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IOL News
4 days ago
- Business
- IOL News
Starlink and South Africa: No exceptions in telecom regulation reform
On Tuesday, Minister Solly Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code. Image: Jonathan Raa/NurPhoto/AFP The Association of Comms and Technology (ACT) has welcomed the recent directives from the Minister of Communication, Solly Malatsi regarding the alignment of ICASA's empowerment regulations with the B-BBEE ICT Sector Code. On Tuesday, Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code. "This policy development, coupled with a proposed inquiry into the necessity of I-ECNS licence applications, marks a pivotal moment for South Africa's telecommunications sector, potentially reshaping the landscape of competition and transformation," ACT said in a statement. As the industry stands on the brink of significant regulatory reforms, ACT said it urges that these changes be implemented with transparency, consistency, and equitable enforcement of the law. "If executed properly, this approach could herald a new era for the sector, fostering an environment conducive to both innovation and investment. At the heart of ACT's response is a strong endorsement for the Minister's initiative to have ICASA formally acknowledge Equity Equivalent Investment Programmes (EEIPs)," the Association further said. The organisation is poised to make comprehensive submissions reflecting its commitment to bridging regulatory ambiguities between ICASA's ownership rules and the B-BBEE ICT Sector Code. 'We support efforts that contribute to the resolution of regulatory complexities while promoting South Africa's transformation agenda,' Nomvuyiso Batyi, CEO of ACT said. ACT added that it advocates for innovative, scalable solutions that not only deliver impactful results but also restore policy transparency and bolster investor confidence. "The Association firmly believes that increased competition, particularly in terms of connectivity solutions to underserved communities, is a vital component of this growth. We are particularly supportive of frameworks that ensure all operators, whether terrestrial or satellite, navigate the same regulatory landscape,' Batyi said. "This is essential for fostering a sustainable and competitive digital economy that can adapt to the rapidly evolving technological landscape. We have consistently been on the pulse of this issue. We've supported the rollout of satellite technology in South Africa, within the same rules that everyone else follows,' Batyi added. Meanwhile, the Economic Freedom Fighters (EFF) condemned Malatsi's recent actions aimed at enabling Elon Musk's satellite company to operate in South Africa without adhering to local ownership laws. The party expressed deep concern over what it described as an unlawful attempt to bypass legislation designed to protect local economic interests and transformation. This 'alignment' would allow foreign entities to operate without complying with the 30% local ownership requirement mandated by law for previously disadvantaged groups. Instead, the EFF said Malatsi wants Starlink to use 'Equity Equivalents' under the Broad-Based Black Economic Empowerment (B-BBEE) Act, an approach the EFF describes as an 'anti-transformation participation' strategy. EFF spokesperson Sinawo Tambo said: "In what can only be described as an unlawful attempt at subverting the powers of the Parliament of South Africa by using a Ministerial Policy Directive, Minister Malatsi characterises the amendments he wants to make to two Acts of Parliament as regulatory alignment." Trade union, Congress of South African Trade Unions (Cosatu) said it will be engaging with the relevant Departments for Communications and Digital Technologies as well as Trade, Industry and Competition to seek assurance that any such proposals remain in line with existing legislation, in particular the Broad Based Black Economic Empowerment (BBBEE) Act, as well as the constitutional imperative to advance transformation across all sectors of the economy. The union said it noted the excitement on social media about Starlink. "As a Federation we remain guided by the law and will at all times jealousy guard its supremacy, and our transformation journey as mandated by the electorate and guided by the Constitution. The Federation's primary concerns remain defending and creating badly needed jobs, spurring economic growth, tackling anti-competitive monopolistic practices, advancing socio-economic transformation and affirming the rule of law."
IOL News
4 days ago
- Business
- IOL News
B-BBEE ICT Sector Council raises alarm over new BEE policy proposals
Concerns mount as B-BBEE policy changes threaten ICT sector transformation Image: Supplied The B-BBEE ICT Sector Council has voiced strong concerns regarding recent B-BBEE government policy proposals that could undermine South Africa's ongoing efforts toward inclusive economic transformation within the ICT sector. In a statement issued Tuesday evening, the council welcomed the Minister of Communications and Digital Technologies' announcement to open new individual electronic communications network service (IECNS) licenses but raised serious concerns. The recent gazetting of a new B-BBEE policy, which could potentially facilitate the entry of companies like Starlink, comes after a high-profile meeting between President Cyril Ramaphosa and US President Donald Trump, whose delegation included Elon Musk, the owner of Starlink. 'We see this as an opportunity to expand market access and promote increased participation of small, medium, and micro enterprises (SMMEs), provided it is implemented within a robust transformation framework,' the Council stated. However, their optimism was sharply tempered by apprehensions about accompanying policy proposals to allow Equity Equivalent Investment Programmes (EEIPs) to replace the legislated 30% Historically Disadvantaged Individual (HDI) ownership requirement set out in the Electronic Communications Act (ECA). The Council warned that 'introducing EEIPs as an alternative to the 30% HDI ownership requirement could reverse the fragile gains made in sector transformation,' risking a resurgence of exclusionary practices. In their statement, they stated that the ownership requirement under the ECA serves more than just compliance; it is a statutory tool designed to promote direct ownership and control by historically disadvantaged South Africans, reflect the country's demographic priorities, and support inclusive economic growth. 'This mechanism ensures that licensees contribute to infrastructure roll-out, universal access, and broad-based redress - not charity or peripheral impact,' the Council explained. 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 ✕ Alarmingly, the council said that some actors opposing these measures have historically resisted BEE and other transformation efforts, raising questions about their motivations. 'These developments threaten to sideline South Africa's legal framework and long-standing transformation objectives,' the statement warned, adding that some local beneficiaries of B-BBEE are now advocating measures that could exclude the very communities they were meant to uplift. The Council rejected the current form of EEIPs, citing 'glaring gaps' in transparency and measurable impact. The organisation stated that adopting such programs could set a dangerous precedent, allowing dominant incumbents and multinational corporations to bypass local ownership requirements while reaping the benefits of operating in a strategic sector. Potential Risks and Broader Implications The institution highlighted several risks associated with these proposed changes arguing that, first and foremost among them - is the threat to local industry and jobs. 'An infrastructure-light, foreign-controlled model risks decimating local Internet Service Providers (ISPs), SMMEs, and Wireless Internet Service Providers (WISPs), especially in underserved rural areas,' the Statement cautioned. It argued that such a shift could undermine national broadband initiatives like SA Connect and lead to South Africa's digital payments flowing out of the country without contributing to local economic development. Moreover, the council warned that establishing these principles in the ICT sector could set a dangerous precedent for other strategic industries with B-BBEE ownership requirements. 'This could weaken empowerment models across various sectors, undermining meaningful economic participation by historically disadvantaged groups,' the statement cautioned. Calls for Transparency and Upholding Transformation Principles The ICT council demanded a comprehensive review of EEIPs, emphasising that their impact on sector transformation remains marginal and unaccountable. They called for mandatory, transparent public reporting on EEIP performance, including sector oversight and measurable Key Performance Indicators (KPIs), to prevent fiscal opacity and ensure tangible impact. Additionally, the council urged clarity on how new licensees will contribute to the Universal Service Fund and align with the mandate of the Universal Service and Access Agency of South Africa (USAASA). 'Any exemption from contributing to the fund risks creating unfair economic asymmetries and impeding efforts to bridge the digital divide,' the statement read. The Council appealed to the government to uphold the constitutional and developmental vision of economic justice. 'Transformation is a moral, constitutional, and legislative imperative. It cannot be sacrificed for expediency, foreign lobbying, or narrow commercial interests.' According to the institution, the B-BBEE ICT Sector Council intends to submit a formal response during the 30-day public consultation period, urging all stakeholders committed to genuine transformation to review and contribute to the dialogue. They argued that while ICASA is expected to consider the Minister's policy directions, these do not preclude comprehensive sector input. When contacted for comment, Ramasela Matlou, an ICASA spokesperson, stated that the regulator has noted the policy directive and is currently reviewing its contents. Matlou added that Starlink has not yet applied to enter the South African market. IOL Politics
IOL News
5 days ago
- Business
- IOL News
'We will fight corporate terror': EFF rejects Minister Malatsi's attempt to facilitate Starlink entry
EFF rejects Minister Malatsi's unlawful attempt to bypass South Africa's 30% local ownership law for Elon Musk's Starlink, saying legal compliance and transformation must be upheld to protect jobs, sovereignty, and national security. Image: AP Photo/Francois Mori, The Economic Freedom Fighters (EFF) has condemned Minister Solly Malatsi's recent actions aimed at enabling Elon Musk's Starlink satellite company to operate in South Africa without adhering to local ownership laws. The party expressed deep concern over what it described as an unlawful attempt to bypass legislation designed to protect local economic interests and transformation. On Tuesday, Malatsi appeared before the Portfolio Committee on Communications and Digital Technologies to justify his directive, which seeks to 'align' the Electronic Communications Act and the ICT Sector Code. This 'alignment' would allow foreign entities to operate without complying with the 30% local ownership requirement mandated by law for previously disadvantaged groups. Instead, the EFF said Malatsi wants Starlink to use 'Equity Equivalents' under the Broad-Based Black Economic Empowerment (B-BBEE) Act, an approach the EFF describes as an 'anti-transformation participation' strategy. EFF spokesperson Sinawo Tambo said: "In what can only be described as an unlawful attempt at subverting the powers of the Parliament of South Africa by using a Ministerial Policy Directive, Minister Malatsi characterises the amendments he wants to make to two Acts of Parliament as regulatory alignment." 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 ✕ When pressed by the EFF, Tambo said the Minister failed to adequately address whether his directive amounts to amending the law. More importantly, Malatsi admitted that the Independent Communications Authority of South Africa (ICASA) advised him that the correct path would be to amend the Electronic Communications Act itself, not circumvent it via policy alignment, he said. "The fact that the regulatory authority is alive to the legislative irregularity of the Minister's attempts means there is certainty that the only lawful mechanism for Starlink to exist in South Africa is through full compliance with our laws, or through a legally sound amendment of legislation. ''No other mechanism, including a Ministerial Directive, can ease conditions for Starlink to operate in our country." Beyond the legal issues, the EFF raised political concerns about allowing Starlink's entry. Elon Musk, who owns Starlink, has previously peddled disinformation about South Africa, expressed disdain for transformation, and proposed to operate without guarantees for local jobs in the telecommunications industry, said the EFF. Tambo noted that the Portfolio Committee echoed this sentiment with a 'resounding call' rejecting Starlink and any attempts to subvert legislation by abusing Executive powers and undermining the will of the people, which resides in Parliament. Tambo said: "The EFF vows, that over and above legislative requirements, we will fight tooth and nail against corporate terror that uses access to diplomatic channels and Presidents to pursue business interests." The EFF further links Starlink's push for entry in South Africa to demands made by Johann Rupert at the Oval Office and warns that Starlink represents a national security threat, a threat to local jobs, and a threat to the country's sovereignty and independence. The party reiterated its firm stance to oppose any introduction of Starlink that does not comply fully with South African law, both inside Parliament and, if necessary, through the courts. ''We Say No To Starlink in South Africa!'' Get your news on the go, click here to join the IOL News WhatsApp channel. IOL Politics
Time of India
5 days ago
- Business
- Time of India
South Africa's minister to straight message to Elon Musk on Starlink: 'We are not attempting to...'
A South African minister has stated that a recently proposed draft policy, which introduces alternatives to the country's Black ownership requirements, is not exclusively designed to accommodate Elon Musk's Starlink or any single entity. This clarification comes days after Musk claimed he was prevented from launching Starlink satellite internet service in his birth country due to his race, labeling South Africa's Black empowerment laws "openly racist." Following his remarks, reports emerged that South Africa was considering new legislation reportedly aimed at meeting Musk's conditions for Starlink's operation. According to a report by news agency Reuters, South African communications minister Solly Malatsi stated that the law is not exclusively designed for any single entity. "We are not attempting to open a special dispensation for Starlink or any other company or an individual," Malatsi told a parliamentary committee. "I am pretty clear that transformation is sacrosanct in our country, that it's a non-negotiable in order for the country to achieve its aspirations," he affirmed. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Centre-val De Loire: Voici l'astuce pour avoir des panneaux solaires sans payer l'installation ! Programme Ecologique Undo South Africa proposes changes in draft policy Last week, Malatsi's department put forward a draft policy proposing the acceptance of "equity equivalent" investment programs within the information and communication technology (ICT) sector. This move could potentially encourage companies like SpaceX 's Starlink and other foreign communication providers to operate in the country. South Africa's Electronic Communications Act mandates that foreign-owned communications companies sell 30% of their local subsidiaries' equity to historically disadvantaged groups in order to obtain an operating license. This particular provision has drawn criticism from various companies, including Starlink. Despite the minister's clarifications, the draft policy has already faced pushback. Critics from the opposition and the Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, have argued that the proposed changes go too far in accommodating foreign businesses like Starlink.
Daily Maverick
5 days ago
- Business
- Daily Maverick
New B-BBEE policy direction ‘not giving Musk's Starlink special dispensation' amid MPs' calls for its removal
Communications and Digital Technologies Minister Solly Malatsi's appearance before Parliament follows his publication of a policy direction for public comment that could potentially allow South Africa-born tech billionaire Elon Musk's Starlink internet service provider to operate in the country without ceding ownership. While the policy direction doesn't mention Starlink by name, the timing of its publication is key. Minister Malatsi says the recent publication of a policy directive that could significantly alter the way South Africa regulates empowerment in the information and communication technology (ICT) sector was not giving Elon Musk's satellite internet service provider 'special dispensation'. 'We are not attempting to open a special dispensation for Starlink or any other company or an individual,' Malatsi told the committee. But several MPs remained unconvinced. ANC MP Shaik Subrathie said the ANC called for the 'withdrawal' of the proposal. MK MP Colleen Makhubele asked when Malatsi would be reversing this 'illegal and unlawful regulation'. And EFF MP Sixolisa Gcilishe said the party would challenge 'this unconstitutional proposal' in Parliament and in the courts. 'We are not about to accept a situation where our laws are rewritten in Washington,' she said. Malatsi's appearance before Parliament follows his publication of a policy direction for public comment that could potentially allow South Africa-born tech billionaire Elon Musk's Starlink internet service provider to operate in the country without ceding ownership. While the policy direction doesn't mention Starlink by name, the timing of its publication is key. It follows President Cyril Ramaphosa and US President Donald Trump's face-to-face meeting in Washington last week. Pretoria had been negotiating a workaround that would overcome Musk's opposition to South Africa's BEE ownership before Ramaphosa's visit to the White House, as it sought to improve strained relations with the US and reach a trade deal, according to a Bloomberg report. The publication reported Pretoria was expected to offer the deal to Musk at a meeting on Tuesday, 20 May 2025, the day before Ramaphosa's meeting with Trump. But Ramaphosa, at a press conference after the meeting between the leaders, said the issue of Starlink was not discussed. Musk has criticised the country's BEE policies ad nauseam, accusing South Africa of having 'openly racist ownership laws'. The proposed policy direction gazetted by Malatsi's department on Friday, 23 May, provides communications licence applicants with a workaround to rule in the Electronic Communications Act (ECA) that requires licence holders to be 30% owned by historically disadvantaged groups. This is the main barrier that has prevented Starlink from applying for a licence to operate in South Africa, as it does not comply with the rule, according to a News24 report. We are not about to accept a situation where our laws are rewritten in Washington. However, the direction makes it clear that companies will not be exempt from contributing to South Africa's transformation agenda. 'New market entrants — including those offering new or disruptive technologies — will not be exempt from 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 socioeconomic goals. 'Different technologies may have different rollout models, but transformation is non-negotiable — all players must contribute meaningfully to equity, skills development, and economic inclusion,' reads the policy direction. The proposal immediately drew the ire of the chairperson of the Portfolio Committee on Communications, Khusela Diko (ANC), who, in a post on X, accused it of being a 'spectacular mess-up of process and glaring invitation for 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… — Khusela Diko🇿🇦 (@KhuselaS) May 23, 2025 Diko invited Malatsi to appear before the committee on Tuesday, to explain the proposed policy direction. 'We thought that it was important to invite the minister to brief the committee on these directives for a number of reasons. 'One, we need to make sure that the minister, at all times, exercises his executive power in a rational manner; in a lawful manner. And second, it seemed quite curious to some of us… the timing of the directives… as all this was happening the president was in the White House where discussions were expected to ensue relating to issues such as the licensing of Starlink,' said Diko. 'Was a deal cut in America?' Subrathie said that the ANC would not 'support this policy directive — actually, we will call for its withdrawal'. 'This matter has indeed gained a great amount of attention from South Africans and internationally, largely because this concerns the wealth of the land of South Africans — the Freedom Charter says very clearly that the people shall own the wealth of this land. 'Alternative equivalent to ownership speaks exactly against that principle,' said Subrathie. He added that it also went against the principle in the Government of National Unity's (GNU) Statement of Intent — 'to which the honourable minister and his party are signatories to' — to promote social justice and equity. Subrathie said the leadership of the ANC had met on Monday, 26 May, and had been asked whether any deal was 'cut' in the US. The party was clear that 'there was no deal cut clearing the path for any Starlink regulations', according to him. 'The African National Congress is clear. Our laws are sacrosanct — there is no backdoor to gaining entry. Anyone wanting to gain entry into this country, especially into the ICT sector — which is a sector that is most disadvantaged — must come to the front door,' said Subrathie. He asked Malatsi whether the DA had had 'any conversations' with Musk. 'While the minister has gone to pains to indicate that this is coincidental, I think South Africans need a very clear answer…' Malatsi later said the public discourse, or 'conspiracy', around him being a DA Minister who was allowed to 'make special dispensation for any interested businesses to operate' in South Africa, 'could (not) be further from the truth'. Process of consulting He said the process of consulting with the Independent Communications Authority of SA (Icasa) around easing BEE regulations in the ICT sector for multinational companies began long before Ramaphosa's visit to Washington. 'In previous engagements that we've had with the committee going as far back as last year, we've indicated the efforts from the departments around the full recognition of equity equivalent investment programmes in the ICT sector… This work predates the events of last week; last week was the third layer of that process culminating in the gazette,' said Malatsi. 'I want to be clear, it's not about introducing a dispensation for any individual, nor any company or introducing preference,' he said, adding that the department had begun work on the policy direction in September 2024. 'The policy direction refers specifically to the ICT sector codes that were published under the prescripts of the B-BBEE Act, which we know was adopted in 2013. So the intention is to ensure there is a whole and consistent application of the B-BBEE Act and the ICT sector codes… to ensure that transformation takes place in the telecommunications sector — in the broadcasting sector — in the same way that is applicable in other sectors through the enablement of broad-based economic empowerment,' he said. He further emphasised that the stage at which the policy direction was at now 'is not definitive', as it had been published for public comment. 'This policy direction isn't final yet. Public comments are open for 30 working days. But once enacted, it gives Icasa the political and legal backing to update its ownership regulations and explicitly allow Equity Equivalent Investment Programmes-based compliance,' Daily Maverick's Lindsey Schutters reported. 'It's not definitive because it must also take into consideration what all the inputs that are going to be submitted are going to be.' DM
