South Africa has revised licensing rules so foreign-owned satellite internet providers such as Elon Musk's Starlink can operate without surrendering 30% of local equity to Black or other non-white owners. The government now allows "equity equivalent" investments—like skills training or supplier development—to satisfy affirmative action targets. Officials say the change could speed the rollout of high-speed internet to rural and underserved communities while preserving measures to benefit historically disadvantaged groups.
South Africa Eases Ownership Rule — Starlink Can Operate Without Selling 30% Local Equity
Elon Musk attends the Saudi Investment Forum at the Kennedy Center, Wednesday, Nov. 19, 2025, in Washington. (AP Photo/Evan Vucci)
South Africa's communications minister has ordered a change to licensing rules that will allow Elon Musk's Starlink and other foreign-owned satellite internet providers to operate in the country without transferring 30% of local equity to Black or other non-white owners.
What Changed
The revision, published in the government gazette, lets foreign applicants for communications licences meet the country's affirmative action requirements through "equity equivalent" measures rather than by ceding shareholding. Examples of such measures include funding skills training, supporting supplier development, or investing in programs that benefit groups disadvantaged under apartheid.
Broader Policy Context
The "equity equivalent" option is available to foreign-owned firms across multiple sectors, not only communications. South Africa's affirmative action framework — Broad-Based Black Economic Empowerment (B-BBEE) — remains the government's primary tool for addressing apartheid-era inequality, although critics argue it can deter foreign investment.
Elon Musk, who was born in South Africa, has called the ownership requirement "openly racist," saying on social media that Starlink was barred from operating in the country "because I’m not black."
Why It Matters
Starlink, a unit of SpaceX, already provides low-earth-orbit satellite internet service in more than a dozen African countries, including many of South Africa's neighbours. Communications Minister Solly Malatsi said the directive recognises the potential for services like Starlink to accelerate high-speed internet access in rural and underserved communities.
The move is likely to ease the path for foreign satellite ISPs to expand service in South Africa, while still allowing the government to require targeted investments that support previously disadvantaged groups.
Additional note: The policy change aims to balance attracting foreign technology investment with the continued goal of economic redress for communities most affected by apartheid-era policies.
