South African business group Sakeliga has asked the Pretoria High court to stop the law that requires network operators and internet service providers to be at least 30% owned by historically disadvantaged groups in order to get a telecom licence from the Independent Communications Authority of South Africa (ICASA).
It argues that it blocks companies that fall short, whether foreign or local, from obtaining, renewing or transferring a licence for internet access, broadcasting or network infrastructure unless it meets the quota.
The group also says the rule blocks multinationals whose global structures do not allow equity sales in local subsidiaries. Its example is SpaceX, which has refused to launch its Starlink consumer service in South Africa unless it can do so without selling a 30% stake in its local entity.
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Sakeliga is not asking the court to scrap the requirement outright. It wants an order that forces the state to offer equity-equivalent alternatives. In its words, that would replace a racial quota with a racial handicap, which it calls objectionable but an improvement. Companies that use the alternatives would still face steeper costs than those that meet the ownership target, it says.
The application targets a decision ICASA made on May 13, 2026, to reject a policy directive from Communications Minister Solly Malatsi to alter broad-based black economic empowerment (B-BBEE) ownership regulations for telecommunications licences.
Sakeliga wants the court to review it, set it aside and declare it invalid and inconsistent with the Constitution. It brought the case against ICASA and its chairperson, Mothibi Ramusi. Communications Minister Solly Malatsi was cited as the executive member responsible for the Electronic Communications Act (ECA).
Last updated: November 11, 2026
