South Africa Denies Giving Special Consideration to Elon Musk’s Starlink

(3 Minutes Read)

Just one day after President Cyril Ramaphosa’s contentious White House meeting with Trump, Malatsi published changes to the policy: Communications companies, including Starlink, would be allowed to bypass the 30 per cent rule if they instead showed equity equivalent investments in broadband and other digital infrastructure.

Just one day after President Cyril Ramaphosa’s contentious White House meeting with Trump, Malatsi published changes to the policy: Communications companies, including Starlink, would be allowed to bypass the 30 per cent rule if they instead showed equity equivalent investments in broadband and other digital infrastructure.

South Africa will not give Elon Musk’s Starlink telecom business any special dispensation to bypass the country’s Black ownership requirements, the country’s Communications Minister Solly Malatsi said.

Malatsi was forced to deny watering down policies on foreign-owned businesses to curry favour with Musk and US President Donald Trump. South Africa requires foreign companies owning communications licences to sell 30 per cent of their equity in local subsidiaries to historically disadvantaged groups.

The requirement has come under fierce criticism from Starlink and last week, just one day after President Cyril Ramaphosa’s contentious White House meeting with Trump, Malatsi published changes to the policy: Communications companies including Starlink, would be allowed to bypass the 30 percent rule if they instead showed equity equivalent investments in broadband and other digital infrastructure.

On Tuesday, Malatsi appeared before Parliament in Cape Town to defend the move and denied suggestions it was introduced specifically for Starlink. Lawmakers questioned whether the directives were correctly opening up the playing field for foreign players or tampering with the government’s economic empowerment agenda by catering to Starlink.

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Malatsi said the changes would allow new operators to enter the market, be good for competition, and have nothing to do with Ramaphosa’s recent meeting with Trump. Stakeholders, industry players, and the public have been given 30 days to send submissions and provide comments before the framework is finalised.