South Africa Denies Easing Telecom Rules For Starlink Amid Ongoing Dispute

Communications Minister Solly Malatsi is denying any claims that Elon Musk’s company influenced the planned changes to South Africa’s telecommunications licensing framework.

Solly Malatsi denyling claims

The claims come after policy changes to allow Equity Equivalent Investment Programmes (EEIPs) as an alternative to existing ownership requirements. But Malatsi claims that these changes were already included in the Democratic Alliance’s 2024 election manifesto and the Government of National Unity’s Medium Term Development Plan, according to Business Insider Africa.

Additionally, Committee chairperson Khusela Sangoni alleges that public affairs firm Resolve Communications arranged discussions between government officials and private-sector clients, including SpaceX, the parent company of Starlink’s African operations. Resolve has rejected the allegations.

Matasi also denies any allegations that Resolve Communications arranged meetings between his office and Starlink.

In a letter addressed to Sangoni, Malatsi says, “I have met once with a representative of SpaceX, Starlink’s parent company, Ryan Goodnight. The meeting took place in September 2024. I was joined by my Chief of Staff. The meeting was facilitated directly between my office and Robert Appelbaum.”

Changing South Africa’s telecommunications policies

At the heart of this debate is a proposed change to South Africa’s telecommunications policy to accommodate low-Earth orbit (LEO) satellite operators while ensuring the country maintains its black economic empowerment framework. Currently, Starlink is not operating in South Africa as it is required to have at least 30% ownership by historically disadvantaged South Africans.

South Africa created the BEE laws to address racial inequalities stemming from apartheid. The policy is supported by the African National Congress Party (ANC), a political party in South Africa known for its opposition against apartheid.

Under the equity-equivalent model, companies like Starlink can meet BEE ownership requirements by investing in initiatives such as infrastructure development or workforce training, particularly in underserved rural areas. But Matasi has offered Equity Equivalent Investment Programmes (EEIPs) as an alternative option.

Image: Evgeny Opanasenko