Latest news with #EEIPs
Business Insider
12-07-2025
- Business
- Business Insider
Elon Musk's Starlink faces fresh roadblock in South Africa amid tech sovereignty dispute
South Africa's heated political battle over foreign investment and digital sovereignty has intensified, with Julius Malema's party, Economic Freedom Fighters (EFF), declaring that Elon Musk's Starlink satellite service must 'never be allowed' to operate in the country South Africa is facing a heated political debate over foreign investment and digital sovereignty, centered on the Starlink satellite service. The Economic Freedom Fighters (EFF) party opposed Starlink's entry, citing security threats and potential impacts on national ICT policies. Critics argue the policy changes are specifically designed to allow Starlink to bypass existing licensing requirements. In an address to Parliament during the Department of Communications and Digital Technologies' budget vote debate on Friday, EFF MP Sinawo Thambo, a member of the South Africa's fourth-largest political party, accused the government of trying to amend the country's ICT licensing regime solely to accommodate Starlink. He said, 'There's a security threat that it poses. It must never be allowed to operate in South Africa.' At the heart of the issue is a draft policy proposed by Communications Minister Solly Malatsi, which introduces Equity Equivalence Investment Programmes (EEIPs) in the ICT sector. This alternative approach would replace the current requirement for foreign companies to sell 30% equity to black South Africans, a model already used in sectors like manufacturing and automotive. Minister Malatsi insisted that the EEIPs are not designed specifically for Starlink but aim to unlock investment and modernize the ICT sector. However, EFF MP Sinawo Thambo dismissed the proposal, labeling it as a broader attempt to create a legal pathway for Starlink's entry into South Africa. 'In our view, this is all in service of allowing Starlink to operate in South Africa, and we must be clear that we will never allow Starlink, which has weaponised misinformation and captured the White House, to erode US and South African diplomatic relations in order to ease business access in South Africa,' he said. 'We view that as economic and diplomatic terrorism and … even if Starlink were to meet equity equivalence requirements, there's a security threat that it poses that [means it] must never be allowed to operate in South Africa, and we will never allow it to do so,' he added. The proposal has also drawn critics within the ruling party, ANC, including Parliamentary Communications Committee chair Khusela Diko, who also labelled the proposed policy as 'shortcut' designed specifically for Starlink. 'Many satellite operators have obtained their operating licences by complying with the laws as they currently stand,' she said, accusing Starlink of trying to bypass South Africa's transformation goals. A long-running feud with Elon Musk The Economic Freedom Fighters (EFF) party's opposition to Starlink is rooted in a long-standing feud between its leader, Julius Malema, and Elon Musk. The two have repeatedly clashed on Musk's platform, X (formerly Twitter), with Musk accusing Malema of inciting white genocide and calling for him to be sanctioned and declared an international criminal. Malema responded by branding Musk a " typical racist" It's rather ironic that despite Starlink's widespread presence across the globe, it has yet to enter the South African market. Musk has previously criticised the country's Black Economic Empowerment (BEE) policies, stating that Starlink cannot launch there 'because I'm not black.' Meanwhile, regulatory expert Dominic Cull cautions that changes to licensing rules won't happen quickly. he said.
The South African
12-07-2025
- Business
- The South African
'We'll never allow it': EFF vows to 'stop' Starlink in SA
The Economic Freedom Fighters (EFF) have doubled down on the rejection of Starlink being granted a licence to operate in South Africa. This comes after Elon Musk's internet satellite service company is reportedly planning to 'work around' the country's Black Economic Empowerment (BEE) policies, which require a stake in local shareholding for foreign investors. Musk has repeatedly slammed the transformative legislation as a 'racist law', he claims discriminates against him as he is 'not black'. Addressing parliament on Friday, 11 July, EFF spokesperson Sinawe Thambo rejected Minister of Communications and Digital Technologies Solly Malatsi's plan to introduce equity equivalent investment programmes (EEIPs) as an alternative to transformative legislation like BEE. He said: 'This is a proposal we've objected to because the so-called alignment would require an amendment to legislation. And can't be achieved through a ministerial policy directive.' Elon Musk's plan to launch Starlink in South Africa has been met by heavy opposition. Images via X: @starlink Referring to Starlink creator Elon Musk, Thambo continued: 'We will never allow Starlink, which has weaponised misinformation and captured the White House, to erode US and South African diplomatic relations in order to ease business access in South Africa. 'We view that as economic and diplomatic terrorism. Even if Starlink were to meet equity equivalence requirements, there's a security threat that it poses. That means it must never be allowed to operate in South Africa. And we will never allow it to do so'. In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on EEIPs, which are considered 'alternatives' to transformative legislation. Without mentioning Starlink, the minister claimed that the policy would 'attract investment,' specifically in operating licensing. The minister revealed that current legislation for foreign investments 'did not allow companies to contribute to transformation goals in ways other than traditional ownership'. Last month, Business Day reported that Starlink, which falls under SpaceX, is looking to invest over R2 billion in South Africa as part of its prospective deal to operate in the country. The internet satellite company will reportedly finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries. The move is thought to be a way to 'work around' local BEE policies, which require foreign investors to hold 30% of the local shares. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 . Subscribe to The South African website's newsletters and follow us on WhatsApp , Facebook , X, and Bluesky for the latest news.
Daily Maverick
24-06-2025
- Business
- Daily Maverick
Starlink promises internet for rural SA schools — if BEE rules bend
The satellite operator has dangled a deal: free high-speed connections for 5,000 isolated schools in South Africa. In a letter to Trade, Industry and Competition Minister Parks Tau, Starlink's senior director of market access, Ryan Goodnight, made a simple case: let us in under the Equity Equivalent Investment Programmes (EEIPs) instead of the traditional 30% local ownership requirement, and we'll transform rural education connectivity. 'Today, millions of children are being denied access to education resources because South African broadband networks do not extend to the most rural parts of the country,' Goodnight wrote. The deal? Fully funded Starlink kits and service for more than 5,000 rural schools, complete with installation and maintenance support through local South African companies. But the Starlink letter also reveals the company's growing impatience. Despite being 'interested in providing high-speed internet to South Africa since we first deployed our constellation', efforts remain grounded by what it calls outdated ownership regulations – a requirement that Starlink says it cannot meet while maintaining operational control across its global network. But you know this already. Opening Malatsi's box At the centre of the situation sits Minister of Communications and Digital Technologies Solly Malatsi, who has tried to thread the needle between transformation imperatives and technological pragmatism. During a parliamentary portfolio committee meeting on 27 May, Malatsi defended his policy directive allowing the Independent Communications Authority of South Africa (Icasa) to recognise EEIPs, arguing that the work 'predates the events of last week [President Cyril Ramaphosa's fateful visit to Washington]' and represents continuity rather than capitulation. 'The intention is to ensure a whole and consistent application of the B-BBEE Act and the ICT sector codes,' Malatsi told the committee, explaining that the directive aims to bring telecommunications regulation in line with what already exists in other sectors. Microsoft, IBM and Amazon already use EEIPs successfully in South Africa – why not satellite internet providers too? Malatsi's reasoning rests on section 3 of the Electronic Communications Act, which allows ministerial policy directives consistent with national policies. He argues that Icasa's regulations have created a gap, failing to wholly consider the ICT sector code's provisions for alternative pathways to transformation compliance. Defending the empowerment dream But if Malatsi thought his careful legal reasoning would satisfy critics, he was mistaken. The portfolio committee meeting descended into accusations of undermining South Africa's transformation agenda. Committee member Oscar Mathafa argued that the directives 'dilute or undermine those particular hopes' of voters for social justice and equity, and Colleen Makhubele described the approach as 'a denial of a constitutional right of a historically disadvantaged group to own the economy'. Committee members also accused Malatsi of 'trying to amend legislation using a ministerial policy directive'. Perhaps most damaging was an observation that 'we are altering our legislation for Starlink whereas where it goes to operate in other countries it did not utilise this coercion'. An industry body, the Association of Communications and Technology, has tried to stake out middle ground, supporting the minister's effort to resolve regulatory ambiguity while insisting on 'regulatory parity' for all players. Its chief executive, Nomvuyiso Batyi, who was critical of Malatsi in her last conversation with Daily Maverick, sent a careful statement: 'We've supported the roll-out of satellite technology in South Africa, within the same rules that everyone else follows.' The association's support for EEIPs comes with a crucial caveat – implementation must be 'transparent, consistent, and with an equal application of the law'. Network operator ground offensive Faced with potential satellite competition, South Africa's network operators have been aggressive in demonstrating their commitment to reducing data costs and expanding connectivity. The numbers they presented to Parliament are impressive. MTN claims a 46% price reduction on 1GB bundles since 2019, whereas Vodacom reports that effective rates have decreased by 50% over two years. Telkom says that per-gigabyte costs have dropped from about R99 in 2010 to R79 today, and Cell C has reduced data rates by more than 28% since 2023. These operators are also making substantial infrastructure investments, spending more than R143-billion in the past five years alone – which means jobs, not just internet from the sky. MTN invests about R9-billion a year in capital expenditure, achieving 99% 2G coverage, 98.9% 3G coverage and 97.8% LTE coverage. Its 5G now covers nearly 45% of the population. Vodacom has pledged R60-billion over the next five years for network development, expanding 5G population coverage from 20.6% in 2022 to 51.7%. Telkom says its mobile network covers 85% of the population directly, extending to 99% through roaming agreements. Rural connectivity A focus on rural connectivity is particularly relevant in view of Starlink's school promise. Vodacom's rural coverage has risen from 89.63% in 2023 to 95.4%, with a target of 97%. Rain, despite being the smallest operator, covers 61 million people with 4G and 21 million (35% of the population) with 5G. Universal service obligation (USO) achievements also provide context. MTN claims a 100% USO scorecard achievement, having invested R380-million over the past decade. It has connected 1,360 mainstream schools and 140 special needs schools, also providing laptops, printers and projectors. Vodacom has connected 3,000 schools, 1,500 beyond its obligations, and 934 of the 4,000 institutions required by new spectrum-allocation obligations. Telkom works with the government on SA Connect to connect 40,000 government institutions, and Rain has connected 2,166 public service institutions. But there are problems that satellite providers like Starlink would largely avoid. MTN spent more than R4-billion in 18 months to secure its network against load shedding. Telkom reported more than 2,000 vandalised sites costing more than R300-million to repair. Starlink's infrastructure in space is immune to load shedding and vandalism, potentially offering more reliable service to rural areas. But this advantage comes at a cost – about R900 a month, based on pricing in Botswana, plus equipment costs of R3,200 to R6,700. Operators want regulatory reform, fast-tracked spectrum access and infrastructure sharing. And they want OTT players (read: WhatsApp and Netflix) to finally pay up for riding their pipes. For now, Starlink remains in orbit. Whether it lands with a bang or a crash depends less on tech and more on who controls the regulatory runway. And if you're in rural Limpopo waiting for decent download speeds, you probably don't care if it's a billionaire's satellite or a homegrown telco – you just want it to work. DM
The South African
23-06-2025
- Business
- The South African
Is SA next? Elon Musk celebrates as Lesotho gets Starlink
Elon Musk has announced that Starlink is officially operating in Lesotho. Images via X Elon Musk has announced news that Starlink has finally launched in Lesotho, a landlocked country in South Africa. ADVERTISEMENT This comes as the world's richest man – born in Pretoria – called out 'racist laws' which he believes have halted the operating licence in his home country. In March, US President Donald Trump brazenly claimed that 'nobody has heard of' Lesotho. A month later, he imposed a 50% tariff on imports from the small region, the highest among all countries. ELON MUSK MARKS STARLINK'S OPERATION IN LESOTHO On his X account, Elon Musk marked another Starlink milestone – it was now operating in Lesotho. Shortly after President Trump imposed the high tariffs on the small country, Lesotho announced that it had granted Musk's parent company, SpaceX, a 10-year operating licence for Starlink. ADVERTISEMENT The move – which reportedly was under review – challenged the country's foreign investment policy. Like SA's Black Economic Empowerment laws, Lesotho's Section 2 body (similar to ICASA) called on SpaceX to make 30% of Starlink's equity in the country available to the Basotho people as a licensing condition. In April, the organisation said in a statement: 'While Section 2 recognises the potential benefits of expanded internet access, we respectfully oppose the issuance of this license to Starlink due to the complete absence of local ownership in the company.' On the X platform, some social media users claimed that the country had been 'pressured' into 'bending the rules' for Elon Musk. ADVERTISEMENT Others bemoaned the fact that other countries were launching Starlink, while South Africa seemingly lagged. WILL INTERNET SATELLITE SERVICE COME TO SOUTH AFRICA? According to recent reports, Elon Musk has been presented with the possibility that Starlink could be granted an operating licence in South Africa, by allegedly 'side-stepping' Black Economic Empowerment (BEE). Musk initially slammed the legislature that his company was required to adhere to a 30% local shareholding investment as a 'racist law', as he was 'not black'. Minister of Communications Solly Mahlatsi has fuelled rumours he is giving Elon Musk's Starlink the greenlight. Images via X: @starlink Last month, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on 'alternatives' such as equity equivalent investment programmes (EEIPs). ADVERTISEMENT Without mentioning Starlink, the minister claimed that the policy would 'attract investment,' specifically in operating licensing. The minister revealed that a 30% local shareholding BEE requirement for foreign investments 'did not allow companies to contribute to transformation goals in ways other than traditional ownership'. As such, Malatsi revealed that the EEIP policy direction would allow qualifying multinationals to engage with the department through 'alternatives' to local ownership. This included investments in : ADVERTISEMENT Local suppliers Enterprise and skills development Job creation Infrastructure support Research and innovation, Digital inclusion initiatives, and funding for SMMEs. DO YOU THINK THAT ELON MUSK WILL BE GRANTED A LICENCE TO OPERATE STARLINK IN SOUTH AFRICA? Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
IOL News
11-06-2025
- Business
- IOL News
The impact of Malatsi's EEIP on rural connectivity and economic growth
Communications and Digital Technologies Minister Solly Malatsi. The writer says his recent policy direction to recognise EEIPs in the ICT sector must be applauded. Image: X/IOLGraphics THERE is an old saying: Repeating the same actions and expecting different results is the definition of futility. For decades, South Africa under ANC rule has tried to marry economic growth with rigid, quota-based transformation policies. The results of which are, unfortunately, low growth, soaring unemployment, deepening poverty, and worsening inequality. The Western Cape has taken a different path while in support of transformation, one based on merit, capability, and performance. Transformation here is not a tick-box exercise but a tangible outcome of appointing people who are fit for purpose and investing in what works. The results speak volumes: efficient service delivery and a resilient economy that consistently outperforms other provinces. It is within this context that Minister Solly Malatsi's recent policy direction to recognise Equity Equivalent Investment Programmes (EEIPs) in the ICT sector must be applauded. This move represents a significant shift away from box-ticking compliance toward meaningful inclusion by facilitating investment in digital infrastructure rather than enforcing ownership quotas. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Crucially, connectivity is no longer a luxury — it is a prerequisite for economic participation. High-speed internet, particularly through satellite services such as Starlink and other alternative providers, can bring previously disconnected rural areas into the digital economy. Such access opens up transformative opportunities in education, entrepreneurship, employment, and service delivery. The Business Process Outsourcing (BPO) sector, particularly call centres, offers a clear example of what is possible with the right infrastructure. According to a 2021 Wesgro report, 74% of Africa's BPO economic activity occurs in Cape Town, which is leading the charge. The city's appeal lies in its diverse economy, deep talent pool, and robust infrastructure. It offers 65% to 70% lower operational costs than tier-2 cities in the UK, making it a magnet for international investment. There is compelling evidence that improved internet access leads to higher productivity, increased wages, and better employment prospects. Studies show that in developing countries, firms with reliable internet connections are more likely to increase sales and export volumes. A recent study in Colombia found that rural firms located in areas where high-speed internet infrastructure was rolled out experienced a significant rise in exports. In South Africa, towns such as Beaufort West exemplify the unrealised potential of rural communities. With youth unemployment sitting at about 55% in the Central Karoo and with infrastructure like the unused Land Bank building readily available, the town could be a natural candidate for BPO investment. However, the current lack of reliable, high-speed internet is a major barrier. It is not for a lack of willingness or resources — it is the digital infrastructure that is holding these towns back. By contrast, Cape Town's digital ecosystem enables businesses and individuals to thrive. Faster speeds, higher bandwidth, and stable connectivity are not just conveniences — they are economic enablers. For towns like Beaufort West and broader regions such as the Karoo, challenges like poor soil conditions limit large-scale crop production. Improved digital infrastructure would empower farmers with tools such as remote livestock monitoring, GPS tracking, health diagnostics, and access to real-time market prices, enabling better herd management, reduced losses, and improved productivity. Connectivity also plays a vital role in rural safety, offering digital surveillance systems and rapid communication channels to help combat livestock theft and other forms of farm-related crime. Bridging the digital divide is therefore not just about economic growth; it is about long-term sustainability for rural livelihoods. This is where Minister Malatsi's initiative becomes pivotal. EEIPs that allow international technology investors and innovators to support South African connectivity goals without navigating outdated B-BBEE ownership constraints. This is exactly the kind of progressive thinking the country needs. The broader economic imperative cannot be ignored. The Government of National Unity (GNU) has made a clear commitment to growing the economy and creating jobs. Outdated legislation and failing infrastructure must not be allowed to stand in the way. The country's economic future depends on urgent reform and enabling environments. Recent data from Statistician-General Risenga Maluleke provides a sobering picture. Household reliance on social grants rose from 21.3% in 2009 to 28.8% in 2020, before marginally decreasing to 23.8% in 2024. In provinces such as the Eastern Cape (38.9%), Northern Cape (34.4%), and Limpopo (33.8%), grants remain the primary source of income. This entrenched dependence is a reflection of how deeply economic exclusion runs, particularly in rural South Africa. In contrast, the Western Cape recorded the lowest grant reliance at 14%, with 68.2% of households earning their income through employment. This is not a coincidence — it is the result of policies that prioritise economic growth and individual empowerment over bureaucratic box-ticking.
