South Africa Eases Rules to Clear Path for Starlink Entry

Tueday 16th December 2025

By inAfrika Newsroom

South Africa Starlink ownership rules 2025 have shifted after a new policy directive from Communications Minister Solly Malatsi. The directive lets foreign satellite internet firms meet empowerment targets through “equity equivalent” investments instead of selling 30% equity to historically disadvantaged groups.

The change responds to complaints from Starlink’s parent, SpaceX, which argued that strict local equity rules blocked its entry into the market. Malatsi now says investments in digital infrastructure, skills and small businesses can count toward empowerment. He insists the move still supports South Africa’s transformation agenda while opening space for new investors.

However, the African National Congress and the Economic Freedom Fighters have attacked the directive. They argue that the minister is bypassing Parliament and weakening local ownership rules that anchor Black economic empowerment. Party statements warn that alternative compliance mechanisms could let foreign satellite providers avoid meaningful local equity stakes.

Meanwhile, Malatsi points to strong public backing, saying most of the thousands of submissions supported regulatory flexibility. He frames Starlink as a tool to speed up broadband access in rural and underserviced communities that still lack reliable high-speed internet.

Next steps: South Africa Starlink ownership rules 2025

Regulator ICASA must now adjust its licensing rules to align with the new policy direction. This includes recognising equity-equivalent investment programmes as valid ways to meet empowerment goals.

In the coming months, Starlink is expected to formalise its application under the revised framework. Other satellite internet providers may follow, since the same rules apply across the communications sector. Parliament’s portfolio committee on communications is also likely to summon Malatsi to explain the legal basis and impact of the directive.

As debate continues, investors will watch how quickly ICASA moves and whether court challenges emerge. Rural communities and small businesses, meanwhile, will focus on whether prices fall and coverage improves in practical terms.

Why it matters

The South Africa Starlink ownership rules 2025 policy could reshape the country’s digital landscape. It signals a shift from equity-only empowerment to a broader model that values long-term investment in infrastructure, skills and small firms.

At the same time, the backlash shows how sensitive empowerment policy remains in a society still marked by deep inequality. How South Africa balances foreign capital, local ownership and universal broadband access will shape not only its tech sector, but also its wider growth path in the years ahead.