A senior South African lawmaker has accused the communications minister of attempting to weaken local ownership regulations in a bid to attract foreign companies, including Elon Musk’s Starlink.
Last year, Communications Minister Solly Malatsi announced plans to issue a policy directive recognizing equity-equivalent programmes in his sector. The aim was to accelerate broadband access and encourage multinational firms unable to meet the country’s strict local equity requirements to operate in South Africa.
Under the Electronic Communications Act, any licensee in the telecommunications, broadcasting, or postal sectors must ensure that historically disadvantaged groups hold at least a 30% stake.
Starlink’s parent company, SpaceX, argued that these local shareholding laws were a major barrier to entry. The company suggested revising the 30% rule in favor of equity-equivalent programmes, allowing more flexibility for foreign businesses.
Khusela Sangoni Diko, Chairperson of the Portfolio Committee on Communications and Digital Technologies, said the minister’s proposed changes were an attempt to “erode hard-won transformation goals” by circumventing the Act. “It appears these proposed directives and regulations are an attempt to undermine empowerment legislation by stealth and, should this be found to be the case, they will be fiercely opposed,” Diko said.
Diko pointed to recent local achievements—such as partnerships involving mobile operator MTN and American LEO satellite provider Lynk, which successfully trialed Africa’s first satellite voice call using a smartphone—as examples of what can be accomplished under current laws. “These initiatives underscore the importance of fast-tracking South Africa’s satellite programme, and that there is no need for overreliance and obsession with a single satellite provider,” she added.
The minister’s office was not immediately available for comment.