Billionaire Elon Musk’s satellite internet firm, Starlink, is reportedly considering an R2 billion ($112.7 million) investment in South Africa.
- Starlink is considering a $112.7 million investment in South Africa to address Black Economic Empowerment (BEE) requirements.
- Plans involve partnering with local companies for various operational needs to ensure compliance.
- South Africa, despite high internet demand, remains excluded from Starlink’s services currently active in 17 African countries.
Billionaire Elon Musk’s satellite internet firm, Starlink, is reportedly considering an R2 billion ($112.7 million) investment in South Africa as a potential workaround to the country’s Black Economic Empowerment (BEE) requirements.
Starlink has communicated plans to partner with local South African companies for various infrastructure needs, including land leasing, fibre optics, energy services, security, and ongoing maintenance, as part of its efforts to meet compliance requirements, according to Business Day.
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This proposed investment comes as Starlink aims to secure a deal with the South African government ahead of the G20 Summit scheduled to take place in Johannesburg this November.
Musk, who was born in South Africa, has previously claimed that Starlink is blocked from operating in the country because he is “not Black”, a statement that South African officials have publicly denied.
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In May, reports emerged that the South African government was considering offering Musk a special exemption from the country’s Black ownership laws to enable Starlink to legally operate within its borders.
While Starlink is already active in 17 African countries, including neighbouring Namibia, Botswana, and Mozambique, it remains unavailable in South Africa, the continent’s largest economy.
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This is despite the significant demand for affordable, high-speed internet, especially in underserved rural areas. A 2023 survey by Statistics South Africa found that only 1.7% of rural households have access to the internet.
Communications Minister Solly Malatsi has stated that the ultimate decision on licensing Starlink lies with the country’s independent communications regulator.
Separately, Business Insider Africa reported that Musk is also exploring the possibility of launching SpaceX rockets and deploying Starlink’s low Earth orbit (LEO) satellites from South Africa.
