South African President Cyril Ramaphosa has responded directly to recent criticism from Elon Musk, saying Starlink still has a viable pathway to operate in the country through alternative compliance mechanisms under South Africa’s empowerment laws.
The comments come after Musk claimed on X that South Africa would not license Starlink “simply because I am not Black,” reigniting debate over the country’s Black economic empowerment framework and foreign investment rules in the telecoms sector.
Alternative compliance route remains possible
Speaking to reporters, Ramaphosa said international companies are not always required to comply solely through direct equity ownership.
He pointed to the equity-equivalence framework, which allows multinational firms to meet transformation requirements by investing in initiatives that support historically disadvantaged communities.
These may include digital inclusion programmes, infrastructure development, research initiatives and skills development projects.
According to the president, several foreign firms operating in South Africa already make use of such arrangements in other sectors.
However, Starlink’s situation remains more complicated.
Current telecommunications licensing rules still require up to 30% local Black ownership for operators seeking full compliance, making the direct use of equity-equivalent structures less straightforward.
Starlink could transform rural connectivity
The issue is particularly significant because satellite internet is seen as a major potential breakthrough for South Africa’s underserved regions.
Starlink’s low-Earth orbit satellite network could offer high-speed connectivity to rural households that currently struggle with limited broadband access, slow mobile data speeds and high costs.
Official statistics indicate that only around1.7% of rural households currently have reliable internet access, highlighting the scale of the digital divide.
Communications Minister Solly Malatsi has proposed expanding equity-equivalence models to the telecommunications sector, but the proposal has faced political resistance, including concern from lawmakers and the governing ANC.
The debate now centres on whether South Africa should adapt its telecom regulations to attract major global digital infrastructure players while preserving the objectives of post-apartheid economic transformation.
For now, Ramaphosa’s response appears aimed at signalling that South Africa remains open to Starlink — provided it complies with local laws.
Source: Bloomberg / BusinessTech / Polity
