Starlink pledges R2.5 billion investment in South Africa, ready to launch

Starlink pledges R2.5 billion investment in South Africa, ready to launch


Starlink, the satellite internet division of SpaceX, has affirmed its commitment to launching in South Africa, announcing plans to spend R2.5 billion on local infrastructure and pledging compliance with Black Economic Empowerment (BEE) legislation.

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Ryan Goodnight, Senior Director of Market Access at SpaceX, delivered the update at the annual general meeting of South Africa’s Internet Service Providers’ Association (ISPA). While confirming Starlink is ready to deploy, he stressed that an amendment to existing regulatory equity rules is needed before the service can officially launch.

Goodnight explained that while Starlink is willing to comply with BEE rules and partner with local operators, it does not wish to sell equity in its South African subsidiary. He reiterated that current licensing regulations are “out of sync” with the Electronic Communications Act, creating an unnecessary hurdle for launch.

To address the transformation requirement, Starlink proposes a substantial “equity equivalence” programme, which includes:

  • R500 million dedicated to connecting 5,000 schools with free internet and hardware.
  • An additional R2 billion investment in local infrastructure, including gateways, Points of Presence (PoPs), leased land, and staffing.
  • Goodnight noted that Starlink, which operates as a licensed service in every market, is not a mobile operator or broadcaster and has no intention of seeking exclusive arrangements.

Starlink’s go-to-market strategy heavily relies on local collaboration. The company plans to:

  • Partner with local ISPs for installation, maintenance, and reseller roles in both retail and enterprise markets.
  • Work with the National Sea Rescue Institute (NSRI) to equip rescue vessels with Starlink for maritime safety.
  • Invest heavily in ground stations and PoPs, positioning South Africa as a potential regional hub for its Southern African operations, which will create downstream work for local construction and fibre contractors.

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Despite Starlink’s readiness, South Africans keen to subscribe still face a long wait due to the slow pace of regulatory reform.

In May 2025, Communications Minister Solly Malatsi gazetted a draft policy direction to the regulator, ICASA, aimed at aligning ownership regulations with the broader ICT sector code. This code recognizes transformation tools beyond mere equity ownership, such as the equity equivalence programmes proposed by Starlink.

Although the policy has the support of President Cyril Ramaphosa, the process has been heavily criticized by some and has been dragging out. Regulatory experts warn that even if the policy directive is implemented, the necessary regulatory amendments could still take up to two years.

In the meantime, Starlink has been licensed in all of South Africa’s immediate neighbours, with the notable exception of Namibia, where the company still hopes to launch this year. South Africa’s launch date, according to Starlink’s global coverage map, remains “unknown at this time.”