By Nqobile Dludla
JOHANNESBURG (Reuters) – A senior South African lawmaker on Monday accused the communications minister of seeking to erode the country’s laws on local ownership to appease foreign businesses looking to work in the country, which include Elon Musk’s Starlink.
Last year Communications Minister Solly Malatsi said he would issue a policy directive on the recognition of equity equivalent programmes in his sector to accelerate broadband access and bring in multinationals who could not comply with local equity ownership requirements.
The Electronic Communications Act states that historically disadvantaged groups must hold at least 30% equity in any potential licensee seeking to operate in South Africa’s telecommunications, broadcasting or postal sectors.
Starlink’s parent company SpaceX wrote to telecommunications regulator ICASA that local shareholding laws were a significant barrier and that it should rethink the 30% ownership requirement for licensees by introducing equity equivalent programmes as an alternative.
The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni Diko, said in a statement the minister was seeking to “erode hard-won transformation goals” by looking to bypass the Act.
“It appears these proposed directives and regulations are an attempt to undermine empowerment legislation by stealth and, should this be found to be the case, they will be fiercely opposed,” Diko said.
She referred to mobile operator MTN and American low-earth orbit (LEO) satellite provider Lynk’s trial of Africa’s first satellite voice call using a smartphone as an example of partnerships achieved within local laws.
“These initiatives underscore the importance of fast-tracking South Africa’s satellite programme, and that there is no need for overreliance and obsession with a single satellite provider,” Diko said.
“Several other satellite providers have indicated keen interest in entering the South African market and in compliance with our laws.”
The minister’s office was not immediately available for a comment.
(Reporting by Nqobile Dludla; Editing by Jan Harvey)
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