ANC slams DA's Solly Malatsi over impending controversial Starlink deal

The African National Congress (ANC) has expressed strong disapproval of Communications and Digital Technologies Minister Solly Malatsi's recent directive that may allow the satellite-internet provider, Starlink, to enter South Africa without adhering to the country’s Broad-Based Black Economic Empowerment (BBBEE) requirements.

This accusation marks a significant clash in the ongoing debate over digital infrastructure and equity in the telecommunications sector.

The controversy arises following Malatsi's announcement that South Africa will amend local Black ownership requirements, an initiative that could potentially enable Starlink, owned by Elon Musk's SpaceX, to offer high-speed internet services without needing to sell a 30% stake to local entities as mandated by existing legislation.

Under South African law, international communications players are required to hold significant local equity to foster meaningful participation from historically disadvantaged groups.

In a report released last Friday, Malatsi detailed a new policy direction published in a government gazette, suggesting that investment programmes in digital infrastructure could fulfil empowerment goals, thereby circumventing the stringent ownership requirements outlined in South Africa's Electronic Communications Act.

Critics, including the ANC, are alarmed by this policy shift, asserting that it undermines the country's transformation framework. ANC spokesperson Mahlangi Bhengu-Motsiri condemned the gazette, labelling it as an overreach of executive power and accusing the Minister of overstepping his authority. “No minister can suspend or amend legislation through a policy directive,” she stated, highlighting the importance of legislative processes that require public participation.

Bhengu-Motsiri further stated that the ANC perceives this as part of a concerning trend whereby ministers from the Democratic Alliance (DA) which Malatsi is affiliated with attempt to bypass parliamentary processes in favour of informal directives. She called for the Portfolio Committee on Communications and Digital Technologies to hold Malatsi accountable for the implications of the gazette, urging the Independent Communications Authority of South Africa (ICASA) to adhere to established laws.

This development comes after SpaceX had expressed frustrations last year regarding the 30% local shareholding laws, which they claimed created unnecessary barriers to their operations in South Africa. The company had gone so far as to file a complaint alleging racial bias, asserting that the BBBEE requirements unfairly targeted foreign entities without considering the broader implications for technological advancement in the region.