South Africa’s efforts to expand satellite internet access, with Starlink at the centre of the debate, are facing mounting political resistance.
Lawmakers are pushing back against a proposed shift in telecom ownership rules that could allow foreign satellite providers to operate without local equity participation, reports Bloomberg.
The dispute has reopened sensitive questions around economic redress, executive authority, and the balance between attracting global technology firms and protecting empowerment laws rooted in the country’s post-apartheid framework.
What began as a regulatory adjustment has now escalated into a parliamentary and political standoff.
Policy shift triggers parliamentary pushback
The controversy stems from a policy directive issued last week by Communications and Digital Technologies Minister Solly Malatsi.
The directive asks the telecoms regulator to amend its licensing framework so that equity-equivalent investment programmes can count toward empowerment requirements.
This would replace the current insistence on a 30% local Black ownership stake for telecom operators.
Malatsi said the proposal followed a public consultation in which around 90% of submissions supported the change.
The minister has framed the move as a way to modernise regulation and encourage investment in digital infrastructure.
However, the parliamentary portfolio committee overseeing the telecom sector has called for the directive to be withdrawn, arguing that such a fundamental change cannot be made through executive notice alone.
Starlink’s market entry at stake
The proposed amendments would directly affect satellite internet providers, most notably Starlink, which is owned by SpaceX.
Starlink has so far been unable to operate in South Africa because it does not meet the country’s ownership requirements.
Elon Musk, who was born in Pretoria, has refused to cede equity in SpaceX to comply with the rules.
He has criticised South Africa’s ownership framework, which was introduced to address economic exclusion created under apartheid.
If the regulator adopts Malatsi’s proposed changes, Starlink would be able to offer its services in the country without altering its ownership structure.
Supporters of the shift argue that allowing Starlink to operate could improve connectivity, particularly in remote and underserved areas.
Critics counter that the issue goes beyond internet access and strikes at the heart of empowerment policy.
Authority and legal concerns raised
According to Bloomberg, Khusela Sangoni Diko, chair of the parliamentary portfolio committee on communications and digital technologies, has challenged both the substance and process of the directive.
She has argued that the minister lacks the legislative authority to alter empowerment requirements unilaterally.
The committee has warned that the directive risks obscuring existing law and effectively sidestepping the mandatory ownership threshold for historically disadvantaged groups.
It has described the move as a threat to the principles of equity and redress that underpin South Africa’s democratic transition.
The committee is expected to convene in the new year to formally consider the issue.
Coalition divisions deepen
The dispute has also highlighted fault lines within South Africa’s coalition government.
Malatsi is a member of the Democratic Alliance, while the African National Congress remains a strong defender of strict ownership-based empowerment rules.
Differences over economic transformation have long divided the two parties, and the Starlink debate has sharpened those divisions.
As parliamentary scrutiny intensifies, the outcome will influence not only Starlink’s prospects in South Africa but also how the country navigates the tension between digital expansion and economic redress.
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