Malatsi Defends Starlink Policy Shift Amid BEE Backlash
Minister Malatsi has defended a proposed policy direction that would allow satellite providers to operate in South Africa without meeting the country’s strict BEE ownership requirements
Communications Minister Solly Malatsi has defended a proposed policy direction that would allow satellite providers like Starlink to operate in South Africa without meeting the country’s strict Black Economic Empowerment (BEE) ownership requirements. The new framework proposes using Equity Equivalent Investment Programmes (EEIPs) — such as investment in local infrastructure or small black-owned businesses — as an alternative path to the current 30% black ownership mandate. Malatsi insists the proposal is not politically motivated, despite its timing alongside President Ramaphosa’s U.S. visit and Elon Musk’s presence at a White House meeting.
The policy has sparked controversy, with Parliament’s Portfolio Committee on Communications arguing that the proposal contravenes the Electronic Communications Act (ECA), which mandates a 30% equity stake by historically disadvantaged groups. Malatsi, a DA member, maintains that the proposal aligns with national goals to expand broadband, promote investment, and bridge the digital divide. The Department of Communications stated that the move supports the Government of National Unity’s reform agenda and will not exempt any new entrants from transformation commitments — instead offering flexibility in how they fulfill them.
