Elon Musk’s Starlink wants to beam fast internet across South Africa, but the satellite internet giant is hitting turbulence.
Despite growing local demand and successful launches across Africa—including Nigeria, Mozambique, and Zambia—Starlink still isn’t officially available in South Africa. And that has everything to do with regulations.
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So what’s the holdup?
The short version: South Africa’s telecommunications laws require any foreign-owned network provider to hand over 30% equity to historically disadvantaged groups—yes, that means Black South Africans—under the Broad-Based Black Economic Empowerment (B-BBEE) policy.
Starlink, which is owned by Musk’s SpaceX, doesn’t seem keen to comply. Instead of local equity partners, Starlink prefers to control its rollout directly, selling user kits online and skipping local telco partnerships altogether.
In its official response to the government earlier this year, Starlink suggested that the ownership rule is a barrier to innovation and will ultimately leave South Africans behind in the global digital race.
Government looking at middle ground
South Africa’s new Communications Minister, Solly Malatsi, seems open to a compromise.
Earlier this month, the Department of Communications and Digital Technologies put forward a proposal for “equity equivalence programmes.” Think of it as a regulatory workaround: instead of giving up equity, companies like Starlink could contribute to the economy in other ways—like investing in local infrastructure, supporting SMMEs, or training digital workers.
The proposal is currently open for public comment until mid-June.
It’s a move designed to attract foreign tech investment without abandoning South Africa’s transformation goals. But it’s not without pushback.
Not everyone’s onboard
Some civil society groups aren’t buying it.
Public Interest SA has warned that creating exceptions for big foreign companies could “undermine the country’s hard-won transformation agenda.” Others worry it sets a dangerous precedent where rules only apply to those without billionaire backing.
Still, for many tech watchers and rural communities desperate for reliable internet, Starlink is a lifeline worth fighting for.
Starlink is ready—sort of
Interestingly, Starlink already set up a legal entity in the country—Starlink South Africa (Pty) Ltd—but as of late May 2025, it hasn’t applied for an operating licence with the Independent Communications Authority of South Africa (ICASA).
In the meantime, some South Africans have turned to creative workarounds, ordering kits via neighbouring countries and using roaming services. But that’s hardly scalable—or legal in the long run.
What happens next?
If the equity equivalence policy moves forward and gains Cabinet support, Starlink could finally get the greenlight. If not, it may remain grounded.
For now, the country’s internet future is stuck in regulatory limbo—caught between the promise of high-speed satellite access and the politics of transformation.
