Communications Minister Solly Malatsi has rejected criticism of his policy directive easing BEE rules in the ICT sector, dismissing claims it was designed to benefit Elon Musk’s Starlink, according to the Sunday Times.
The directive gazetted a day after President Cyril Ramaphosa’s White House meeting – attended by Musk – has sparked speculation, but Malatsi insists the timing was coincidental.
“The policy direction is given under the Electronic Communications Act [ECA] … the minister of communications & digital technologies has the power to give policy directions under the ECA, which is what I have done,” Malatsi told the Sunday Times.
“There was no political pressure. We began working on this as early as last year when we issued the intention to do a policy directive. The timing is an issue that will have different people having different opinions.”
The Pretoria-born Musk has opposed SA’s 30% black ownership rule, a hurdle for Starlink’s entry. Major telecom firms are reportedly reviewing the directive, weighing potential legal challenges if they deem it unfairly favors Musk’s venture.
ANC-led Parliament’s communications committee has summoned Malatsi to explain the move, which some claim “appears to be in contravention of the ECA” and unduly benefits Starlink.
A senior ANC insider said: “It’s been a DA proposal for a long time, so this is a win for the DA. The [party] has been saying for a long time why we are imposing a 30% ownership on Starlink, which would likely benefit only a few comrades, instead of having an equity share project that will benefit small businesses.”
DA leader John Steenhuisen backed the policy, calling it “a net positive for South Africa.”
“We in South Africa need to stop finding a million reasons why something can’t happen instead of the 10 reasons why it can happen,” he said.
Starlink’s potential role in Ramaphosa’s US talks reportedly led to Mcebisi Jonas, MTN chair and presidential envoy, skipping the trip to avoid conflicts. However, sources say Starlink wasn’t discussed despite Musk’s presence.
