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IOL News
3 days ago
- Business
- IOL News
Starlink under scrutiny: Minister Malatsi backs ICASA's probe into unauthorised services
Communications and Digital Technologies Minister Solly Malatsi. Image: X / IOLGraphics Communications and Digital Technologies Minister Solly Malatsi has thrown his weight behind the Independent Communications Authority of South Africa (ICASA) to investigate Starlink, a satellite internet service operated by SpaceX, for allegedly operating in the country without authorisation. This development comes after the uMkhonto weSizwe Party (MK Party) alleged that Starlink was offering its services in South Africa without a licence. ICASA confirmed that the organisation had launched an investigation into the alleged unlawful use and provision of Starlink services in South Africa. ICASA spokesperson, Milly Matlou, said: 'ICASA has launched an investigation into the alleged unlawful use and provision of Starlink services in SA. We have also engaged SpaceX for further clarity and have currently deployed inspection teams on the ground to investigate the matter further.' If found guilty, the company could face enforcement actions, including fines or even a ban on its operations in the country. 'Should the investigation yield any breach with regulatory and legislative frameworks, the authority will explore the applicable enforcement actions within its disposal, which may include, among others, lodging a formal complaint with the International Telecommunication Union (ITU),' Matlou said. The MKP alleged that Starlink was operating in South Africa without authorisation, using a shadow entity called "ICASAsePUSH" to masquerade its operations. The party claimed that this operation constitutes a 'blatant' violation of South African telecommunications law and represents a direct affront to the country's Broad-Based Black Economic Empowerment (B-BBEE) framework. The party launched its allegations during the Portfolio Committee on Communications and Digital Technologies meeting in Parliament on Tuesday. 'During that session, the MK Party directly challenged the Minister of Communications and Digital Technologies regarding his awareness of this operation. His professed ignorance was not only unacceptable but deeply troubling,' party spokesperson Nhlamulo Ndhlela said. Malatsi has expressed his full support for ICASA's investigation, stating that it is the regulator's responsibility to manage both licence applications and investigations. 'The minister was made aware of the allegations when they were raised in the portfolio committee on Tuesday. It is now ICASA's responsibility to investigate these allegations, and the minister fully supports this investigation,' Malatsi's spokesperson, Kwena Moloto, said. This will be the second time the authority investigates Starlink's dealings. In 2023, ICASA issued a notice, warning that it was illegal for anyone or company to use Starlink, as it doesn't hold a licence to operate in the country. Meanwhile, during the session on Tuesday, Malatsi defended his recently gazetted proposed ICT policy adjustments, saying that it was intended to attract investment into the sector. He said it was not a way to allow Elon Musk to operate in South Africa. 'We are not attempting to open a new dispensation for Starlink or any other company or individual,' he told Parliament's Portfolio Committee on Communication. 'We are saying that the regulations in our sector must consistently make provisions for the two choices that exist in any other sector,' Malatsi said after his department on Friday gazetted a proposed policy direction to the ICASA. Cape Argus
IOL News
6 days ago
- Business
- IOL News
Minister Malatsi defends ICT sector empowerment regulations against opposition
Communications and Digital Technologies Minister Solly Malatsi said he was not attempting to open a special dispensation for Starlink or any other company or individual when he introduced the policy directives that relax black economic empowerment regulations. Image: Supplied Communications and Digital Technologies Minister Solly Malatsi faced fierce criticism on Tuesday as he defended the policy direction to relax broad-based economic empowerment (B-BBEE) regulations in the Information and Communications Technology (ICT) sector. During a briefing with the Communications and Digital Technologies Portfolio Committee, Malatsi reiterated his commitment to the principles of transformation in South Africa, stating that the new policy does not aim to create exceptions for specific companies or individuals. Malatsi, who highlighted the ongoing efforts to introduce an equity equivalent investment programme in the ICT sector, clarified that his department's work predates recent international developments, specifically referring to last week's visit to Washington by the South African delegation led by President Cyril Ramaphosa. Although critics suggest that the timing of the gazette could benefit Starlink, the satellite internet company owned by billionaire Elon Musk, Malatsi firmly dismissed these claims. 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 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. Next Stay Close ✕ 'This work is not about introducing dispensation for any individual or company,' he asserted, emphasising the importance of consistent application of the B-BBEE Act and ensuring that transformation mirrors what is happening in other economic sectors. The minister sought to reassure the committee that the policy direction allows stakeholders 30 days to submit their views, which will help shape the final policy. 'In the end, Icasa may continue to require 30% (B-BBEE ownership), but it must permit commitments envisaged in the ICT sector conditions for valid applications for individual licences,' he stated. However, dissent erupted within the committee, with members expressing alarm over the implications of the proposed policy. ANC MP Oscar Mathafa questioned Malatsi's decision to open licensing applications without a clear strategy encompassing the equity equivalent programme, arguing that this move could undermine the transformation agenda that the government is mandated to pursue. 'We request all parties and members of society who are interested in this matter to reject this particular policy direction,' he said emphatically. The sentiment was echoed by EFF MP Sinawo Thambo, who alleged that Malatsi was attempting to amend legislation covertly through policy directions designed to align the B-BBEE Act with ICT sector codes. Colleague Sixolise Gcilishe added that her party would not hesitate to legally challenge the proposals, underscoring a commitment to upholding South African laws against perceived external influence, particularly from Washington. 'We will explore all legal mechanisms. We are not to accept our laws to be written in Washington. You are setting a wrong precedent by bending backwards when you are bullied. This is about Starlink and Washington,' Gcilishe said. Adding to the chorus of criticism, MK Party's Colleen Makhubele accused Malatsi of failing to engage transparently with stakeholders and highlighted the need for a thorough regulatory impact assessment before proceeding with the proposed policy changes. DA MP Tsholofelo Bodlani countered the criticism, urging critics to acknowledge the opportunity for public comment within the 30-day submission period. 'All choose to ignore that little fact,' he remarked, suggesting that some criticisms were politically motivated. The committee chairperson, Khusela Sangoni-Diko, raised concerns about the legal authority Malatsi held to align the B-BBEE with ICT codes, questioning the potential consequences of removing the 30% B-BBEE requirement. 'Why take away from black people one thing they can make a structural shift in the economy?' she pressed, advocating for industry players' desire for regulatory parity. In response, Malatsi expressed surprise over the committee's shock regarding the policy proposals, reiterating that the discussions had been ongoing. 'There could be no legitimacy to a claim whatsoever that this process was done in a clandestine manner. We are in a stage that involves and invites public submissions,' he maintained.
IOL News
25-05-2025
- Business
- IOL News
Business leaders and opposition slam Malatsi's policy directive, say it is a threat to BBBEE
Communications and Digital Technologies Minister Solly Malatsi faces a backlash after a proposal to amend the digital communication policy for foreign communication companies to bypass the BEE requirement. Image: X Business organisations and opposition political parties have reacted strongly to the recent policy directive issued by the Minister of Communications and Digital Technologies Solly Malatsi that could allow the Starlink satellite internet service to operate in the country without the requisite BBBEE laws, saying this is a threat to black economic empowerment. Critics of the move say that suggesting that Starlink, owned by Pretoria-born billionaire Elon Musk, might operate in South Africa without meeting the 30% HDG (historically disadvantaged groups) ownership requirement in the ICT sector—through an Equity Equivalent Programme (EEP), the Minister is attempting to recast the country's licensing laws through this policy directive. They have also questioned the timing of Malatsi's gazette underf the Electronic Communications Act (ECT), a day after President Cyril Ramaphosa returned from his White House meeting with US President Donald Trump and Musk, who has condemned the country's empowerment laws. Malatsi's spokesperson has denied that the directive was drafted to allow Musk to bypass regulatory requirements and said the timing of the publication was coincidence. 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 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. Next Stay Close ✕ Kganki Matabane, CEO of the Black Business Council (BBC) said Malatsi's policy directive means the country's sovereignty has been held at ransom by people who have been throwing insults against it. "We are not against Starlink or the investment but against the changing of our laws to accommodate individuals and people who do not respect the country and its laws. We would have lost the country's sovereignty as no one is exempted from complying with the laws of the country,' he said. These sentiments were also echoed by CEO of the Association of Comms and Technology (ACT), Nomvuyiso Batyi, who called for a proper market analysis to ensure the playing fields are levelled. The ACT is a nonprofit organisation doing advocacy work for the ICT sector. "We are calling for proper market analysis in order to check if the market is ready for such a directive and is done within the rule of law or it may have dire consequences. We are not against new entrants but are against lowering the bar for US interests, " she said. Batyi said the ECA stipulated that multinationals seeking licenses to operate in South Africa must comply with the 30% black ownership rules and that a directive attempting to bypass the Act is not legal as the ECA beats equity equivalents. BOSA Deputy president, Nobuntu Hlazo-Webster also weighed in on the matter saying if government can bend the country's regulations for international businesses, it can do the same for the country's businesses. "BOSA calls on Malatsi, to make public the record of decision in this matter, so as to assure the people of South Africa that this was not a back door deal. This is not transformation, it's capitulation. "The message being sent is that if you are a powerful foreign billionaire, you can sidestep South Africa's laws, while our local businesses are forced to jump through hoops. What begins with special concessions, ends in state capture," Hlazo-Webster said in a statement issued on Sunday. Leader of the African Transformation Movement (ATM), Vuyolwethu Zungula called for the immediate withdrawal of the gazette saying:" This government gazette, is nothing short of a shameless sellout to American oligarchs Elon Musk and Donald Trump—a move that spits in the face of our nation's transformation agenda. "By rolling out the red carpet for Starlink and other American corporations, the ANC/DA coalition is handing over our digital future to foreign hands, undermining local businesses, and betraying the very people they swore to uplift. This is not transformation, it is neo-colonialism dressed up as 'investment"." The MK party's spokesperson, Nhlamulo Ndhlela indicated that the party will not be taking the matter to court before it has exhausted all the parliamentary processes available which include requesting a formal legal opinion of the Parliamentary Legal Services in a bid to assess the constitutionality and procedural legality of the directive. "We are attending a Department of Communications and Digital Technologies Portfolio Committee meeting in Parliament on Tuesday morning with the Minister. We will then make a determination from there,'" Ndhlela stated. In a statement, Malatsi's spokesperson, Kwena Moloto said the minister is empowered by the EIPs, provided for under the Broad-Based Black Economic Empowerment Act (Act 53 of 2003) and the ICT Sector Code to initiate the directive. "The minister is empowered by the the BEE Act which allows qualifying multinationals to meet empowerment obligations through alternatives to 30% ownership — such as investing in local suppliers,enterprise and skills development, job creation, infrastructure support, research and innovation, digital inclusion initiatives, and funding for SMMEs. "Despite the legal standing of the ICT Sector Code under the BBBEE Act, ICASA's Ownership Regulations do not fully reflect its provisions — particularly regarding deemed ownership and EEIPs. Therefore, this policy direction aims to ensure consistency, unlock investment, and give practical effect to the ICT Sector Code in line with national development goals, including transformation," Moloto said.
IOL News
24-05-2025
- Business
- IOL News
Elon Musk's influence? South Africa's digital policy amendment sparks debate
Communications and Digital Technologies Minister Solly Malatsi faces backlash after a proposal to amend the digital communication policy for foreign communication companies to bypass the BEE requirement. Image: X Communications and Digital Technologies Minister Solly Malatsi has been accused of siding with wealthy United States-based businessman Elon Musk by proposing an amendment that would weaken a black empowerment policy in the digital communication sector. The accusation followed Malatsi's communique on Friday proposing an amendment to the government policy that required multinational companies to sell 30% or more of their stake to previously disadvantaged black people in South Africa. Malatsi, who gazetted his proposal on May 23, wants the Independent Communications Authority of South Africa (ICASA), which regulates the electronic communication space, to go easy on the multinational companies by implementing 'certain amendments to regulations promulgated by it to meet the imperatives of other national laws'. 'The focus of this policy direction is on lowering regulatory hurdles to investment in reliable broadband and ensuring access to the internet. 'This is in line with the Broad-Based Black Economic Empowerment Codes of Good Practice, which recognise that the global nature of multinational corporations' operations may constrain their ability to comply with equity ownership requirements,' read his proposal. Interested people have been given 30 days from the date of the publication of the proposal to provide written comments for or against it. Malatsi was yet to respond to questions sent to his spokesperson, Kwena Moloto, seeking a response on the allegations that this was done to appease Musk. The proposal came to light two days after President Cyril Ramaphosa met with US President Donald Trump at the White House on Wednesday. During a media briefing with international media before the two leaders held a private engagement, South African multibillionaire businessman Johann Rupert not only begged Trump to assist South Africa with technology to fight crime, but also proposed that Starlink, which is owned by Musk, come to South Africa. In the communique, Malatsi, who represents the DA in the ANC-led Cabinet, said the amendment of Section 9(2)(b) of the Electronic Communications Act, 2005, was necessary because multinational corporations were not keen on complying with equity ownership requirements. 'Consequently, there is a need to harmonise the requirements and provisions of the Act with other legislation that applies to the recognition of ownership of members of the ICT Sector, including the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code.' It was reported that the government had previously rejected Musk's attempt to launch Starlink's branch in South Africa after he had refused to sell 30% or more of his shares to previously disadvantaged black people. It was also reported that Musk accused the government of refusing his move because he was not black. The proposal said multinational operators in the ICT industry have for a long time sought clarity on the equity equivalent investment programmes. 'This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access,' it read. It said the World Bank research showed that, on average, every 10% increase in broadband penetration results in 1.21% GDP growth in middle-income countries such as South Africa. 'Broadband access makes it easier for people to start businesses, grow businesses, seek employment, work remotely, and market goods and services. 'Giving millions of South Africans access to broadband would, therefore, constitute one of the biggest empowerment programmes the South African government has ever undertaken,' read the document. The Independent Communications Authority of South Africa (ICASA) was directed to urgently consider aligning the regulations 'in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDG) and the Application of the ICT Sector Code, with the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code.' EFF accused Malatsi of proposing to bring Starlink into the country through the backdoor. 'This policy direction is unconstitutional and driven by external pressure, particularly from Elon Musk, a close ally of Donald Trump. 'This policy is tailor-made to allow Starlink access to operate in South Africa without meeting the mandatory 30% local ownership requirement as per the Electronic Communications Act. 'Musk has arrogantly refused to comply with our sovereign laws, and the ANC-led government has chosen to kneel,' read the EFF statement. Political analyst Thabani Khumalo said Malatsi's proposal could be good for accelerating the expansion of the country's communication network, and bad for interfering with the country's transformation policies. 'Remember, the country has been criticised over the years by investors for its policy uncertainty. 'So, if you bend a particular policy to please a particular company, then you are seen to be practising a policy uncertainty,' said Khumalo. He said those who perceive that this decision was taken to impress Musk would be justified. 'If it is done within that context, nobody can trust this government to implement its policies consistently. 'This should be managed in a way that would give clarity to all sectors involved,' said Khumalo. Umkhonto weSizwe Party (MKP) national spokesperson, Nhlamulo Ndhlela, described the proposal as a dangerous precedent for future state capture by foreign corporations, saying this was done to help 'foreign tech oligarchs - chief among them, Elon Musk's Starlink' to bypass transformative procurement frameworks and 'fast-track backdoor deals with foreign'. 'This is not just about Starlink, but it opens the door to a deregulated, surveillance-prone digital future controlled by foreign actors,' he said. However, University of KwaZulu-Natal political analyst Zakhele Ndlovu said, fearing that foreign-sourced technology might make it easy for foreign governments to spy on South Africa, was not an issue. 'Because America is already spying on us anyway, so I don't think that we should be too worried about that. 'It looks like Rupert has a lot of influence,' said Ndlovu. The DA was fully behind the proposal, which it said had nothing to do with Starlink and Rupert recommending Starlink at the White House, but ICASA has been working on it for months. 'ICASA is an independent entity of the government. As the DA, we have full faith that the amendments are in line with market research. It took ICASA months of work to produce this document. 'Linking the proposed policy direction to Starlink speaks to a narrow view on the independence of ICASA,' said DA's spokesperson on communication, Sholofelo Motshidi-Bodlani. In rejecting the proposal, the ANC Youth League said: 'This proposal represents a clear step backwards in our nation's ongoing struggle to dismantle apartheid-era economic structures. 'The very purpose of B-BBEE is to ensure that the historically excluded black majority are not relegated to being ordinary consumers of foreign technology, but are instead positioned as key producers, owners, and innovators in the economy.' [email protected]
The South African
24-05-2025
- Business
- The South African
South Africa jumps to ease BEE rules to attract Elon Musk's Starlink
The South African government has taken a significant step toward amending its strict Black Economic Empowerment (BEE) laws in the telecommunications sector, introducing a policy shift that could pave the way for Elon Musk's satellite internet service, Starlink, to launch operations in the country The move comes in the wake of tense talks between South African President Cyril Ramaphosa and US President Donald Trump aimed at mending fraying diplomatic and economic relations. Currently, telecom operators in South Africa are required to cede 30% ownership to historically disadvantaged groups – a regulation designed to address the legacy of apartheid. Musk, who was born in South Africa, has staunchly criticised the rule, calling it 'openly racist' and blaming it for Starlink's delayed entry into the market. On Friday, Communications and Digital Technologies Minister Solly Malatsi unveiled a draft directive that proposes allowing an equity equivalent programme in lieu of direct ownership transfers. Under this model, companies could fulfill empowerment obligations by investing in local suppliers, job creation, or funding black-owned small businesses. 'The policy seeks to provide the much-needed policy certainty to attract investment into the ICT sector,' the ministry said in a statement, adding that the change would benefit broadcasters, ISPs, and network operators alike. The draft regulation is now open for 30 days of public comment before finalisation. South Africa has previously allowed equity equivalent models for global tech giants such as Microsoft, Hewlett Packard, and Samsung Electronics. A similar exception was granted to the automotive industry in 2019, encouraging investment while still meeting transformation goals. The policy shift is widely seen as part of a broader effort by the Ramaphosa administration to boost foreign investment and stabilise trade relations with the US, which have deteriorated sharply under Trump. The US president has cut aid, expelled the South African ambassador, and threatened new tariffs. The two governments released a joint statement after their Washington meeting, pledging to strengthen trade, increase bilateral investment, and cooperate on technology exchanges. While Starlink was reportedly discussed, officials clarified that the proposed policy change is intended to benefit the entire telecommunications sector. In a related development, Lesotho granted Starlink an operating license just hours after denying the move was linked to US trade concessions. If implemented, the draft policy could usher in a new wave of tech infrastructure investment in South Africa, particularly in rural areas, where internet access remains scarce. According to a 2023 government survey, only 1.7% of rural households in the country have reliable internet access. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
