Starlink's South Africa entry blocked by ICASA regulations despite empowerment pathway
via The Citizen14 min read
Starlink's entry into South Africa is currently hindered by regulations from the Independent Communications Authority of South Africa ICASA, despite the existence of an empowerment pathway for multinational companies. Minister of Communications and Digital Technologies Solly Malatsi stated it is legally impossible for him to offer an Equity Equivalent Investment Programme EEIP to a multinational company like Starlink, as eligibility is determined by national legislation and regulations. EEIPs are a Broad-Based Black Economic Empowerment B-BBEE initiative designed for multinational companies that cannot meet the standard 25% black ownership requirement due to global policies. These programs allow foreign firms to gain empowerment points by investing in training, skills development, and local industry instead of selling equity. However, ICASA's telecommunications licensing rules currently only recognize direct equity ownership by historically disadvantaged groups as a valid measurement of B-BBEE for individual licenses, despite the B-BBEE Act and the ICT Sector Code acknowledging other forms of empowerment, including EEIPs. This misalignment prompted Malatsi to issue a Policy Direction in May 2025, urging ICASA to consider revising its ownership regulations to align with the B-BBEE Act and the ICT Sector Code. Malatsi clarified that this directive is not about any single company but aims to harmonize the regulatory environment and increase investment and competition in the ICT
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