatives.
The notice states that “regulatory certainty and consistency” is necessary to attract investment and “harmonise” the Electronic Communications Act with the Amended B-BBEE ICT Sector Code. It suggests that ICASA may need to amend existing regulations to meet these objectives.
“To accomplish these objectives, it is necessary for regulatory certainty and consistency to apply to members of the ICT Sector,” the policy reads.
Legal and Political Scrutiny
Critics argue that this move may set a dangerous precedent by potentially allowing foreign companies to bypass local ownership regulations. Parliament’s invitation to Minister Malatsi indicates growing unease over the perception that national empowerment laws are being selectively relaxed for the benefit of Elon Musk’s foreign-owned venture.
While the government frames the proposal as a step toward bridging the digital divide, questions remain about the transparency and legality of the process. The meeting on 27 May is expected to be a high-stakes session, potentially reshaping the future of ICT policy and equity frameworks in South Africa.
