South Africa’s Communications Minister, Solly Malatsi, has rejected claims that a draft policy relaxing Black ownership requirements for foreign tech firms was crafted to benefit Elon Musk’s Starlink venture.
The minister, according to an AP report, faced questions in Parliament on Tuesday after proposing changes to the current licensing rules, which critics argue could dilute South Africa’s economic empowerment agenda. Malatsi, a member of the Democratic Alliance party, firmly denied that the proposal was designed with Starlink in mind.
“We are not attempting to open a special dispensation for Starlink or any other company or an individual,” Malatsi told lawmakers. “There is no conspiracy on our part with regard to this policy direction.”
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Under current legislation, foreign-owned companies must sell 30% of their local subsidiaries to Black South Africans or members of other historically disadvantaged groups to qualify for operating licenses. The proposed amendment would allow companies to meet empowerment criteria through alternative means, such as investment in skills development, job creation, and partnerships with local suppliers.
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The timing of the directive has sparked criticism, especially from political opponents. It came just days after President Cyril Ramaphosa met former U.S. President Donald Trump at the White House, a meeting that stirred controversy after Trump made unfounded claims that white South African farmers were being systematically killed.
A senior African National Congress (ANC) lawmaker, Khusela Diko, questioned the motivations behind the policy shift, asking whether the country was “bending over backward” to accommodate Musk’s Starlink satellite internet service.
Musk has repeatedly criticized South Africa’s Black ownership laws, claiming on social media that Starlink had been blocked from operating in the country because of his race. South African officials, however, assert that Starlink has not formally applied for a license.
Despite this, the debate has intensified as the Starlink website shows the service is already available in multiple neighboring countries, including Eswatini, Mozambique, Botswana, Zimbabwe, Zambia, Malawi, Kenya, and Madagascar.
Meanwhile, reports indicate the Trump administration lobbied on Starlink’s behalf in several African nations, including Gambia and Lesotho. In one instance, after Trump threatened Lesotho with tariffs, the country issued Starlink a 10-year operating license just a week later.
READ ALSO: Starlink: Elon Musk slowly taking over Africa’s internet landscape
Industry stakeholders have reacted with cautious optimism. The Association of Communications and Technology (ACT), a prominent industry body, acknowledged the draft policy’s potential to reshape the sector.
“We advocate for smarter, scalable approaches that deliver meaningful impact and restore policy clarity, consistency, and investor confidence,” ACT said in a statement, adding that consistent and transparent implementation would be key.
Malatsi emphasized that the directive was not targeting a single company and said the broader goal was to create space for multiple new entrants into the market, thereby increasing competition. He noted that groundwork on the policy began as far back as September and was not influenced by recent international meetings.
Public feedback will play a crucial role in shaping the final framework. Stakeholders, industry players, and the general public have been given 30 days to submit comments before the policy is finalized.
READ ALSO: Afrikaner farmers refute Trump’s ‘genocide’ claim as U.S. scrutiny falls on South Africa
