SpaceX complains over South Africa investment rules
February 5, 2025

SpaceX currently cannot operate in South Africa despite some apparent enthusiastic support from Cyril Ramaphosa, the nation’s president. SpaceX has formally asked for local telecoms regulator ICASA to modify its requirements.
ICASA is to hold consultations starting on February 5th and 6th with interested stakeholders and the public. The filing is by SpaceX Internet Services South Africa, which suggests it has already established set up a legal entity in South Africa for the launch of Starlink.
“Under the current South African regulatory system, companies providing services directly to end users must hold I-ECNS (network) and I-ECS (service) licences, which require at least 30 per cent shareholding by historically disadvantaged groups,” SpaceX wrote in its formal submission to the regulator.
“Many foreign satellite operators, particularly those with direct-to-consumer business models, have global policies that prevent local shareholding, thus excluding them from the South African market. This holds true even when these operators are willing to comply with B-BBEE (the “historically disadvantaged” rule) requirements and invest in initiatives that directly benefit the target communities,” added SpaceX. “By aligning the licensing and ownership regulations with the ICT sector code – which recognises equity equivalent programmes as an alternative to local shareholding – ICASA could remove a significant barrier to foreign satellite operators. This would not only increase foreign investment in South Africa but would also create broader industry benefits, supporting innovation, competition and long-term growth.”
ICASA, ahead of the public hearings, said: “[We] plan to develop a “transparent regulatory framework with clear rules to establish regulatory certainty for potential investors”. It will also review spectrum fees, taking also into account the increasing amount of bandwidth used by satellite systems operating in higher frequency bands.
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