As debates intensify over South Africa’s transformation policies, Communications Minister Solly Malatsi has refuted on May 27 claims that a proposed relaxation of Black ownership requirements was crafted to favour billionaire Elon Musk’s Starlink venture.
In the face of mounting political scrutiny, Malatsi stood before Parliament asserting that the regulatory proposal, unveiled last week, was designed to open the market to broader competition, not to bend rules for a single enterprise.
The revision suggests alternative ways for foreign tech companies to meet empowerment targets, such as investing in skills training and supporting local supply chains—an approach critics claim may dilute hard-fought economic redress measures rooted in the country’s apartheid past.
The timing of the policy’s announcement has raised eyebrows, occurring shortly after President Cyril Ramaphosa’s visit to Washington, where former U.S. President Donald Trump reiterated unfounded allegations about the persecution of white South African farmers. Critics, including ANC lawmaker Khusela Diko, fear the directive could be interpreted as appeasement, potentially positioning South Africa’s regulatory framework to accommodate Western investors. Though Starlink has yet to formally apply for a licence in South Africa, Musk has publicly decried the country’s empowerment laws, claiming on social media that his racial identity precludes Starlink’s entry into the market.
Industry voices, however, present a nuanced view. The Association of Communications and Technology (ACT) welcomed the draft policy as a possible catalyst for growth—if implemented transparently and equitably. They urge clarity and consistency in regulation to foster investor confidence and restore momentum to South Africa’s tech sector. While Malatsi assured that the proposal originated months ago, far before the Ramaphosa-Trump engagement, the policy remains open to public and industry comment for the next 30 days. For many, this moment represents a crossroads between global connectivity and local empowerment—an opportunity to reimagine inclusivity without compromise.