The minister’s comments come as South Africa strives to expand internet access while also trying to overhaul a regulatory environment widely seen as slow, fragmented, and out of step with global competitors.
Malatsi acknowledged that the licensing system — which involves different approvals at municipal, provincial, and national levels — has become a major bottleneck for telecom and infrastructure players. Companies applying for broadband, satellite, or local permissions often face months-long delays and inconsistent rules across regions.
While more than 95% of South African households have access to a mobile or fixed line, about 20% of the population still does not actively use the internet. Affordability remains the main barrier: Even as data prices have declined, for many lower-income households, the cost of mobile subscriptions or data bundles still strains monthly budgets.
On top of that, device costs are prohibitive. For years, smartphones in South Africa were taxed as “luxury items”, particularly entry-level devices, driving up their prices,” noted the minister. Only 44% of South Africans owned a smartphone in 2023, largely due to cost constraints, according to GSMA, the global mobile trade body.
Malatsi argued that fiber has reached its practical limits — too costly to extend into remote or rural parts of the country — and that satellite networks like Starlink offer a faster, more scalable way to close South Africa’s connectivity gap.