Elon Musk has been vocal about his frustrations with South Africa, his country of birth, especially when it comes to policies like Black Economic Empowerment (BEE).
Musk has repeatedly criticized what he calls “racist laws” and has claimed that these regulations, particularly BEE, have hindered his satellite internet company, Starlink, from operating in South Africa.
However, new information has emerged that paints a different picture of the situation, suggesting that Starlink never actually applied for the necessary license to operate in the country.
Starlink Didn’t Apply for a License
Despite Musk’s comments, the Independent Communications Authority of South Africa (ICASA) has confirmed that Starlink did not submit an application for a license to provide internet services.
This contradicts Musk’s statements, which implied that BEE policies were to blame for the company’s inability to launch in South Africa.
ICASA Chairperson, Mothibi Ramusi, clarified this week that Starlink has not yet applied for a license, and the company’s failure to do so is not due to any external barriers, such as BEE.
Ramusi further explained that the licensing process is straightforward and requires all service providers to meet specific conditions, including the BEE requirement.
“It’s a policy, and our licensing process is fairly clear,” Ramusi told ITVWeb.
“If Starlink decides to go through other partners, those partners must also have a license.”
Warnings About Illegal Starlink Services in South Africa
ICASA has also issued a warning to South Africans, advising them to be cautious of any illegal satellite internet services being offered through Starlink terminals in the country.
Some entities have been distributing Starlink products without the necessary licenses, which is against the law.
In response to the BEE concerns, SpaceX had previously argued that South Africa’s BEE requirement would deter foreign investors, citing that many global companies have policies that prevent local shareholding.
Late last year, the company even submitted a written request to ICASA, asking them to reconsider the country’s BEE laws in relation to foreign satellite services.
Similar Licensing Issues in Lesotho
South Africa is not the only country where Musk’s Starlink has faced licensing challenges.
Lesotho, a neighboring landlocked country, has also objected to SpaceX’s satellite services due to a lack of local ownership.
Lesotho’s equivalent of ICASA, known as Section 2, has requested that Starlink make 30% of its equity in the country available to the local Basotho people before it can issue a license.
Similar to South Africa’s BEE policies, Lesotho requires a level of local shareholding to ensure that foreign companies contribute to the country’s economy.
“While Section 2 recognizes the potential benefits of expanded internet access, we respectfully oppose the issuance of this license to Starlink due to the complete absence of local ownership in the company,” said a statement from Lesotho’s government.
What’s Next for Starlink in South Africa and Beyond?
The ongoing licensing hurdles in both South Africa and Lesotho highlight the challenges Starlink faces in expanding its services across the African continent.
While Musk’s frustration is understandable, the legal and regulatory requirements in these countries are clear, and it seems that the company will need to navigate these policies if it wants to make its satellite internet services available in the region.