Starlink Backs South Africa’s BEE Laws But Challenges Icasa’s Ownership Rules

Elon Musk’s SpaceX has affirmed its support for South Africa’s Broad-Based Black Economic Empowerment (BBBEE) legislation as it seeks approval to launch Starlink Internet services in the country.

However, the company raised concerns over one specific requirement set by the Independent Communications Authority of South Africa (Icasa). SpaceX argues that Icasa’s telecoms licence ownership rule does not align with BBBEE laws, creating “significant regulatory uncertainty and complexity.”

“This creates significant regulatory uncertainty and complexity for market participants, whether they are existing incumbents, such as the mobile network operators, or potentially new market entrants,” SpaceX said in its submission.

The Policy Debate: Equity Ownership vs. Empowerment Alternatives

Icasa’s requirements for a telecoms licence include:

A South African individual or company registered in South Africa.

A Level 4 BBBEE contributor in terms of the ICT Sector Code.

30% ownership by historically disadvantaged groups, and in future, black people.

SpaceX said it accepts the first two criteria but criticized the ownership requirement, calling it “extremely conservative and restrictive.”

The company referred to Section 9(2)(b) of the Electronic Communications Act, which gives Icasa the discretion to impose equity requirements or “such other conditions.”

According to SpaceX, Parliament intended Icasa to consider alternatives to direct equity ownership, especially since empowerment under the BBBEE Act goes beyond just ownership to include skills development, procurement, and investment in black-owned enterprises.

“Any requirements in Icasa’s regulations that deviate from the ICT Sector Code potentially contravene the provisions of the BBBEE Act as well as the requirements of the Icasa Act,” SpaceX said.

Starlink’s Promise: R500 Million for Rural Connectivity

SpaceX welcomed the government’s policy direction on equity equivalent investment programmes (EEIPs), saying it reduces regulatory barriers and fosters harmonisation with the ICT Sector Code.

EEIPs allow foreign companies to contribute to empowerment without surrendering equity, often through infrastructure investments or development programmes.

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The company committed to investing R500 million towards free Internet facilities at 5,000 schools in South Africa’s rural areas, highlighting its intention to support socio-economic development while bridging the digital divide.

“This alignment is both legally required and practically necessary to achieve South Africa’s broadband and empowerment objectives,” SpaceX said.

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