Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Golden Fireballs Complete a Whitewash to Cap Intense TNL Power Week 2

    June 18, 2025

    Cosy drinks to sip around the world

    June 18, 2025

    Budget proposal for ‘orderly closeout’ of Legal Services Corp. is ‘devastation,’ says legal aid leader

    June 18, 2025
    Facebook X (Twitter) Instagram
    • Home
    • Contact Us
    • About Us
    • Privacy Policy
    • Terms Of Service
    • Advertisement
    Wednesday, June 18
    Facebook X (Twitter) Instagram Pinterest Vimeo
    ABSA Africa TV
    • Breaking News
    • Africa News
    • World News
    • Editorial
    • Environ/Climate
    • More
      • Cameroon
      • Ambazonia
      • Politics
      • Culture
      • Travel
      • Sports
      • Technology
      • AfroSingles
    • Donate
    ABSLive
    ABSA Africa TV
    Home»Technology»Starlink storm: BEE reforms fuel tensions in Ramaphosa’s GNU
    Technology

    Starlink storm: BEE reforms fuel tensions in Ramaphosa’s GNU

    Chris AnuBy Chris AnuMay 26, 2025No Comments6 Mins Read
    Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
    Starlink storm: BEE reforms fuel tensions in Ramaphosa’s GNU
    Share
    Facebook Twitter LinkedIn Pinterest Email Copy Link


    Communications minister Solly Malatsi. Image: DCDT

    Tensions between communications minister Solly Malatsi and parliament’s portfolio committee on communications are set to flare up again, this time over his gazetting of a draft policy directive that seeks to overhaul empowerment rules in the ICT sector.

    The details of Malatsi’s plan were announced last week, two days after a fiery meeting in the White House between President Cyril Ramaphosa and US President Cyril Ramaphosa at which the topic of licensing Elon Musk’s Starlink in South Africa was raised briefly by some of those in attendance. Malatsi has, however, vehemently denied that the proposed change to the rules is aimed at appeasing Musk, who has called South African legislation dealing with black economic empowerment “openly racist”.

    Malatsi, a Democratic Alliance MP appointed to the cabinet last year in the government of national unity, is likely to get a grilling from the ANC’s Khusela Diko, who chairs the portfolio committee. Diko at the weekend said parliament would on Tuesday convene to hear Malatsi’s rationale for gazetting the policy directive, and warned the directive appeared to be “in contravention” of the Electronic Communications Act.

    The impact of current LEO satellite providers on meaningful universal connectivity for all South Africans has been overstated

    The question of whether these initiatives are aimed at paving the way for Starlink will also be explored at the briefing, Diko said, despite Malatsi’s denials of a link.

    “Two things are true: it is a good idea to open the market to investment in the same way other industry sectors have, while obviously the timing is highly suggestive of appeasement of the US government,” said Dominic Cull, a leading ICT sector lawyer.

    Equity equivalence investment programmes (EEIPs) give companies – both foreign and local – the opportunity to meet BEE requirements by investing in initiatives such as skills development and the delivery of services to underprivileged communities and schools. Companies like Microsoft and Amazon Web Services have made use of such programmes, obviating the need for these companies to sell an equity stake to companies owned by historically disadvantaged persons (HDPs).

    Foreign investment

    The use of EEIPs is meant to make it easier for foreign-owned companies to invest in South Africa while directing the purported benefits of BEE directly to the communities the legislation is meant to uplift.

    According to a Friday statement from Malatsi’s office, the introduction of EEIPs in the ICT sector is meant to “maximise the prospects of attracting investments through regulatory reforms”.

    The merit of EEIPs over the current local equity requirements for licensees in the telecommunications sector is a subject of ongoing debate in the GNU.

    Read: Starlink in South Africa: why equity equivalence makes sense

    Despite already being licensed in a number of countries in Southern Africa, including Zimbabwe, Zambia, Malawi, Lesotho, Eswatini, Botswana and Mozambique, Starlink is yet to obtain an operating licence in South Africa; BEE requirements demanding that companies sell at least 30% equity in local licensees to HDPs have been said to be the cause. Starlink has formally asked Icasa to change the licensing requirements to allow for equity equivalents.

    Musk has for the past year been driving a campaign on his social media platform X against what he has claimed are South Africa’s “racist” BEE laws. In a post in March, he claimed Starlink “is not allowed to operate in South Africa because I’m not black”.

    Khusela Diko
    Khusela Diko

    Racial tensions also took centre stage in last week’s White House encounter between Ramaphosa and Trump, at which Musk was present (but didn’t speak). When tensions between the two presidents were near boiling point, South African billionaire Johann Rupert moved to quell tensions with remarks that hinted at the need for Starlink in the country.

    “We have too many deaths but it’s not only white farmers, it’s across the board,” Rupert said at the White House press conference in response to allegations that there is a white genocide taking place in South Africa. “We need technological help. We need Starlink at every little police station, and we need drones,” he pleaded, looking directly across the room at Musk.

    There have been some suggestions that the Trump administration is using political power to drive Musk’s Starlink agenda – and critics have pointed to neighbouring Lesotho as a good example of this.

    The sector requires as much investment in digital infrastructure as it can attract

    Lesotho, whose ICT sector regulations also include local ownership rules, in April made an exception for Starlink amid growing tariff pressure from the US government, which had threatened to levy the highest tariffs in the world on the impoverished country, threatening thousands of jobs in its textile sector.

    Starlink was then allegedly granted an operating licence without adhering to the local ownership rules.

    “By proceeding with this decision [to license Starlink], the Lesotho Communications Authority has not only disregarded the valid objections of local stakeholders but has also compromised the integrity and credibility of the regulatory process,” Kananelo Boloetse, a coordinator at Section 2, a Lesotho-based non-partisan civil advocacy organisation, said in April.

    Starlink licensing

    The Washington Post earlier this month reported (paywall) that Democratic senators have called for an investigation into allegations that the US government – led by secretary of state Marco Rubio – used Trump’s retaliatory tariff regime, and the subsequent negotiations that ensued, as a means to fast-track regulatory approval for Starlink.

    According to the report, these discussions allegedly led to the rapid licensing of Starlink in India, Somalia, Lesotho, the Democratic Republic of Congo, Bangladesh, Pakistan and Vietnam – which all viewed the move as a way to appease the US and open the door to more amicable trade negotiations, according to the report.

    When Malatsi meets with parliament’s portfolio committee on Tuesday, Malati’s efforts to make South Africa’s ICT sector more attractive to foreign investors will be pitted against the ANC’s rigid stance on BEE. Questions may also be raised over the independence of South Africa’s legal and regulatory processes in the face of external pressure.

    Read: South Africa tables Starlink-friendly policy shift

    According to Cull, driving investment in the ICT sector through regulatory reform is a much-needed step forward, and not just because of Starlink.

    “The sector requires as much investment in digital infrastructure, digital public infrastructure and demand-side interventions as it can attract. Having said that, the impact of current low-Earth orbit satellite providers on meaningful universal connectivity for all South Africans has been overstated,” he said.

    Dominic Cull
    Dominic Cull

    According to Cull, an across-the-board overhaul of the regulatory burden on ICT sector licensees is required as there are “too many regulators and too many pointless obligations that create barriers to entry and increase the cost to communicate”.

    “There is a still a lengthy and likely contentious legal process to be followed. Assuming everything goes smoothly and there is no litigation, we are still looking at a minimum of two years to finalise the policy and for Icasa to amend its regulations on transformation,” said Cull.  – © 2025 NewsCentral Media

    Get breaking news from TechCentral on WhatsApp. Sign up here.

    Don’t miss:

    Senior ANC MP accuses Solly Malatsi of favouring Starlink over BEE



    Source link

    Post Views: 5
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Chris Anu
    • Website

    Related Posts

    Stolen phone? Samsung now buys you an hour to lock it down

    June 18, 2025

    Crypto players call for reforms to unlock over R500m in extra tax

    June 18, 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    June 18, 2025
    Leave A Reply Cancel Reply

    Top Posts

    Who is Duma Boko, Botswana’s new President?

    November 6, 2024

    As African Leaders Gather in Addis Ababa to Pick a New Chairperson, They are Reminded That it is Time For a Leadership That Represents True Pan-Africanism

    January 19, 2025

    BREAKING NEWS: Tapang Ivo Files Federal Lawsuit Against Nsahlai Law Firm for Defamation, Seeks $100K in Damages

    March 14, 2025

    Kamto Not Qualified for 2025 Presidential Elections on Technicality Reasons, Despite Declaration of Candidacy

    January 18, 2025
    Don't Miss

    Golden Fireballs Complete a Whitewash to Cap Intense TNL Power Week 2

    By Prudence MakogeJune 18, 2025

    Division 1 log leaders Golden Fireballs completed a whitewash as the Telkom Netball League’s Power…

    Your Poster Your Poster

    Cosy drinks to sip around the world

    June 18, 2025

    Budget proposal for ‘orderly closeout’ of Legal Services Corp. is ‘devastation,’ says legal aid leader

    June 18, 2025

    Stolen phone? Samsung now buys you an hour to lock it down

    June 18, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo

    Subscribe to Updates

    Sign up and get the latest breaking ABS Africa news before others get it.

    About Us
    About Us

    ABS TV, the first pan-African news channel broadcasting 24/7 from the diaspora, is a groundbreaking platform that bridges Africa with the rest of the world.

    We're accepting new partnerships right now.

    Address: 9894 Bissonette St, Houston TX. USA, 77036
    Contact: +1346-504-3666

    Facebook X (Twitter) Pinterest YouTube WhatsApp
    Our Picks

    Golden Fireballs Complete a Whitewash to Cap Intense TNL Power Week 2

    June 18, 2025

    Cosy drinks to sip around the world

    June 18, 2025

    Budget proposal for ‘orderly closeout’ of Legal Services Corp. is ‘devastation,’ says legal aid leader

    June 18, 2025
    Most Popular

    Golden Fireballs Complete a Whitewash to Cap Intense TNL Power Week 2

    June 18, 2025

    Did Paul Biya Actually Return to Cameroon on Monday? The Suspicion Behind the Footage

    October 23, 2024

    Surrender 1.9B CFA and Get Your D.O’: Pirates Tell Cameroon Gov’t

    October 23, 2024
    Facebook X (Twitter) Instagram Pinterest YouTube
    • About Us
    • Contact Us
    • Privacy Policy
    • Terms Of Service
    © 2025 Absa Africa TV. All right reserved by absafricatv.

    Type above and press Enter to search. Press Esc to cancel.