The South African government has announced its intention to support tech companies to ‘bring internet to more people,’ by relaxing current Broad-Based Black Economic Empowerment (B-BBEE) laws.
A new policy proposal, released earlier today (May 23), outlines a new way for communications companies, such as Starlink, to operate in the country. The aim is to make it easier for these companies to obtain operating licenses while still promoting B-BBEE.
For years, companies offering tech and internet services in South Africa have been required to meet certain ownership targets to ensure black South Africans benefit from the industry. But many international companies, like Starlink, have found it difficult to meet these ownership requirements.
The new policy outlines that instead of forcing companies to sell shares locally, they will be allowed to meet B-BBEE goals through equity-equivalent programmes.
This means they can invest in skills development, infrastructure, or other community projects that still support transformation, without giving up control.
Reports suggest Starlink is now partnering with a black-owned local entity, which aligns with this new policy direction.
The proposal is open for public comment until early July, after which the communications regulator ICASA may start making regulatory changes to support it.