Business Report

Khumbudzo Ntshavheni: China has better technology than capability of Starlink

Jonisayi Maromo|Published

Minister in the Presidency, Khumbudzo Ntshavheni says no company will be given preferential treatment when South Africa rolls out low orbit satellites.

Image: Siyabulela Duda/GCIS

Minister in the Presidency Khumbudzo Ntshavheni has dismissed widespread allegations that South Africa has given preferential treatment to Elon Musk’s Starlink, in an effort to ease tensions with the United States.

Earlier on Monday, IOL reported that EFF leader Julius Malema gave the proposed policy the proverbial middle finger to the proposed policy as he reiterated his party’s stance on the easing of Broad-Based Black Economic Empowerment (B-BBEE) requirements for satellite licences to allow Starlink to operate in South Africa.

Speaking to supporters in Koppies, Free State, ahead of next week’s by-election, Malema criticised the government’s draft policy, which would ease B-BBEE rules for multinational companies. 

He said the move came shortly after remarks were made in the White House about Starlink being blocked from entering the South African market.

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The Portfolio Committee on Communications and Digital Technologies has summoned Minister Solly Malatsi and the Department of Communications and Digital Technologies to brief Parliament on the newly issued policy directives aimed at easing Broad-Based Black Economic Empowerment (B-BBEE) requirements for licensing satellite services, including Elon Musk’s Starlink.

IOL reported that the Portfolio Committee on Communications and Digital Technologies, chaired by Khusela Diko, has invited Minister Solly Malatsi and the Department of Communications and Digital Technologies to appear before the committee and brief on the recently gazetted policy directions. 

Diko noted that the recently “gazetted policy directions appear to be in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX”.

The policy directives were published just days after President Cyril Ramaphosa and his delegation met with US President Donald Trump and his close adviser, Elon Musk, at the White House last week.

Speaking to broadcaster Newzroom Afrika, Minister in the Presidency Khumbudzo Ntshavheni said all multinational companies who venture into South Africa have to comply with the country’s laws - without exceptions.

“I do not know where you get it, but I have said to you there was no discussion of Starlink, both at the Oval Office which was a very public meeting and also during the lunch that we have had. So I do not know where you get this notion that Starlink will come.

“If South Africa wants to introduce low orbit satellites into space, every other player will be allowed to come, but they must play within the rules of this country. The rules of this country require transformation clauses as things stand. Anybody will come through the rules of this country, which are governed by our laws. 

“I do not know why you want to go to a special treatment of Starlink and not consider the Chinese. The Chinese have better technology that exceeds the capability of what Starlink does. I am sure your desk that deals with technology will clarify that.  Other countries have better low orbit satellites that will come in. Do we want to get into low orbit satellites as South Africa, yes, we want to. Are we rolling a red carpet for one company, no, we are not rolling a red carpet for one company,” she emphasised.

Musk has previously expressed opposition to the country’s B-BBEE regulations and claimed that the only reason his company had not been granted an operating licence in South Africa was because he was not black.

The proposal to ease B-BBEE requirements has been met with criticism from several opposition parties, including Build One South Africa (BOSA).

“This is not transformation, it’s capitulation. The message being sent is that if you are a powerful foreign billionaire, you can sidestep South Africa’s laws while our local businesses are forced to jump hoops,” said BOSA deputy leader Hlazo Webster.

“What begins as a special concession ends in state capture,” she added.

jonisayi.maromo@iol.co.za

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