South Africa’s Communications Minister Solly Malatsi emphasized on Tuesday that his proposed draft policy aimed at relaxing Black ownership requirements was not intended to provide special treatment for Elon Musk’s Starlink.
Last Friday, Malatsi’s department introduced a proposal to allow “equity equivalent” investment programmes within the information and communications technology sector, which could potentially benefit companies like SpaceX’s Starlink and others operating in South Africa.
Malatsi reaffirmed the country’s commitment to transformation, stating, “Transformation is sacrosanct in our country; it is non-negotiable for us to achieve our national goals.” He also clarified that the policy was not aimed at providing any preferential treatment to Starlink or other companies or individuals.
Under South Africa’s Electronic Communications Act, foreign-owned communications companies must transfer 30% of equity in their local subsidiaries to historically disadvantaged groups to secure an operating license. This requirement has faced pushback from Starlink and other firms.
The draft policy has drawn criticism from opposition groups and Khusela Diko, Chairperson of the Portfolio Committee on Communications and Digital Technologies, who argued that it may go too far in accommodating foreign businesses like Starlink.