• New draft policy links telecom licenses to local investment commitments

• Starlink's entry could be easier, though officials deny favoring Elon Musk’s firm

• Public consultation on the proposal is open for 30 days before any final decision

Yesterday, South Africa’s Minister of Communications and Digital Technologies, Solly Malatsi, defended a new draft policy direction before Parliament. The proposal, released last week, would allow companies seeking telecom licenses to meet local ownership rules through equivalent investment programs. This shift could pave the way for Starlink, the satellite internet company owned by Elon Musk, to enter the South African market—though authorities insist the measure is not tailored to benefit the U.S. firm, despite Musk’s South African roots.

The proposal outlines a range of qualifying investment alternatives. These include supporting local service providers, developing businesses and job skills, creating jobs, improving digital infrastructure, funding research and innovation, promoting digital inclusion efforts, and helping small and medium-sized enterprises.

According to the draft, the policy is intended to offer clear guidance for investors in the information and communications technology (ICT) sector. It would apply to companies seeking licenses to operate as broadcasters, internet service providers, mobile network operators, or fixed-line and wireless service providers.

One of the most discussed barriers to Starlink’s entry has been South Africa’s requirement that 30 % of telecom companies be owned by historically disadvantaged communities. In March 2025, Elon Musk posted on X (formerly Twitter), saying, “Starlink is not allowed to operate in South Africa because I am not Black.” The remark added fuel to an already heated debate. In 2023, the Democratic Alliance, then an opposition party, argued the 30 % rule would block Starlink and labeled the regulation “ridiculous.”

The Internet Service Providers’ Association of South Africa (ISPA) maintains that Starlink must follow the same rules as local providers if it wants access to the market.

For now, the draft policy remains open to public comment. Industry stakeholders have 30 days to submit their views, which could shape the final version. There is no guarantee the current proposal will be adopted in its current form, nor that it will lead to an immediate change in telecom licensing regulations.

If the proposal is ultimately written into law, the Independent Communications Authority of South Africa (ICASA) would be required to enforce it. Starlink has not yet responded to the new proposal, and there is no indication so far that the changes would meet the company’s conditions. On its website, Starlink still lists South Africa’s service launch date as “unknown.”