The Economic Freedom Fighters (EFF) have doubled down on the rejection of Starlink being granted a licence to operate in South Africa. This comes after Elon Musk’s internet satellite service company is reportedly planning to “work around” the country’s Black Economic Empowerment (BEE) policies, which require a stake in local shareholding for foreign investors.
Musk has repeatedly slammed the transformative legislation as a “racist law”, he claims discriminates against him as he is “not black”.
EFF REJECTS STARLINK IN SA
Addressing parliament on Friday, 11 July, EFF spokesperson Sinawe Thambo rejected Minister of Communications and Digital Technologies Solly Malatsi’s plan to introduce equity equivalent investment programmes (EEIPs) as an alternative to transformative legislation like BEE.
He said: “This is a proposal we’ve objected to because the so-called alignment would require an amendment to legislation. And can’t be achieved through a ministerial policy directive.”
Images via X: @starlink
Referring to Starlink creator Elon Musk, Thambo continued: “We will never allow Starlink, which has weaponised misinformation and captured the White House, to erode US and South African diplomatic relations in order to ease business access in South Africa.
“We view that as economic and diplomatic terrorism. Even if Starlink were to meet equity equivalence requirements, there’s a security threat that it poses. That means it must never be allowed to operate in South Africa. And we will never allow it to do so”.
BYPASSING BEE?
In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on EEIPs, which are considered “alternatives” to transformative legislation.
Without mentioning Starlink, the minister claimed that the policy would “attract investment,” specifically in operating licensing.
The minister revealed that current legislation for foreign investments “did not allow companies to contribute to transformation goals in ways other than traditional ownership”.
Last month, Business Day reported that Starlink, which falls under SpaceX, is looking to invest over R2 billion in South Africa as part of its prospective deal to operate in the country.
The internet satellite company will reportedly finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries.
The move is thought to be a way to “work around” local BEE policies, which require foreign investors to hold 30% of the local shares.
DO YOU AGREE OR DISAGREE WITH THE EFF’S VIEWS ON STARLINK?
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