South Africa could amend law blocking Starlink entry

South Africa Minister of the Department of Communications and Digital Technologies (DCDT) Solly Malatsi plans to amend a law mandating that global communication companies must have 30% ownership by historically disadvantaged groups to operate in the country.

If the law is amended, companies like SpaceX's satellite Internet service, Starlink, would be allowed to launch in the country.

"It is my intention to issue a policy direction to the Independent Communications Authority of South Africa (ICASA) in terms of section 3(2) of the Electronic Communications Act, to clarify the DCDT's position on the recognition of equity equivalent programs, for urgent consideration," Malatsi said in a statement.

"This is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country," he continued.

Section 3(2) of the Electronic Communications Act, states that license applicants need to include the percentage of equity ownership to be held by persons from historically disadvantaged groups, which must not be less than 30%, or such other conditions or a higher percentage as may be prescribed.

Broadband access benefits South Africans

Malatsi believes broadband access makes it easier for people to start businesses, grow businesses, seek employment, work remotely, and market goods and services.

"Giving millions of South Africans broadband access would therefore constitute one of the biggest empowerment programs the South African government has ever undertaken," he explained.

Malatsi explained that there were two parts to his plan: first, the need to lower regulatory hurdles to investment in cheap, reliable broadband and second, the need to lower the price of the smart devices required to use 4G and 5G data networks.

He said he is currently focused on the first part of the initiative and announcements on the second part will follow in due course.

Amended law could greenlight Starlink

Malatsi said that once consultation with ICASA is completed, the proposed policy direction will be published for comment per section 3(5) of the Act.

"This is in line with the codes of good practice, which recognize that the global nature of their operations may constrain multinationals in their ability to comply with equity ownership requirements," he explained.

Malatsi said players in the ICT industry have long sought policy clarity on the recognition of equity equivalence schemes.

"This will provide the certainty necessary to attract increased investment in ICT and accelerate universal Internet access," he explained.

This move comes weeks after the country's President Cyril Ramaphosa met with South African-born billionaire Elon Musk on the sidelines of the United Nations General Assembly in New York.

South African President Cyril Ramaphosa. (Source: GovernmentZA's GCIS via Flickr)

"Meeting Elon Musk was a clear intention of mine because I had spoken to him on the phone, and when I came to New York, I said I would like to meet him. It is a full process, some people call it bromance, so it's a whole process of rekindling his affection and connection with South Africa," the South African president said in the interview about his meeting with Musk.

The New York meeting came after Ramaphosa told journalists earlier in September 2024 that he was in communication with Musk and would be having more discussions with him going forward. It is evident that his meetings with Musk went well, judging by the latest announcement by Malatsi.

In the past, South African authorities have been clear that Starlink's services are technically illegal in SA unless it obtains a license to operate locally.

Back in April 2023, former DCDT Minister Mondli Gungubele denied claims that the government was blocking the operation of Starlink.

In August 2024, ICASA also initiated a consultation process on a proposed new licensing framework for satellite services.

If, eventually, Starlink is allowed to operate in South Africa, the country will join a long list of African nations that offer the company's services.

Starlink is available in many countries on the continent including: Nigeria, Burundi, Botswana, Ghana, Zimbabwe, Benin, Rwanda, Malawi, Mozambique as well as Zambia, Kenya, Madagascar, Sierra Leone, South Sudan and Eswatini.

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— Matshepo Sehloho, Associate Editor, Connecting Africa