The licensing talks between SpaceX and South Africa have reached an impasse due to a combination of business and political factors. According to a recent Bloomberg report, negotiations have stalled because of tensions between South Africa and the US, particularly with the Donald Trump administration.

SpaceX, owned by Elon Musk, has been trying to secure a license to operate in South Africa, but local laws require foreign companies to have 30% ownership by historically disadvantaged groups.

Instead of giving up a stake, SpaceX proposed an “equity equivalents” approach, where they’d invest in initiatives that align with South Africa’s Black economic empowerment goals.

However, the process has been rocky, with SpaceX pulling out of public hearings about new satellite licensing rules at the last minute. Things took a turn for the worse when Musk called South Africa’s ownership laws “openly racist” on his platform, X.

The government responded, stating that South Africa won’t accommodate Starlink if Musk continues to express “unprogressive, racist views” and “peddling lies”.

SpaceX argued that the 30% local ownership rule keeps out many global satellite operators and wants South Africa to allow equity equivalent investments. For now, it’s a standoff, with the fate of Starlink’s operation in South Africa hanging in the balance.