Starlink May Launch In South Africa Soon After Govt Policy Changes
Tesla CEO Elon Musk seen between the blurred images of SA-born golf legends Retief Goosen and Ernie ... More Els, during a meeting between US President Donald Trump and SA President Cyril Ramaphosa in the Oval Office of the White House on May 21, 2025. Photographer: Jim Lo Scalzo/EPA/Bloomberg
South Africa has published a 'proposed policy direction' that should allow Elon Musk's Starlink to sidestep the strict ownership requirements in the country's telecoms sector and launch in the country of his birth.
Telcos must have a 30% ownership by historically disadvantaged groups, in line with the country's black economic empowerment (BEE) laws adopted after the end of Apartheid in 1994.
The telecoms sector, however, has much stricter ownership requirements than the broader information, communication and technology (ICT) sector, which allows for 'equity equivalent investments' in training, supporting small businesses and building infrastructure.
SA Communications Minister Solly Malatsi on Friday published a 'proposed policy direction' that will allow the country's telecoms regulator, the Independent Communications Authority of South Africa (Icasa), to sidestep those strict ownership strictures in lieu of newer BEE legal amendments. This includes the country's Amended Broad-Based Black Economic Empowerment (B-BBEE) ICT Sector Code.
This means Starlink will be able to use 'equity equivalent investments programmes' as its contribution to BEE requirements for foreign investment. Other major tech firms, including Microsoft and Google, operate their South African subsidiaries using this economic model.
After being published in South Africa's official Government Gazette on 23 May 25, this official instruction from the communications minister will give the regulator Icasa the legal authority to 'harmonise' the laws that govern it with the new ICT Sector Code and other amendments.
In the gazetted announcement, the communications department quotes the World Bank statistic, that for every 10% increase in broadband penetration in a country, there is a 1.21% growth in GDP.
'The focus of this policy direction is on lowering regulatory hurdles to investment in reliable broadband and ensuring access to the internet,' the document reads. 'Policy clarity on the recognition of the equity equivalent investment programmes has long been sought by multinational operators in the ICT industry. This will provide the certainty necessary to attract increased investment in ICT and accelerator universal internet access.'
Musk has incorrectly claimed that Starlink is 'not allowed to operate in South Africa because I'm not black,' as he tweeted on X in February.
South Africa has very poor telecommunications in rural areas, where a satellite-based service would be useful for achieving the intended 'universal internet access'.
There should be a 'Starlink at every local police station,' South Africa's richest man, Johann Rupert, told President Donald Trump during Wednesday's controversial Oval Office meeting.
Rupert was part of South African President Cyril Ramaphosa delegation to the White House, as were SA-born golfing legends Ernie Els and Retief Goosen. Musk was also in attendance, and although Trump mentioned him, the controversial businessman did not say anything.
Rupert – whose Richemont holding company owns Cartier, Mont Blanc and other luxury brands – told President Trump that while South Africa has a crime problem, there is no so-called white genocide.
'We have too many deaths. And it's across the board. It's not only white farmers,' said Rupert.
Towards the end of the meeting, Ramaphosa joked with the U.S. President: 'I am sorry I don't have a plane to give you'.
'I wish you did,' replied Trump replied. 'I'd take it. If your country offered the US Air Force a plane, I would take it.'
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