Billionaire Elon Musk’s Starlink, in a potential workaround of South Africa’s black empowerment rules to gain an operating licence, may invest about R2-billion rand in the country, Business Day reported (paywall) citing sources that it didn’t identify.
The internet services company will channel that investment into infrastructure to support the Southern African Development Community made up of 16 countries, the Johannesburg-based newspaper said. Starlink told the South African government it will use local firms to build its infrastructure and lease land, fibre and energy as well as for security and maintenance support.
It aims to secure a deal with South African authorities before the country hosts a G20 summit in Johannesburg in November, Business Day said.
Pretoria-born Musk has previously indicated that he wants Starlink internet services to be made available in Africa’s largest economy. But he has refused to relinquish any equity in the business to comply with black empowerment rules, which he says are “openly racist”.
Communications minister Solly Malatsi has proposed changes to the country’s empowerment laws for multinational satellite providers. He’s proposed that these companies should be able to qualify for operating licences by meeting criteria, such as investing in black-owned businesses and related infrastructure in South Africa, instead of the current requirement that they partner with black shareholders.
Read: City dwellers flock to Starlink, pushing network to its limits
Still, the decision to award Starlink an operating licence in South Africa will ultimately rest with the country’s industry regulator, Malatsi said earlier this month. — Prinesha Naidoo, (c) 2025 Bloomberg LP
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