'Political expediency': Malatsi dismisses calls to withdraw directive allowing Starlink BEE alternative

Communications and Digital Technologies Minister, Solly Malatsi, has dismissed calls to withdraw his recent policy directive that allows companies like Starlink to operate without meeting certain Black Economic Empowerment (BEE) requirements.

Malatsi suggests the opposition to his directive is motivated by political expediency.

His comments follow calls by the Chairperson of the Communications Portfolio Committee, Khusela Sangoni Diko, for the immediate withdrawal of the directive. Diko argues that the move goes against the spirit of the law.

Solly Malatsi's draft directive was initially published in May this year before undergoing a period of public participation. The Minister subsequently gazetted the final directive last week.

Malatsi maintains that most people support the provision, which allows companies like Starlink to invest in "equity equivalence," rather than being required to sell a portion of the business to a local Black investor, as stipulated by Broad-Based Black Economic Empowerment (BBBEE) laws.

"Upon interrogation of those submissions the support for policy directive was overwhelming. Those who had issues with the directive were a very small minority," Malatsi stated.

He further emphasised that there is no need to withdraw the directive, despite parliamentary opposition.

"There is quite frankly no need for any action beyond what we have done with making sure the policy directive is consistent with the law," he added.
Meanwhile, Communications Committee Chairperson Khusela Sangoni Diko has confirmed that the committee will convene a meeting in the New Year to formally consider the developments around the gazetted policy.