The South African government has published a draft policy in the Government Gazette that could relax Broad-Based Black Economic Empowerment (B-BBEE) licensing requirements for satellite service providers, including Elon Musk’s Starlink.
The move comes amid efforts to improve diplomatic and economic ties with the U.S., following concerns raised by Musk over South Africa’s BEE laws, which he has previously criticized as “racist and improper.” Reports suggest that South African officials are working on tailored solutions for Musk’s companies to navigate existing BEE regulations.
Communications Minister Solly Malatsi said the proposed changes aim to “encourage investment, boost innovation, and promote competition in the ICT sector” while aligning regulations with the amended B-BBEE ICT Sector Code. The policy emphasizes “regulatory certainty” to accelerate broadband expansion and close the digital divide.
Currently, the Electronic Communications Act mandates that licensees have at least 30% ownership by historically disadvantaged groups. However, the new directive acknowledges that strict equity requirements may conflict with the ICT Sector Code, which allows for alternative empowerment measures, such as equity-equivalent investment programs (EEIPs). These programs enable multinational firms to contribute to socioeconomic development without direct equity transfers.
The gazette instructs regulator ICASA to urgently amend licensing rules to recognize EEIPs and other B-BBEE compliance pathways. This shift could ease entry for foreign satellite operators while still supporting empowerment goals.
The development follows reports of Musk’s involvement in high-level talks between South African and U.S. leaders, including a recent meeting between President Cyril Ramaphosa and former U.S. President Donald Trump. While Starlink has yet to launch in South Africa, the policy adjustment could pave the way for its entry—a potential game-changer for rural connectivity.
Stakeholders have until **[insert deadline]** to submit comments on the proposed changes. If adopted, the reforms may mark a significant step in balancing empowerment policies with the need to attract global tech investment.