Starlink sparks political storm as ANC accuses minister of bypassing transformation laws

A policy shift that’s ignited a political fire

What began as a technical policy notice has quickly turned into a full-blown political showdown.

The ANC has come out swinging against Communications and Digital Technologies Minister Solly Malatsi, accusing him of overstepping his powers in a move that could ultimately allow Elon Musk’s Starlink to operate in South Africa without meeting the country’s long-standing ownership transformation rules.

At the heart of the dispute is a Government Gazette published on 12 December 2025, in which Malatsi issued a policy directive to telecoms regulator Icasa, instructing it to reconsider equity ownership regulations in the ICT sector.

For the ANC, this was not a routine policy tweak, it was a red line.

Why ownership rules matter so much in South Africa

South Africa’s ICT sector has, for years, been governed by a clear principle: licence holders must be at least 30% owned by Historically Disadvantaged Groups (HDGs). The rule is rooted in the country’s broader transformation agenda, designed to undo the economic exclusions created by apartheid.

According to the ANC, Malatsi’s directive threatens to weaken that foundation by introducing alternative compliance mechanisms that could allow companies to sidestep direct ownership requirements.

In a sharply worded statement, the party said it was “deeply concerned” that the minister was attempting to change the law through policy, rather than through Parliament.

“No minister may amend or suspend legislation via a policy directive,” the ANC said, warning that such changes can only be made through the legislative process.

Starlink at the centre of the storm

Although the policy does not mention Starlink by name, the ANC believes the target is obvious.

The Gazette proposes the introduction of Equity Equivalent Investment Programmes (EEIPs) into the ICT sector. These programmes would allow companies unable to meet ownership thresholds to instead invest in alternatives such as infrastructure rollout, skills development or enterprise support.

In practical terms, this could allow Starlink, owned by SpaceX to operate locally without selling a 30% stake, potentially by offering commitments such as a R500 million investment to provide free internet to 5,000 rural schools.

The ANC warned that this would allow foreign operators “to bypass core transformation obligations embedded in South African law”.

For critics within the party, this isn’t just about Starlink, it’s about setting a precedent that could reshape empowerment rules across the sector.

Claims, counterclaims and questions of legitimacy

The ANC also questioned Malatsi’s assertion that the department received around 19,000 public submissions, with 90% allegedly supporting the proposed policy direction.

The party has called on Parliament’s Portfolio Committee on Communications and Digital Technologies to urgently interrogate both the legality and the intent of the Gazette.

There is also a political undertone to the backlash. The ANC accused ministers from the Democratic Alliance, including Malatsi, of showing a “troubling trend” of attempting to bypass Parliament on contentious policy matters.

The minister’s defence: this isn’t anti-transformation

Malatsi has firmly rejected the suggestion that EEIPs weaken black economic empowerment.

In the Gazette, he argued that there is little evidence to show that equity-equivalent programmes undermine transformation. He pointed out that such mechanisms are already recognised under the ICT Sector Code and the B-BBEE Act.

He also raised concerns about Icasa’s 2021 ownership regulations, which require all operators, service providers and spectrum licensees to be 30% black-owned.

According to Malatsi, those regulations go beyond what is required by the Electronic Communications Act and were introduced without alignment with frameworks set by the Department of Trade, Industry and Competition.

His directive, he said, is meant to bring regulatory consistency, while also supporting national goals such as affordability, accessibility, competition and increased investment.

A deeper tension beneath the tech debate

Beyond Starlink and telecoms policy, this standoff exposes a deeper fault line in South African politics: how to balance transformation with global investment in a rapidly evolving digital economy.

On social media, reactions have been split. Some South Africans argue that affordable satellite internet could be a game-changer for rural communities still cut off from reliable connectivity. Others fear that relaxing ownership rules chips away at hard-won transformation gains.

For now, the battle lines are drawn and Parliament is set to become the next arena.

Whether Starlink ever launches locally may depend less on satellites in orbit, and more on how South Africa chooses to define empowerment in a digital age.

{Source: Newsday}

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