Elon Musk’s Starlink telecommunications venture will not receive special permission from South Africa to circumvent the nation’s Black ownership regulations, stated Communications Minister Solly Malatsi on Tuesday.
Malatsi had to refute claims that he was diluting policies regarding foreign-owned enterprises to gain favor with Musk and US President Donald Trump.
South Africa mandates that foreign firms holding communications licenses must divest 30 percent of their equity in local subsidiaries to historically disadvantaged groups.
This requirement has faced significant backlash from Starlink, and last week, just a day after President Cyril Ramaphosa’s controversial meeting with Trump at the White House, Malatsi announced modifications to the policy:
Telecommunications companies, including Starlink, would be permitted to bypass the 30 percent stipulation if they could demonstrate equivalent equity investments in broadband and other digital infrastructure.
On Tuesday, Malatsi appeared before Parliament in Cape Town to justify the decision and dismissed claims that it was specifically tailored for Starlink.
Lawmakers raised concerns about whether the new directives were genuinely facilitating opportunities for foreign entities or undermining the government’s economic empowerment initiatives by accommodating Starlink.
Malatsi asserted that the revisions would enable more new operators to enter the market, fostering competition, and had no connection to Ramaphosa’s recent discussions with Trump.
“We are not seeking to create a special exemption for Starlink, any other company, or any individual,” Malatsi informed lawmakers, noting that the development of the policy direction began around September and was not influenced by the recent meeting between Trump and Ramaphosa.
“There is no conspiracy on our part regarding this policy direction,” the minister stated.
Stakeholders, industry participants, and the public have been allotted 30 days to submit their feedback and comments before the framework is finalized.
Musk, who was born in South Africa, has consistently criticized the Black ownership laws, claiming that he is unable to obtain a license in the country due to his race. However, South African officials assert that Starlink has not submitted a formal application.
