The B-BBEE ICT Sector Council announced this week that the ICT Sector Code, gazetted in 2016, will come under full review. This follows growing pressure from Elon Musk’s SpaceX to push back against black ownership regulations, such as Black Economic Empowerment, that have halted his plans to launch Starlink in South Africa.
Musk has repeatedly claimed that his internet satellite service has faced hurdles in his country of birth under “racist laws”. However, political figures have argued that the world’s richest man has unlawfully rejected transformative legislation.
Starlink has yet to apply for an operating licence in South Africa.
ICT SECTOR CODE UNDER FULL REVIEW
On Wednesday, the B-BBEE ICT Sector Council announced that a full review of the 2016 ICT Sector Code, which governs Black Economic Empowerment, was underway.
The review serves to maintain relevance and effectiveness in advancing transformation within the sector.
At the heart of the discussion is an updated framework governing Equity Equivalent Investment Programmes (EEIPs), which many have argued is a way around BEE in the ICT sector.
The council has invited the public to submit written comments on the existing code by 20 May 2026.
Under transformative laws such as Black Economic Empowerment, foreign investors like Starlink, which falls under SpaceX, must adhere to a 30% local ownership regulation. The requirement has been labelled a “racist law” by Elon Musk, who has also accused his home country of practising a “white genocide”.
EEIPs allow multinationals that reject local ownership to meet their empowerment obligations through investment in skills, enterprise development, or infrastructure. However, their existence in the ICT sector has been widely contested under Icasa’s licensing rules.
Starlink has offered to invest R500 million to help connect 5,000 rural schools to free, fast internet via EEIPs. This would be supported by solar power, software, and long-term monitoring, it claimed.
THUMBS UP FROM MINISTER ACCUSED OF ‘FAVOURING’ STARLINK
The implementation of EEIPs within the telecoms sector has been supported by Minister of Communications and Digital Technologies Solly Malatsi, who came under fire for an “unlawful” gazette in favour of a policy that appears to favour Starlink’s operations in South Africa.
Malatsi was accused of paving the way for Musk to “bypass” Black Economic Empowerment through EEIPs.
Images via X
According to the minister – who gazetted a final policy direction on EEIPs in the ICT sector earlier this year– the “purpose of this policy direction is to ensure that the full scope of economic empowerment is properly recognised and applied”.
Without mentioning Starlink or Elon Musk, Malatsi claimed the department had “received over 19,000 submissions on the draft, with 90% supporting the policy direction for the regulatory clarity it provides and its potential to expand access to high-speed internet”.
Malatsi added that the final policy direction “reinforces regulatory parity…does not favour any entity, bypass the Electronic Communications Act, or weaken transformation”.
Malatsi’s move has been met by strong opposition from political parties like the EFF and Rise Mzansi, as well as Khusela Diko, the Chairperson of the Portfolio Committee on Communications and Digital Technologies, who have all cited Starlink as posing a threat to national security.
STARLINK ADDRESSES BEE ‘MISCONCEPTIONS’
In recent months, Starlink, a subsidiary of Elon Musk’s SpaceX, has ramped up its advocacy campaign to rally public support.
On its website, Starlink claimed reports that it sought to bypass transformative legislation were a “myth”, as were claims it wanted “special treatment”.
It shared: “Starlink is not requesting any exemption or preferential treatment.
“It is asking ICASA to align its regulations with existing EEIP law in a way that applies equally to all international satellite operators and encourages competition and investment.
“Nothing in the proposed regulatory alignment would favour Starlink or compel South Africans to use Starlink instead of another provider”.
It added: “Starlink South Africa will comply with all local laws, pay applicable taxes and fees, and meet B-BBEE requirements like any other provider.
“[It] will partner with local companies, large and small, to increase access and create employment opportunities”.
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