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South Africa Moves to Facilitate Starlink Amid Controversy Over Ownership Rules

The South African government is revising ownership requirements for satellite providers like SpaceX's Starlink, amidst Elon Musk's accusations of racism against local laws.

By John Eligon and Zimasa MatiwaneSource: nytimes.com1 min read
South Africa Moves to Facilitate Starlink Amid Controversy Over Ownership Rules
Image via nytimes.com

In brief

President Cyril Ramaphosa's administration aims to allow Starlink to operate in South Africa by changing Black ownership rules, a move seen as a compromise amidst Musk's criticism of the government's stance.

In a significant development in South Africa, President Cyril Ramaphosa is reportedly pushing for reforms that would enable Elon Musk's Starlink satellite internet service to operate more freely within the country. Elon Musk, the high-profile entrepreneur originally from South Africa, has been vocal in his opposition to local ownership laws that require foreign businesses to allocate a portion of equity to Black stakeholders, a mandate Musk has described as discriminatory. In response to Musk's concerns, Solly Malatsi, the official in charge of telecommunications in South Africa, is in the process of drafting a new directive. This proposed framework would allow satellite internet providers to obtain operational licenses through investments in disadvantaged communities rather than adhering strictly to ownership equity requirements. However, this directive will have to undergo a public consultation with the Independent Communications Authority of South Africa (ICASA) before it can be implemented.Critics of Malatsi's initiative have emerged, claiming that finding an alternative to Black ownership disregards the government's goal of addressing the historical inequalities rooted in apartheid. Some political opponents view this as a capitulation to Musk, who has largely distanced himself from South Africa since his emigration as a teenager.As the situation unfolds, it remains to be seen how these changes will impact not only Starlink but the broader technology landscape in South Africa, as it navigates the tension between foreign investment and historical social justice.

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