South Africa Rejects Easing Empowerment Laws for Starlink

Editorial: reda El ghazal

South Africa will not dilute its Black economic empowerment requirements to accommodate foreign companies like Elon Musk’s Starlink, Communications Minister Solly Malatsi affirmed this week. His statement followed criticism of newly proposed policy adjustments allowing telecom firms to bypass selling 30% equity to historically disadvantaged groups by instead investing in digital infrastructure. Malatsi emphasized the nation’s commitment to addressing racial inequalities, calling economic transformation “sacrosanct” and non-negotiable.

The draft policy emerged days after President Cyril Ramaphosa met former U.S. leader Donald Trump, sparking opposition accusations of undue influence. While Ramaphosa’s office initially suggested discussing Musk-linked ventures, the president later denied Starlink was raised. Lawmakers questioned the timing, suggesting the changes prioritized foreign businesses over local equity goals. Malatsi denied any special treatment, stating the rules aimed to attract global firms struggling with ownership mandates while still advancing empowerment objectives.

Malatsi defended the proposal as part of a broader effort to expand broadband access and align with existing equity-equivalent programs. He stressed the policy had been in development since 2023 and was not tied to high-profile meetings. The move, he argued, balances attracting investment with upholding South Africa’s push for inclusive growth, adding that similar flexibility exists across other industries. Critics, however, remain wary of loopholes undermining decades of efforts to redress apartheid-era economic disparities.