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Minister Malatsi issues ICT directives relaxing BEE laws

Minister Malatsi issues ICT directives relaxing BEE laws

TimesLIVE23-05-2025
Minister of communications and digital technologies Solly Malatsi has issued a policy directive that seeks to relax black economic empowerment (BEE) policies in the ICT sector, a move that may open the door for billionaire Elon Musk's Starlink to operate in SA.
Malatsi issued the directive to the Independent Communications Authority of SA (Icasa) in a government gazette on Friday, days after President Cyril Ramaphosa met US President Donald Trump and his close adviser Musk.
It is believed behind closed doors with the Trump team, the government conceded to paving the way for Starlink to operate in the country.
Starlink, developed by SpaceX, is a satellite service designed to provide high-speed, low-latency internet access, specially in remote areas. It uses thousands of low earth orbit satellites that communicate with ground stations and user terminals to deliver broadband internet.
Musk has refused to comply with licensing conditions that require a foreign company seeking to enter the ICT sector to give away 30% shareholding to black economic empowerment partners.
Malatsi has issued a policy directive to Icasa which could pave the way for the BEE laws to be relaxed in favour of equity equivalents that will allow foreign investors to enter the ICT sector by scoring BEE points for undertaking activities such as investing in infrastructure in rural areas.
In the gazette, Malatsi said the objectives of the policy directive are to give effect to existing national and sector policy pertaining to the rollout of broadband and bridging the digital divide.
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