The ANC has delivered a withering rebuke of communications minister Solly Malatsi’s final policy directive on black economic empowerment and regulatory alignment, arguing that it goes beyond the minister’s legal authority and threatens transformation, national security and regulatory independence.
In a statement on Saturday, the party condemned Malatsi’s policy directive to Icasa, published in the Government Gazette on Friday, in which the DA minister in the government of national unity asked the communications regulator to adjust its ownership and licensing regulations to align with the ICT BEE sector code – including the recognition of equity equivalent investment programmes (EEIPs).
On Friday, TechCentral reported that Malatsi had asked Icasa urgently to “align its ownership regulations with the ICT BEE sector code, including recognition of EEIPs” – a change that would facilitate a path to licensing for foreign satellite broadband providers such as Elon Musk’s Starlink.
Malatsi has repeatedly said the change is meant to benefit the economy broadly by encouraging foreign direct investment in the ICT sector, and that it was not designed with a specific company in mind.
The ANC’s harsh criticism of the policy directive is surprising given that President Cyril Ramaphosa has previously voiced his support for the idea. Icasa, which is independent of the executive arm of government, must consider the policy directive but is not required to implement it if it does not agree with it. This is likely to put enormous pressure on Icasa given that it may now be seen to be picking political sides. It must now decide whether to accede to a policy directive put to it by a DA cabinet minister or whether to reject it, in line with the ANC pushback against the directive.
In its statement, the ANC asserted that the policy directive “introduces policy directions that exceed the minister’s legislative authority, undermine South Africa’s transformation framework and threaten the integrity of our ICT and postal regulatory environment”.
‘Disproportionate influence’
It criticised the use of a policy directive to effect changes that allegedly require legislative amendment through parliament and public participation under the Electronic Communications Act, the Postal Services Act, the Icasa Act and the Broad-Based Black Economic Empowerment Act.
The ANC argued that allowing ministers to bypass formal law-making processes by issuing directives – particularly ones “granting disproportionate influence to mainly foreign ICT entities” – could undermine equity and the rule of law at the expense of South Africa’s developmental priorities.
Malatsi’s directive is seen as particularly consequential for Starlink’s ambitions in South Africa. Starlink parent SpaceX has repeatedly said it doesn’t sell equity in any of Starlink subsidiaries around the world — and that it won’t make an exception in South Africa. Under Icasa’s current licensing regulations, Starlink would have to sell 30% of its shareholding to black investors to be licensed here.
ANC STATEMENT ON THE UNLAWFUL POLICY DIRECTIVE BY THE MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES pic.twitter.com/yXTGDZw7cA
— ANC – African National Congress (@MYANC) December 13, 2025
While Malatsi’s directive does not automatically grant Starlink a licence, it does pave the way for Icasa to amend its regulations to allow EEIPs be recognised in the licensing framework. Proponents argue this aligns regulatory practice with the requirements of the B-BBEE Act and could attract foreign investment and expanded broadband access in underserved areas.
However, the ANC statement has framed these proposed changes as potentially weakening transformation obligations, enabling foreign companies to bypass core empowerment requirements and risking entrenchment of foreign dominance in a strategic industry.
Read: SpaceX grows impatient over licensing delays for Starlink in South Africa
The ANC called on parliament’s portfolio committee on communications & digital technologies to “urgently hold the minister accountable for the legality, intent and consequences” of the policy directive and urged Icasa to uphold its statutory obligations and reject any directive that is inconsistent with the law. – © 2025 NewsCentral Media
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