South Africa has moved to relax foreign ownership requirements in its telecommunications sector, a policy shift that could pave the way for companies such as Elon Musk’s Starlink and other global satellite and broadband operators to enter the market. The change was confirmed by the country’s communications regulator, which said the new framework is designed to boost competition, expand broadband access and accelerate digital inclusion, as reported by Reuters.
Under the revised rules, foreign-owned telecoms operators will be allowed to operate in South Africa without the previous requirement for significant local equity ownership, provided they meet public interest and licensing conditions. The Department of Communications and Digital Technologies said the adjustment aligns with the government’s goal of rapidly extending high speed internet coverage, particularly to underserved rural areas where satellite services could play a key role.
Industry analysts say the move could unlock fresh investment and technological expertise. According to statements from the Independent Communications Authority of South Africa, easing ownership restrictions is expected to attract international players with the capital and infrastructure needed to support next generation connectivity, while also putting pressure on local operators to improve service quality and pricing.
The policy shift has wider economic implications. Government officials have said improved broadband penetration is central to South Africa’s growth strategy, supporting sectors such as fintech, e commerce and digital services. Market participants note that opening the market to operators like Starlink could accelerate the country’s digital transformation, strengthen competitiveness and reinforce South Africa’s position as a regional technology hub, according to commentary cited by Reuters.
