Katlego Sekhu

The Portfolio Committee on Communications and Digital Technologies has invited Minister Solly Malatsi and the Department of Communications and Digital Technologies to brief the committee on recently gazetted policy directions that appear to contravene the Electronic Communications Act and seemingly favour low Earth orbit satellite provider SpaceX, which intends to offer broadband services in South Africa.
This follows Minister Malatsi’s announcement, issued via a media statement on Friday, 23 May 2025, regarding the gazetting of the proposed policy direction to the Independent Communications Authority of South Africa (ICASA). The proposal pertains to Equity Equivalent Investment Programmes within the ICT sector.
The Committee raised concerns about the policy direction’s alignment with Section 9(2)(b) of the Electronic Communications Act 36 of 2005, which outlines the legal framework for applying for and issuing individual licences in the ICT sector.
The Act specifically mandates that ICASA ensure a minimum 30% equity ownership by historically disadvantaged groups in such licensing arrangements.
The Committee has requested the Minister and the Department to clarify how the proposed policy aligns with the spirit and letter of the Act, and to address concerns over potential preferential treatment towards SpaceX.
This has sparked speculation that the government had been swayed to bend the rules for Elon Musk.
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