Minister of communications and digital technologies Solly Malatsi has issued a policy directive that seeks to relax black economic empowerment (BEE) policies in the ICT sector, a move that may open the door for billionaire Elon Musk’s Starlink to operate in SA. 

Malatsi issued the directive to the Independent Communications Authority of SA (Icasa) in a government gazette on Friday, days after President Cyril Ramaphosa met US President Donald Trump and his close adviser Musk. 

It is believed that behind closed doors with the Trump team, the government conceded to paving the way for Starlink to operate in the country. 

Starlink, developed by SpaceX, is a satellite service designed to provide high-speed, low-latency internet access, especially in remote areas. It uses thousands of low earth orbit satellites that communicate with ground stations and user terminals to deliver broadband internet.

Musk has refused to comply with licensing conditions that require a foreign company seeking to enter the ICT sector to give away 30% shareholding to black economic empowerment partners.

Malatsi has issued a policy directive to Icasa which could pave the way for the BEE laws to be relaxed in favour of equity equivalents that will allow foreign investors to enter the ICT sector by scoring BEE points for undertaking activities such as investing in infrastructure in rural areas. 

In the gazette, Malatsi said the objectives of the directive are to give effect to existing national and sector policy pertaining to the rollout of broadband and bridging the digital divide. 

He said this was necessary to encourage investment, including strategic infrastructure investment, and innovation in the communications sector, to promote competition within the ICT sector and to promote, facilitate and harmonise the achievement of the objectives of law. 

“To accomplish the objectives, it is necessary for regulatory certainty and consistency to apply to members of the ICT sector, including the holders of licences under the act. Consequently there is a need to harmonise the requirements and provisions of the act with other legislation that applies to the recognition of ownership of members of the ICT sector, including the amended broad-based black economic empowerment ICT Sector Code,” read the gazette. 

“The achievement of the objectives will require Icasa to implement certain amendments to regulations promulgated by it to meet the imperatives of other national laws.”

Musk has used his influence with Trump to put pressure on SA to ease its black empowerment regulations.

Trump ambushed Ramaphosa in a tense meeting at the Oval Office in Washington on Wednesday, showing him videos of EFF leader Julius Malema chanting “kill the Boer, kill the farmer”, and pictures of crosses on the side a road which Trump incorrectly claimed was evidence of a “white genocide” in SA.