South Africa has taken a significant step toward opening its telecommunications market to SpaceX’s Starlink, following a policy directive that removes one of the biggest regulatory barriers facing foreign operators.
On Friday South Africa’s Minister of Communications and Digital Technologies, Solly Malatsi, issued a notice formally instructing the country’s telecom regulator, the Independent Communications Authority of South Africa (ICASA), to fully apply the 2016 ICT Sector Code for Broad-Based Black Economic Empowerment (B-BBEE) when evaluating telecom licence applications.
The move could finally allow Starlink to operate in Africa’s largest economy—without being forced to give up local equity ownership.
A Shift Away From Mandatory Local Shareholding
Under South Africa’s existing telecom framework, foreign companies seeking electronic communications licences were required to meet a 30% ownership threshold for historically disadvantaged groups, typically through direct local shareholding. That requirement has long been viewed as a dealbreaker for global firms unwilling to dilute ownership.
The notice changes how that requirement can be met.
Instead of mandating local equity stakes, ICASA is now directed to accept Equity Equivalent Investment Programmes (EEIPs) as a compliant alternative. These programmes allow companies to satisfy empowerment obligations through approved investments such as skills development, procurement from black-owned suppliers, and community or infrastructure initiatives.
For international players like SpaceX, this removes the need to restructure corporate ownership while still aligning with South Africa’s transformation objectives.
Starlink Positioned to Benefit Immediately
SpaceX has been advocating for this approach for months. In its August 2025 submission to ICASA, the company explicitly supported the use of equity equivalent investments and outlined a substantial local commitment if approved.
According to that submission, SpaceX proposed a R500 million investment aimed at providing Starlink connectivity to 5,000 rural schools, alongside a broader R2 billion investment focused on deploying Starlink infrastructure across South Africa.
The new policy framework aligns closely with that proposal, effectively clearing the path for SpaceX to apply for—and potentially secure—the electronic communications licences required to launch Starlink services in the country.
Why This Matters for South Africa
South Africa continues to struggle with deep digital divides, particularly in rural and underserved regions where fibre and traditional mobile networks remain limited or economically unviable. Starlink’s low-Earth-orbit satellite network is specifically designed to address those gaps, delivering high-speed internet without reliance on extensive ground infrastructure.
If approved, Starlink could play a meaningful role in expanding access to education, healthcare, and digital services, especially in remote communities that have long been left behind.
