South Africa Weighs Policy Shift To Let Elon Musk’s Starlink Operate Without Local Ownership

South Africa is reviewing a major policy change that could open the door for Elon Musk’s SpaceX and other satellite internet providers to operate in the country without surrendering ownership stakes.

The Department of Communications and Digital Technologies is currently analysing more than 19,000 public submissions on a proposal to amend black economic empowerment (BEE) regulations.

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The potential amendment would allow information technology firms to meet transformation goals through equity-equivalent programs instead of the current 30% black ownership requirement.

“We are prioritising it, you cannot sit on submissions,” Communications and Digital Technologies Minister Solly Malatsi said in an interview in Johannesburg on Tuesday. “Once done, and based on the sentiment, we can make a submission to Icasa to make the final decision,” he added, referring to the Independent Communications Authority of South Africa.

Starlink Pushes for Entry Into South African Market

The review comes as Pretoria-born billionaire Elon Musk pushes to expand Starlink, his low-Earth orbit satellite internet service, into South Africa. Musk has refused to cede equity in the business, describing South Africa’s empowerment laws as “openly racist.”

SpaceX itself has formally backed the proposed amendment. Satellite internet technology, powered by constellations of low-orbit satellites, could prove transformative for South Africa, where access remains uneven and costly. According to a 2023 national survey, only 1.7% of rural households have internet access.

Allowing companies to operate under equity-equivalent arrangements would mean they could instead invest in infrastructure, digital inclusion projects, or research that directly benefits historically disadvantaged communities.

This approach mirrors exemptions already granted in other industries, such as the automotive sector, where global carmakers like BMW, Ford, and Toyota fund empowerment initiatives.

Broadband Access Critical to South Africa’s 2030 Goals

Preliminary feedback on the policy review suggests strong support for reform, Malatsi noted. If approved, the change would not only apply to new entrants like SpaceX but also to long-standing players such as MTN Group and Vodacom Group, as well as firms from Asia, the UAE, and the US.

South Africa’s National Development Plan aims to deliver universal, affordable broadband access by 2030. To achieve this, the government acknowledges it must embrace new technologies.

“The government would be naive not to embrace new technologies — and in particular satellite technologies — to increase South Africa’s broadband connectivity,” Malatsi said.

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