By Lehlohonolo Lehana.
The South African government has issued a gazette proposing to ease the Broad-Based Black Economic Empowerment (B-BBEE) licensing requirements for satellite service companies.
The move seeks to attract international investment, including major players like SpaceX’s Starlink, which has been unable to launch due to current regulations.
Currently, the Electronic Communications Act (ECA) mandates that entities seeking an ICT license must have 30% ownership by historically disadvantaged groups. This requirement has been a barrier for multinational companies, which are keen to enter the South African market.
Communications minister Solly Malatsi has been pushing for the government to allow equity equivalent investment programmes (EEIPs) in the ICT sector to enable multinationals an alternative path to launch in South Africa.
These would benefit overseas companies considering investing in South Africa.
In a Government Gazette notice, Malatsi proposed harmonising the Electronic Communications Act (ECA) with other legislation that applies to recognising ownership in the ICT sector.
“The objectives of this policy direction are to give effect to existing national and sector policy pertaining to the rollout of broadband and the bridging of the digital divide,” the notice reads.
Additionally, Malatsi believes the policy direction will help encourage investment and promote competition in the sector.
According to a statement from the department, the directive aligns with the Government of National Unity’s mission to attract investment through regulatory reforms and accelerate broadband access.
The government gazette notice focuses on the role of EEIPs in the ICT sector.
“The rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30% shares to be in the hands of historically disadvantaged individuals,” the department said.
Stakeholders are invited to submit comments on the draft policy direction within 30 days of the notice’s publication in the Government Gazette, which was on Friday, 23 May 2025.