By 
President Cyril Ramaphosa has reaffirmed his administration’s commitment to expanding internet access across South Africa, signalling support for a more flexible interpretation of Broad-Based Black Economic Empowerment (B-BBEE) rules to facilitate foreign investment—particularly in the telecommunications sector.
Speaking in the context of the ongoing debate surrounding Starlink’s entry into the South African market, Ramaphosa endorsed Communications Minister Solly Malatsi’s proposal to adopt Equity Equivalent Investment Programmes (EEIPs) as an alternative to the traditional 30% equity ownership threshold currently required from historically disadvantaged groups (HDGs) under existing B-BBEE legislation.
The EEIP mechanism would allow foreign entities to meet empowerment obligations through targeted investments in digital infrastructure, skills development, and inclusion initiatives, rather than direct ownership transfers. According to Ramaphosa, this “innovative and lawful approach” aligns with the broader goals of transformation and economic inclusion, without compromising investor interest or compliance frameworks.
Starlink’s Regulatory Hurdles
The U.S.-based satellite internet provider Starlink, a subsidiary of Elon Musk’s SpaceX, has yet to launch operations in South Africa due to its inability to meet the 30% local ownership requirement. In response, the company has proposed an alternative compliance strategy—a R500 million investment aimed at connecting over 5,000 rural schools, reaching as many as 2.4 million learners, a move aligned with the EEIP model.
Policy Debate Intensifies
While Ramaphosa insists that the proposal is not tailored specifically for Starlink, political reactions have been sharply divided. The Economic Freedom Fighters (EFF) have condemned the plan as a dilution of empowerment policy, vowing legal and political resistance. Elements within the African National Congress (ANC) have also raised concerns over whether EEIP-based reforms would erode the core tenets of economic transformation.
Critics argue that relaxing ownership rules could set a precedent that undermines local participation in strategic sectors. Proponents, however, view EEIPs as a pragmatic solution to bridge South Africa’s digital divide without stifling foreign investment.
Regulatory and Legal Considerations
The Independent Communications Authority of South Africa (ICASA) has yet to receive a formal application from Starlink and maintains that the current regulatory framework does not explicitly accommodate EEIP-based compliance. Analysts suggest that aligning ICASA’s licensing regime with EEIP proposals would require regulatory amendments and public consultations, a process that could extend over two years.
Balancing Digital Transformation with Economic Justice
President Ramaphosa dismissed speculation that the move was a direct response to foreign lobbying or his recent meeting with U.S. President Donald Trump. Instead, he framed the discussion within a broader vision of modernising South Africa’s telecoms framework, attracting strategic digital investments, and sustaining inclusive economic growth.
“We remain fully committed to transformation and economic justice,” Ramaphosa stated. “This is about reimagining compliance in ways that drive access, innovation, and opportunity—especially for the underserved.”
Outlook
The debate underscores the complex intersection of technological progress, regulatory reform, and historical redressin South Africa’s evolving digital economy. As policymakers weigh competing priorities, the government’s ability to balance inclusive digital infrastructure expansion with empowerment objectives will remain under close scrutiny.
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