ICASA Assessment: Presidency insists on Starlink's legal entry into South Africa

The Presidency has made it clear that ICASA must independently assess a new policy directive that could allow Starlink and other foreign-owned operators to enter the South African market under more flexible empowerment rules.

It stressed that the law will not be subverted.

The clarification follows a policy directive issued by Communications Minister Solly Malatsi instructing ICASA to consider licensing options that would allow foreign investors to operate without ceding the mandatory 30% local equity stake, through the use of equity equivalent investment programmes (EEIPs).

The directive, gazetted in May, positions EEIPs as a mechanism to accelerate broadband access in underserved areas.

In practice, it would allow companies such as Elon Musk’s Starlink to comply with empowerment requirements through investment programmes rather than ownership dilution, a departure from the current Broad-Based Black Economic Empowerment (B-BBEE) framework applied to telecommunications licence holders.

The move has drawn criticism from several political parties, including the ANC, which has argued that the directive exceeds the minister’s legislative authority and risks undermining South Africa’s transformation framework and regulatory certainty in the ICT and postal sectors.

Speaking during a media briefing on Monday, Presidency spokesperson Vincent Magwenya said ICASA should be allowed to apply the law without political pressure and cautioned against framing the issue solely around Starlink.

Magwenya said several companies including Starlink could benefit from the directive.

He emphasised that the policy directive does not override existing legislation and cannot compel ICASA to act beyond its legal mandate.

“Within the law… we must emphasise, within the law, is to look at what can be done to accelerate those processes. As you know, the law is clear with respect to the local ownership element for those seeking to be licensed as telecommunications network services providers, and so that’s what the minister is doing,” he said.

Magwenya said President Cyril Ramaphosa would not support any effort to bypass statutory requirements and that regulatory independence would be respected.

“If it turns out that ICASA cannot do anything beyond what is written in law then the process will be to look at the amendment of the legislature,” he said.

kamogelo.moichela@iol.co.za

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