SpaceX Meets Politics: The Starlink Saga in South Africa

Remember when we had the 51% Indigenous Ownership laws in Zimbabwe that scared away the little interest we had from international investors? South Africans are feeling the effects of similar laws in their country.

South Africa has strict BEE ownership rules, requiring a certain percentage of businesses to be Black-owned. Therefore, Elon Musk’s Starlink presents a challenge.

There’s a desire to expand internet access, particularly to the quarter of the population without it, but applying the current BEE legislation could hinder Starlink’s entry. Yes, many are surprised to find out that 25% of South Africans do not have access to the internet.

The ruling African National Congress (ANC) is divided. Some in the party see the need for exceptions to the ownership rules, similar to “equity equivalent programmes” offered in other sectors like automobiles, to attract investment and improve connectivity. They would like Starlink to get an exception.

Some, however, view any exceptions as an attack on racial empowerment. Musk’s recent criticisms of South Africa have further complicated the situation and made some within the ANC uncomfortable with the idea of accommodating him.

Here’s the drama in summary: Communications Minister Malatsi (from the Democratic Alliance – DA) suggests a possible exception for Starlink. However, his ANC predecessor emphasized Starlink’s need to comply with existing BEE legislation. Trade Minister Tau (ANC) recently proposed a R100bn “transformation fund” to further support Black-owned businesses, a move the DA criticizes as likely to hinder economic growth. President Ramaphosa has met with Musk and invited him to invest, but nobody knows what will come of that.

At this point, it remains unclear whether Starlink will be licensed in South Africa, the country of Musk’s birth.

However, I will remind you that it appeared Starlink would not be licensed in Zimbabwe when ruling party politicians touted security concerns and state media echoed the same sentiments.

Some experts we talked to also highlighted some Zimbabwean laws that Starlink would not be able to comply with. They, therefore—rather arrogantly, if I may add—told us Starlink to Zimbabwe would never happen.

Those seemingly insurmountable hurdles were dealt with in a single X post by the President, saying he had authorized the licensing of Starlink. Overnight, politicians who had been blasting Starlink were praising the technology and how it would help with rural connectivity.

I say all this to remind you not to count Starlink out in South Africa. Where there’s a politician’s will in Africa, there is a way.