South Africa’s government is preparing to offer Elon Musk a special exemption from the country’s Black ownership requirements to allow his satellite internet service, Starlink, to operate within its borders.
- The South African government considers granting Elon Musk’s Starlink an exemption from Black ownership policies.
- An alternative ‘Equity Equivalent’ model is proposed, allowing investments in infrastructure over Black ownership.
- Despite Starlink’s presence in neighboring countries, it remains unavailable in Africa’s largest economy, South Africa.
South Africa’s government is preparing to offer Elon Musk a special exemption from the country’s Black ownership requirements to allow his satellite internet service, Starlink, to operate within its borders.
The move comes amid escalating tensions with both Musk and U.S. President Donald Trump.
According to three sources familiar with the matter, the proposal will be presented during a high-level meeting scheduled for Tuesday night.
South Africa is proposing an alternative to Black Economic Empowerment laws, which typically require 30% Black ownership, by offering an “Equity Equivalent” model that would apply to all ICT companies, including Starlink, Bloomberg reported.
DON’T MISS THIS: European Union, China declare support for South Africa amid dispute with Trump.
Instead of ownership, companies could invest in infrastructure, training, or provide rural internet access. A similar approach was adopted by the auto industry in 2019, with major carmakers creating a fund to support disadvantaged groups.
The proposed workaround is seen as a strategic move to ease mounting criticism from both Musk and Trump, who have been vocal in their opposition to South Africa’s land reform policies and the country’s recent genocide case against Israel at the International Court of Justice.
Starlink controversy
Musk, who was born in South Africa, has claimed that Starlink is barred from operating in the country because he is “not Black”, an accusation South African officials have denied.
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.
DON’T MISS THIS: List of African countries where Elon Musk’s Starlink is operational in 2025
Tensions escalated on August 14, 2023, when the South African government banned the importation of Starlink kits, effectively cutting off public access to the satellite service.
Starlink’s low-Earth orbit satellite network is seen as a potential game-changer in South Africa, where internet access remains limited and costly. According to a 2023 Statistics South Africa survey, only 1.7% of rural households have internet access.
In parallel, officials are also considering a separate offer to Musk’s electric vehicle company, Tesla. The proposal would grant Tesla favorable import tariffs in exchange for investing in electric vehicle charging infrastructure across the country, a move that could advance South Africa’s green mobility goals.
