South Africa Opens Door for Starlink with New ICT Policy Shift
TLDR
- South Africa’s government has published a draft policy that could pave the way for Starlink and other international tech firms to enter the local market without ceding equity
- The proposed policy, announced by Minister of Communications and Digital Technologies Solly Malatsi, introduces equity equivalent investment programmes
- EEIPs would allow multinational firms to fulfill Broad-Based Black Economic Empowerment (B-BBEE) obligations by investing in initiatives
South Africa’s government has published a draft policy that could pave the way for Starlink and other international tech firms to enter the local market without ceding equity, marking a significant shift in ICT sector regulation.
The proposed policy, announced by Minister of Communications and Digital Technologies Solly Malatsi, introduces equity equivalent investment programmes (EEIPs) as an alternative to the current requirement mandating 30% local ownership by historically disadvantaged South Africans.
EEIPs would allow multinational firms to fulfill Broad-Based Black Economic Empowerment (B-BBEE) obligations by investing in initiatives such as digital skills training, local enterprise development, SMME support, and broadband infrastructure. The policy is open for public comment for 30 days from publication in the Government Gazette. The move directly addresses one of the key regulatory barriers that have kept Elon Musk’s Starlink out of the South African market. Talks had previously stalled due to strict equity rules.
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Key Takeaways
South Africa’s introduction of EEIPs could be a breakthrough for foreign tech companies seeking to operate without divesting equity. For Starlink, this creates a legal pathway to secure a license by funding strategic digital development, aligning with government priorities like internet access, skills training, and SMME empowerment. The change signals a broader regulatory shift—one that balances empowerment goals with economic pragmatism and digital inclusion. If finalised, the policy will enable the Minister to instruct ICASA to adjust licensing frameworks, potentially unlocking long-blocked market entry for Starlink and similar firms. For South Africa, it could accelerate connectivity goals and attract much-needed investment in digital infrastructure.
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