Zibi Fires Back At Elon Musk’s Criticism Of South Africa’s Telecoms And BEE Laws

Rise Mzansi leader Songezo Zibi has responded sharply to renewed criticism from billionaire entrepreneur Elon Musk regarding South Africa’s telecommunications regulations.

Musk recently repeated claims that race-based rules are preventing his satellite internet company from operating locally, arguing that regulatory requirements unfairly block market access.

The comments come amid ongoing debate over government policy affecting the sector. In 2025, Communications Minister Solly Malatsi faced strong criticism after issuing a directive to the Independent Communications Authority of South Africa (ICASA) that would allow companies such as Starlink to operate without fully complying with Black Economic Empowerment (BEE) ownership rules.

South Africa telecoms laws under renewed scrutiny

Malatsi’s directive suggested that foreign companies could bypass traditional ownership requirements by investing instead in so-called “equity equivalence” programmes. These initiatives are intended to promote economic transformation without requiring firms to sell equity stakes to local black investors, as stipulated under B-BBEE legislation.

The proposal sparked backlash from several quarters, with critics warning that it could weaken South Africa’s transformation framework while setting a precedent for regulatory exemptions in strategic sectors.

Zibi challenges Musk’s stance on investment and principles

Zibi has taken particular issue with Musk’s framing of the debate, arguing that investment cannot come at the expense of South Africa’s constitutional values and legal standards.

“That person cannot want to invest in South Africa and claim himself to be similar to other investors who want to invest in South Africa. And because money is involved, we must then accept whatever kind of person wants to invest here.

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“We’ve got to have principles, we’ve got to have standards, and we must draw the line in our constitutional order. The second reason I don’t think we must have Stalin here is that Elon Musk has used his platforms to spread lies, misinformation and disinformation, not only about South Africa, but to cause division in other parts of the world.”

Zibi’s comments add political weight to the broader national conversation around foreign investment, transformation policy and the future of South Africa’s digital infrastructure.

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