S-Africa suggests easing of regulations for satellite companies like Starlink
(MENAFN)
The South African government has proposed changes to its licensing regulations to ease Broad-Based Black Economic Empowerment (B-BBEE) requirements for satellite service providers such as Elon Musk’s Starlink. The proposal, published in a government gazette, is part of broader efforts to attract investment and improve diplomatic ties with the United States.
The South African government has proposed changes to its licensing regulations to ease Broad-Based Black Economic Empowerment (B-BBEE) requirements for satellite service providers such as Elon Musk’s Starlink. The proposal, published in a government gazette, is part of broader efforts to attract investment and improve diplomatic ties with the United States.
Communications and Digital Technologies Minister Solly Malatsi stated that the policy is intended to stimulate strategic infrastructure investment, foster innovation, and enhance competition within the ICT sector. He also highlighted the need for regulatory clarity and consistency to support broadband expansion and reduce the digital divide in the country.
The proposal aims to clarify the Department’s stance on B-BBEE, particularly through the use of equity equivalent investment programs. These programs offer alternative ways for multinational corporations to contribute to South Africa’s socio-economic development without meeting strict equity ownership requirements.
Under current law, the Electronic Communications Act mandates that licensees must have at least 30% ownership by historically disadvantaged individuals. However, the gazette acknowledges that these rules may conflict with the ICT Sector Code, which evaluates empowerment using broader criteria.
The draft policy directs the Independent Communications Authority of South Africa (ICASA) to urgently revise its regulations to align with the amended ICT Sector Code. This would allow for more flexibility in how empowerment goals are achieved, including non-equity-based contributions.
The announcement follows recent reports that South African officials are working with Musk and his companies to find tailored solutions around existing BEE rules. Musk has previously criticized the country’s BEE policies as “racist and improper.” His appearance at a recent meeting between Presidents Cyril Ramaphosa and Donald Trump suggests renewed efforts to strengthen US-South Africa relations.
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