Elon Musk's Starlink must comply with local BEE laws, says Parly comms committee

CAPE TOWN - Communications committee chairperson, Khusela Diko, says Elon Musk’s Starlink has no choice but to comply with local Black Economic Empowerment (BEE) laws if it wants to operate in South Africa.

She said one company can’t circumvent the country’s laws.

This after the US company told the Independent Communications Authority of South Africa (ICASA) that it should reconsider its rules that require a 30% shareholding by “historically disadvantaged” groups or black investors.

Diko was addressing a cluster media briefing on Thursday on a variety of issues affecting the sector.

Diko was asked about the recent submission to ICASA by Starlink's parent company Space X, where it asks for bee laws to be reconsidered before it enters the South African market.

But Diko said there are no exceptions when it comes to the laws that govern companies and everyone must comply.

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

ICASA is one of the entities that the committee conducts oversight over.

“Countries do have laws and in South Africa, we have BEE legislation which says in the specific sector this country wants to operate in there shall be a 30% BEE [requirement]…”

She said the US was no different following the country's brief banning of TikTok.
“President [Donald] Trump then said TikTok can continue to operate in the US provided the company is 50% owned by a US citizen.”

Communications Minister Solly Malatsi said in October 2024 that he was planning to issue a policy directive for ICASA to clarify the state’s position on BEE rules.

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