
Malatsi summoned to Parliament to explain Starlink policy directive
Communications and Digital Technologies Minister Solly Malatsi has been summoned to a briefing by Communications portfolio committee chairperson Khusela Diko on the recently published policy directive that could allow the Starlink satellite internet service to operate in the country.
In a statement posted on X, Diko said the move by Malatsi to gazette the policy directive appear to be in 'contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX'.
Invitation
The Department of Communications and Technologies has also been summoned to appear before the committee.
Malatsi, in a post, responded to the request.
'I'll honour the invitation'.
ALSO READ: Malatsi gazettes policy direction to possibly allow Musk to operate Starlink in SA [VIDEO]
Litigation
On Friday, Diko on X warned that the policy directive could expose the government to litigation.
'If I didn't know better, I would be convinced that the South African government really wants to keep Starlink out of this country.
'In all my thinking life, I have never seen a more spectacular mess up of process and glaring invitation for litigation. From what can easily be construed as unfair regulation to attempts to circumvent the law through policy directives not worth the paper they are written on. We look forward to receiving an explanation in Parliament'. Diko said.
Diko has 'respectfully' declined interview requests on the matter 'until the collective wisdom of the Parliamentary Portfolio Committee has been expressed'.
If I didn't know better I would be convinced that the South African government really wants to keep #Starlink out of this country.
In all my thinking life, I have never seen a more spectacular mess up of process and glaring invitation for litigation. From what can easily be… — Khusela Diko🇿🇦 (@KhuselaS) May 23, 2025
Policy directive
Malatsi announced the policy direction on Friday, which provides alternatives to pave the way for the Starlink service in the country.
The proposed policy direction was published in the Government Gazette.
It provides applicants with a workaround to rules on who can acquire a licence to provide electronic communications services or to operate an electronic communications network in the Electronic Communications Act (ECA) that require a minimum of 30% shares to be in the hands of historically disadvantaged individuals.
These regulations currently prevent companies, regardless of whether they are large international firms that typically do not sell shares to local partners, from qualifying for individual licences under the ECA, even if they can contribute to South Africa's transformation goals through means other than traditional ownership.
ALSO READ: WATCH: Starlink not debated with Trump, Ramaphosa says
Transformation
Crucially, the statement makes it clear that new service providers, including those offering new technologies, will not be exempt from the country's transformation obligations.
'Even if companies are not rolling out large-scale infrastructure, they will be required to make commitments that are substantive and clearly aligned with South Africa's socio-economic development goals,' the Communications Department said.
EFF rejects policy
The policy directive has however drawn criticism, with the EFF rejecting the announcement.
'The EFF expected this betrayal, and we have consistently warned that the Government of National Unity (GNU) is facilitating the erosion of transformation in the interests of white capital and Western imperialism,' the red berets said.
'This policy direction is unconstitutional and driven by external pressure, particularly from Elon Musk, a close ally of Donald Trump.
'As a result, the EFF will challenge this unconstitutional proposal in Parliament and explore all legal mechanisms to assert the supremacy of the Constitution and the rightful place of historically disadvantaged South Africans in the ICT sector,' the EFF said.
MK party
MK party spokesperson Nhlamulo Ndhlela said the party also 'unequivocally rejects the newly gazetted regulation'.
'This gazette is not mere bureaucracy. It is the execution phase of a covert pact brokered by Ramaphosa, Steenhuisen and their neoliberal mentor Donald Trump, to subvert the Information and Communication Technology (ICT) Charter and neutralise Broad-Based Black Economic Empowerment (B-BBEE) imperatives in favour of unaccountable global capital.'
Starlink
Talks on launching Starlink in South Africa stalled earlier this year after South African-born Elon 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, primarily black South Africans.
Musk claimed Starlink was barred from operating in South Africa because he is not black, an allegation South African officials refuted.
ALSO READ: EFF threatens legal action over plans to offer Elon Musk's Starlink [VIDEO]
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

IOL News
an hour ago
- IOL News
ADvTECH expands footprint in Africa with the acquisition of Regis Runda Academy in Kenya
ADvTECH is a JSE-listed private education group. It has acquired the Regis Runda Academy in Nairobi, Kenya. Image: Supplied ADvTECH, the JSE-listed South African private education company that is growing its footprint in other African markets, said Thursday it is acquiring the Kenya-based Regis Runda Academy for about R172 million. The deal means that ADvTECH is further expanding its Makini Schools offering in Nairobi, Kenya. Situated in the fast-developing Runda area, northeast of Nairobi, the school, with a capacity of 2,000 students and a full K – 12 offering, will be rebranded as Makini Schools Runda, adding to the six schools in ADvTECH's Makini Schools. "We are delighted to increase our Makini Schools footprint in Kenya and to bring the brand's compelling proposition to parents and students in one of the fastest developing regions of Nairobi," said ADvTECH CEO Geoff Whyte. ADvTECH said it would invest in AI-powered digital learning tools and significant enhancements to sporting facilities at the Regis site, to elevate student experience and maximise academic outcomes. In November 2023, ADvTECH acquired Flipper International School in Addis Ababa, Ethiopia. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading In June this year, ADvTECH launched Rosebank International University College in Accra, Ghana, its first tertiary institution outside South Africa, with the first academic semester to start on September 1, 2025. A second enrolment cycle would start in February 2026. "Our prudent approach to capital allocation positions us well to navigate the uncertainties of South Africa's sluggish economy while capitalising on positive growth opportunities across the African continent. We are particularly excited about developments in Botswana, Kenya, and our recent expansions into Ghana and Ethiopia, which present significant potential for further growth and strategic diversification," ADvTECH chairperson Professor Alex Watson said in the 2024 integrated annual report. ADvTECH's share price was trading 0.61% lower at R31.11 on Thursday afternoon on the JSE, little changed from R29.36 a year ago. BUSINESS REPORT

IOL News
an hour ago
- IOL News
Lula sees 'green shoots' for SMEs in South Africa
Small and medium-sized businesses are the lifeblood of our economy, employing up to 60% of the private sector workforce and generating approximately 40% of the country's GDP. Image: Pexels Despite a challenging economic period, there are clear signs of recovery and reason for optimism within the South African small and medium-sized enterprise (SME) landscape. This was according to a recent Lula Pulse Report, which revealed that while many businesses are still operating under tough conditions, there are "green shoots" that point to a more positive future. 'Small and medium-sized businesses are the lifeblood of our economy, employing up to 60% of the private sector workforce and generating approximately 40% of the country's GDP,' Lula's Chief Risk Officer, Garth Rossiter said. 'We're seeing the mood on the street being surprisingly resilient. Despite the lingering clouds of geopolitical uncertainty, a palpable sense of optimism is taking hold, with both businesses and consumers feeling more confident about the future. There is a fair deal of recognition that, while there is a lot of negative international news, there are few places globally that offer the same business opportunities as South Africa,' he added. 'We see a lot of headline-grabbing negative reporting, but, on the ground, this positive shift suggests we can expect a healthy period of consumer spending and business growth. The unpredictable nature of international politics, particularly the tariff situation with the US, has created a new reality for many companies. While we can't always change the political decisions being made abroad, local businesses are not standing still. They have always been resilient, and they are already reshaping their strategies, diversifying their supply chains, and targeting new markets from Europe to Africa and Asia,' Rossiter said. He believes this adaptation is crucial. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'The US market, while important, represents just 8% of our total exports. With almost a third of those exports exempt from the new tariffs, the real direct impact is confined to about 5% of the total export value. This will most certainly impact some industries more than others, such as the automotive and agricultural sectors, and will have an indirect impact on others, but the agility of our businesses highlights a positive narrative of resilience and forward-thinking in the face of external challenges," Rossiter further said. 'This ability to adapt in the face of challenges is what truly sets South African businesses apart. We are passionate about supporting these businesses and seeing them thrive,"he added. The most recent Lula Pulse Report highlights several key indicators of this shift: Stabilizing turnover: After a tough 12 months, turnover levels for SMEs have stabilized, marking the beginning of a road to recovery. After a tough 12 months, turnover levels for have stabilized, marking the beginning of a road to recovery. Improved GDP forecasts: GDP forecasts for the remainder of 2025 have improved, driven by easing inflation and a recent decline in interest rates. This is expected to encourage consumer spending across most sectors. GDP forecasts for the remainder of 2025 have improved, driven by easing inflation and a recent decline in interest rates. This is expected to encourage consumer spending across most sectors. Easing financial pressure: The peak of the interest rate hiking cycle has been reached, and initial cuts have occurred, which signals easing financial pressure on businesses. The peak of the interest rate hiking cycle has been reached, and initial cuts have occurred, which signals easing financial pressure on businesses. A cautious optimism: The formation of the Government of National Unity has been met with cautious optimism for increased political stability and a more consistent policy direction, which is crucial for business confidence. Rossiter said that cash flow remains a primary obstacle to SME growth, but that Lula is committed to providing proactive, tangible support. 'It is a critical moment for our economy. By providing practical, accessible support and fixing the fundamentals, both in policy and in finance, we can ensure that business confidence translates into measurable economic growth and that our invaluable SME sector not only survives but thrives,' Rossiter further said. Garth Rossiter, Chief Risk Officer at Lula Image: Suppplied.


The Citizen
an hour ago
- The Citizen
Will SA finally be off the grey list after Financial Action Task Force visit?
The Financial Action Task Force greylisted South Africa due to its failure to comply with its standards and measures. The Financial Action Task Force concluded its on-site assessment of South Africa during the last week of July, the last step before the October 2025 Plenary can consider whether to remove South Africa from its grey list. Countries must comply with the Financial Action Task Force (FATF) standards and measures to combat illicit financial flows, terrorist funding and potential threats to the integrity of the global financial system. The FATF is an intergovernmental body established to protect financial systems and the broader economy from threats of money laundering and the financing of terrorism. Greylisting subjects the financial services sector to increased scrutiny and stricter regulations to ensure that it addresses the deficiencies in its anti-money laundering and counterterrorism financing systems. It serves as an early indication that the country's financial system is at risk of misuse for illegal purposes, Bianca Botes, director at Citadel Global, said at the time. 'The logical consequence is detrimental to South Africa's international reputation as it is seen as a high-risk jurisdiction for financial transactions, making countries hesitant to engage in financial and law enforcement cooperation.' ALSO READ: South Africa was greylisted due to endemic corruption SA had to upgrade laws for Financial Action Task Force South Africa had to upgrade its anti-money laundering and counterterrorism laws and regulations, implement improved supervision of financial institutions and enhance the country's ability to investigate and prosecute money laundering and terrorism cases. In addition, South Africa had to complete this by January this year, but problems with compliance on the side of some estate agents and lawyers slowed the process down. However, the FATF announced in June that the country had substantially completed all 22 action items in the action plan adopted. The FATF decision noted that South Africa's progress warrants an on-site assessment to verify that critical reforms, including anti-money laundering and the combating of the financing of terrorism reforms, have been implemented and that the necessary political commitment remains in place to sustain progress. The FATF Joint Group held meetings with South African government officials and representatives of financial institutions and designated non-bank financial institutions. At the conclusion of the meetings, the FATF Africa Joint Group held a meeting with Deputy Minister of Finance David Masondo and Deputy Minister of Justice and Constitutional Development Andries Nel. They assured the FATF of government's commitment to continue to improve the country's anti-money laundering and the combating of the financing of terrorism (AML/CFT) system. ALSO READ: South Africa making more progress to get off FATF grey list All eyes now on FATF meeting After the onsite visit, the FATF Africa Joint Group will submit a report to the October 2025 FATF Plenary, which will consider any recommendations from the report on whether South Africa can be delisted from the FATF grey list. According to a statement from National Treasury, Masondo and Nel assured the FATF Africa Joint Group that government will continue to actively partner with the FATF Global Network in preserving and advancing the integrity of the South African and global financial systems.