South Africa has cleared the final regulatory hurdle blocking Elon Musk’s Starlink, with Communications Minister Solly Malatsi issuing a landmark policy directive that effectively ends the controversial 30% black ownership requirement for international telecoms operators.
The directive, published in the Government Gazette on Friday 12 December 2025, orders the Independent Communications Authority of South Africa (Icasa) to immediately recognise Equity Equivalent Investment Programmes (EEIPs) as an alternative to selling 30% of local equity to historically disadvantaged groups.
For years, the strict 30% B-BBEE equity rule prevented Starlink from entering the market, as parent company SpaceX has a global policy of retaining 100% ownership of its subsidiaries and repeatedly stated it would not divest shares in any country.
Under the new framework, multinational companies can now meet empowerment obligations through direct investments in skills development, rural infrastructure, digital inclusion initiatives and local enterprise support instead of share sales.
Minister Malatsi described the move as essential to “unlock national and international investment” and close South Africa’s digital divide, insisting the policy applies to all operators and is not tailored specifically for Starlink.
However, industry sources and analysts widely view the directive as paving the way for Starlink’s long-awaited entry. SpaceX publicly endorsed the equity-equivalent model in written submissions to Icasa as recently as August 2025.
The directive also shifts significant power from the supposedly independent regulator to the executive: EEIPs will now be pre-approved by the Department of Trade, Industry and Competition (DTIC), bypassing Icasa’s previous gatekeeping role.
Icasa is legally required to amend its licensing regulations “urgently” to implement the minister’s instructions. Once complete, Starlink and other global satellite providers such as Amazon’s Project Kuiper and OneWeb will be free to apply for licences without forced equity transfers.
Industry experts predict that, barring unforeseen delays, Starlink could be commercially available across South Africa as early as the first half of 2026, bringing high-speed, low-cost satellite internet to millions in rural and underserved areas for the first time.
Consumer groups and tech analysts have welcomed the decision as one of the most significant pro-competition reforms in South African telecoms in decades.