Elon Musk's Spacex Wants Bee Rule Changed For Starlink In South Africa

Elon Musks space technology company SpaceX says a change in Black Economic Empowerment BEE rules could remove a significant barrier to foreign satellite operators in South Africa, including its division Starlink.

This is part of SpaceXs submission to the Independent Communications Authority of SAs ICASA Consultation on the Proposed New Licensing Framework for Satellite Service.

ICASA launched consultations on the proposed framework last year. SpaceX filed its response in November 2024 via a locally established company, SpaceX Internet Services South Africa PTY Ltd.

Under the current South African regulatory system, companies providing services directly to end-users must hold I-ECNS and I-ECS licenses, which require at least 30 shareholding by historically disadvantaged groups HDGs, the company said.

However, many foreign satellite operators, particularly those with direct-to-consumer business models, have global policies that prevent local shareholding, thus excluding them from the South African market.

This is a major stumbling block, even for operators who are willing to comply with Broad-Based BEE B-BBEE requirements, SpaceX added.

By aligning the licensing and ownership regulations with the ICT Sector Code - which recognises equity equivalent programs as an alternative to local shareholding - ICASA could remove a significant barrier to foreign satellite operators, it explained.

This would not only increase foreign investment in South Africa but would also create broader industry benefits, supporting innovation, competition and long-term growth.

SpaceX also argued that ICASA has a narrow view of empowerment, limiting it to ownership requirements and ignoring other contributions licensees could make.

It is our view that ICASA has erred in limiting the type of contributions that may be made and should be measured for the purpose of considering whether and to what extent a licensee has met the requirements of the ICT Sector Code and the provisions of section 92b of the Electronic Communications Act, by reference only to ownership, it argued.