Minister's directive could clear path for Starlink and other foreign tech firms

Minister of Communications and Digital Technologies Solly Malatsi has taken steps to make access to South Africa easier for companies like Elon Musk's Starlink.

Current regulations require equity to be given to historically disadvantaged groups.

But in a Government Gazette published a few days ago, Malatsi formally instructed the Independent Communications Authority of South Africa (Icasa) to “urgently consider alignment” of its regulations with the national ICT Sector Code.

This effectively forces Icasa to stop blocking foreign investors who refuse to sell equity.

Malatsi’s directive effectively forces Icasa to recognise the Equity Equivalent Investment Programmes (EEIPs), which allows multinationals to bypass the equity sale requirement by instead investing in local skills development, enterprise support, or infrastructure.

By ignoring the Department of Trade, Industry and Competition (DTIC)’s sector codes, the regulator is actually blocking the “national and international investments” the country desperately needs, claims Malatsi.

Nomvuyiso Batyi is CEO of the Association of Comms and Technology (ACT) – an industry body that represents South Africa’s six largest telecommunications operators.

"Our interest is how will ICASA implement the directive... because ICASA is a creature of statute."

Bayti says ACT wants to ensure the rule of law is followed by the regulator.

In a statement, the Portfolio Committee on Communications and Digital Technologies has called for the immediate withdrawal of the directive, calling it an "affront to the centuries-old fight for equity and redress by the black majority in this country."

Batyi says ACT does not wish to become involved in what she calls "political haggling", but adds that if there were any circumventing of laws, that would be best dealt with by a court of law.

"We can only guide as ACT and say a public discourse needs to take place within a policy framework that government has put up."

To listen to Nomvuyiso Batyi in conversation with CapeTalk's Africa Melane, click the audio below: