Solly Malatsi gets grilled in parliament over 'Starlink gazette', defends ICT policy directive

Minister of Communications and Digital Technologies, Solly Malatsi, has  defended his department’s recently gazetted policy directive aimed at recognising Equity Equivalent Investment Programmes (EEIPs) in the ICT sector, insisting that it is rooted in legal compliance and transformation, not special treatment for any company.

This comes after Committee Chairperson Khusela Diko stated that the gazetted policy directions appear to violate the Electronic Communications Act and seem to favour the low Earth orbit satellite provider, SpaceX. 

Speaking before Parliament’s Portfolio Committee on Communications, Malatsi clarified that the directive is part of a broader and longstanding effort to align the ICT sector’s licensing regulations with the Broad-Based Black Economic Empowerment (B-BBEE) framework.

“We are not attempting to open a special dispensation for Starlink or any other company or an individual,” Malatsi said.

“We are saying that the regulations in our sector must consistently make provision for the two choices that exist in any other sector, the 30% local ownership or the pathway of equity equivalence.”

This clarification follows public speculation that the gazetting of the policy, just days after the President's visit to Washington where connectivity discussions involving Elon Mask's Starlink reportedly took place, was intended to ease regulatory barriers for the satellite internet provider.

Malatsi rejected any notion of behind-the-scenes manoeuvring, pointing out that the groundwork for the directive began in September 2024, with formal notification sent to Independent Communication Authority of South Africa (ICASA)on October 4,  2024.

He noted that the public communication and draft directive were released at that time, well in advance of the recent international engagements.

“We would not have predicted that there would be a (White house) visit last week,” Malatsi said.

“I make that point to showcase that there is no conspiracy on our part with regards to this policy direction. There is no underhanded effort in darkness to railroad this into the South African public.”

The directive is intended to ensure that EEIPs, recognised in the ICT sector codes since 2016, are considered a legitimate alternative to the rigid 30% direct ownership requirement by historically disadvantaged individuals.

Malatsi argued that this dual-option model is already standard in other sectors and should be reflected in ICT regulations.

“My duty is to ensure that there is alignment between the codes, between the regulations, and fulfilment of all our national laws, in this case citing the B-BBEE Act,” he said.

Malatsi highlighted that ICASA retains the authority to amend ownership regulations but must do so in line with the ICT sector codes and the broader B-BBEE legal framework.

He acknowledged public interest and encouraged stakeholders to submit comments during the current 30-day window following the gazette.

In addressing the bigger picture, the Malatsi reaffirmed the policy’s alignment with South Africa’s transformation agenda.

“I am pretty clear that transformation is sacrosanct in our country.

We have to maximise options that can help deal with one of the most present fundamental needs in our country, which is around broadband connectivity, and that’s the reconciliation that we are seeking,” Malatsi said. 

Interested persons are invited to provide written comments on the proposed Policy direction, within 30 working days of the date of publication, addressed to The Director-General, Department of Communications and Digital Technologies. 

hope.ntanzi@iol.co.za

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