Despite a R500 million offer to connect 5,000 rural schools, Starlink remains unlicensed in South Africa. The standoff has escalated as 14,000 residents find ways to access the service anyway, putting Musk at odds with ICASA’s strict regulatory framework.
- Starlink remains unlicensed in South Africa despite offering a R500 million deal to connect 5,000 rural schools, due to regulatory hurdles.
- South Africa’s ICASA is cracking down on unauthorized Starlink use, while an estimated 14,000 people access the service via foreign-registered roaming packages.
- Elon Musk has expressed frustration as South Africa has not approved Starlink, citing strict local ownership requirements and economic empowerment rules.
- Although demand among rural communities is growing, analysts say the service may not be legally launched before late 2026, with possible delays up to 2030 due to regulatory and legal challenges.
The continued regulatory deadlock appears to frustrate the billionaire, whose home country has yet to approve Starlink’s operations even as the service secures licences across much of the continent.
Responding to a post on X by user DogeDesigner referencing the R500 million investment, Musk said: “But it is still on hold,” signalling continued frustration over regulatory barriers.
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 South African officials have publicly denied.
The renewed tension comes amid mounting pressure from the Independent Communications Authority of South Africa (ICASA), which has warned that accessing Starlink through foreign-registered roaming packages breaches national telecommunications laws.
The regulator has begun inspecting and seizing unauthorised equipment, even as analysts note rising demand for satellite broadband in underserved areas.
Ownership rules block licence
At the centre of the dispute are ownership requirements under South Africa’s Electronic Communications Act, which mandate that 30% of licensed telecommunications operators be owned by historically disadvantaged groups.
Because it does not meet this threshold, Starlink has been unable to secure an operating licence.
In June 2025, the company was reported to be considering a R2.5 billion ($145.6 million) investment as a potential alternative to meeting Black Economic Empowerment (BEE) requirements.
According to Business Day, Starlink proposed partnerships with local firms for land leasing, fibre connectivity, energy services and maintenance to align with compliance obligations.
The proposal gained further relevance in December 2025, when South Africa introduced a policy shift allowing foreign satellite operators to meet empowerment targets through Equity Equivalent Investment Programmes (EEIPs), which permit developmental investment in place of equity transfer.
Notably, Musk’s school connectivity pledge falls within this framework, although regulatory approval has yet to be granted.
Rural pressure builds as Starlink turns to public advocacy
Meanwhile, the ongoing dispute has heightened pressure from farmers and rural communities, who argue that limited connectivity is constraining economic activity and access to essential services.
In an apparent bid to shift public opinion, Starlink launched a public advocacy campaign in February 2026 to address what it described as “myths and facts” about its operations and encouraged supporters to contact ICASA regarding regulatory reform.
Illegal access and enforcement
Even as the licensing dispute continues, local media reports and industry estimates suggest that at least 14,000 South Africans may be accessing Starlink without authorisation, largely through roaming packages registered in neighbouring countries.
Eyewitness News reported in April 2024 that at least 14,000 South Africans were using Starlink illegally, while industry reporting in 2025 suggested thousands of kits continue to circulate despite regulatory warnings.
Starlink has warned that South African users breaching its roaming terms could have their satellite internet services terminated by the end of April.
Industry analysts say a legal launch could be possible by late 2026 if regulatory issues are resolved.
However, legal challenges from local competitors may delay authorisation until as late as 2030.
