South African officials are preparing to offer Elon Musk’s satellite internet company, Starlink, a special exemption from the country’s Black Economic Empowerment (BEE) ownership rules to enable its operation in the country. This move comes ahead of a strategic meeting between Musk or his representatives and a South African delegation traveling with President Cyril Ramaphosa.
The BEE policy requires that at least 30% of ownership in telecommunications companies be held by historically disadvantaged South Africans. Starlink has cited this requirement as a major obstacle to launching its services locally, claiming on social media that the company is blocked because Musk is not black—a claim the South African government has denied.
To address these challenges, South Africa is considering an “equity equivalence” option. Instead of direct ownership, Starlink would invest in infrastructure, training programs, or provide satellite kits to rural schools, helping to expand internet access in underserved areas. This approach mirrors previous arrangements with companies like BMW and Toyota, which set up investment funds to support empowerment goals.
Communications Minister Solly Malatsi supports the equity equivalence plan, emphasizing its potential to attract foreign investment while maintaining transformation objectives. However, some political figures, including Khusela Sangoni Diko, chairperson of the Portfolio Committee on Communications and Digital Technologies, warn against any attempts to undermine the BEE legislation.
The upcoming meeting is also seen as a diplomatic effort to ease tensions between South Africa, Elon Musk, and the United States ahead of President Ramaphosa’s visit to the White House.
If successful, the deal could mark a significant step toward improving South Africa’s notoriously unreliable internet, especially in rural communities where only 1.7% of households currently have access.
“Starlink’s technology could be a game-changer for South African internet users,” said a government official involved in the talks. “We want to ensure that while we open doors for innovation, we also protect our country’s hard-won empowerment goals.”
The outcome of this meeting will likely shape how South Africa balances local laws with the demands of global tech companies seeking to expand on the continent.
