South Africa eases Black ownership rules, paving way for foreign telecoms including Starlink
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South Africa will amend Black ownership rules for telecommunications licensees after Communications Minister Solly Malatsi directed regulators to recognise “equity equivalent” investment programmes, potentially opening the market to satellite-internet operators like Elon Musk’s Starlink. The Electronic Communications Act currently requires foreign-owned licensees to sell 30% equity in local subsidiaries to historically disadvantaged groups, a stipulation Starlink criticised as a major barrier.
In a policy direction published in the government gazette on Friday, Malatsi stated such programmes — including investments in digital infrastructure — should count toward empowerment goals instead of mandating 30% equity sales. He said the changes promote “regulatory parity” to attract investment expanding high-speed internet access in rural areas without bypassing the Act or undermining transformation goals.
SpaceX wrote to regulator ICASA last year highlighting the requirement as a significant obstacle. About 90% of public comments supported Malatsi’s draft direction, though opposition parties and some lawmakers raised concerns over potential foreign dominance in the sector.
Starlink has not commented on the gazette but previously signalled readiness to deploy services once BEE barriers were resolved.
