South Africa's Minister of Communications, Solly Malatsi, has issued a policy directive to the Independent Communications Authority of South Africa (Icasa) to align its regulations with national codes, allowing multinationals like SpaceX to obtain telecom licenses without selling equity stakes. This move recognizes Equity Equivalent Investment Programmes (EEIPs) approved by the Department of Trade, Industry and Competition (DTIC). The directive aims to facilitate investments needed to bridge the digital divide.
On December 11, 2025, Minister Solly Malatsi signed a policy direction published in Government Gazette No. 53855 the following day. This instructs Icasa to urgently consider aligning its regulations with the national ICT Sector Code, effectively overriding the regulator's requirement for telecom license applicants to hold 30% equity by historically disadvantaged groups (HDGs).
For years, Icasa has enforced this rule under the Broad-Based Black Economic Empowerment Act (B-BBEE Act), blocking companies like Elon Musk's SpaceX, which maintains 100% ownership of its subsidiaries. Starlink, SpaceX's satellite internet service, has been unable to launch in South Africa due to this impasse.
Malatsi's directive promotes EEIPs as an alternative, where foreign investors can contribute through local skills development, enterprise support, or infrastructure investments, subject to DTIC approval. He argues that Icasa's stance contravenes the B-BBEE Act and hinders vital national and international investments.
The policy involves coordination with Minister Parks Tau of the DTIC, shifting approval authority toward the executive. While framed as benefiting all licensees equally, it primarily clears the path for Starlink, which has pledged internet access to rural schools if barriers are removed.
Malatsi addresses perceptions that the directive targets Starlink, emphasizing its broader application to support digital sovereignty and connectivity. This approach mirrors the strategy used in the Vodacom-Maziv deal, where similar partnerships resolved regulatory hurdles.
By compelling Icasa to accept DTIC-approved EEIPs, the government seeks to expedite licensing and attract foreign capital essential for expanding broadband access in underserved areas.
