In a dramatic turnaround, the South African Government is reportedly preparing to bend its own Black ownership laws to make way for Elon Musk’s Starlink internet service.
High-level discussions are taking place to offer a workaround to South Africa’s strict Black Economic Empowerment (BEE) requirements, potentially paving the way for the global satellite internet provider to finally set up shop in the country, as per News24.
A crucial meeting, said to be scheduled for Tuesday night, was expected to involve Musk or his team and top South African officials in what insiders described as a last-ditch effort to finalise a deal.
This development comes as President Cyril Ramaphosa leads a South African delegation in Washington, aiming to thaw diplomatic relations with the United States. While the official agenda includes a face-to-face with US President Donald Trump on Wednesday, licensing for Starlink is firmly on the table, according to Ramaphosa’s office.
Musk, who was born in Pretoria, has been vocal about Starlink’s absence from the South African market. In a previous statement, he accused the country’s policies of blocking the service ‘because I’m not Black’, a remark that triggered backlash from government officials. South Africa’s telecom regulator countered, stating Starlink hadn’t even applied for a licence.
At the heart of the matter is the BEE policy that requires foreign-owned telecoms to allocate 30% of their local shareholding to historically disadvantaged South Africans. Musk’s remarks were widely interpreted as a jab at this policy, which has been both praised and criticised over the years for its impact on investment.
In response to mounting pressure to modernise these policies, Communications Minister Solly Malatsi confirmed in 2024 that his department was drafting a policy to accept ‘equity equivalent’ investment models. These alternatives, already in use in industries like automotive manufacturing, allow multinationals to bypass equity transfers by instead investing in areas like digital infrastructure, skills development, or small business support.
‘This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access,’ Malatsi stated in October last year.
If approved, the equity equivalent proposal could be the golden ticket Musk needs. Starlink, which operates through low-orbit satellites to deliver internet to rural and underserved areas, would be a major boost for connectivity in South Africa — particularly in remote regions long neglected by major telecoms.
Despite the optimism, neither the Department of Communications nor the President’s office has released an official comment on the reported workaround or Tuesday night’s meeting.
Starlink is currently operational in dozens of countries, including Nigeria, Mozambique, Zambia, and Kenya, making South Africa’s delay in onboarding the service even more conspicuous in a rapidly digitising continent.
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Picture: Mariia Shalabaieva / Unsplash
