The Independent Communications Authority of South Africa (ICASA) has said that it would not consider changing regulations on BEE ownership requirements for telecoms licences until the law is amended.

In a statement issued on Wednesday, 13 May 2026, the sector regulator repelled attempts by the communication minister, Solly Malatsi, to introduce equity equivalent investment programmes (EEIPs).

Starlink and other industry stakeholders and experts have advocated for EEIPs as an alternative to local ownership rules for telecommunications licences in South Africa.

Currently, the Electronic Communications Act (ECA) requires licensees to be 30% owned by historically disadvantaged groups (HDGs).

HDGs are classified as Black people, women, youths, and people with disabilities. “Black” is defined as black Africans, Indians, and Coloureds.

Under South Africa’s black economic empowerment (BEE) laws and regulations, people of Chinese descent may also sometimes be considered “Black” if they became citizens before 27 April 1994.

“The Authority remains committed to advancing transformation, empowerment and economic inclusion within the telecommunications sector and all other sectors it regulates,” ICASA stated.

“ICASA is enjoined to advance the historically disadvantaged groups as guided by the Electronic Communications Act.”

ICASA said the ECA required a minimum 30% ownership by historically disadvantaged groups for individual licence holders. However, this is a disputed reading of the law.

When the ECA was first signed into law in 2006, it stated that the percentage “must not be less than 30%, or such higher percentage as may be prescribed.”

However, this was amended in 2014 with the following wording: “…or such other conditions or higher percentage as may be prescribed under section 4(3)(k) of the ICASA Act.”

ICASA said that, after considering Malatsi’s policy direction for the regulator to align its rules with the rest of South Africa’s Broad-Based BEE (B-BBEE) landscape, the ECA needed to be amended first.

“ICASA notes that while the Amended ICT Sector Code must be applied in licensing qualification criteria, full alignment with all provisions of the Code, including EEIPs, would require a legislative amendment.”

ICASA did not explain why the ECA prevented it from aligning its regulations with other sectors. “The Authority will continue to engage with the Ministry within the confines of its mandate,” it said.

Starlink a lightning rod for larger political battle

Solly Malatsi, Minister of Communications and Digital Technologies
Starlink has repeatedly said that it supports South Africa’s transformation agenda. However, for business reasons, it does not want to work through middlemen and requires an alternative to local ownership.

As of May 2026, Starlink was available in over 150 territories worldwide, all of which relied on the same business model. Where countries had local ownership requirements, SpaceX negotiated alternatives.

In South Africa, Starlink proposed meeting its transformation obligations through EEIPs, starting with connecting 5,000 rural schools with free Internet, valued at R500 million.

EEIPs are explicitly recognised in the ICT Sector Code and have been used by companies like Microsoft, IBM, and Amazon for more than two decades.

ICASA’s licensing regulations do not recognise EEIPs as a substitute for the 30% ownership requirement. Its regulations also deviated from South Africa’s broader BEE rules in other ways.

This was despite being warned that its regulations were potentially at odds with the Department of Trade and Industry’s requirements and could lead to a legal challenge.

However, regardless of the benefits Starlink offers and the fact that ICASA’s regulations could be challenged in court, the hot-button issue has become a larger political debate.

In particular, opposition or support for Starlink has become a way to signal broader ideological leanings based on sentiment towards SpaceX founder Elon Musk and U.S. President Donald Trump.

Musk was a staunch supporter of Trump’s re-election campaign and ran the divisive Department Of Government Efficiency (DOGE) for several months.

He has also repeatedly criticised South Africa’s race-based laws, including the ECA, which he said blocked him from getting a telecommunications licence in the country of his birth because he was not black.

President Cyril Ramaphosa, who supports Malatsi’s move to introduce EEIPs for telecoms licences, has hit back at Musk, saying that South Africa does not have race-based laws.

“Our laws are not racist. They are empowerment laws meant to uplift people who were discriminated against,” Ramaphosa said.

Source: https://mybroadband.co.za/news/telecoms/647306-bad-news-about-starlink-in-south-africa-2.html