A political and legal storm has erupted over the future of internet connectivity in South Africa, after the Economic Freedom Fighters (EFF) launched a scorching condemnation of Communications and Digital Technologies Minister Solly Malatsi, labelling a recently published government gazette as an “unlawful and procedurally corrupt” act designed to illegally benefit Elon Musk’s satellite internet service, Starlink.
The gazette, published on Friday, 12 December 2025, outlines proposed amendments to the Electronic Communications Act. Its most contentious provision appears to create a new, streamlined licensing category for “global mobile satellite service” providers. The EFF, in a fiery statement released on Saturday, alleges this is a thinly veiled, bespoke regulatory shortcut crafted specifically to allow Starlink to bypass South Africa’s established equity ownership laws.
At the Heart of the Dispute: 30% Ownership and “Fronting” Fears
The core of the controversy lies in South Africa’s requirement for telecoms licensees to have at least 30% ownership by historically disadvantaged groups (HDGs). Starlink, a division of Musk’s SpaceX, has reportedly been in protracted negotiations with regulators for over two years, with this rule being a significant sticking point.
The EFF’s statement, delivered by its national spokesperson, alleges Minister Malatsi’s gazette is a “blatant violation of the law” that “usurps the power of Parliament and sabotages our transformation agenda.”
“The minister, in the dead of the year, seeks to smuggle in a foreign monopoly by dismantling the very laws designed to ensure South Africans share in the ownership and profits of our own economy,” the statement reads. “This gazette is not about connectivity; it is about capitulation. It is a golden path laid at the feet of a billionaire, while South African entrepreneurs and workers are told to step aside.”
The party further accuses the move of encouraging “fronting” practices, suggesting the proposed framework would allow Starlink to meet the 30% requirement through tokenistic partnerships without ceding real operational control or economic benefit.
Political and Industry Ripples Spread Rapidly
The gazette has ignited fierce debate beyond the EFF’s red berets. Analysts note it has exposed a deep fault line within the government’s own priorities: the urgent need for rapid digital expansion and competition against the entrenched duopoly of Vodacom and MTN, versus the steadfast commitment to Broad-Based Black Economic Empowerment (B-BBEE).
Industry insiders, speaking on condition of anonymity, are divided. Some welcome the potential entry of Starlink as a game-changer for rural connectivity and price competition. “The current mobile data costs are a brake on our economy. Starlink could force a much-needed shake-up,” said one telecoms executive.
Others, particularly within smaller internet service providers and telecoms startups, express alarm. “We have struggled for years to comply with every letter of the law, to build genuine B-BBEE structures,” said a founder of a wireless internet provider. “Now it seems a global giant can have the rules rewritten for them overnight. What does that say about regulatory fairness?”
Legal Experts Warn of Challenges, Ministry Defends “Modernization”
Constitutional law experts have indicated the EFF’s threat of legal action holds weight. “If the minister has used a gazette to effect what amounts to a substantive change in law, bypassing the full parliamentary process which includes public consultation and committee scrutiny, that is highly vulnerable to judicial review,” explained Professor Kgaugelo Moche from the University of Pretoria.
The Ministry of Communications and Digital Technologies has issued a brief response, framing the gazette as a “necessary step towards regulatory modernisation.”
“The proposed amendments aim to align our framework with global technological advancements and to accelerate universal service and access, particularly in under-serviced areas,” a ministry representative stated. “The public comment period, outlined in the gazette, will provide all stakeholders, including political parties, the opportunity to formally submit their views. The process is open, transparent, and in line with our legislative process.”
A Brewing Perfect Storm
As the situation develops, all eyes are on the next moves. The EFF has vowed to “mobilise its structures and pursue every legal and parliamentary avenue” to block the move. Other opposition parties are expected to weigh in, and the African National Congress (ANC), as the leading party in government, will face intense pressure to clarify its position on a matter pitting a key policy pillar (B-BBEE) against a major delivery promise (digital infrastructure).
The public comment period, typically 30 days, promises to be a magnet for intense lobbying. The outcome will not only determine the fate of Starlink in South Africa but could set a profound precedent for how the country balances transformative economic policy with the disruptive force of global tech giants.
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