After White House Row, South Africa Sets the Stage for Starlink Approval

New York Times

23-05-2025

The South African government moved one step closer to approving the use of Starlink in the country.
Officials on Friday began a policy review process that could pave the way for Elon Musk to bring his satellite internet service into South Africa for the first time without having to sell shares to Black South Africans.
South African law requires foreign companies to provide partial ownership to historically disadvantaged groups, which were prohibited from participating in many business opportunities during apartheid.
The law is meant to redress the economic inequality that persists three decades after that brutal system of racial segregation came to an end. Mr. Musk, who was born in South Africa, has called the laws racist.
'Starlink is not allowed to operate in South Africa, because I'm not black,' he posted on X in March.
The announcement on Friday comes just two days after Mr. Musk attended a tense Oval Office meeting in which President Trump confronted President Cyril Ramaphosa of South Africa with false claims of mass killings of white farmers.
White House officials have said that American companies should be exempted from the ownership requirement. Paving the way for Starlink approval and highlighting other business opportunities for Mr. Musk was seen as a strategy Mr. Ramaphosa might use in the White House to help reach a new trade deal and repair his country's icy relations with the United States.
Members of the South African delegation met with Musk representatives ahead of the Oval Office meeting, South African officials said.
Mr. Ramaphosa has sought to entice Mr. Musk — the world's richest man — to bring his businesses to South Africa. He came to the White House planning to highlight future opportunities for Mr. Musk, whose businesses currently do not operate in South Africa. The two have spoken several times in recent months, including discussions about the regulations affecting Starlink access.
The review process launched on Friday seeks to provide satellite companies with an alternative to selling equity — they could instead invest in disadvantaged communities to obtain licenses. This alternative, known as an 'equity equivalent,' is already being used in other industries in South Africa, including the automobile sector.
South African officials have insisted that the change is not about currying favor with Mr. Musk. The move would allow any satellite internet provider, mobile network company or broadcaster to utilize equity equivalents.
Solly Malatsi, the government minister overseeing the country's telecommunications industry, has said that equity equivalents are an important tool to attract foreign investment. He issued the policy directive on Friday, asking the Independent Communications Authority of South Africa to align its regulations with existing laws allowing for equity equivalents.
The public has 30 days to submit comments on the proposed change, and then the authority will determine whether to implement it.
'Digital infrastructure and access to the internet opens a world of opportunity — from applying for jobs and studying, to accessing government services or even starting a business,' a spokesman for Mr. Malatsi said in a statement.
Starlink has suggested that the mere presence of its service — high-speed internet in underserved areas — is a tool for Black empowerment, more so than selling shares to Black South Africans. Critics are skeptical, arguing that Mr. Musk's fierce attacks on the country and his false claims of white genocide should not be swept aside.
The Economic Freedom Fighters, an opposition party known for its fierce defense of Black empowerment, blasted the proposed policy change. The party accused Mr. Musk of influencing the Trump administration's aggressive foreign policy toward South Africa to advance his business interests there.
'This policy is clearly a capitulation in the face of an aggressive disinformation campaign of white genocide perpetuated by Musk,' the party said in a statement.
The White House did not immediately respond to a request for comment.
Khusela Sangoni Diko, a member of Parliament from Mr. Ramaphosa's party, said last month that several satellite operators interested in investing in South Africa were willing to comply with the existing ownership rules.
'There is no need for overreliance and obsession with a single satellite provider,' she said, referring to Starlink.