Malatsi Seeks Legal Amendment That Could Allow Starlink Entry Into SA, Citizens Debate Proposal
- Communications and Digital Technologies Minister, Solly Malatsi, proposed legislative amendments that, if approved, could allow Starlink to operate in South Africa
- Elon Musk has repeatedly complained about South Africa's B-BBEE ownership requirements, which have prevented SpaceX's entry into the country
- South Africans took to social media to weigh in on the minister's statement, sharing mixed reactions about the possibility of Starlink operating locally
Source: Getty Images
Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.
GAUTENG – Solly Malatsi wants to pursue legislative amendments that could pave the way for Starlink to operate in the country, without being required to fully meet existing B-BBEE ownership requirements.
Currently, the rule requires that communications licence holders be 30% owned by historically disadvantaged groups. Starlink owner Elon Musk has often criticised this rule, arguing that the only reason his satellite internet company was not allowed to operate in South Africa was that he was not black.
Malatsi, the Minister of Communications and Digital Technologies, has now hinted that there could be a workaround for this, but his proposal has sparked mixed reactions on social media.
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What did Malatsi propose?
During his speech at the department's budget vote on Tuesday, 12 May 2026, the minister stated that he intended to pursue a legal alternative to the 30% ownership rule.
"We will also pursue legislative amendments that will enable equity equivalent investment programmes (EEIPs) to complement ownership requirements in telecommunications," he said.
While the Electronic Communications Act requires licence holders to be 30% owned by historically disadvantaged groups, EEIPs are recognised in other industries. They allow companies that have not entered into ownership agreements to make financial contributions instead.
These contributions must equal 4% of the annual revenue of the company's operations in SA, as well as meet other requirements.
Source: Getty Images
SpaceX would welcome EEIPs
SpaceX, which owns Starlink, has previously stated that it would apply for a communications licence if EEIPs were recognised in South Africa’s communications sector. While the company has expressed eagerness, Malatsi has repeatedly maintained that recognising EEIPs was not just to appease Musk.
"We are not attempting to open a special dispensation for Starlink or any other company or an individual. We are saying that the regulations in our sector must consistently make provision for the two choices that exist in any other sector," he said in May 2025.
Despite Malatsi’s eagerness to get an alternative approved, his statement does not guarantee that it will be done. Any amendment will need to go through a legislative approval process, but the African National Congress (ANC) and Economic Freedom Fighters (EFF) have repeatedly opposed the proposal. Malatsi does have the backing of the president, though, as Cyril Ramaphosa does support the proposal to recognise EEIPs.
South Africans debate Malatsi’s plan
Social media users weighed in on Malatsi’s statement, sharing varied reactions to it.
@EFFDefence2026 asked:
“Why is this Minister fighting so hard for Starlink in South Africa?”
@ShweleNgelosi questioned:
“And why would he do that? Is he being bribed?”
@markmywords stated:
“I think it’s about time to scrap BEE rules and make SA a competitive economic hub.”
@_JS_Bond_ noted:
“The EEIP alternative already exists in other industries.”
@Pyed_Pipper stated:
“Lol, Starlink will never happen here.”
@SpotOnLee asked:
“Why doesn't Musk fight to enter the Chinese market this badly? Surely that's a gazillion times more lucrative licence.”
@srakwena said:
“So, the BEE rule has only changed to accommodate Elon Musk, who is busy spreading misinformation about South Africa.”
@vape1nation stated:
“B-BBEE deals were always going to be corrupt. EEIP investment is the only way. Starlink will land.”
Musk claims he was asked to pay a bribe
Briefly News reported that Musk claimed that he was denied a licence for Starlink in South Africa due to his race.
The Tesla owner went one step further and alleged that he was offered a way to get a licence by paying a bribe.
South Africans took to social media to discuss Musk's latest claims, sharing mixed reactions to them.
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Source: Briefly News
