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According to a Bloomberg News report citing sources familiar with the discussions, South Africa may be considering relaxing local Black ownership requirements to allow Elon Musk’s Starlink to begin operations in the country.
A possible regulatory workaround was expected to be discussed during an urgent meeting on Tuesday night between South African officials and representatives from Musk’s companies, including SpaceX.
Starlink has yet to receive an operating license in South Africa, where foreign telecom providers must sell a 30% stake in their local operations to historically disadvantaged South Africans under Black Economic Empowerment (BEE) regulations. Musk previously criticised these rules, claiming they were hindering Starlink’s entry — a claim South African officials have denied.
The country’s communications regulator confirmed in March that Starlink had not yet submitted a formal license application.
The timing of these talks is notable, coinciding with President Cyril Ramaphosa’s diplomatic visit to Washington, D.C., where he is leading a senior government delegation to strengthen ties with the U.S. According to Reuters, Ramaphosa is expected to raise the Starlink issue during his meeting with President Donald Trump on Wednesday.
Expanding internet access — especially in underserved rural areas — is a key government objective. Starlink’s low-Earth-orbit satellite network is seen as a potentially rapid and scalable solution.
To boost foreign tech investment, Communications Minister Solly Malatsi revealed last year that a draft policy was being developed to introduce ‘equity equivalent’ alternatives in the telecom sector. These mechanisms, already used in other industries, allow multinationals to invest in infrastructure, training, or small business development in lieu of direct equity transfers — a strategy aimed at aligning BEE goals with complex global corporate structures. “This will create the regulatory certainty needed to drive investment in ICT and accelerate universal internet access,” Malatsi stated in October.
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As of Tuesday, there had been no official comment from the Department of Communications or the Presidency on the reported Starlink talks.
If the proposed changes are implemented, it could mark a pivotal shift in how South Africa navigates the tension between its transformation agenda and attracting global tech players, potentially setting a precedent for other foreign firms looking to enter the country’s rapidly growing digital infrastructure market.
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