South Africa is reviewing its telecom regulations in a move that could allow Elon Musk’s SpaceX and other satellite internet providers to operate in the country without giving up equity. Communications and Digital Technologies Minister Solly Malatsi confirmed that the government is prioritising the review process.
The Department of Communications and Digital Technologies is currently evaluating 19,000 public submissions on a proposal to amend Black-economic empowerment rules. The change would enable technology companies to comply using equity-equivalent programmes instead of the current requirement of 30 percent Black ownership. “We are prioritising it, you cannot sit on submissions. Once done, and based on the sentiment, we can make a submission to Icasa to make the final decision,” Malatsi said in Johannesburg, referring to the Independent Communications Authority of South Africa.
The proposal comes as SpaceX pushes to launch Starlink services in South Africa. Musk, who was born in Pretoria, has refused to give up equity to meet the country’s ownership laws, calling them “openly racist.” In its submission, SpaceX backed the proposed amendment.
Satellite internet technology using low-Earth orbit satellites could dramatically improve connectivity in South Africa, where many households still lack reliable access. Only 1.7 percent of rural homes currently have internet access, according to a 2023 national survey.
If approved, the rule change would allow companies to invest in infrastructure, digital inclusion, or research benefiting disadvantaged communities instead of transferring ownership stakes. Similar exemptions already exist in sectors such as automotive, where companies like BMW, Ford, and Toyota have created funds to support economic inclusion.
Malatsi said early feedback on the consultation appears positive and any policy amendment would apply to both new and existing players, including South African telecom giants MTN Group and Vodacom, as well as global entrants from Asia, the UAE, and the United States.
South Africa’s National Development Plan aims to deliver affordable broadband to the entire population by 2030. The minister noted that the government must embrace new technologies, particularly satellite internet, to achieve this goal.
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