ANC hits back at Malatsi over Starlink and ICT ownership shake-up
Key topics:
ANC slams Malatsi for bypassing Parliament on ICT ownership rules
Policy could let foreign firms like Starlink skip 30% black ownership
ANC urges Parliament to hold minister accountable for legality and intent
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The African National Congress (ANC) has issued a statement slamming communications minister Solly Malatsi’s policy direction, which instructed sector regulator Icasa to change its equity ownership rules.
The statement notes that the proposal to create alternative compliance mechanisms for the 30% Historically Disadvantaged Groups ownership requirement, allowing operators like Starlink to bypass it.
“The ANC is deeply concerned by the Government Gazette issued on 12 December 2025, by the Minister of Communications and Digital Technologies, Mr Solly Malatsi,” the party said.
It said notice introduces policy directions that exceed the minister’s authority, undermine South Africa’s transformation framework, and threaten the integrity of our ICT and postal regulatory environment.
“It mirrors a troubling trend where ministers belonging to the Democratic Alliance seek to bypass Parliament,” it said.
“The ANC stresses that no minister may amend or suspend legislation via a policy directive.”
It added that laws like the Electronic Communications Act, Postal Services Act, Icasa Act, and Broad-Based Black Economic Empowerment Act can only be changed through Parliament.
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“The Minister claims to have received 19,000 submissions on the draft, asserting that 90% of these support the policy direction,” the ANC said.
It said this raises questions such as: How were the submissions counted? Were they verified? Do they genuinely reflect broad public support or the views of a limited, possibly organised group?
“Of particular concern is the Gazette’s proposal to create exemptions or alternative compliance mechanisms to the 30% Historically Disadvantaged Groups ownership requirement,” the ANC said.
“Such provisions would allow certain operators, notably foreign satellite providers like Starlink, to bypass core transformation obligations.”
Malatsi stated in the gazetted document that he was directing the Independent Communications Authority of South Africa (Icasa) to address legal problems with its equity ownership rules for the ICT sector.
However, the ANC has interpreted it differently, alleging that Malatsi was seeking to amend legislation without following the correct processes.
“Forcing Icasa to implement measures inconsistent with primary legislation is unlawful, undermines institutional independence, and destabilises the regulatory environment,” the ANC said.
The party advised that Icasa uphold its obligations and refuse any directive that is inconsistent with the law.
“The ANC calls on Parliament, through the Portfolio Committee on Communications and Digital Technologies, to urgently hold the minister accountable for the legality, intent, and consequences of the Gazette,” it added.
Significant changes to black ownership rules for Internet service providers
Malatsi’s policy directive would introduce Equity Equivalent Investment Programmes (EEIPs) in the ICT sector, while addressing long-standing concerns about black ownership requirements for Internet service providers.
Malatsi first proposed introducing EEIPs as an alternative to the 30% ownership requirement in May 2025, and has faced harsh criticism from members of Parliament, particularly those in the ANC, since.
Such a mechanism would offer an alternative path for players like SpaceX’s Starlink to launch in South Africa.
However, critics have argued that EEIPs would enable these players to circumvent the country’s black economic empowerment (BEE) laws.
According to the minister’s policy direction, there is little evidence to support this claim.
“As the ICT Sector Code itself recognises EEIPs as contributing to BBBEE, this is not a legally sound argument,” Malatsi said.
“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.”
The policy directive outlines problematic regulations that Icasa published more than four years ago, particularly relating to these ownership requirements.
Icasa published the “Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDG) and the Application of the ICT Sector Code” in March 2021.
The regulations stipulate a requirement for all operator, service provider, and radio frequency spectrum licensees to be 30% black-owned.
This supersedes the requirements in the Electronic Communications Act, which allows licensees to be from historically disadvantaged groups, which include black people, youth, and people with disabilities.
Malatsi also said in the gazette that Icasa’s regulations deviate from the rules laid down by the Department of Trade, Industry, and Competition — which is not allowed without permission.
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For these reasons, the policy direction instructed Icasa to revise its regulations to align with the Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code.
He said the direction takes into account “the need to promote numerous policy goals for the sector in relation to the availability, accessibility and affordability of communications services”.
It also has regard for the contribution to investment and competition that can be made by international firms, and considers the overriding provisions of the BBBEE Act.
Malatsi also instructed Icasa to take into account the government’s national economic inclusion policy goals.
Within the scope of its own powers and duties under the ECA and the Icasa Act, the regulator must give effect to these policy goals.
This article was first published by MyBroadband and is republished with permission