Keypoints:
- South Africa may allow equity workaround for Starlink
- Musk’s licensing issue raised during US visit
- Equity equivalent policy under review
SOUTH Africa may be preparing to ease local Black ownership rules to allow Elon Musk’s Starlink internet service to operate in the country, Bloomberg News reported on Tuesday, citing three people familiar with the matter.
The potential workaround was reportedly due to be discussed during a last-minute meeting between South African officials and representatives of Musk or SpaceX on Tuesday night, according to Bloomberg.
Starlink has yet to receive a licence to operate in South Africa, where foreign telecoms operators are required under Black Economic Empowerment (BEE) rules to sell 30% of their local equity to historically disadvantaged South Africans. Musk has previously claimed these laws were blocking Starlink’s entry, a statement denied by officials.
South Africa’s communications regulator confirmed in March that Starlink had not formally applied for a licence.
Ramaphosa visit puts spotlight on licensing
The news comes as President Cyril Ramaphosa leads a high-level government delegation to Washington this week, aiming to repair diplomatic ties with the United States. The president is scheduled to meet US President Donald Trump on Wednesday, and Starlink’s licensing will reportedly be raised during those discussions, according to Reuters.
The government sees expanding internet access, particularly in rural areas, as a national priority, and Starlink’s low-orbit satellite service could offer a fast, scalable solution.
Equity alternatives under discussion
In a bid to attract international tech investment, Communications Minister Solly Malatsi said last year that a draft directive was being prepared to introduce ‘equity equivalent’ investment options in the telecoms sector.
Already in place in other industries, equity equivalents allow multinationals to invest in infrastructure, training, or SME development rather than surrender equity if their global structures make that unfeasible.
‘This will provide the certainty necessary to attract increased investment in ICT and accelerate universal internet access,’ Malatsi said in October.
Officials yet to confirm talks
As of Tuesday, neither the Department of Communications nor Ramaphosa’s office had officially commented on the reported negotiations or any pending Starlink decision.
But the move could signal a major shift in how South Africa balances transformation goals with foreign investment. If the workaround is approved, it could set a precedent for other global firms eyeing entry into the country’s fast-growing ICT and digital infrastructure market.
