South Africa is considering new policy changes that could allow Elon Musk’s Starlink and other satellite internet providers to operate in the country without having to give up ownership stakes, according to Communications and Digital Technologies Minister Solly Malatsi.
The department is currently reviewing about 19,000 public submissions on proposed adjustments to the Black Economic Empowerment (BEE) rules.
The review would look at whether technology companies could meet BEE requirements through equity-equivalent programs instead of the existing requirement for 30% Black ownership, Bloomberg reported.
“We are prioritizing it, you cannot sit on submissions. Once done, and based on the sentiment, we can make a submission to Icasa to make the final decision,” Malatsi said, referring to South Africa’s telecom regulator, the Independent Communications Authority of South Africa.
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Although Starlink is already active in more than 17 African countries, including neighboring Namibia, Mozambique, and Botswana, it has yet to launch in South Africa, the continent’s largest economy.
Musk has previously rejected demands that SpaceX give up equity to comply with Black-ownership rules aimed at tackling apartheid-era inequalities, calling the laws “openly racist.”
In its own submission to the government, SpaceX backed the proposed rule changes.
If approved, the amendments would allow telecom operators to meet empowerment targets by investing in infrastructure, research, or digital inclusion projects that benefit disadvantaged communities, rather than transferring ownership stakes.
The plan has faced backlash from opposition parties and civil society groups, who argue the government is bending its own laws to accommodate a wealthy foreign billionaire.
Similar exemptions, however, already exist in other industries.
In 2019, automakers such as BMW, Ford, and Toyota established a fund to help bring underrepresented groups into the automotive sector.
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Image Credit: Indian Express
