Policy directive ‘not a conspiracy to bring Starlink’ into SA, says Malatsi

Communications and digital technologies minister Solly Malatsi has told his portfolio committee in parliament there is no conspiracy to pave a path for Elon Musk’s Starlink to operate in the country.

He insisted the process of engaging the Independent Communications Authority of SA (Icasa) around looking at the possibility of easing black economic empowerment (BEE) policies in the ICT sector for multinational companies started long before President Cyril Ramaphosa’s recent meeting with US President Donald Trump in Washington.

“I make that point to showcase there is no conspiracy on our part with regards to the policy direction. There is no underhand effort in darkness to railroad this into the SA public,” said Malatsi.

He was called before the portfolio committee on communications and digital technologies after gazetting on Friday a policy directive that seeks to relax BEE regulations in the ICT sector which were seen as a move to open the door for Starlink.  

Musk has refused to comply with licensing conditions that require a foreign company seeking to enter the ICT sector to give away 30% shareholding to black economic empowerment partners.

Starlink, developed by SpaceX, is a satellite service designed to provide high-speed, low-latency internet access, specially in remote areas. It uses thousands of low earth orbit satellites that communicate with ground stations and user terminals to deliver broadband internet.

Malatsi has issued a policy directive to Icasa which could pave the way for the BEE laws to be relaxed in favour of equity equivalents that will allow foreign investors to enter the ICT sector by scoring BEE points for undertaking activities such as investing in infrastructure in rural areas. 

He said this was necessary to encourage investment, including strategic infrastructure investment, and innovation in the communications sector, to promote competition within the ICT sector and to promote, facilitate and harmonise the achievement of the objectives of law.

Malatsi on Tuesday told the portfolio committee the process leading to his policy directive was initiated as early as October last year.

“Different people are always going to have different views about timing, and I would like that in the conversation we are mindful of the steps that predate the visit to Washington. To be mindful that the work that culminated in engaging with Icasa as early October 4 would not have been done that way if all of a sudden there is a realisation we have to gazette by Friday,” he said.

“We did say even at the time in May in many of the public engagements we had that the intention in terms of our own timelines would be to aim towards finalisation of the policy direction towards mid-2025, and we are as close to mid-2025 as humanly possible. We would not have predicted there would be a visit last week.”

He insisted they have always communicated different stages of the process publicly and are comfortable the stage they are in was ripe to open the process for public comments, which the policy directive does.

Malatsi said his policy directive was not meant to undermine the country’s transformation agenda.

“I’m pretty clear transformation is sacrosanct in our country. That it is non-negotiable for the country to achieve its aspirations, but most importantly to live to the provisions of the B-BBEE Act as it was articulated and envisaged,” he said.

“We are not attempting to open a special dispensation for Starlink or any other company or individual. We are saying the regulations in our sector must consistently make provision for the two choices that exist in any other sector and other aspects of ICT when it comes to the role of multinationals, whether small or big, that the provisions around the option of a 30% local ownership or the pathway of equity equivalence must be consistently available, or at least for the authority to consider the consistency of that option.”

TimesLIVE