Elon Musk has reignited debate over South Africa’s investment climate after claiming that local telecommunications ownership regulations are preventing his satellite internet company, Starlink, from launching in the country.
In a series of posts on X, the Pretoria-born billionaire said Starlink has been unable to secure an internet service provider licence because he is not Black, despite the company operating in more than 125 countries and territories worldwide, including over 20 across Africa. Musk questioned why South Africa, his country of birth, remains one of the few major markets where the service is unavailable despite strong consumer demand.
Starlink’s entry into South Africa has been stalled by regulatory requirements enforced by the Independent Communications Authority of South Africa (Icasa). Under the country’s Broad-Based Black Economic Empowerment (B-BBEE) framework, telecoms licensees must ensure that at least 30% ownership is held by historically disadvantaged groups, including Black South Africans, women, youth, or people with disabilities.
Musk, responding to a resurfaced clip from a 2025 Qatar Economic Forum interview, criticised race-based policies and argued for what he described as a “fair and even playing field.” In a follow-up post, he said he opposed both anti-Black and anti-White laws, adding that South Africa now has “more anti-White laws than there were anti-Black laws under Apartheid,” a remark that has drawn strong reactions.
The comments have polarised opinion. Supporters argue that blocking Starlink limits competition and delays access to reliable, high-speed internet, particularly in rural and underserved areas. Critics counter that Musk’s framing oversimplifies South Africa’s legal and historical context, arguing that B-BBEE laws are remedial measures designed to address decades of economic exclusion.
South African authorities have not directly responded to Musk’s latest statements, but government officials have consistently defended empowerment policies, saying they are essential to promoting inclusive growth rather than excluding foreign investors.
Starlink has said it supports South Africa’s empowerment objectives but opposes mandatory equity ownership for multinational companies with fixed global shareholding structures. Instead, it has proposed equity equivalent investment programmes (EEIPs), which allow firms to meet empowerment requirements through direct investment in areas such as infrastructure, skills development and education rather than ownership transfer.
According to the company, it has committed aabout US$26 million to provide free high-speed internet and equipment to 5,000 rural schools, alongside broader infrastructure investments estimated aatUS$105 million. Starlink has also outlined plans to partner with local firms for deployment and operational services.
There may be signs of regulatory movement. Communications Minister Solly Malatsi recently issued a policy directive instructing Icasa to align licensing regulations with the amended B-BBEE ICT sector code and the government’s national economic inclusion policy. Public consultations reportedly showed strong support for recognising EEIPs as a valid compliance mechanism.
Starlink has urged South Africans who have registered interest in its services to support the proposed regulatory changes, stressing that only minor amendments are required for its service to launch. The company maintains that it would operate as a fully B-BBEE-compliant entity once licensed.
