While Elon Musk’s Starlink is connecting remote areas across the globe with high-speed satellite internet, its path into South Africa has hit a wall — and that wall is local policy.
The drama isn’t just about tech, but about transformation, equity, and government regulation.
And now, Minister of Communications and Digital Technologies, Solly Malatsi, is right at the center of it.
Minister Malatsi Pushes for Starlink Despite Licensing Roadblocks
Minister Solly Malatsi recently came forward with a bold move: he wants to open the door for Starlink to operate in South Africa.
His plan involves issuing a policy directive that could allow global tech players, like SpaceX’s Starlink, to bypass strict local ownership requirements.
The goal, according to the minister, is to fast-track broadband expansion in underserved communities and attract investment in the country’s growing information and communications technology (ICT) sector.
He insists his proposal is well within legal bounds and has precedent, referencing similar equity equivalent investment programmes (EEIPs) that have driven investment in other industries.
Malatsi also pushed back at critics who claimed he was undermining South Africa’s commitment to transformation, saying his intention was not to sideline empowerment laws but to find a legal and strategic way to include more players.
Pushback from Parliament Over Alleged ‘Shortcut for Big Business’
But not everyone is on board with Malatsi’s vision. The Portfolio Committee on Communications and Digital Technologies strongly opposed the minister’s proposal.
Its chairperson, Khusela Sangoni Diko, accused Malatsi of trying to sneak around South Africa’s Electronic Communications Act just to “appease foreign business interests.”
In a fiery statement, Diko said there’s no room for shortcuts when it comes to compliance and transformation in the ICT space.
She also warned that attempting to water down Black Economic Empowerment (BEE) laws through clever policy tweaks would be “fiercely opposed.”
For Diko and the committee, it’s about protecting the country’s hard-fought policies for inclusive growth, and Starlink — no matter how revolutionary — doesn’t get a free pass.
Starlink Still Hasn’t Applied for a South African License
While all this policy debate continues, here’s the kicker: Starlink hasn’t even applied for a license to operate in South Africa.
Despite Elon Musk previously tweeting that BEE laws are “racist” and the main reason why Starlink isn’t in the country, the Independent Communications Authority of South Africa (ICASA) clarified that the company hasn’t officially submitted any licensing applications.
ICASA Chairperson Mothibi Ramusi recently confirmed this, emphasizing that any entity wanting to offer communications services in South Africa must hold a license and meet clear conditions — including the BEE requirement, which mandates at least 30% black ownership.
He made it clear: Starlink — or any third party representing it — must follow the rules like everyone else.
So, What’s the Real Hold-Up?
At its core, this is a classic clash between technological innovation and regulatory frameworks.
On one side, you have a tech company with global reach and a South African-born CEO looking to revolutionize internet access.
On the other, you have a government committed to economic transformation and policies designed to uplift historically disadvantaged groups.
And caught in the middle is Minister Malatsi, trying to find a middle ground — but facing strong political resistance for even attempting it.
Do You Support Starlink Coming to SA Without Local Ownership?
With all this back-and-forth, the question remains: Should South Africa adapt its policies to make room for Starlink and other global companies, or should it hold firm on its transformation goals?