South Africa’s government is planning to ease its Black ownership laws in the telecoms sector to accommodate Elon Musk’s Starlink internet service. This move comes ahead of a meeting between South African President Cyril Ramaphosa and US President Donald Trump. The proposed policy change would allow companies like Starlink to meet Broad-Based Black Economic Empowerment (B-BBEE) requirements through alternative means, such as investing in local suppliers, creating jobs, and funding small businesses. This could involve partnering with South African businesses to boost the local economy, generating employment opportunities for South Africans, or supporting small, black-owned businesses.
The current law requires foreign companies to allocate 30% of their equity to black-owned businesses. However, the proposed “equity equivalent” program would enable companies to contribute to empowerment objectives through other means, such as skills development, enterprise support, or community investment. This policy shift aims to attract foreign investment and reduce tensions with Musk, who had criticized South Africa’s BEE laws as “openly racist” and blamed them for delays in licensing his satellite internet service.
The draft policy is open for public comment for a specified period, and the proposed changes would apply to all information and communication technology companies, not just Starlink. This move is seen as a strategic gesture to accommodate Starlink and strengthen South Africa-US relations. Notably, Starlink has already received a 10-year license to operate in neighboring Lesotho, despite facing similar challenges regarding local equity requirements.
source-online
