South Africa has amended its ‘Black Economic Empowerment’ (BEE) rules, allowing Starlink to operate via rural school internet investments instead of insisting on the traditional – and to date rigid – 30 per cent equity stake for local people and businesses. The decision could pave the way for rapid satellite broadband rollout amid digital divide pressures.

This decision, confirmed by South Africa’s Communications Minister Solly Malatsi, addresses long-standing barriers that had thwarted satellite providers amid demands for local ownership.

The Ministerial directive instructs the Independent Communications Authority of South Africa (Icasa) to amend licensing rules to align with broader B-BBEE legislation, recognising investments as substitutes for direct share transfers. Starlink, which has pledged billions of Rands to connect thousands of rural schools and clinics, stands to benefit immediately. ‘This will enable satellite operators to contribute meaningfully to national development goals without compromising on equity imperatives,’ Malatsi stated in the policy document.

The impasse dates back years, with Starlink applying for an operating licence in 2022 only to hit the BEE wall. Icasa’s framework demanded equity sales, clashing with SpaceX’s global model of full foreign ownership. Frustrations peaked in May when South Africa-born Musk declared on X that Starlink was barred ‘simply because I am not black,’ amplifying calls for reform amid South Africa’s sluggish broadband rollout.

Some regions of South Africa have less than 10 per cent broadband connectivity, and Musk’s offer of 5,000 installs in under-privileged schools and to train up 10,000 technicians now satisfies the local rules.

However, the move has upset some politicians. The powerful ANC opposition party has delivered a withering rebuke of communications minister Solly Malatsi’s final policy directive on black economic empowerment and regulatory alignment, arguing that it goes beyond the minister’s legal authority and threatens transformation, national security and regulatory independence.

In a statement on December 13th, the ANC condemned Malatsi’s policy directive to Icasa, published in the Government Gazette on December 12th.

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Categories: Articles, Broadband, Satellite

Tags: icasa, south africa, starlink