By Noko Mashilo
In a country still grappling with the deep-rooted legacies of economic exclusion, South Africa’s Black Entrepreneurs Alliance (BEA) has raised alarm over a move by the Department of Communications and Digital Technologies to review Broad-Based Black Economic Empowerment (B-BBEE) licensing requirements for satellite service companies.
The department frames the proposal as a strategy to attract foreign investment, but the BEA warns it could reverse hard-won gains in economic transformation and deepen existing inequalities.
Refilwe Monageng, CEO of the BEA, said the proposed reliance on the equity equivalent investment programme (EEIP) undermines true empowerment. “It has become a convenient gateway for foreign companies to access the South African market while neglecting historically disadvantaged individuals (HDIs) and small, medium and micro enterprises (SMMEs),” Monageng told Vula -Vala.
“Our experience has shown that this programme is often poorly implemented, lacks effective monitoring and evaluation, and is temporary in nature. It reduces the transformation agenda to a tick-box exercise,” he said.
Monageng called for an urgent, inclusive economic convention to address the wealth gap and develop a sustainable economic framework for all South Africans. “We need strong, future-relevant laws that promote real economic transformation,” he said.
He emphasized the importance of laws that guarantee shared market access for SMMEs, particularly in townships and rural areas. “This will foster inclusive growth. We need a comprehensive policy framework to unlock the economic potential of underserved regions.”
The BEA has committed to continued advocacy for transformative policies and practices. “We will mobilize and work with key stakeholders to ensure black entrepreneurs are heard and supported,” Monageng said.
The organization’s statement came in response to a government gazette proposing the relaxation of B-BBEE requirements for satellite service providers such as Starlink, founded by Elon Musk’s SpaceX.
Solly Malatsi, Minister of Communications and Digital Technologies, defended the policy direction, saying its aim is to encourage investment, promote innovation in the ICT sector, and align various legislative frameworks.
“The policy provides clarity on B-BBEE and recognises equity equivalent investment programmes as valid avenues for multinational companies to contribute to socio-economic development,” Malatsi said.
Currently, the Electronic Communications Act requires at least 30% equity ownership by historically disadvantaged groups in license holders. However, the gazette acknowledges that these ownership requirements may not align with the broader metrics of the ICT Sector Code.
The policy instructs the Independent Communications Authority of South Africa (ICASA) to urgently update the regulations to align with the Amended ICT Sector Code, thereby enabling compliance through equity equivalent programmes.
But many in the sector see this as a dangerous precedent. Luvo Grey, President of the National Youth ICT Council and Managing Director of EC Internet in East London, said South Africa must uphold its laws without exception.
“We are not a failed state desperate for foreign saviours. We are a sovereign nation with laws and institutions, and we’re actively working to reverse a painful history of exclusion,” Grey said.
He accused Starlink of attempting to sidestep South Africa’s regulatory framework. “They want access to our market without securing an Individual ECNS license, without empowering black South Africans, and without complying with the Electronic Communications Act or B-BBEE targets. That’s not innovation; that’s exploitation.”
Grey stressed that EC Internet is proof that local companies can provide connectivity solutions legally and ethically. “We’re not anti-technology or competition. We are pro-law, pro-transformation, and pro-South Africa. We won’t accept digital colonialism disguised as Wi-Fi.”
He concluded with a clear message: “This country belongs to its people. If Elon Musk wants to do business here, he must respect the rules. No license, no compliance, no Starlink.”
