Elon Musk and South Africa Clash Over Starlink and Black Empowerment Laws
A heated dispute has emerged between Elon Musk, CEO of Starlink, and the South African government, following Musk’s claims that his satellite internet service was barred due to the country’s racial laws. The conflict revolves around South Africa’s black empowerment policies, potentially straining diplomatic relations between the United States and South Africa.
Musk, who has a massive following on social media, caused a stir when he stated that Starlink was “not allowed to operate in South Africa simply because I’m not black.” However, the South African government has rejected this accusation.
According to the Independent Communications Authority of South Africa (Icasa), Starlink has yet to apply for a license to operate. The South African Foreign Ministry also clarified that Starlink could run its service if it meets the country’s legal requirements, including those related to black empowerment.
South Africa’s black empowerment laws, introduced after the end of apartheid in 1994, require that foreign companies include 30% ownership by historically disadvantaged groups, particularly the black population, as part of efforts to reduce racial economic inequality.
Musk has singled out these laws as the primary barrier to Starlink’s operations, claiming that they exclude many foreign businesses. However, the Foreign Ministry pointed out that over 600 US companies, including tech giants like Microsoft, have successfully operated in South Africa while complying with these regulations.
To ease the situation, Communications Minister Solly Malatsi suggested finding alternatives to the 30% ownership rule, potentially allowing Starlink to bypass the requirement. Yet, political resistance within the ruling African National Congress (ANC) has hindered progress.
Khusela Diko, chairperson of the parliamentary communications committee, reinforced the ANC’s commitment to transformation in the tech sector, stating that modifying the laws is not negotiable.
This issue adds to existing tensions between the US and South Africa, fueled by Musk’s vocal criticism of the country’s policies. Former US President Donald Trump has also contributed to the discord by accusing South Africa of persecuting white farmers, a claim that has been widely rejected. Musk has linked these allegations to his struggle with Starlink.
Although Musk met with South African President Cyril Ramaphosa in 2023 to discuss potential investments, relations have since soured. Musk now aligns himself with South Africa’s right-wing groups, including the Democratic Alliance (DA), which oppose the black empowerment laws.
Starlink has faced similar challenges in other African nations. Lesotho recently granted the company a 10-year operating license, following pressure from the US, and Namibia is considering exceptions to its local ownership laws. Despite these hurdles, Starlink has made notable progress in over 20 African countries, including Nigeria and Somalia.
In South Africa, where 20% of the population lacks internet access, the benefits of Starlink’s satellite service are significant. A resolution between Musk and the government could help bridge the digital divide, aligning with the country’s goal of providing universal internet access by 2030.
In response to the ongoing tensions, President Ramaphosa has appointed Mcebisi Jonas as his special envoy to the US. However, resolving the impasse over Starlink presents a complex challenge, with the potential for continued political and economic fallout.
