By 
South Africa’s African National Congress (ANC) has launched a fierce critique against a new policy directive from Communications Minister Solly Malatsi, accusing the move of unlawfully creating a backdoor for foreign satellite operators like SpaceX’s Starlink to circumvent South Africa’s Black Economic Empowerment (BEE) framework.
Starlink hasn’t been able to enter South Africa primarily due to regulatory clashes over the country’s BEE laws, which mandate significant Black ownership in licensed telecom companies, a requirement Elon Musk argues he can’t meet as a white founder.
In a statement reacting to a Government Gazette published on 12 December 2025, the ANC alleged that Minister Malatsi’s instructions to the Independent Communications Authority of South Africa (Icasa) exceed the minister’s authority and threaten the integrity of our ICT regulatory environment.
“The ANC stresses that no minister may amend or suspend legislation via a policy directive.”
It added that laws like the Electronic Communications Act, Postal Services Act, Icasa Act, and Broad-Based Black Economic Empowerment Act can only be changed through Parliament.
“The Minister claims to have received 19,000 submissions on the draft, asserting that 90% of these support the policy direction,” the ANC said.
The core of the controversy lies in the directive’s proposal to establish alternative compliance mechanisms for the sector’s mandatory 30% ownership by Historically Disadvantaged Groups (HDG). Currently, all ICT licensees must meet this equity requirement. The new policy would introduce Equity Equivalent Investment Programmes (EEIPs), allowing companies to invest in socio-economic initiatives as an alternative to direct shareholding.
The ANC sees this as a deliberate loophole.
“Such provisions would allow certain operators, notably foreign satellite providers like Starlink, to bypass core transformation obligations.”the party stated.
Starlink, which has been seeking to operate fully in South Africa, has been seen as hesitant to comply with the direct ownership model, viewing it as a barrier to entry.
Malatsi stated in the gazetted document that he was directing the Independent Communications Authority of South Africa (Icasa) to address legal problems with its equity ownership rules for the ICT sector.
However, the ANC has interpreted it differently, alleging that Malatsi was seeking to amend legislation without following the correct processes.
“Forcing Icasa to implement measures inconsistent with primary legislation is unlawful, undermines institutional independence, and destabilises the regulatory environment,” the ANC said.
The party advised that Icasa uphold its obligations and refuse any directive that is inconsistent with the law.
“The ANC calls on Parliament, through the Portfolio Committee on Communications and Digital Technologies, to urgently hold the minister accountable for the legality, intent, and consequences of the Gazette,” it added.
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