The EFF and Jacob Zuma’s MK Party have both launched blistering attacks on communications minister Solly Malatsi’s policy directive on black economic empowerment and regulatory alignment in the ICT sector.
MK, for its part, accused the minister — a senior member of the DA — of “illegal”, “clandestine” and “arrogant” conduct that it said will undermine transformation and favour Elon Musk’s Starlink. This follows a similar attack on the minister by the ANC on Saturday, despite the fact that President Cyril Ramaphosa — who is also the party’s president — has previously voiced his support for Malatsi’s reforms.
In a media statement on Sunday, MK chief whip Colleen Makhubele rejected Malatsi’s policy directive asking communications regulator Icasa to align its ownership and licensing regulations with the ICT sector code, including recognition of equity equivalent investment programmes (EEIPs). EEIPs are already lawful under the Broad-Based Black Economic Empowerment Act and administered by the department of trade, industry & competition.
Malatsi’s directive, published late last week after more than six months of delay following the publication of a draft for public comment, has already triggered a political backlash from other quarters, including the ANC, which said the move exceeded the minister’s authority and threatened the integrity of transformation and regulatory independence.
But the MK Party’s statement went further, positioning the directive not merely as a policy disagreement but as an affront to democratic process and to the interests of historically disadvantaged South Africans.
According to MK, the directive “completely disregards the role of parliament in policy development and public participation”, is “riddled with inconsistencies” and lacks transparency. It asserted that Malatsi has no legal right to issue such a directive outside of the parliamentary processes, declaring the action “irresponsible and illegal”.
‘Soft landing’
The party complained that meaningful consultation with key stakeholders – civil society, industry leaders and opposition parties – was absent during the drafting of the policy, undermining principles of democratic governance and accountability. It further argued that the directive “prioritises narrow interests over the broader needs of the public”.
Central to the MK Party’s critique is its assertion that the policy directive’s provisions are geared towards giving Starlink “a soft landing in South Africa”. While Malatsi’s directive does not itself license Starlink, it does call on Icasa to update its licensing framework to recognise EEIPs as an alternative to direct shareholding, removing a longstanding barrier to Starlink’s entry.
Read: Icasa told to align on BEE in move that will favour Starlink
Currently, under Icasa’s regulations, foreign operators must sell 30% equity to historically disadvantaged persons – something SpaceX has repeatedly said it will not do.
MK argued this would perpetuate “the treatment of historically disadvantaged groups as beggars and resellers” rather than align with “broader goals of inclusivity and fairness”.
It also accused the minister of ignoring issues of data sovereignty and national security, asserting that the directive does not adequately address these areas, potentially leaving South Africa vulnerable to external influences.
The party criticised the lack of a robust monitoring and reporting framework for compliance with the ICT sector code and warned of “unfair competition risks”, saying Malatsi’s directive lacks safeguards to prevent dominance by large or foreign telecommunications operators.
MK said it plans to take “decisive action” to challenge the policy directive in court and hold Malatsi personally accountable for what it described as detrimental directions to South Africa’s socioeconomic development and governance.
The party insisted on a minimum B-BBEE ownership threshold of 30%, rejecting the notion of alternatives such as EEIPs.
The EFF at the weekend also lambasted Malatsi’s policy directive, accusing the minister of using a policy instrument to “subvert South African laws” to facilitate Starlink’s entry into the local market.
The EFF argued that the directive amounts to a de facto amendment of the Electronic Communications Act and the ICT sector code, bypassing parliament and weakening Icasa’s institutional autonomy by attempting to coerce the regulator into accepting a legally questionable interpretation of empowerment requirements.
Like MK, the EFF framed the move as a direct attack on transformation and national sovereignty, warning that allowing foreign satellite operators to substitute the 30% local ownership requirement with equity equivalents would undermine jobs in the telecoms sector and create long-term security risks.
Misalignment
The party described Starlink as a potential threat and vowing to challenge the directive “in parliament, in the courts and on the streets” if Icasa proceeds with implementation. EFF leader Julius Malema has repeatedly warred with Musk in the past on Musk’s social media platform, X.
Malatsi, for his part, has argued – both during the drafting process and in public forums – that the intention of the policy directive is to correct a misalignment between Icasa’s regulations and the broader legal framework set by the B-BBEE Act and approved sector codes, and to attract foreign investment that could benefit underserved communities.
Read: ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality
What was a technical regulatory debate has now spilled into the political arena, with the MK Party’s potential court challenge foreshadowing a possible prolonged legal and policy fight over the future of empowerment, investment and connectivity in South Africa’s telecoms landscape. – © 2025 NewsCentral Media
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