The government is proposing an equity equivalent regulatory change as a way around black ownership rules designed to redress the inequities of apartheid. The change would let Elon Musk's satellite service enter the country by instead investing in alternatives including infrastructure or in small and medium-sized black-owned businesses in the country, the document shows.
The government had been planning to offer Musk a workaround to the ownership rules ahead South African President Cyril Ramaphosa's visit to the White House this week, according to a report by Bloomberg News. The new rules are meant as a concession as Ramaphosa seeks to mend strained relations and clinch deals for trade.
Africa's largest economy is dealing with an onslaught of criticism by Musk and US President Donald Trump - who've spread the false conspiracy theory that there's a genocide against white people in South Africa.
The equity equivalent plan, which has been previously reported on by TechCentral, will form part of the department of communications digital technologies' medium-term plans, according to the document. The alternative to black economic empowerment laws, which generally require 30 black ownership in businesses operating in the country, will apply to any company operating in South Africa's ICT sector.
On Friday, communications minister Solly Malatsi announced through his office that he plans to issue a policy direction to communications regulator Icasa to look into the licensing requirements for satellite operators.