South Africa's New ICT Policy Sparks Debate on Foreign Business Involvement

South Africa's Communications Minister Solly Malatsi clarified that a new draft policy recognizing 'equity equivalent' investments was not solely tailored for SpaceX's Starlink, aiming to allow more foreign communications companies to operate in the country. Controversy arose with opposition claiming it favors companies like Starlink.

South Africa's Communications Minister Solly Malatsi has emphasized that a freshly drafted policy aimed at recognizing 'equity equivalent' investments is not exclusively designed for SpaceX's Starlink. The policy aims to broaden operational opportunities for foreign communications companies within South Africa.

Speaking at a parliamentary briefing, Malatsi reaffirmed the crucial role of transformation in the country's development, stressing that the policy is not about creating exceptions for Starlink or other firms. Under the current Electronic Communications Act, foreign-owned companies must divest 30% of equity in local ventures to historically-disadvantaged groups.

Nevertheless, the proposed policy has faced opposition criticism, including from the Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko. Critics contend that the policy could be too accommodating to international businesses like Starlink, placing local policies under scrutiny.

(With inputs from agencies.)