The largest economy in Africa is looking to determine whether info-tech companies can operate in the country using equity-equivalent programs, instead of a 30% Black-ownership requirement.
South Africa is reportedly looking to reduce entry barriers for satellite broadband providers such as Elon Musk’s Starlink following repeated criticism from the Tesla CEO.
According to a Bloomberg News report, South Africa’s Department of Communications and Digital Technologies is evaluating 19,000 public submissions on a proposal to amend the nation’s Black-economic empowerment regulations.
The largest economy in Africa is looking to determine whether info-tech companies can operate in the country using equity-equivalent programs, instead of a 30% Black-ownership requirement.
“We are prioritizing it, you cannot sit on submissions,” Communications and Digital Technologies Minister Solly Malatsi said, according to the Bloomberg News report. “Once done, and based on the sentiment, we can make a submission to Icasa to make the final decision,” he reportedly said, in a reference to the regulatory Independent Communications Authority of South Africa.
Starlink, a unit of SpaceX, is vying to boost its market share in the nascent satellite broadband market as rivals such as Amazon’s Kuiper and AST SpaceMobile are planning to launch worldwide. Musk had previously refused to give up equity in the company and called the regulations “openly racist.”
Retail sentiment on Stocktwits about Starlink-rival AST SpaceMobile was in the ‘bearish’ territory at the time of writing.
The deal would be similar to the one offered to car makers in 2019, wherein companies such as Ford Motor Co., Toyota Motor Corp., and others created a fund to induct disenfranchised groups in the industry.
Similarly, Starlink has offered to extend free satellite internet service to 5,000 schools and provide 2.4 million students with high-speed connectivity in lieu of the Black ownership requirements. “Starlink is not seeking any type of special treatment, as these changes would apply to all current and future potential operators,” the company said on its South Africa website.
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