South Africa may be on the verge of a major policy shift, as reports suggest it is preparing to grant Elon Musk’s Starlink a special exemption from Black Economic Empowerment (BEE) requirements.
The government is proposing a workaround to South Africa’s BEE laws, which currently require a minimum of 30% Black ownership in foreign telecom ventures operating in the country.
To facilitate Starlink’s entry without requiring equity transfer, the government is now exploring an ‘equity equivalent’ programme — a regulatory alternative that allows companies to contribute to empowerment objectives through other means, such as skills development, enterprise support, or community investment.
This move could signal a departure from long-held telecoms regulations to appease foreign investors and mend strained diplomatic ties with the US.
These laws are part of a broader economic transformation agenda to redress apartheid-era inequalities.
Starlink, operated by Musk’s SpaceX, has been unable to secure a South African licence under existing regulations.
Musk, a native South African, has publicly decried the BEE requirements as discriminatory. His criticisms gained traction among his supporters, who argue that the laws stifle innovation and limit consumer access to global technologies like Starlink.
This regulatory reconsideration follows a recent high-stakes diplomatic meeting between President Cyril Ramaphosa and former US President Donald Trump in Washington.
The meeting, which took place amid broader efforts to normalise US-South Africa relations, featured tense moments. Trump reportedly presented discredited claims of a “white genocide” in South Africa.
However, South Africa’s largest telco, Vodacom, has backed the Starlink ban in South Africa.
The telecom giant said it supports the enforcement of Black Economic Empowerment (BEE) laws, which mandate that any company seeking a telecoms licence must have at least 30% ownership by historically disadvantaged South Africans.
“We believe in the importance of adhering to national regulations that promote inclusivity and redress historical inequalities,” Vodacom said.
Meanwhile, critics have said Starlink’s entry limits consumer choice and hinders efforts to bridge South Africa’s digital divide.
As South Africa weighs its options, the outcome will likely influence how other African countries approach similar dilemmas. For now, all eyes remain on Pretoria to see if it prioritises policy consistency or makes a calculated exception for one of its most famous expatriates.
