South Africa’s Starlink debate highlights the challenge of expanding high‑speed internet while navigating B‑BBEE laws and national economic transformation goals. Picture Credit: Connecting Africa
By Aisha Zardad
South Africa – South Africans have been gripped by debate over whether Elon Musk’s satellite internet venture, Starlink, will be allowed to launch officially in the country and how Broad‑Based Black Economic Empowerment (B‑BBEE) laws play a role. Headlines and social media have painted the situation as anything from a regulatory lie to a fairness battle, but the truth is far more nuanced — involving policy directives, political pushback, and real questions about how to expand connectivity without undercutting transformation goals.
Starlink, the global satellite broadband service operated by SpaceX, has been one of the most widely anticipated connectivity solutions for rural and underserved communities in South Africa, promising high‑speed internet where fibre and mobile coverage are weak or non‑existent. The service has already launched in several African countries, including Kenya, Nigeria, Mozambique and Eswatini, but South Africa remains a notable exception.
The current controversy stems from South Africa’s telecommunications licensing rules, which require companies seeking a national footprint to meet certain empowerment thresholds — historically a minimum of 30 % ownership by historically disadvantaged persons. Critics have characterised this policy as a barrier that has kept Starlink from launching and even allege that the company sought exemptions or “special treatment.” SpaceX has publicly denied these claims, stressing that it has not asked for any special treatment, and that once licensed it will operate fully compliant with B‑BBEE requirements.
In May 2025, Communications Minister Solly Malatsi issued a policy directive intended to align licensing regulations with broader B‑BBEE laws, allowing alternative compliance routes such as Equity Equivalent Investment Programmes (EEIPs). This could let Starlink contribute to local investment — for example, by committing millions of rand in infrastructure and rural connectivity projects — rather than transferring equity shares. Proponents say this offers a way to bring urgently needed broadband while still promoting economic inclusion.
However, not everyone agrees. Political voices, including the Economic Freedom Fighters (EFF) and parts of the African National Congress, argue that such directives risk undermining the Electronic Communications Act and the spirit of empowerment legislation by allowing foreign companies to bypass traditional ownership requirements. Critics contend this could weaken long‑term transformation goals and set a precedent that favours multinational players over local industry.
At the same time, regulatory bodies like the Independent Communications Authority of South Africa (ICASA) have emphasised the need to follow the law independently and carefully, balancing broadband expansion with statutory requirements. The Presidency has also weighed in, insisting that existing legislation cannot be overridden, even as it encourages processes to accelerate access in underserved regions.
The result is a complex policy landscape where broadband access, economic transformation, and global competition intersect. Starlink supporters argue that modern connectivity is essential for education, business and economic growth, particularly in rural areas that have historically lagged behind. Opponents stress that empowerment laws are vital to ensuring that all South Africans benefit equitably from industry growth.
As ICASA and government departments engage in consultations and possible regulatory amendments, the question remains: Can South Africa open its skies to Starlink without compromising its empowerment goals — and what does that mean for the future of connectivity and economic inclusion?
Let’s get on with it! The more South Africa dithers and debates, the more the poorest of the poor in our country will be left behind and remain in poverty.