The African National Congress (ANC) has launched a strong offensive. This action targets communications minister Solly Malatsi’s policy direction. The dispute centers on new directives affecting Starlink South Africa ownership rules. These rules govern equity ownership requirements for the ICT sector.
Specifically, the minister instructed Icasa, the sector regulator, to modify its equity ownership framework. The ANC views this move with deep concern. They argue it bypasses established legal processes and threatens the integrity of South Africa’s digital landscape.
The Policy Direction and ANC’s Stance on Starlink South Africa Ownership Rules
The core of the controversy involves a proposal to create alternative compliance mechanisms. These mechanisms relate to the 30% Historically Disadvantaged Groups (HDG) ownership requirement. If implemented, such provisions could allow operators like Starlink to bypass this crucial obligation.
The ANC voiced its deep concern regarding a Government Gazette. This Gazette was issued on 12 December 2025 by Minister Solly Malatsi. The party claims these policy directions exceed the minister’s authority. They also believe the directions undermine South Africa’s transformation framework. Furthermore, they threaten the integrity of the nation’s ICT and postal regulatory environment.
The ANC characterized this as a troubling trend. They suggested it mirrors instances where ministers from the Democratic Alliance seek to bypass Parliament. The party firmly states that no minister can amend or suspend legislation through a mere policy directive. Laws like the Electronic Communications Act, the Postal Services Act, the Icasa Act, and the Broad-Based Black Economic Empowerment Act require parliamentary changes.
Minister Malatsi reportedly received 19,000 submissions on the draft policy. He asserted that 90% of these submissions supported the new direction. However, the ANC questioned these figures. They raised concerns about how submissions were counted. They also asked if they were verified. Additionally, they questioned if these submissions genuinely reflected broad public support. Alternatively, they wondered if they represented the views of a limited, possibly organized, group.
The Gazette’s proposal to create exemptions is particularly alarming to the ANC. These exemptions would offer alternative compliance mechanisms for the 30% HDG ownership requirement. Such provisions, according to the ANC, would allow certain operators. Notably, foreign satellite providers like Starlink could bypass core transformation obligations. This directly impacts the landscape of Starlink South Africa ownership rules.
Malatsi stated in the gazetted document that his direction to Icasa was to address legal problems. These problems relate to its equity ownership rules for the ICT sector. The ANC, however, interpreted this differently. They alleged Malatsi was attempting to amend legislation without following correct legal procedures. The party warned that forcing Icasa to implement measures inconsistent with primary legislation is unlawful. It also undermines institutional independence. Moreover, it destabilizes the regulatory environment.
The ANC advised Icasa to uphold its obligations. They urged the regulator to refuse any directive inconsistent with the law. The party also called on Parliament, through its Portfolio Committee on Communications and Digital Technologies, to hold the minister accountable. This accountability would cover the legality, intent, and consequences of the Gazette.
Changes to Black Ownership Requirements and Malatsi’s Rationale
Solly Malatsi, South Africa’s Minister of Communications and Digital Technologies, is driving these significant changes. His policy directive aims to introduce Equity Equivalent Investment Programmes (EEIPs) within the ICT sector. This initiative also seeks to address long-standing concerns about black ownership requirements for Internet service providers.
Malatsi first proposed introducing EEIPs in May 2025. This was presented as an alternative to the 30% ownership requirement. Since then, he has faced harsh criticism. Members of Parliament, especially those within the ANC, have been vocal opponents. Such a mechanism would provide an alternative path for new players. Companies like SpaceX’s Starlink could then launch services in South Africa.
Critics argue that EEIPs would enable these new market entrants to circumvent the country’s black economic empowerment (BEE) laws. However, the minister’s policy direction indicates little evidence to support this claim. Malatsi stated that the ICT Sector Code itself recognizes EEIPs. They are seen as contributing to Broad-Based Black Economic Empowerment (BBBEE). Therefore, he considers the argument against them not legally sound.
The sole purpose of the policy direction, according to Malatsi, is clear. It aims to promote and support empowerment and transformation initiatives. These initiatives are already in place. They operate under the ICT Sector Code as part of the Broad-Based Black Economic Empowerment Act. For more on regulatory inquiries, see this article about Nersa Launches Fixed Electricity Charges Inquiry.
The policy directive specifically outlines problematic regulations. Icasa published these regulations more than four years ago. They particularly relate to these ownership requirements. Icasa published its “Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDG) and the Application of the ICT Sector Code” in March 2021.
These regulations stipulate a specific requirement. All operator, service provider, and radio frequency spectrum licensees must be 30% black-owned. This requirement, however, supersedes those found in the Electronic Communications Act. The Act allows licensees to be from historically disadvantaged groups. This broader category includes black people, youth, and people with disabilities.
Malatsi also noted in the gazette that Icasa’s regulations deviate from rules. These rules were laid down by the Department of Trade, Industry, and Competition. Such deviation is not permitted without proper authorization. For these reasons, the policy direction instructed Icasa to revise its regulations. The goal is to align them with the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code.
The minister explained that the direction considers multiple policy goals. These goals are crucial for the sector. They include the availability, accessibility, and affordability of communications services. It also regards the potential contribution of international firms. This contribution is vital for investment and competition. Furthermore, it considers the overriding provisions of the BBBEE Act. Malatsi also instructed Icasa to factor in the government’s national economic inclusion policy goals. Within its own powers and duties, under the ECA and the Icasa Act, the regulator must give effect to these policy objectives.