Access to broadband and the internet should be treated as a right. Yet outdated policies and regulations continue to limit South Africans’ access to affordable broadband, particularly satellite-based services that could rapidly expand connectivity in underserved areas.
In a recent Government Gazette, the Minister of Communications and Digital Technologies, Solly Malatsi, placed his stamp on one of the most contentious issues in South Africa’s ICT sector: how black economic empowerment requirements are applied to foreign communications providers, such as Elon Musk’s Starlink, that cannot, or will not, dilute ownership in their local operations.
In a final policy directive published on Friday, 12 December 2025, Malatsi instructed ICASA to urgently align its ownership regulations with the ICT BEE sector code. This includes formal recognition of equity equivalent investment programmes (EEIPs), which are already lawful under the Broad-Based Black Economic Empowerment Act and administered by the Department of Trade, Industry and Competition (DTIC). A draft EEIP framework was published for public comment more than six months ago.
The directive has not been without political objections, but it carries the endorsement of the Presidency.
The move is likely to be welcomed by Starlink, which has been lobbying for regulatory change to allow its satellite broadband service to be licensed in South Africa without selling equity to local investors, a requirement it does not meet in any of the markets where it currently operates. However, the issue extends beyond a single company. The directive potentially opens the door for other satellite internet operators, creating a more competitive broadband environment.
At the heart of the dispute is ICASA’s refusal to recognise EEIPs in its licensing regulations. EEIPs were specifically designed for multinational companies whose global ownership structures prohibit local equity dilution. According to Malatsi, this stance has created a legal inconsistency. The B-BBEE Act requires sector-specific empowerment to be measured only in terms of the approved sector code, yet ICASA has signalled that it could impose empowerment conditions that differ materially from those recognised by the DTIC. This, the directive argues, has had a chilling effect on investment.
The issue entered the public spotlight in 2024 and 2025 as Starlink explored options to enter the South African market. Malatsi’s directive makes it clear that government supports the use of EEIPs as a legitimate mechanism to attract foreign investment while still advancing transformation objectives.
The directive also reaffirms the supremacy of the ICT sector code, reminding ICASA that it participated in the development of the code and that section 10 of the Act binds all organs of state to apply it. Any deviation, the directive states, is not permissible in law.
Crucially, EEIPs are not symbolic gestures. They are measured either at 30% of the value of South African operations or at 4% of local revenue annually, and must be approved and monitored by the DTIC. These are substantive, audited empowerment contributions, not voluntary donations.
Public participation figures further strengthen the government’s position. More than 19 000 submissions were received during the consultation process, with approximately 15,000 considered substantive. Around 90% of respondents supported the proposed approach to EEIPs. Politically, this matters. It counters the narrative that the directive represents a concession to a single foreign company and instead frames it as a response to broad industry and public support for regulatory certainty.
Concerns raised by opponents, including fears of foreign dominance, weakened transformation, regulatory arbitrage and data sovereignty, are addressed in detail in the final directive. Importantly, the principle of parity is emphasised. Any amendments to ICASA’s regulations must apply equally to all licensees. This is a position long demanded by South Africa’s major telecoms operators, including Vodacom and MTN.
Malatsi’s intention is clear: ICASA should no longer insist on a narrow interpretation of empowerment that undermines investment and delays connectivity.
The directive does not automatically permit Starlink, or any other provider, to operate in South Africa. ICASA must still amend its ownership regulations, and companies will still need to meet either qualifying black ownership requirements or implement a DTIC-approved EEIP.
The next step now rests with ICASA. Swift and decisive action will determine whether South Africa creates a regulatory environment that encourages investment and expands access to digital services. Policies and regulations should foster development, not impede it.
