South African red tape will likely delay Starlink there for years to come
According to an article in South Africa yesterday, regulatory red tape and political demands in South Africa will likely block approval of Starlink in that country for years to come, if not forever.
Minister of Communications and Digital Technologies Solly Malatsi gazetted a draft policy direction on the role of EEIPs [Equity Equivalent Investment Programme] in the Information and Communication Technologies (ICT) sector on 23 May 2025. He explained that rules requiring electronic communications service providers to have 30% historically disadvantaged ownership prevented some companies from contributing to the country’s transformation in ways other than traditional ownership.
The Broad-Based Black Economic Empowerment (B-BBEE) Act and the ICT Sector Code supported the use of EEIPs to allow qualifying multinationals to meet empowerment obligations through alternatives. These can include investing in local suppliers, enterprise and skills development, job creation, infrastructure support, research and innovation, digital inclusion initiatives, and funding for small businesses.
However, the Independent Communications Authority of South Africa’s (Icasa) ownership regulations do not provide for EEIPs.
In other words, the laws contradict each other, and to make it possible to issue any licenses for a foreign company like SpaceX, the government needs to resolve this conflict. That is expected to take years of political maneuvering.
Even if this issue is resolved, SpaceX has already said it would not agree to the racial quota system proposed. It has offered to instead provide Starlink for free to 5,000 schools. It is not clear if politicians in South Africa will consider that sufficient.
According to an article in South Africa yesterday, regulatory red tape and political demands in South Africa will likely block approval of Starlink in that country for years to come, if not forever.
Minister of Communications and Digital Technologies Solly Malatsi gazetted a draft policy direction on the role of EEIPs [Equity Equivalent Investment Programme] in the Information and Communication Technologies (ICT) sector on 23 May 2025. He explained that rules requiring electronic communications service providers to have 30% historically disadvantaged ownership prevented some companies from contributing to the country’s transformation in ways other than traditional ownership.
The Broad-Based Black Economic Empowerment (B-BBEE) Act and the ICT Sector Code supported the use of EEIPs to allow qualifying multinationals to meet empowerment obligations through alternatives. These can include investing in local suppliers, enterprise and skills development, job creation, infrastructure support, research and innovation, digital inclusion initiatives, and funding for small businesses.
However, the Independent Communications Authority of South Africa’s (Icasa) ownership regulations do not provide for EEIPs.
In other words, the laws contradict each other, and to make it possible to issue any licenses for a foreign company like SpaceX, the government needs to resolve this conflict. That is expected to take years of political maneuvering.
Even if this issue is resolved, SpaceX has already said it would not agree to the racial quota system proposed. It has offered to instead provide Starlink for free to 5,000 schools. It is not clear if politicians in South Africa will consider that sufficient.