The conflict between Elon Musk, the head of Starlink, and South Africa regarding the company’s inability to launch services in the country is rooted in the nation’s black empowerment laws. This issue may also contribute to the ongoing diplomatic tensions between the United States and Africa’s most industrialized nation.
In a racially charged statement to his over 219 million followers on the social media platform X, Musk claimed that his satellite internet service was “not allowed to operate in South Africa simply because I’m not black.”
However, the Independent Communications Authority of South Africa (Icasa), which oversees telecommunications and broadcasting, informed the BBC that Starlink has never submitted a license application.
The South African foreign ministry clarified that the company is welcome to operate in the country as long as it complies with local regulations.
To function in South Africa, Starlink must secure network and service licenses, both of which mandate that 30% of ownership be held by historically disadvantaged groups. This primarily pertains to the majority black population, which was excluded from economic participation during the apartheid regime.
The end of white-minority rule occurred in 1994 when Nelson Mandela and the African National Congress (ANC) assumed power. Since then, the ANC has prioritized “black empowerment” as a key element of its economic strategy to address past racial injustices.
This has led to the implementation of laws requiring investors to allocate a 30% stake in their businesses to local black firms in South Africa.
Musk, who was born in South Africa in 1971 before relocating to Canada in the late 1980s and then to the United States, where he became the world’s wealthiest individual, seems to view these regulations as the primary barrier preventing Starlink from operating in the country.
Starlink, in a formal statement to Icasa, indicated that the black empowerment regulations in South Africa’s legislation effectively barred “many” foreign satellite operators from entering the market, as reported by the local news outlet TechCentral.
However, Clayson Monyela, a spokesperson for the foreign ministry, countered this perspective in March, asserting on X that over 600 American companies, including tech giant Microsoft, are successfully operating in South Africa while adhering to its laws.
Elon Musk’s Starlink may find support from South Africa’s Communications Minister, Solly Malatsi, who is affiliated with the Democratic Alliance (DA). The DA, the second-largest political party in the country, entered a coalition government after the ANC was unable to secure a parliamentary majority in the previous election.
The DA has been a vocal opponent of the existing black empowerment laws, arguing that they have led to cronyism and corruption, as investors are compelled to partner with companies linked to the ANC to conduct business in South Africa or secure government contracts.
Musk, who is associated with former President Trump’s inner circle, has criticized what he terms “racist ownership laws” in South Africa on X. Meanwhile, Trump has threatened to boycott the upcoming G20 summit in South Africa, citing concerns over land confiscation and violence against white farmers.
“How can we be expected to attend the crucial G20 Meeting in South Africa when the main topic is Land Confiscation and Genocide? They are seizing the land of white farmers and killing them and their families,” Trump stated on his social media platform, Truth Social.
His allegations of genocide against white farmers have been largely dismissed as unfounded, yet they resonate with Musk’s sentiments. Last month, Musk accused a prominent political party in South Africa—implicitly referring to the radical Economic Freedom Fighters (EFF), which gained traction in the last election—of “actively promoting white genocide.”
A month ago, Mr. Musk stated that the South African government enacted legislation permitting the expropriation of property from white individuals without compensation.
“Where is the public outcry? Why isn’t the mainstream media reporting on this?” he questioned.
Earlier this year, South Africa did indeed introduce a law that allows for the government to confiscate property without compensation, but this applies only in specific circumstances.
Despite this, Musk connects these developments to his inability to secure a license for Starlink. “Starlink is unable to obtain a license to operate in South Africa solely because I am not black,” he remarked in March.
