The Democratic Alliance’s pick for Solly Malatsi as Minister of Communications has proven to be an excellent choice, as he has not only laid down the law, enforcing policies effectively but has also demonstrated himself to be a strong South African leader.
Malatsi has taken a firm stance, upholding the country’s BEE (Black Economic Empowerment) laws, and has even forced billionaire oligarch Elon Musk to back down, leading Starlink to withdraw its satellite bid in South Africa.
Starlink’s South Africa Stumble: BEE compliance and affordability hurdles leave market open for local telecoms
Starlink, which currently operates in neighboring countries like Botswana, Mozambique, and Eswatini, has faced criticism for its exorbitant pricing, which leaves most residents in these nations without access to its services.
Back to its troubles in South Africa, affordability isn’t the only issue that has put South African-born Teslla CEO in a difficult position. Despite Starlink’s advanced low-orbit satellite technology—allowing users to connect simply by plugging in a terminal and pointing it skyward—the company’s failure to meet South Africa’s 30% Black ownership requirement has proven to be a dealbreaker.
As many would attest, Musk has been vocal in his opposition to South Africa’s BEE laws, which are designed to address the deep-rooted economic inequalities left by apartheid. The 2002 Rome Statute of the International Criminal Court (ICC) defines apartheid as a system of inhumane acts designed to maintain racial domination, and South Africa’s BEE policies are a direct response to this legacy.
Minister Malatsi, a Democratic Alliance (DA) MP, has made it clear that these laws are non-negotiable, stating firmly, “It’s not about Starlink”. This stance has disappointed Musk and a segment of South Africa’s white minority, who make up approximately 9% of the population.
While it’s unquestionable that Starlink’s technology could have been a game-changer for underserved areas, its refusal to comply with local laws has created an opportunity for existing providers like MTN, Vodacom, Cell C, Rain, Melon, and Axxess. These companies offer affordable data packages at a fraction of Starlink’s projected cost, making broadband access more viable for the majority of South Africans.
Respect South Africa’s laws or look elsewhere!
Malatsi’s firm approach aligns with a broader effort to ensure that multinational companies respect South Africa’s legal and economic frameworks.
He is currently in discussions with the Independent Communications Authority of South Africa (Icasa) to explore alternative equity equivalents—similar to those successfully implemented by global companies like Microsoft, HP, and IBM.
These alternatives allow multinational corporations to invest in skills training, small business development, and research and development instead of selling equity, potentially providing a pathway for Starlink to re-enter negotiations.
As the minister awaits Icasa’s response to his proposal, he remains open to issuing a policy directive to amend the Electronic Communications Act or pursuing other instruments to uphold the country’s regulatory standards.
For now, the message to Musk and other global tech giants is crystal clear: Respect South Africa’s laws or look elsewhere.
Ha se mo States mo! (this is not America). South Africa’s commitment to economic redress and transformation remains steadfast—regardless of external pressure.
