The government has announced plans to relax local ownership rules, specifically targeting companies such as Elon Musk's Starlink in a significant policy shift aimed at facilitating the entry of foreign satellite service providers into South Africa, reports Cape town Etc .
This move comes amid ongoing regulatory barriers that have hindered potentially lucrative investments in the telecommunications sector.
The directive, signed by Communications and Digital Technologies Minister Solly Malatsi, outlines the government's strategy to introduce an equity equivalent framework.
This initiative seeks to attract global industry giants, including SpaceX's Starlink, which has been unable to operate due to the stringent current regulations.
Under this proposed framework, multinational corporations could fulfil their empowerment obligations through alternative measures such as investments in local suppliers, skills development, job creation, and infrastructure support, rather than adhering strictly to the conventional equity ownership requirements set forth by South Africas Broad-Based Black Economic Empowerment B-BBEE Act.