Following Communications Minister Solly Malatsi's directive allowing Starlink to bypass Black Economic Empowerment (BEE) ownership via equity equivalent programmes, backlash has intensified. ANC members, experts, and opposition leaders criticize it as undermining economic transformation and digital sovereignty, amid debates over a controversial poll and security risks.
Communications Minister Solly Malatsi recently directed Icasa to permit satellite providers like Starlink to meet BEE requirements through equity equivalent investment programmes (EEIPs)—such as skills development or infrastructure—rather than 30% black ownership stakes. This follows the directive's publication earlier in the week, aimed at attracting foreign investment to expand rural connectivity.
The move has sparked fierce opposition. ANC figures and parliamentary committee chair Khusela Sangoni Diko labeled it an 'affront to the centuries-old fight for equity,' highlighting local operators' commitments to connect over 22,000 schools versus Starlink's 5,000. ANC deputy minister Mondli Gungubele also decried it as eroding transformation efforts.
A contentious Institute of Race Relations (IRR) survey claiming 73% of ANC voters oppose BEE has amplified the debate, but Stellenbosch University's Professor Collette Schulz-Herzenberg faulted its methodology for excluding young, black unregistered voters and using leading questions. IRR's Hermann Pretorius countered that it follows 'global best practice.'
Presidential spokesperson Vincent Magwenya pushed back, accusing Elon Musk of 'deliberate dishonesty' and affirming South Africa's resolve against external pressure. He noted interest from other foreign ICT firms and potential legislative tweaks, while stressing Icasa's autonomy.
Rise Mzansi's Songezo Zibi flagged security risks, citing Musk's threats to restrict Starlink in Ukraine and warning that spectrum waivers threaten national digital sovereignty.
