South Africa Relaxes Ownership Rules, Opening Market to Foreign Telecom Operators
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South Africa will amend rules on Black ownership requirements for telecommunications licensees following a policy direction from Communications Minister Solly Malatsi, potentially enabling satellite-internet operators including Elon Musk’s Starlink to enter the market. The Electronic Communications Act requires foreign-owned communications licensees to sell 30% of equity in local subsidiaries to historically disadvantaged groups, a provision criticised by Starlink; SpaceX wrote to regulator ICASA last year saying the requirement was a significant barrier.
In a policy direction published in the government gazette Friday, Malatsi said “equity equivalent” investment programmes should count toward empowerment goals, allowing companies to meet requirements through investments such as digital infrastructure rather than selling 30% equity. Malatsi said the changes seek “regulatory parity” without bypassing the Act or weakening transformation, and would help attract investment to expand high-speed internet access in rural areas; about 90% of public comments supported the draft while opposition parties and some lawmakers warned of foreign dominance.
Starlink has not commented on the gazette but previously indicated readiness to deploy if BEE barriers were addressed.
