ANC Accuses Minister of Bypassing Parliament with Starlink Policy

ANC Accuses Minister of Bypassing Parliament with Starlink Policy

Johannesburg – The African National Congress (ANC) has launched a strong criticism against the Minister of Communications and Digital Technologies, Solly Malatsi, accusing him of sidestepping Parliament with a recently issued policy direction. The directive, released on Friday, concerns local ownership regulations and could pave the way for Elon Musk's SpaceX Starlink service, amongst other satellite-internet companies, to operate in South Africa.

The ANC argues that Malatsi's move exceeds his legislative authority. In a statement released on Saturday, the party called on Parliament to hold the Minister accountable for the "legality, intent, and consequences" of the gazetted policy.

The policy direction, first proposed by Malatsi on 23 May, aims to address local black ownership requirements. It suggests that the industry regulator, ICASA (Independent Communications Authority of South Africa), should reconsider its rules on local ownership. The Minister issued the direction after his department reviewed 15,000 submissions received from the public during a consultation phase.

According to the gazette issued on Friday, the consultation process revealed that an "overwhelming 90% of the submissions [were] in favour of the policy direction." This policy allows equity-equivalent investment programmes (EEIPs) to contribute towards empowerment, instead of strictly enforcing a 30% local black-ownership requirement.

EEIPs are a scheme designed by the Department of Trade, Industry and Competition. They allow multinational corporations that haven't entered into ownership agreements elsewhere to launch in South Africa and contribute to transformation through alternative means. Companies like Microsoft, Samsung, Amazon Web Services, and Ford already operate in South Africa thanks to EEIPs.

SpaceX has already prepared its EEIP proposal, committing to provide free access to Starlink hardware and services to at least 5,000 rural schools indefinitely. The company has also established partnerships to install the hardware, ensure its continuous power supply through solar energy, and enhance its impact on students by collaborating with an education NGO.

However, the gazette also acknowledged concerns that the move could undermine transformation efforts. In response, it stated: "The sole purpose of the policy direction is to promote and support empowerment and transformation initiatives already in place in terms of the ICT Sector Code under the Broad-Based Black Economic Empowerment Act, 2003 which ICASA has not adopted in its Ownership Regulations."

The ANC has also raised questions about the validity of the public consultation, asking: "How were the submissions counted? Were they independently verified? And do they genuinely reflect broad public support, or merely the views of a limited, possibly organised group?"

Starlink, which boasts the largest network of satellites in low-Earth orbit with over 10,000 launched, is currently available in 150 markets globally, including 25 in Africa, with Lesotho and Mozambique among them. With no technical barriers preventing its operation anywhere on Earth, the debate surrounding its entry into South Africa continues to intensify.