The DA had set its sights on bringing Starlink into the South African market long before communications and digital technologies minister Solly Malatsi’s directive last week to relax BEE policies in the information and communications technology (ICT) sector.
The Sunday Times has seen the DA’s confidential submission to the multiparty charter’s (MPC’s) national convention, which reveals that the party had plans to include Elon Musk’s low-orbit satellite company in 2023.
In the 11-page document, the DA proposed to the MPC — a coalition of opposition parties working to unseat the ANC — that a new government enlist Starlink to expand access to high-speed broadband internet and address regulatory barriers stifling business.
The DA also proposed an improvement of access and affordability to ICT by pursuing the extensive rollout of fibre optic networks, supporting long-term investments in 5G networks and developing and implementing clear ICT policy and regulations to address market inefficiencies.
The document also proposed that the Independent Communications Authority of South Africa (Icasa) should regularly make spectrum available through transparent and competitive auctions.
This comes as the DA has again clashed with the ANC following Malatsi’s directive to Icasa to “urgently consider alignment of the regulations in respect of the limitations of control and equity ownership by historically disadvantaged groups [HDGs] and the application of the ICT sector code with the amended broad-based black economic empowerment ICT sector code”.
The MPC was an initiative by the DA to bring together several parties to oust the ANC from power in the months leading up to the 2024 elections.
One of the controversial issues was the DA submission, which had a minimum programme of government and which articulated a bunch of things that are broad principles relating to governing but then had a very specific, organised provision for the appointment of Starlink, which we objected to, saying that there’s no way you can actually have a policy document that appoints the service provider.It doesn’t work.
The pact would have seen several parties, including the IFP and ActionSA, coalescing to form a new government.However, the coalition was thwarted when the parties failed to gain a majority at the polls.
A leader who participated in the MPC’s negotiations for the new government said the DA’s Starlink proposal was rejected by parties in the coalition.
“One of the controversial issues was the DA submission, which had a minimum programme of government and which articulated a bunch of things that are broad principles relating to governing but then had a very specific, organised provision for the appointment of Starlink, which we objected to, saying that there’s no way you can actually have a policy document that appoints the service provider.It doesn’t work,” said the party leader, who did not want to be named.
“You can say that we want to have affordable, accessible internet connections and so on, but you can’t say this is the service provider who must get the contract.That is literally the basis of corruption.So, there was a kind of thing about that in the multiparty charter around that particular issue.”
DA federal council chair Helen Zille told the Sunday Times that Malatsi’s decision was in line with the DA’s policies that provide an empowerment alternative to the ANC’s broad-based BEE policy.She added that decisions made by Malatsi are within his legal and constitutional purview/mandate as minister.
“That use of Starlink is the generic use of the term to get free internet to poor rural communities,” Zille said.
“At that time, Starlink was the only service providing it, as far as I am aware.
The point was to recognise the crucial role of connectivity to get people out of poverty and unemployment.Those were agenda items we were going to submit to a national convention that people were calling for at the time.Nothing sinister there.
“It is also essential for me to add that full recognition of equity-equivalent investment programmes in the ICT sector has been adopted by the GNU [government of national unity] in its medium-term development plan as one of its targets.So, in fact, it has been accepted by the GNU.”
BEE rules in the telecommunications sector meant that Musk would have to sell a 30% stake to black investors if his company was to get a licence to operate in South Africa.
Business Day previously reported that to counter the BEE laws, Starlink proposed to trade, industry & competition minister Parks Tau that it would connect about 5,000 rural schools in South Africa as part of the benefits it said the country would accrue from having it operate in Africa’s largest economy.
In June, Ryan Goodnight, senior director of Starlink Market Access, said that if equity equivalent investment programmes (EEIPs) were recognised for individual licence holders, Starlink proposed to provide more than 5,000 rural schools with fully funded Starlink kits and service in addition to facilitating installation and maintenance support alongside local South African companies.
“Not only will this help the South African government achieve its objectives under South Africa Connect, but our EEIP will support local businesses and positively impact the lives of an estimated 2.4-million schoolchildren each year by providing access to world-class digital education,” Goodnight said.
Reacting to Malatsi’s directive, the ANC this week said that of particular concern was the gazette’s proposal to create exemptions or alternative compliance mechanisms to the 30% HDG ownership requirement.
“Such provisions would allow certain operators, notably foreign satellite providers like Starlink, to bypass core transformation obligations,” the ANC said.
“South Africa has invested decades in building an ICT sector that promotes inclusion, localisation, SMME support and equitable ownership.
“Weakening these obligations does not modernise the sector; it risks reversing hard-won gains and entrenching foreign dominance in a strategic national industry.”.
