South Africa not giving 'special dispensation' to Musk's Starlink, minister says

South Africa's Communications Minister Solly Malatsi said on Tuesday that his proposed draft policy that recognises alternatives to Black ownership requirements was not only meant for Elon Musk's Starlink.

Last Friday, Malatsi's  department proposed the recognition of so-called "equity equivalent" investment programmes in the information and communication technology sector, which could encourage SpaceX's Starlink and other communications companies to operate in the country.

"I am pretty clear that transformation is sacrosanct in our country, that it's a non-negotiable in order for the country to achieve its aspirations," the minister told a parliamentary briefing.

"We are not attempting to open a special dispensation for Starlink or any other company or an individual."

South Africa's Electronic Communications Act requires foreign-owned communications companies to sell 30% of equity in their local subsidiaries to historically-disadvantaged groups to obtain an operating licence, a provision criticised by Starlink and other companies.

The draft policy has drawn criticism from the opposition and the Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, who have said that it was going too far to appease foreign businesses like Starlink.

Reuters