ICASA blocks Malatsi’s B-BBEE push Starlink hopes stalled

Regulator says it cannot implement Malatsi’s B-BBEE direction without changes to law

The Independent Communications Authority of South Africa (ICASA) has informed the Department of Communication and Digital Technologies that it cannot fully implement Communications Minister Solly Malatsi’s December 2025 policy direction on broad-based black economic empowerment (B-BBEE) under the current Electronic Communications Act (ECA).

What ICASA told the department

On Wednesday ICASA said it had communicated its position to the department and that it remains committed to advancing transformation in the sectors it regulates. The authority also set out the legal limit of its powers under the existing law.

ICASA noted that the Amended ICT Sector Code must be applied in licensing qualification criteria, but that full alignment with all provisions of the Code, including equity equivalent investment programmes (EEIPs), would require a legislative amendment to the current ECA.

Malatsi: ministry will pursue legislative change

Minister Malatsi said he had taken note of ICASA’s stance and reiterated the government’s intention to seek law changes. He said the department will pursue legislative amendments to enable equity equivalent investment programmes to complement ownership requirements in telecommunications through amendments to the Electronic Communications Act.

“My mission in this job is to ensure that every person in South Africa has access to affordable and meaningful connectivity that they can use to build sustainable livelihoods and get out of poverty,”

Malatsi emphasised the department’s commitment to connectivity and said it would work with stakeholders to unlock the benefits of internet access for South Africans.

Why Starlink’s entry remains stalled

The country’s regulatory framework currently requires a minimum 30% ownership by historically disadvantaged groups for individual licence holders, and ICASA’s regulations only recognise ownership by persons from historically disadvantaged groups as the valid B-BBEE measurement for individual licences.

That position leaves international players such as Starlink unable to pursue empowerment through EEIPs under current rules. EEIPs allow foreign firms to earn ownership points by investing in skills development, training and local industry rather than selling equity.

Talks about launching Starlink in South Africa stalled after public rhetoric from Elon Musk and others about B-BBEE-style policies. ICASA’s chairperson previously confirmed that the authority had not received a formal licence application from Starlink and that Starlink does not hold any licence issued by the authority to provide electronic communications, electronic communications network or broadcasting services in South Africa.

Legal boundaries and policy direction

Malatsi told reporters that it is legally impossible for the ministry to offer EEIPs directly to multinationals, and that the ministry does not have the authority to grant individual licences. He said the Independent Communications Authority of South Africa is the independent regulator with the sole authority to grant individual licences, while the ministry only has policy-making authority.

The minister also explained that his policy direction issued in May 2025 asked ICASA to consider reviewing its ownership regulations so they align with the B-BBEE Act and the ICT Sector Code, but that ICASA has not changed its ownership regulations.

Where things stand

• ICASA has communicated it cannot implement full EEIP alignment without amendments to the ECA.
• Malatsi intends to pursue legislative amendments to allow EEIPs to complement ownership requirements.
• Starlink holds no ICASA licence and cannot currently use EEIPs as a route to compliance under present regulations.

The outcome leaves the sector in a holding pattern: transformation objectives remain a government priority, but achieving parity between the ICT Sector Code and the current ECA rests on future legislative change.