In a bold move to expand broadband access and attract foreign investment, the South African government has proposed easing B-BBEE licensing requirements for satellite service providers like Elon Musk’s Starlink. The draft policy, issued by Minister of Communications and Digital Technologies Solly Malatsi, aims to align ICT sector licensing regulations with the amended BEE ICT Sector Code.

Currently, ICT licensees must have a 30% equity ownership by historically disadvantaged individuals. However, this requirement has created barriers for multinational companies without local equity partners. The proposed changes would allow alternatives such as Equity Equivalent Investment Programmes (EEIPs)—a shift that reflects global investment norms while still supporting South Africa’s socio-economic goals.

Malatsi emphasised that this is not a political concession, but rather a step toward “regulatory certainty, innovation, and inclusive digital access.” While Parliament has raised concerns, this signals an evolving B-BBEE framework more open to alternative empowerment models, particularly for high-tech sectors.

If adopted, the policy could reshape how multinationals engage with South Africa’s digital economy, balancing transformation with investment attraction.

🔗 Watch this space for updates as this policy develops and how it may set a precedent for other sectors.

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