The Department of Communications and Digital Technologies is considering 19,000 public submissions on proposed changes to the Black Economic Empowerment (BEE) rules.
The review would assess whether tech firms could meet the requirements through equity-equivalent programs rather than the current 30% Black ownership threshold, according to Bloomberg.
“We are prioritizing it, you cannot sit on submissions. Once done, and based on the sentiment, we can make a submission to Icasa to make the final decision,” Communications and Digital Technologies Minister Solly Malatsi said, referring to the regulatory Independent Communications Authority of South Africa.
No Starlink in Africa’s biggest economy
Despite being operational in over 17 African countries, including neighbouring nations like Namibia, Mozambique, and Botswana, South Africa, the continent’s largest economy, is not on the Starlink network.
Elon Musk has rejected demands to give up equity to meet Black-ownership rules designed to address apartheid-era inequalities, calling the laws “openly racist.” SpaceX, in its submission to the government, has backed the proposed amendments.
Under the new changes, telecoms companies could meet empowerment requirements by investing in infrastructure, digital inclusion, or research projects that benefit disadvantaged communities, rather than ceding ownership.
The plan has drawn sharp criticism from opposition parties and civil society groups, who accuse the government of rewriting laws to favour a wealthy foreign billionaire.
Similar exemptions already exist in other sectors. In 2019, for example, automakers, including BMW, Ford, and Toyota, set up a fund to bring underrepresented groups into the industry.
