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South Africa Denies Preferential Treatment for Starlink in Proposal to Relax Black Ownership Requirements

Stakeholders have 30 days to comment on the proposal

FILE - Tesla and SpaceX CEO Elon Musk speaks at the SATELLITE Conference and Exhibition, March 9, 2020, in Washington. (AP Photo/Susan Walsh, File)
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Overview

  • The draft would lower the 30% Black ownership threshold that foreign tech firms must meet to secure operating licenses, simplifying entry for new competitors
  • Communications Minister Solly Malatsi insisted the policy applies to all tech companies and noted work on the changes began last September
  • Opposition lawmakers challenged the timing, warning the move could weaken South Africa’s Black Economic Empowerment mandate and favour Elon Musk’s Starlink
  • Malatsi highlighted that the proposal was conceived before President Cyril Ramaphosa’s meeting with U.S. President Donald Trump and is not a response to that visit
  • Industry players, civil society groups and members of the public have been granted a 30-day window to submit feedback before the framework is finalized