Government considers amending BEE rules to allow Elon Musk's Starlink to operate in SA

Stephen Grootes speaks to Duma Gqubule, economist and research associate at the Social Policy Initiative.

Listen to the interview in the audio player below. 

Elon Musk's Starlink could soon be operating in South Africa, thanks to the intervention of Communications Minister Solly Malatsi. 

The minister has made broadband connectivity his department's top empowerment goal, however, current regulations prohibit the likes of global communications companies like Starlink to operate in South Africa.

According to current regulations, communication companies must be 30% black owned in order to operate in the country.

Malatsi is however hoping to bend the rules to allow Starlink to operate.

“It is my intention to issue a policy direction to ICASA in terms of section 3(2) of the Electronic Communications Act, to clarify the DCDT’s position on the recognition of equity equivalent programs, for urgent consideration,” the minister said.

Starlink is a satellite internet constellation, a wholly owned subsidiary of American aerospace company SpaceX, providing coverage to over 100 countries since its launch in 2019. 

The service will provide broadband internet to people living in rural areas, where internet access is either non-existent or connection is poor.

According to the minister, "this is part of an initiative to significantly expand access to broadband connectivity to poor South Africans and people living in remote parts of the country.

This development follows that of President Cyril Ramaphosa meeting Elon Musk during an investment drive on the sidelines of the 79th UN General Assembly in New York, USA, where they explored opportunities for Musk to invest in South Africa.

"There's a set of rules that applies to all telecommunications companies in the country...Why would government cave into Elon Musk because he's the richest man  in the world?"

- Duma Gqubule, economist & research associate - Social Policy Initiative

"Why can't Elon Musk play with the rules of the country, because if he goes to China, he plays by the rules of China which are far more stringent than what we have in South Africa."

- Duma Gqubule, economist & research associate - Social Policy Initiative

"Most of South Africa's large companies have BEE certificates across all sectors of the economy, and they don't find this thing punitive in anyway."

- Duma Gqubule, economist & research associate - Social Policy Initiative

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