South Africa’s Minister of Communications and Digital Technologies, Solly Malatsi, has announced a new policy direction in an effort to modernise the Broad-Based Black Economic Empowerment regulation in the ICT sector, a move that could bring Starlink in the country.
Currently, South Africa’s ICT licensing regulations require that at least 30% of a company’s ownership is held by historically disadvantaged South Africans. While this rule is designed to promote economic inclusion, it has proven to be a significant barrier for international tech companies like Elon Musk’s Starlink, which do not typically sell local shares or cede equity to meet these requirements.
Published today, South Africa’s draft ICT policy, now open for public feedback, introduces the concept of equity equivalent investment programmes (EEIPs) as an alternative route for multinational companies. Under this system, instead of selling shares to local partners, companies can invest directly in initiatives that support South Africa’s digital transformation goals. These initiatives could include funding local enterprise development, supporting digital inclusion projects, providing skills training, building digital infrastructure, or investing in small, medium, and micro enterprises (SMMEs).
“Digital infrastructure and access to the internet open a world of opportunity — from applying for jobs and studying, to accessing government services or even starting a business,” Malatsi said.
The policy is particularly significant for Starlink, which has previously cited South Africa’s local ownership requirements as a key reason for its absence in the market. Notably, negotiations to bring Starlink to South Africa did not progress during the much-anticipated Trump meeting, leaving its future in the country uncertain. With the new EEIP option, Starlink and similar companies could finally obtain the necessary licenses to operate, provided they invest in projects that benefit South Africa’s digital ecosystem.
Once finalised, the policy will empower the Minister to direct the Independent Communications Authority of South Africa (ICASA) to update its regulations and align them with the new approach. The public has 30 days from the date of publication in the Government Gazette to submit feedback on the draft policy.
