Starlink battle heats up in South Africa

The battle between South Africa’s communication minister, Solly Malatsi, and Portfolio Committee on Communications and Digital Technologies chair Khusela Diko over Starlink is heating up as the meeting between President Cyril Ramaphosa and US President Donald Trump approaches.

The meeting is expected to include a discussion about South Africa’s ownership requirements, which are blocking Starlink from launching in the country.

Speaking to Newzroom Afrika, Diko accused Malatsi and his party, the Democratic Alliance (DA), of driving an agenda to disrupt South Africa’s transformation efforts.

“There are misconceptions about our country’s transformation laws. It’s been very concerning for us,” she said.

“Initially, we thought it was just about wanting investment to come into this country. It’s clear that this is part of what I believe is an agenda that is largely driven by the Democratic Alliance, and I think some of its reactionary partners.”

Diko added that these parties actively seek to undermine the Electronic Communications Act and other legislation, such as the Employment Equity Act.

“It’s really unfortunate that in our portfolio, the minister there, as his party calls him, is a DA minister, and you can see how some of those policies are trying to find their way into the portfolio,” she stated.

“Unfortunately, the DA has been unmasked in this case. They’re even using language like Elon Musk, such as race-based laws.”

She added that South Africa has no race-based laws.

“We have transformative legislation that seeks to correct the historical injustice and the very serious structural inequalities that continue to exist,” said Diko.

Malatsi accused Diko of falsely accusing the DA of driving an agenda to disrupt the country’s transformation efforts.

“I don’t like chasing ghosts and that means basically dealing with fabrications,” the minister said.

He explained that the DA’s case against the Employment Equity Act began in the last administration, and didn’t materialise after he was appointed minister.

“The equity equivalent programme, as I said earlier, is part of the medium-term development plan, which was adopted by cabinet, which includes members of the political party that the portfolio committee chairperson comes from,” he added.

“This notion of trying to personalise or politicise this is in a manner that drives a particular narrative that doesn’t hold water at all.”

Overcoming regulatory hurdles

Starlink is currently unable to launch operations in South Africa as the country requires foreign companies launching locally to be at least 30% owned by previously disadvantaged groups.

To address this, Malatsi proposed introducing policy directives, such as Equity Equivalence Investment Programmes (EEIPs), to encourage competition through international investment in the telecoms sector.

This would overcome the regulatory hurdles that telcos entering the country face, including the 30% ownership rule.

Equity equivalence programmes involve foreign companies investing in local infrastructure, skills development, and enterprise support, through which they positively contribute to South Africa’s economic empowerment goals.

In November 2024, MyBroadband learnt that Malatsi was in talks with the Independent Communications Authority of South Africa to encourage the creation of an EEIP for multinational telecoms players.

He explained that EEIPs have been the source of significant investments in the South African economy, including in sectors such as the automobile industry.

“Recognising their potential, the government’s Medium-Term Budget Plan, formally approved by Cabinet, has adopted the introduction of EEIPs in the Information and Communications Technology sector,” he added.

However, Diko has claimed that Malatsi’s focus on EEIPs is specifically to encourage Starlink to enter the country.

“If he’s unhappy with the 30% equity ownership rule, then he must seek an amendment of the law. He will have to explain why he would want to do that for a single company,” she said.

“We have a problem with the fact that there seems to be an obsession with Starlink in particular, and this is a matter that’s been raised in the portfolio committee.”

Malatsi’s spokesperson has said that Starlink’s entrance into South Africa would help to increase competition and lower data prices.