South Africa’s communications regulator has told the communications minister it cannot fully implement his Broad-Based Black Economic Empowerment (B-BBEE) policy direction without parliament first amending the Electronic Communications Act (ECA).
The Independent Communications Authority of South Africa (ICASA) published its response on 13 May 2026 to the policy direction issued by Communications and Digital Technologies Minister Solly Malatsi in December 2025.
What the direction proposes
The Malatsi direction asks ICASA to apply the Amended ICT Sector Code in its licensing qualification criteria. The Code recognises equity-equivalent investment programmes (EEIP) as an alternative to the standard B-BBEE ownership requirement.
EEIP allows multinationals that cannot sell equity to historically disadvantaged South Africans, typically because of group ownership structures or foreign control, to invest in qualifying programmes instead. The proposal would open a regulatory path for satellite operators including SpaceX’s Starlink, which has yet to be licensed in South Africa.
ICASA’s position
“ICASA notes that while the Amended ICT Sector Code must be applied in licensing qualification criteria, full alignment with all provisions of the Code, including equity equivalent investment programmes, would require a legislative amendment to the current ECA,” the authority said.
The current ECA sets a minimum 30% ownership threshold by historically disadvantaged groups for individual licence holders. ICASA’s reading is that primary legislation, not a ministerial direction, must change before EEIP can be substituted for the equity floor.
What happens next
ICASA said it will “continue to engage with the Ministry within the confines of its mandate”, indicating a closed-door dialogue rather than a public consultation. Any move to amend the ECA would need to pass through parliament, a process that typically takes 12 to 18 months.
Malatsi’s direction is one of two parallel processes through which the regulator and ministry have been working on satellite services licensing. ICASA separately published draft amendments to its Radio Frequency Spectrum Regulations covering satellite user terminals and international operator registration on 15 May 2026.
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