The hopes of securing Elon Musk’s Starlink have been dealt a blow after the Independent Communications Authority of South Africa (ICASA) effectively shut down Communications Minister Solly Malatsi’s December 2025 policy direction on broad-based black economic empowerment (B-BBEE) without amending the Electronic Communications Act (ECA).
On Wednesday, ICASA said it had communicated its position to the Department of Communication and Digital Technologies and remained committed to advancing transformation in the sectors it regulates.
ICASA limit
ICASA is enjoined to advance the historically disadvantaged groups as guided by the Electronic Communications Act, which requires a minimum 30% ownership by historically disadvantaged groups for individual licence holders.
However, it set a clear limit on what it can do under the current law.
“In considering the policy direction, ICASA notes that while the Amended ICT Sector Code must be applied in licensing qualification criteria, full alignment with all provisions of the Code, including equity equivalent investment programmes, would require a legislative amendment to the current ECA.”
Commitment
Malatsi said he has taken note of the stance by ICASA.
“We remain committed to ensuring that South Africa’s licensing regime is fully aligned with the ICT Sector Code. As announced in my Budget speech, we will pursue legislative amendments that will enable equity equivalent investment programmes to complement ownership requirements in telecommunications, through amendments to the Electronic Communications Act.”
“My mission in this job is to ensure that every person in South Africa has access to affordable and meaningful connectivity that they can use to build sustainable livelihoods and get out of poverty,” Malatsi said.
Internet connectivity
Malatsi is tenacious on internet connectivity in South Africa.
“We will work with all stakeholders in society that share our mission to ensure that South Africa fully unlocks the life-changing power that comes with access to the internet.”
BEE equivalent
Last month, The Citizen questioned whether Starlink and Musk were offered the opportunity to pursue a BEE equivalent through training South Africans, rather than selling equity.
Specifically, this refers to the Equity Equivalent Investment Programme (EEIP) for multinationals, alongside heavily weighted Skills Development and Enterprise Development targets for local companies.
EEIPs
EEIPs allow foreign firms to earn ownership points by investing in training, skills development, and the local industry rather than selling shares.
South Africa’s ICT sector is caught in a regulatory bind that has left global players like Starlink unable to pursue empowerment through the EEIP Programme.
Starlink
Talks on launching Starlink in South Africa stalled last year after Musk and US President Donald Trump ramped up public rhetoric against policies such as BEE laws, which mandate that foreign-owned telecoms companies allocate at least 30% of local equity to historically disadvantaged groups.
Responding to questions from The Citizen about whether Musk and Starlink were offered an EEIP option, Malatsi stressed: “It is legally impossible for the ministry to offer EEIPs to multinationals.”
“The Independent Communications Authority of South Africa is an independent regulator and has the sole authority to grant individual licences. I can, by law, never be involved in decisions about individual licences, and only have policy-making authority.”
“Currently, ICASA’s Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDG) and the application of the ICT Sector Code only recognises ownership to be held by persons from historically disadvantaged groups as a valid measurement of broad-based black economic empowerment in the case of individual licences,” Malatsi said.
Policy direction
This is despite the BBBEE Act and the ICT Sector Code (approved by the Department of Trade and Industry in 2016) acknowledging that empowerment can happen in different ways, including through EEIPs.
It is this “misalignment” that prompted Malatsi to issue a Policy Direction in May 2025, urging ICASA to consider revising its ownership regulations.
He said: “I am not changing the rules nor instructing ICASA to give any individual company a licence. I am merely telling ICASA to consider reviewing its ownership regulations so that they can be aligned with the BBBEE Act and the ICT Sector Code. ICASA has not changed its ownership regulations.”
The directive came two days after President Cyril Ramaphosa met US President Donald Trump in Washington to “reset” strained relations following false claims of “white genocide” and attacks against Afrikaner farmers in South Africa – a statement also made by Musk, who attended the Oval Office meeting.
Licence
Last year, ICASA chairperson Mothibi Ramusi confirmed the authority had not received a formal licence application from Starlink
“We indicated previously that Starlink does not hold any licence issued by the authority to provide electronic communications, electronic communications network or broadcasting services in South Africa.”
Satellites
The debate around Starlink’s possible exemption from B-BBEE rules intensified when Malatsi was summoned by the portfolio committee on communications and digital technologies.
The committee argued his approach contravened the Electronic Communications Act, which requires licensees to apply B-BBEE.
Starlink operates thousands of low-earth orbit (LEO) satellites to provide high-speed internet globally.
