South Africa Mulls Policy Shift to Permit Elon Musk’s Starlink to Operate Without Local Ownership
South Africa is contemplating a major policy shift that could permit Elon Musk’s SpaceX and other satellite internet providers to operate in the country without having to give up ownership stakes.
The Department of Communications and Digital Technologies is presently evaluating over 19,000 public submissions related to a proposal aimed at amending black economic empowerment (BEE) regulations.
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The suggested amendment would allow IT companies to meet transformation goals through equity-equivalent programs instead of adhering to the current 30% black ownership requirement.
“We are treating this as a priority; we cannot simply sit on these submissions,” stated Communications and Digital Technologies Minister Solly Malatsi during an interview in Johannesburg on Tuesday. “Once we finish our review, and based on public opinion, we can present our recommendations to Icasa for a final decision,” he mentioned, referring to the Independent Communications Authority of South Africa.
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Starlink Pushes for Entry Into South African Market
This review emerges as Elon Musk, originally from Pretoria, aims to extend Starlink, his low-Earth orbit satellite internet service, into South Africa. Musk has refused to give up equity, calling South Africa’s empowerment laws “openly racist.”
SpaceX has officially supported the proposed amendment. Satellite internet technology, facilitated by low-orbit satellite networks, could revolutionize access in South Africa, where connectivity is still sporadic and expensive. A 2023 national survey revealed that only 1.7% of rural households have internet access.
Permitting companies to operate under equity-equivalent frameworks would allow them to invest in infrastructure, digital inclusion initiatives, or research that directly benefits historically disadvantaged communities.
This strategy is similar to exemptions already granted in other sectors, like the automotive industry, where global manufacturers such as BMW, Ford, and Toyota fund empowerment projects.
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Broadband Access Vital for South Africa’s 2030 Goals
Initial feedback on the policy review indicates significant support for reform, according to Malatsi. If approved, the changes would benefit not only newcomers like SpaceX but also established players such as MTN Group and Vodacom Group, as well as companies from Asia, the UAE, and the US.
South Africa’s National Development Plan aspires to provide universal and affordable broadband access by 2030. To achieve this, the government acknowledges the necessity of embracing new technologies.
“It would be shortsighted for the government not to utilize new technologies — particularly satellite technologies — to improve South Africa’s broadband connectivity,” Malatsi emphasized.
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