Minister of Communications and Digital Technologies, Solly Malatsi.
The Portfolio Committee on Communications and Digital Technologies, the Economic Freedom Fighters (EFF), and the African National Congress (ANC) are calling for the immediate withdrawal of the policy direction issued by minister of Communications and Digital Technologies, Solly Malatsi, on the role of equity equivalent investment programmes (EEIPs) in the ICT sector.
This after the minister on Friday issued a policy direction to the Independent Communications Authority of South Africa (ICASA) on Broad-Based Black Economic Empowerment (BBBEE).
This follows the draft policy direction released in May, which some viewed as clearing the way for Elon Musk’s low-Earth orbit satellite internet constellation, Starlink to operate locally.
SA’s current Electronic Communications Act (ECA) mandates that foreign telecoms companies must allocate 30% local equity to historically disadvantaged groups to gain a licence.
This has seen companies like Musk’s Starlink failing to obtain an operating licence in the country, as they have not complied with this requirement.
The policy direction allows EEIPs to be recognised as an alternative to the rigid 30% equity ownership requirement historically demanded of foreign telecommunications operators.
In a statement, the chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni Diko, notes Malatsi, in his capacity as minister, has neither the legislative nor moral authority to reverse the gains of democracy through this unilateral action, unsupported by ICASA, or the department he leads.
She also points out that the minister has not sought the approval of Cabinet to gazette the said policy directive, which would be reasonably expected, given the import of the matter.
“These policy directives are an affront to the centuries-old fight for equity and redress by the black majority in this country. They further unintelligibly obfuscate existing law in a spirited attempt to circumvent the mandatory 30% equity ownership by historically disadvantaged groups as a requirement for electronic communications services licensing as under section 9(2)(b) of the ECA,” says Diko.
“This is not the first time that Mr Malatsi has demonstrated the antagonistic relationship he has with the law and due process; clear expression of his commitment to undermining existing law and Parliament as the oversight body. Mr Malatsi is once again reminded of the sanctity of the doctrine of separation of powers which enjoins that where there is a dispute on statutory interpretation, he may approach the courts for resolution or where he requires an amendment to legislation that is the domain of the legislature.”
Khusela Sangoni-Diko, chairperson of the Portfolio Committee on Communications and Digital Technologies. (Photograph by Lesley Moyo)
Starlink poses a threat to jobs
While Diko recognises the stated objectives of the policy direction—among them accelerating broadband rollout, promoting investment and aligning regulatory frameworks with the ICT Sector Code — she recalls the resolutions of the 27 May 2025 Portfolio Committee meeting with the minister on his then draft policy directives where the committee noted “with great concern what could be considered the minister’s overreach of his executive powers and using policy directives to amend the ECA…. that the state of the sector report by ICASA has placed a need for more equality and redress in the sector, and the promulgated policy direction seems to be going against the redress”.
Diko emphasised that transformation remains non-negotiable.
In a statement issued on Saturday, the EFF condemns what it calls “attempts by Malatsi to utilise a ministerial policy directive to subvert South African laws, in order to allow SpaceX and Elon Musk-owned Starlink to operate in our country.”
The “ridiculous policy directive”, according to the EFF, means that companies such as Starlink would no longer need to comply with the 30% local ownership requirements which protect the local telecommunications industry, and these could be substituted by less transformative means that don’t speak to ownership, such as mere donations of Musk’s infrastructure as he deems fit.
“In an obvious attempt to avoid the Parliament of South Africa which is where the necessary amendments to achieve his mischief should be processed, Malatsi has presumed upon himself the powers to implement what is substantively an amendment to the ECA and the ICT Sector Code. He has done this through a ministerial policy directive which allows foreign satellite network operators to bypass BEE-ownership requirements using Equity Equivalents,” states the EFF.
According to the EFF, Malatsi is using a policy directive as a method to circumvent the law-making powers of Parliament.
The EFF has had numerous engagements with mobile network operators and interest groups within the telecommunications industry who have all confirmed its concerns, that Starlink poses a threat to jobs in the industry due to its remote operational nature.
“Even greater, it poses a security concern considering the hostility of Elon Musk against our nation. For an unrepentant racist and megalomaniac like Elon Musk to enter the telecommunications market in South Africa, granting him possible control of infrastructure in the long term, is irresponsible,” it says.
Meanwhile, the ANC says it is deeply concernedthe Gazette introduces policy directions that exceed the minister’s legislative authority, undermine SA’s transformation framework, and threaten the integrity of SA’s ICT and postal regulatory environment.
It mirrors a troubling trend where ministers belonging to the Democratic Alliance seek to bypass Parliament, by reforming laws through directives rather than following democratic legislative processes, it points out, in a statement.
“The ANC stresses that no minister may amend or suspend legislation via a policy directive. Laws such as the Electronic Communications Act, the Postal Services Act, the ICASA Act, and the Broad-Based Black Economic Empowerment Act can only be changed through Parliament following public participation. Attempts to circumvent this process represent a serious overreach of executive power.”
Furthermore the ANC questions the minister’s claims to have received 19 000 submissions on the draft, noting that 90% of these support the policy direction, citing the regulatory clarity it provides and its potential to expand access to high-speed internet.
“These figures raise serious questions: How were the submissions counted? Were they independently verified? And do they genuinely reflect broad public support, or merely the views of a limited, possibly organised group?”
Equally troubling are provisions directing ICASA to act beyond its mandate, says the ANC.
“As an independent regulator, ICASA exists to ensure fairness, stability, and legal certainty in the communications sector. Forcing it to implement measures inconsistent with primary legislation is unlawful, undermines institutional independence, and destabilises the regulatory environment,” the ANC points out.
