MTN backs Starlink's South African operations, contingent on B-BBEE compliance
EFF rejects Minister Malatsi's unlawful attempt to bypass South Africa's 30% local ownership law for Elon Musk's Starlink, saying legal compliance and transformation must be upheld to protect jobs, sovereignty, and national security.
Image: AP Photo/Francois Mori
Giant digital communication network service provider, MTN, whose chairperson is South Africa's special envoy to the United States of America, Mcebisi Jonas, has expressed support for Starlink being licensed to operate in the country.
However, this is only if one of the world's richest men, Elon Musk's satellite internet service licence, complies with black economic empowerment regulations.
The company, which is originally from South Africa but operates in various countries across the continent, described US-based Starlink as one of the Low Earth Orbit (LEO) communication providers that could significantly accelerate connectivity, 'particularly in rural and underserved areas where terrestrial infrastructure is limited or costly to deploy'.
'By providing high-speed, low-latency internet, leveraging LEO capabilities could bridge the digital divide, supporting South Africa's national goals of broader digital inclusion, economic development, and innovation,' said MTN Group Chief Sustainability and Corporate Affairs Officer Nompilo Morafo.
MTN advocates for partnerships with LEO communication providers, including Starlink, as these can enhance service resilience, extend reach, and improve customer experience, especially in challenging geographical areas.
'MTN welcomes cooperation and competition in the telecommunications space, provided there is regulatory parity,' said Morafo.
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It has been reported that Starlink currently operates in 18 of the 54 countries in Africa, and it would expand to 10 more states before the end of the year.
MTN's Digital Infrastructure Chief Executive Officer, Mazen Mroué, had, on December 14, 2023, while he was still the group's chief technology and information officer, revealed that there were engagements with SpaceX's Starlink, with enterprise-grade trials under way in Rwanda and Nigeria.
When asked if those MTN engagements with Starlink had been expanded to involve the latter coming to South Africa, the group said it did not comment on confidential market-specific discussions.
'MTN embraces the value of LEO satellite systems and remains open to partnerships that support the extension of connectivity across Africa, including South Africa, in compliance with applicable regulations,' Morafo said.
It was reported in 2013 that President Cyril Ramaphosa's Shanduka Group had paid $335 million for a stake in MTN's Nigerian business.
Soon before being appointed state deputy president, Ramaphosa disinvested from Shanduka to focus on his government responsibilities to avoid a conflict of interest.
Former finance deputy minister Jonas was appointed MTN Group chairperson on June 1, 2018, and on April 14, 2025, Ramaphosa appointed him as his special envoy to the United States of America with the responsibility of advancing South Africa's diplomatic, trade, and bilateral priorities.
This entailed fostering strategic partnerships and engaging with US government officials and private-sector leaders to promote South Africa.
Currently, Starlink does not have an operating licence in South Africa after its attempts to get one failed due to Musk's disagreement with the Broad-Based Black Economic Empowerment (B-BBEE) requirement that foreign telecommunication companies must sell 30% of their stake to local historically disadvantaged groups for them to operate in the country.
Trump signed an Executive Order on February 7, which sought to isolate South Africa, following allegations that white Afrikaners were subjected to orchestrated genocide and anti-white black employment policies, and that South Africa had taken a hostile stance against the US and its allies, including Israel.
This was attributed to Musk's fightback against B-BBEE regulations using Trump.
Ramaphosa led the delegation to Washington to negotiate with Trump on May 21 to save South Africa/US trade agreements and recruit new investors.
The Presidency had listed Jonas as among the delegation, but he did not go due to his business commitments, although he had contributed to the preparation of that meeting.
Before the two leaders held a private meeting at the White House, there was a media briefing in which the issue of genocide and crime was discussed. It was in that briefing that South African billionaire Johann Rupert pleaded with Trump to assist South Africa with modern technology to fight crime and even suggested, in the presence of Musk, that Starlink should come to the country.
The negotiation took place before it was reported that Trump had fired Musk as his senior advisor and Department of Government Efficiency head.
When asked if Jonas had in any way participated in negotiations to bring Starlink to the country, Morafo said 'no'.
'In his capacity as MTN Group chairperson, Mr Mcebisi Jonas does not participate in operational negotiations relating to Starlink or any other specific vendor or technology partner.
'His responsibilities are focused on providing strategic oversight and governance at the MTN Group level, in line with the role of a non-executive chairperson,' she said.
When called, Jonas declined to comment, saying he does not talk to the media as he works in the background.
Communications and Digital Technologies Minister Solly Malatsi raised eyebrows when, on May 23, two days after the White House meeting, issued a statement announcing the relaxation of the B-BBEE Act in the Information and Communication Technologies (ICT) sector to 'allow qualifying multinationals to meet empowerment obligations through alternatives to 30% ownership'.
This opened the floodgates of reaction, including from politicians and civil society groups who believed that Malatsi was facilitating the licensing of Starlink by bypassing B-BBEE requirements.
MTN said all communication companies should be treated the same and without favour.
'We advocate for a regulatory framework based on the principle of 'same service, same rules'.
'All service providers, whether terrestrial or non-terrestrial, should adhere to the same legal, regulatory, and socio-economic obligations, including those relating to customer registration, data protection, localisation, spectrum access, lawful interception, rural coverage, and B-BBEE compliance,' Morafo said.
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