Democratic Alliance (DA) spokesperson Karabo Khakhau has reiterated the party’s stance on pursuing equity equivalent investment as an alternative to South Africa’s Broad-Based Black Economic Empowerment (BEE) ownership requirements in the ICT sector.
Currently, for foreign companies seeking to operate in South Africa’s ICT industry, there is a mandate that they must be at least 30% owned by historically disadvantaged groups (HDGs). In light of this, Communications Minister Solly Malatsi has proposed introducing equity-equivalent investment programmes (EEIPs) as an alternative.
In December 2025, Malatsi directed the Independent Communications Authority of South Africa (Icasa) to revise its BEE regulations concerning the ICT sector, as outlined in a notice published in the Government Gazette.
Khakhau recently reiterated the DA’s support for EEIPs during an interview with 702, emphasising that BEE will be an important topic in the upcoming 2026 State of the Nation Address. She highlighted that BEE remains a divisive issue within the Government of National Unity (GNU).
The DA hopes that its advocacy for changes to BEE regulations will prompt President Cyril Ramaphosa to prioritise this matter in 2026. Khakhau posed a crucial question for Ramaphosa: how can empowerment be strengthened without compromising investment?
For instance, she referenced Elon Musk’s interest in South Africa, particularly SpaceX’s intentions to launch the Starlink satellite broadband service, which he is hesitant to do due to existing HDG ownership restrictions in telecom licensing.
“If you’re reluctant to share ownership or shares, consider contributing to the community—build a school, a clinic, or help improve our water and sanitation infrastructure,” Khakhau suggested, advocating for a form of equity equivalence. She emphasised that the DA opposes allowing Musk and Starlink to operate in South Africa without fulfilling these equity-equivalence initiatives.
“Nobody enters your home and dictates your terms. When you arrive in South Africa, you must adhere to our laws,” she stated.
Musk has frequently claimed on his social media platform, X (formerly Twitter), that Starlink’s inability to launch in South Africa is related to his race. His latest remarks in January 2026 focused on laws that treat individuals differently based on skin colour.
Musk asserted that the current regulations prevent Starlink from obtaining an Internet service provider operating license because he is not a Black individual. Although he subsequently deleted this post, he expressed strong opposition to laws deemed anti-Black and anti-White. “There should be a fair and equal playing field,” Musk remarked, citing an index by the Institute of Race Relations that claims South Africa now has more race-based laws than at the peak of Apartheid.
Despite this controversy, Starlink has expressed its support for B-BBEE in South Africa but contends that the 30% HDG ownership requirement for telecom licensees is overly burdensome. The company has called for EEIPs to be recognised as a viable alternative for qualifying for telecom licenses in the country.
This aligns with Malatsi’s directive to Icasa to adjust regulations in accordance with the revised B-BBEE ICT Sector Code and the government’s inclusivity policy, following extensive public consultation that showed over 90% stakeholder support.
“This is the final step: Icasa must act on the directive,” SpaceX remarked. “Adjusting just four sentences in the licensing regulations could make Starlink service available across the nation within weeks.”
The company stressed that it has neither sought nor expects any special treatment, and assured that, once licensed, Starlink will operate as a fully B-BBEE-compliant entity.
