Johann Rupert's influence on Elon Musk's Starlink in South Africa
Elon Musk's Starlink faces BEE egulatory easing in South Africa after White House meeting
Image: IOL Graphics
In a dramatic turn of events, less than two days after a tense White House meeting allegedly facilitated by South African billionaire Johann Rupert, Elon Musk's Starlink satellite venture appears to be facing new regulatory easing in South Africa.
This development follows a series of high-stakes political manoeuvres, sparking debate on the influence of global business titans and their intertwined relationships with national policies.
During a White House meeting that drew widespread attention, Rupert reportedly told officials to facilitate Musk's entry into the South African market.
A meeting, which included President Cyril Ramaphosa and President Donald Trump, was marked by contentious exchanges. Trump, in particular, launched unfounded allegations of genocide against South Africa, a narrative critics say was influenced by Musk after the country refused to soften its Black Economic Empowerment (BEE) laws.
President Ramaphosa, under pressure to defend South Africa's democratic values and policies, struggled to articulate the nation's stance. Meanwhile, Rupert, citing concerns over crime and economic stagnation, urged that Starlink's launch be prioritised.
'We need Starlink in South Africa,' Rupert declared, emphasising the importance of technological advancement for the country's future. Regulatory Changes and Growing Tensions
Following these developments, IOL approached the BEE Commission on Thursday to determine whether its regulations might be revised to accommodate Musk's satellite business.
While initially seeking an extension, it was reported on Friday that the government gazetted BEE amendments to ease licensing requirements for satellite service providers like Starlink.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Experts suggest this move may be part of a broader effort to attract international technology investments, but critics warn of potential biases.
In March, IOL published an investigation questioning whether Musk was leveraging BEE laws to destabilise South Africa's economy through targeted sanctions and diplomatic pressure. Political and Business Dynamics
Political analyst Joe Mhlanga commented on Musk's influence: 'He's a businessman deeply involved in US politics. Musk's relationship with Trump and his wealth gives him significant leverage. When South Africa refused to relax BEE laws, Musk appeared to use his political connections to push for favourable regulations.'
'Musk's involvement extends beyond South Africa. The tech billionaire has shown a pattern of exerting influence, including donating millions to Trump's campaigns and criticising South Africa's expropriation and BEE policies as 'openly racist.'
She added that such statements had fuelled diplomatic tensions, with some accusing Musk of weaponising his influence to serve personal and corporate interests.
Industry Voices and the Call for Fairness
In March, South Africa's telecom industry body, the Association for Communications and Technology (ACT), urged ICASA, the country's telecom regulator, to approach the regulatory review fairly.
Phila Sithole, ACT's head of industry research, emphasised the importance of a level playing field.
'We support the review, but it must be transparent and non-discriminatory,' Sithole said. 'Regulations should benefit the entire sector, not just one company.'
Speaking to IOL, former South African ambassador to the US, Welile Nhlapo, highlighted the broader implications
'Our goal should be to attract investments that align with our development agenda. Large-scale projects like Starlink can be beneficial if managed strategically.'
The Rupert Family and South Africa's Political Ties
Amid these developments, rumours have circulated suggesting Rupert may have played a behind-the-scenes role in facilitating Ramaphosa's engagement with Trump.
Political analyst Professor Tumi Senokoena warned against oversimplifying such claims, emphasising the complex history between the Rupert family and the African National Congress (ANC).
'The relationship predates Ramaphosa's presidency,' Senokoena explained. 'Anton Rupert's influence on political and economic spheres was strategic and enduring.
'Cyril Ramaphosa's ties to the Ruperts go back decades, through his roles in the labor movement and business interests.'
He stated that historically, Anton Rupert maintained a nuanced relationship with the ANC, leveraging his vast wealth to influence policy indirectly.
'This legacy has persisted in the activities of Johan Rupert, who remains one of Africa's most influential investors through Richemont and other holdings.'
Global Influence and Future Directions
Senokoena argued that the Ruperts' global reach means their fortunes are closely linked to South Africa's economic health.
'Their investments are sensitive to international sanctions and economic policies. They benefit from stability but are also vulnerable to disruptions.'
Looking ahead, South Africa faces a delicate balancing act—navigating foreign influence, domestic policy, and economic growth. The recent moves around Starlink reflect broader geopolitical tensions, with implications for the country's sovereignty and development trajectory.
While figures like Rupert and Musk wield substantial influence, their actions are rooted in a complex web of historical relationships and economic interests.
Professor Senokoena asserted, 'Understanding these relationships helps us see that South Africa's future appears to heavily depend on a few Afrikaner individuals who continue influencing the policy direction of this country.'
thabo.makwakwa@inl.co.za
IOL Politics
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
28 minutes ago
- TimesLIVE
Is it right for younger MPs to hold older leaders accountable, irrespective of age?
The clash between youth and experience has again come under the spotlight in parliament. Sport, arts and culture minister Gayton McKenzie recently called out DA MP Liam Jacobs over his conduct in a committee meeting. The heated exchange followed a debate on the appointment of PA member Eugene Botha as chair of the National Arts Council. McKenzie criticised Jacobs for being disrespectful, referencing a past meeting where Jacobs grilled South African Football Association president Danny Jordaan about his leadership and travel expenses. 'What I will never allow is for this member to speak when I'm speaking. You are rude. I will never stand for this rudeness of Jacobs,' said McKenzie. On social media, MP Karabo Khakhau also faced backlash after questioning officials involved in the selection of Seta board chairpersons. This raises a question in South African politics.
IOL News
an hour ago
- IOL News
How the logistics industry is unlocking youth employment opportunities in SA
With South Africa's youth unemployment rate sitting at a staggering 62.4%, finding sustainable job opportunities for young people has become an urgent national priority. While many sectors are stagnating, logistics is booming – fueled by the rise of e-commerce, digital innovation and global trade – creating a new wave of career paths. Transnet plays a central role in the South African economy and the government's goal of inclusive growth. 'From supply chain analytics and IT systems integration to customer experience and compliance, logistics is evolving into a dynamic, tech-enabled industry that offers diverse professional avenues for South Africa's youth,' said Gregory Saffy, managing director for Sub-Saharan African Operations at FedEx. While traditional roles like drivers, packers and sorters will always be essential, they are increasingly supported by technology-driven processes. This shift creates additional opportunities for young people looking for more technology focused roles. 'Logistics isn't what it used to be. The real competitive advantage now lies in digital capability, especially in areas like data analytics and systems thinking. We're seeing more engineers and analysts in the business than ever before, guiding operations and enabling automation at scale,' said Saffy. Beyond data analytics and IT roles, compliance and customs clearance are also emerging as key growth areas for job creation. Saffy highlights the development of a formalised customs qualification as a major step forward for the industry. 'We're seeing progress in the creation of a national customs clearance certification that will give individuals a recognised qualification, including those with practical experience but no matric pass. This will create a clear career path and raise the overall standard of compliance across the industry,' he added. FedEx is already enrolling its customs clerks into newly developed courses in freight forwarding and customs compliance. In addition to formalising technical knowledge, these programmes also focus on future-ready skills like digital literacy, data analysis and critical thinking. For young people without access to formal education, FedEx offers a clear entry point through its Yes Learnerships. 'Our 12-month programme combines training, mentoring and practical work experience,' said Saffy. 'Since 2019, we've onboarded more than 150 unemployed youth through YES, with more than 60 going on to become permanent employees. It's a powerful model for bridging the gap between education and employment.' In parallel, FedEx runs a dedicated learnership programme for youth living with disabilities, offering an NQF Level 4 certificate in business administration. This includes coaching, blended learning and real-world operational experience – helping to build inclusive, work-ready skills pipelines. FedEx commitment to building inclusive talent pipelines is a powerful example of how private sector investment in skills development can help unlock opportunities and start turning the tide on youth unemployment. 'Logistics is a gateway to global trade. It's no longer just about moving parcels; it's about managing complexity in a fast-paced, tech-driven environment. With the right support and training, South Africa's youth can thrive in this space,' Saffy concluded.
IOL News
an hour ago
- IOL News
Three reasons why diversity gives small businesses in SA a competitive edge
Research shows that building diverse teams is so much more than a moral or ethical imperative. In an increasingly interconnected working world, diversity can translate into tangible business metrics. Image: Charles Forerunner on Unsplash There is a strong case for diversity and inclusion in business – and not just among large corporates. Given the vital role that small and medium-sized enterprises (SMEs) play in the South African economy, their potential to contribute to a more inclusive and diverse economic landscape should not be overlooked. Research shows that building diverse teams is so much more than a moral or ethical imperative. In an increasingly interconnected working world, diversity can translate into tangible business metrics. For example, in a study conducted by LinkedIn, 60% of respondents said that diversity within their sales team contributed to greater levels of success. In this particular study, 'success' was benchmarked across a number of different metrics. The study reveals that teams with more diversity were tied to higher sales conversion rates, higher revenue, better deal-making ability and better customer satisfaction. More diverse teams have also been found to outperform their peers in terms of non-revenue related metrics, such as better decision-making, higher levels of innovation, better talent retention and more effective problem-solving. Diversity in the workplace can also be a powerful way to expand and scale a business. To this point, research by the Harvard Business Review found that employees at diverse companies were 45% more likely to report that their company's market share had grown and 70% reported that their company was able to expand into a new market. Within a small business, having a diverse team can be a competitive differentiator, for these 3 reasons: Representation unlocks real insight Having a team that is representative of society can be the key to unlocking different perspectives – after all, if everyone sees the world through the same lens, how can you spot blind spots? Diverse voices can help challenge assumptions, identify missed opportunities and create solutions that resonate with a broader audience. In an e-commerce SME, for example, the ability to convert a digital lead into a sales conversion using a very targeted sales funnel is the ultimate goal. Having a diverse team could help marketers tailor their messages and tone in a way that is inclusive and accessible. They could also help the business understand the buying behaviour of niche audiences, providing proactive suggestions on which payment options would work best. A diverse team would also be in the best position to interpret subtle language cues in customer reviews and use that feedback to improve aspects like customer service, product development and sales strategy. More relatability = more customer loyalty Furthermore, having a diverse team can also be a key way to build trust with your target audience – the more customers can relate to your business and your brand, the more likely they are to choose you over your competitors. This is particularly true within sales environments. Consider how wider the reach of a business can be if its sales team spoke a range of languages. In South Africa, which has 12 official languages, being able to communicate with sales prospects in their own native tongue can be a game-changer. Speaking someone's language – quite literally, can help break down barriers, create space and opportunity for open dialogue as well as foster a sense of familiarity and comfort. These are all important building blocks for trust. Diversity increases reach One of the most impactful ways that small businesses with diverse teams can contribute to society is by fostering an inclusive economy. In South Africa, where large segments of the population are still underserved, SMEs driven by diverse teams have the influence needed to address this pressing need by bridging gaps to improve access. This is especially true in underserved locations such as townships and rural areas. Each of these areas represents an untapped market that could benefit immensely from a symbiotic relationship between providers of products and services and the unique needs and challenges of the community. By involving local talent and perspectives in business strategy, small enterprises can create offerings that are not only more relevant and accessible, but also empower communities economically, while building trust, loyalty, and long-term sustainability in the process. Jeremy Lang is Managing Director at Business Partners Limited. Jeremy Lang is the managing director at Business Partners Limited. Image: Supplied BUSINESS REPORT Visit:
