The Economic Freedom Fighters (EFF) have publicly condemned Minister of Communications and Digital Technologies Solly Malatsi’s decision to gazette a policy direction in favour of Elon Musk’s Starlink operating in South Africa.

The department published a directive for the Equity Equivalent Investment Programme (EEIP), which is an amendment to local ownership laws, such as the Black Economic Empowerment (BEE) Act, in the ICT sector.

The news comes as the world’s richest man has used his platform to bemoan South Africa’s “racist laws”, which require him to abide by transformative legislation.

Musk has been accused of spreading disinformation about his home country.

EFF CALLS OUT ‘UNLAWFUL GAZETTE’ IN FAVOUR OF STARLINK

In a media statement, the EFF – helmed by leader Julius Malema – condemned the Minister of Communications and Digital Technologies’s “unlawful” gazette in favour of a policy supporting Starlink’s operation in South Africa.

The EFF accused the minister of “subverting South African laws” in favour of Elon Musk.

It stated: “This ridiculous policy directive means that companies such as Starlink would no longer need to comply with the 30% local ownership requirements which protect our local telecommunications industry, and these can be substituted for less transformative  [ones], that don’t speak to ownerships such as donations of Musk’s infrastructure as he sees fit”.

The EFF claimed that it had consulted with industry stakeholders who stated that Starlink posed a threat to jobs in the ICT sector. It also claimed that the company “poses a security concern considering the hostility of Elon Musk against our nation”.

It added: “For an unrepentant racist and megalomaniac like Elon Musk to enter the telecommunications market in South Africa, granting him possible control of infrastructure in the long term, is irresponsible.”

WHAT DOES THE POLICY DIRECTION STATE?

On Friday, 12 December, the Department of Communications and Digital Technologies gazetted a final policy direction on EEIPs in the ICT sector. 

According to Minister Solly Malatsi, the “purpose of this policy direction is to ensure that the full scope of economic empowerment is properly recognised and applied”.

Without mentioning Starlink or Elon Musk, Malatsi claimed the department had “received over 19,000 submissions on the draft, with 90% supporting the policy direction for the regulatory clarity it provides and its potential to expand access to high-speed internet”.

Malatsi added that the final policy direction “reinforces regulatory parity…does not favour any entity, bypass the Electronic Communications Act, or weaken transformation”.

In May, he published a draft of his policy direction on EEIPs.

He claimed that the move would “attract investment,” specifically in operating licensing.

At the time, Malatsi stated that current legislation for foreign investments “did not allow companies to contribute to transformation goals in ways other than traditional ownership”.

In June, Business Day reported that Starlink, which falls under SpaceX, hopes to invest over R2 billion in South Africa as part of its deal to operate in the country.

The internet satellite company will reportedly finance local telecom infrastructure and provide free internet to 5 000 schools.

The move is thought to be a way to “work around” local BEE policies, which require foreign investors to hold 30% of the local shares.