Government Relaxes BEE Rules for Technology Sector, SA Weighs In As Decision Opens Door for Starlink

• The South African government has relaxed some Black Economic Empowerment (BEE) laws in the information and technology sector
• Previously, foreign investors were required to give away 30% shareholding to BEE partners before they were granted a license
• South Africans shared mixed reactions to the news, with some saying that President Cyril Ramaphosa changed his tune about Elon Musk

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

Could Elon Musk be closer to bringing Starlink to South Africa?

The South African-born billionaire has often complained that he is not allowed a license to operate his internet satellite service in the country because he’s black.

While that’s not true, the current law states that a foreign company seeking to enter the ICT (Information and Communication Technology) sector is required to give away 30% shareholding to Black Economic Empowerment (BEE) partners.

A new policy directive has now changed all that and could open the door for the SpaceX owner.

Minister issues new policy directive

Following the meeting between Donald Trump and Cyril Ramaphosa in Washington, the Minister of Communications and Digital Technologies, Solly Malatsi, has issued a policy directive that relaxes the BEE policies in the ICT sector.

Malatsi has issued a directive to the Independent Communications Authority of SA (ICASA) which allows for BEE laws to be relaxed in favour of equity equivalents. Foreign investors can now score BEE points by undertaking activities like investing in infrastructure in rural areas.

Malatsi said the new policy was necessary to encourage investment and innovation in the communications sector.

Government sweetening the deal for Musk?

The decision comes two days after a delegation from South Africa met with the Trump administration in the United States of America. Before the meeting, the spokesperson for the president confirmed that Starlink would be a topic of discussion with Musk during the visit to the States.

The South African government also confirmed that it would be presenting a trade package to the USA as it looked to ease tensions between the two nations.

You can view the new policy below:

South Africans shared mixed reactions to the decision

The decision sparked mixed reactions among social media users as some supported the idea of Starlink coming to the country, while others were unhappy that the government was giving in to Musk.

Samuel Munny said

“Madiba once said something along these lines, ‘A leader who changes his principles based on who he is dealing with, is not fit enough to be one.’ That isn't me, but the wiser one.”

Leigh Phillips stated:

“Good, let the BEE slide. The whole country would be better off.”

David Benedict Kiley said:

“Money talks, and people...we all know the rest, ne😏?”

Reply

Phillip Ledwaba noted:

“They are opening doors for Elon. He’s winning this fight bit by bit.”

Curtis Nel stated:

“Let's hope that this is the beginning of the end of BEE.”

Mo Arif Essop said:

“Hopefully, it makes the cellphone networks drop their ridiculous data prices soon.”

Bongani Khanyile noted:

“So, a man summons you to the US for a mega quid pro quo that will benefit him. The same man who spoke foully of our sovereignty and disrespected our constitution. But now he gets to have his cake and eat it. The implications are far-reaching, and the electorate will surely remember this in due course, if not now.”

Lynda Schoeman said:

“It hasn't benefited those it's meant to, so scrap it. Ministers are fat enough.”

Charl van der Byl asked:

“An exclusion just for Starlink?”

YvesSaint King Tsatsi asked:

“What happened to we won't be bullied '?"

Jon Buxton said:

“This is going to stir up a storm of note. If you relax the B-BBEE requirements for one, you have to relax them for others, then you might as well just drop it. But then, with our government, it is about money and not fair practice. We will see.”

Source: Briefly News