Starlink Deadlock: South Africa Extends Olive Branch to Elon Musk
Officials say Starlink can help expand connectivity, but the company must still meet South Africa’s 30% ownership rule or win a legal change.
- On Monday, Deputy Communications and Digital Technologies Minister Mondli Gungubele urged Pretoria-born billionaire Elon Musk to launch Starlink in South Africa, insisting the satellite service must comply with national laws requiring 30% local equity ownership.
- South Africa's Electronic Communications Act mandates that telecommunications licence holders maintain at least 30% ownership by historically disadvantaged groups; Musk has previously rejected these terms, labelling the empowerment laws "openly racist" and alleging bribe attempts.
- Gungubele argued at a Bloomberg-hosted event that Starlink could capture 70% of potential yields, suggesting the 30% equity requirement is manageable, while emphasizing that developing nations must build local capabilities to avoid dependence on foreign technology.
- Writing in an op-ed on Tuesday, United States Ambassador to South Africa Leo Brent Bozell urged Pretoria to allow American firms to participate in Equity Equivalent Investment Programmes to attract investment, as official discussions with Starlink continue.
- While Starlink remains stalled, Amazon successfully complied with equity rules by partnering with local provider Herotel. Government officials hope for a resolution, encouraging Musk to invest in the country of his birth despite the regulatory standoff.
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African Insider‘What is 30%?’: South Africa presses Elon Musk over Starlink
South Africa has renewed its call for Elon Musk’s Starlink to enter the local market, with Deputy Communications and Digital Technologies Minister Mondli Gungubele urging the billionaire to work with government on the country’s ownership requirements. Speaking at Bloomberg’s Africa Business Media Innovators gathering in Hermanus on Monday, Gungubele appealed directly to Musk to reconsider his position on South Africa’s regulations. ‘Can you get …
Billionaire Elon Musk gets another opening for Starlink in South Africa amid 30% ownership hurdle
South Africa is making another push to bring Elon Musk’s Starlink into its market, with the government arguing that the satellite internet service could help expand connectivity while still insisting that foreign operators support the country’s economic-transformation objectives.
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