CAPE TOWN, South Africa — May 28, 2025 — South Africa’s government has reaffirmed its commitment to the country’s Black ownership requirements for telecommunications companies, stating clearly that Elon Musk’s Starlink will not be granted any special exemption from the rules. The clarification came on Tuesday from Communications Minister Solly Malatsi, following public scrutiny and political speculation surrounding recent policy amendments and a high-level meeting between President Cyril Ramaphosa and former U.S. President Donald Trump.
Addressing members of Parliament in Cape Town, Minister Malatsi categorically denied claims that the policy changes were designed to benefit Starlink or were influenced by diplomatic efforts to win favor with Musk or the U.S. government.
“We are not attempting to open a special dispensation for Starlink or any other company or individual,” Malatsi told lawmakers during the parliamentary session. “There is no conspiracy on our part with regard to this policy direction.”
South Africa’s Black Ownership Policy
Under existing South African regulations, foreign-owned companies that seek to operate within the country’s telecommunications sector are required to sell at least 30% of their equity in local subsidiaries to historically disadvantaged South Africans — a key pillar of the government’s Broad-Based Black Economic Empowerment (B-BBEE) strategy.
The rules have drawn criticism from some foreign investors who argue that the ownership threshold presents a barrier to market entry. Among the vocal critics is South African-born billionaire Elon Musk, who has long expressed frustration with the policy, saying he is unable to launch Starlink in his birth country due to the equity ownership requirement.
Musk, who is of White South African descent, has stated publicly that the regulatory hurdles are discriminatory. “I can’t get a licence in South Africa because I’m White,” Musk wrote on social media in early 2024. However, the Department of Communications and Digital Technologies maintains that Starlink has yet to submit a formal application to operate in the country.
Controversial Policy Amendment Sparks Outcry
Tensions were reignited last week when Minister Malatsi published a proposed amendment to the ownership framework. The revised draft policy suggested that companies like Starlink could be allowed to bypass the 30% Black ownership requirement — but only if they made equivalent investments in digital infrastructure, such as expanding broadband access in underserved areas.
The timing of the announcement raised eyebrows, coming just a day after President Ramaphosa’s visit to Washington D.C., where he held a controversial meeting with Donald Trump. The optics of the back-to-back events triggered speculation that the South African government was adjusting its policies to attract U.S. tech investment — and potentially appease Musk.
Critics, including opposition lawmakers and civil society groups, accused the government of backpedaling on its economic transformation agenda and selling out to foreign interests.
Appearing before Parliament to defend the revised policy direction, Malatsi firmly rejected those allegations. He told MPs that the amendment was the result of months of consultations and internal policy review — not political pressure.
“The work on the policy direction started around September of last year,” Malatsi said. “It has absolutely nothing to do with the meeting between President Ramaphosa and President Trump.”
Encouraging Competition, Not Exemptions
Malatsi argued that the proposed changes are not intended to weaken the country’s Black empowerment laws but rather to modernize regulatory frameworks and allow for greater competition in the telecoms sector.
He explained that allowing equity-equivalent investments, rather than enforcing a rigid ownership quota, could open the door to more players, stimulate innovation, and help bridge South Africa’s persistent digital divide.
“The broader goal is to increase participation in the ICT sector and ensure that rural and disadvantaged communities get connected,” Malatsi said.
He added that the proposed alternative compliance option would still be subject to rigorous standards and oversight. “Companies must demonstrate real, impactful investment in infrastructure that benefits South Africans,” the minister emphasized.
30-Day Public Consultation Period
As required by law, the proposed amendments are now open to public consultation. Stakeholders, including civil society groups, telecom operators, and ordinary citizens, have been given a 30-day window to submit their comments and feedback before the final policy is adopted.
“This is a transparent and democratic process,” said Malatsi. “We welcome all views and will carefully consider every submission before finalizing the framework.”
The department has also committed to hosting stakeholder forums in the coming weeks to ensure broad-based engagement and debate around the proposed shift.
Starlink’s Position Remains Unclear
Despite the controversy, Starlink has not officially confirmed whether it intends to apply for a communications licence under the new proposed rules. According to the Department of Communications, no formal application has been received to date.
Industry experts say that while Starlink has expressed interest in expanding into the African market, regulatory hurdles — particularly around equity ownership — have delayed its entry into several countries.
Starlink currently operates in a number of African nations including Nigeria, Rwanda, and Mozambique, offering satellite-based internet connectivity in areas with limited infrastructure. Analysts suggest that if Starlink were to enter South Africa, it could significantly disrupt the local market and improve broadband access in rural areas — a priority for the government.
Balancing Inclusion with Innovation
The debate surrounding Starlink and the Black ownership requirement underscores a broader tension in South Africa’s digital economy: how to attract global tech giants without compromising on social justice and historical redress.
“We must remain committed to economic transformation, but we also need to ensure that policies are adaptable and responsive to technological change,” said Thandi Modise, an ICT analyst based in Johannesburg.
For now, the government maintains that it will not compromise its empowerment principles while seeking digital progress. “Our approach is guided by fairness, competitiveness, and the constitutional imperative of redressing past injustices,” said Malatsi.
As the public weighs in and the deadline for submissions nears, all eyes will be on whether South Africa can strike the right balance between local empowerment and global connectivity.
