South Africa softens its position as Musk advances the Starlink deployment.

crypthub

3 days ago

Policy Directive

Malatsi ordered ICASA to treat equity‑equivalent investment programs (EEIP) as a substitute for the 30% Black‑ownership rule. 19,000 comments were received; about 90% supported the change, disproving claims it favours Elon Musk. EEIP must equal 30% of the South African operation’s value or 4% of annual revenue and will be overseen by the DTIC for all telcos.

Starlink Plans

Starlink aims to invest up to R2 billion, including R500 million to connect 5,000 schools for 2.4 million learners. It will partner with local ISPs, use an open‑access model and set up a B‑BBEE‑compliant SA subsidiary. ICASA still needs hearings and rule changes, likely taking 12‑18 months, delaying launch to late 2027.

Opposition & Context

The EFF and civil groups argue EEIP lets foreign firms dodge true transformation and threaten legal action. Similar programs already exist for Microsoft, AWS and JPMorgan in other sectors. South Africa wants a more flexible framework than Kenya or Nigeria to stay competitive, while over 20% of the population remains offline mainly because of cost.