Cape Town, South Africa – Minister of Communications and Digital Technologies, Solly Malatsi, is under intense scrutiny in Parliament this morning, defending a new policy directive that has sparked controversy over its potential impact on transformation in South Africa’s ICT sector.
The directive, officially gazetted on May 23, seeks to align ICASA’s ownership regulations with the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code. While government maintains the move is aimed at modernising outdated regulatory frameworks, critics argue it may weaken transformation efforts—particularly by easing requirements for international satellite providers.
Concerns were heightened by speculation that the policy could pave the way for global players like Elon Musk’s Starlink to enter the South African market without fully meeting B-BBEE ownership thresholds.
Committee Chairperson Khusela Sangoni Diko led the charge, questioning whether the directive is in compliance with the Electronic Communications Act and whether it advances or undermines South Africa’s transformation objectives.
“We cannot modernise at the expense of empowerment,” Diko warned, calling for a balanced approach that safeguards equity in the digital economy.
Minister Malatsi defended the directive, stating that it strikes a necessary balance between enabling innovation and upholding transformation, arguing that rigid rules could stifle technological advancement and access to next-generation services.
“This is not about lowering the bar—it’s about building a smarter, inclusive future,” Malatsi said.
The session exposed a growing policy tension in South Africa: how to remain competitive in a global tech race while ensuring local empowerment and ownership remain core principles.
The Parliamentary Portfolio Committee is expected to conduct further legal and economic reviews before making any binding decisions on the directive.
