South Africa's Telecom Transformation: New Rules for Starlink and Others

South Africa will amend its local Black ownership requirements in telecom, enabling satellite-internet companies like Starlink to operate by using 'equity equivalent' investment programs instead of the 30% local ownership mandate. This move aims to attract investment and support transformation, despite some criticism.

South Africa is set to modify its regulations on local Black ownership in the telecommunications sector, making it easier for satellite-internet companies such as Starlink to enter the market.

Previously, the 30% local equity requirement in the Electronic Communications Act posed significant challenges for foreign entities like SpaceX, Starlink's parent company. The new policy allows for 'equity equivalent' investment programs to satisfy these requirements.

The reforms, endorsed by Communications Minister Solly Malatsi, are intended to boost investment and drive socio-economic transformation, particularly in underserved regions. While these changes have faced political resistance, public opinion largely supports the initiative.

(With inputs from agencies.)