Elon Musk’s Starlink is reportedly mulling a significant R2 billion investment in South Africa as a potential strategy to secure an operating license, according to anonymous sources cited by Business Day. This move could be a way for the satellite internet company to work around South Africa’s black empowerment regulations.
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Starlink plans to channel this investment into infrastructure development that would support the broader Southern African Development Community (SADC), a bloc of 16 countries. The company has informed the South African government that it intends to engage local firms for infrastructure construction, and will lease land, fibre, and energy, as well as contract for security and maintenance support.
The goal is to finalize a deal with South African authorities before the country hosts the G20 summit in Johannesburg this November.
Pretoria-born Musk has previously expressed his desire to bring Starlink services to South Africa, the continent’s largest economy. However, he has consistently refused to relinquish any equity in the business to comply with black empowerment rules, which he has publicly described as “openly racist.”
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In response to such challenges, Communications Minister Solly Malatsi has proposed changes to the country’s empowerment laws specifically for multinational satellite providers. His proposal suggests that these companies could qualify for operating licenses by meeting alternative criteria, such as investing in black-owned businesses and related infrastructure within South Africa, rather than the current requirement of partnering with black shareholders.
Despite these proposed changes, the ultimate decision on awarding Starlink an operating license in South Africa will rest with the country’s industry regulator, as confirmed by Malatsi earlier this month.
