The South African government rejected any claim that changes to Black ownership rules for telecom operators aim to support Starlink because it operates without a license within the country.
Communications Minister Solly Malatsi used his Parliament defense to explain that the draft policy targets foreign investment and market competition rather than providing benefits to Starlink which does not hold an operational license in the nation.
The proposed policy modification would reduce the requirement for telecom licensees to maintain 30% ownership by Black South Africans and historically disadvantaged groups who originally received economic empowerment support. The proposed modification faces opposition because it seems to weaken the established principles.
The proposal emerged right after President Cyril Ramaphosa returned from Washington where he met with U.S. President Donald Trump. The United States President Donald Trump received widespread criticism because of his offensive statements regarding South Africa including baseless claims about the persecution of white farmers.
Certain lawmakers doubted the policy’s timing and believed it served to appease Musk due to his continuous criticism of South African Black ownership rules which he believes blocked Starlink entry because of his white identity. The authorities have not received an official license application from Starlink.
The regulatory adjustment serves to create market opportunities for multiple international companies according to Malatsi. During his appearance before lawmakers in Cape Town he explained that this directive works to boost connectivity while fostering competition across South Africa.
The disagreement shows how economic growth initiatives must be balanced with international investment requirements for developing telecommunications networks in unserved and rural areas.
The low-earth-orbit satellite network of Starlink provides broadband services to distant regions thus solving some of Africa’s connectivity problems. The business approach of Starlink together with Musk’s political influence creates worries for nations that need to implement post-colonial equity policies.
The proposed rule modification will face significant legal and political challenges during its path to becoming law while South African authorities face increased scrutiny regarding their dedication to inclusive economic reform.
