Elon Musk might be heading back to his roots—not physically, but through a massive business move.
His satellite internet company, Starlink, is reportedly planning to invest a whopping R2 billion into South Africa.
This comes despite ongoing legal and policy hurdles that have kept the company from launching there so far.
A Strategic Entry into the African Market
According to reports, the planned investment wouldn’t just benefit South Africa.
It’s also aimed at building infrastructure to serve the entire Southern African Development Community (SADC)—a regional bloc made up of 16 countries.
Starlink clearly has its sights set on broader digital coverage in the region.
Rather than giving up equity—which is one of the sticking points of South Africa’s Black Economic Empowerment (BEE) rules—Starlink is proposing a different approach.
Skirting the BEE Rulebook?
In what’s being seen as a clever workaround, Starlink plans to contract local South African businesses to handle things like land leasing, fibre installation, electricity supply, security, and general maintenance.
That way, they can still inject money into the local economy—without handing over a stake in the company.
This approach could allow Starlink to sidestep South Africa’s current empowerment requirements, which generally demand that foreign tech firms partner with Black South African shareholders to obtain licenses.
Musk Pushes Back on BEE Requirements
Elon Musk hasn’t kept quiet about his views.
The South Africa-born billionaire has called BEE laws “openly racist,” saying he won’t give up any equity in Starlink just to enter the market.
His strong stance has put added pressure on South African lawmakers to consider alternatives.
Government May Be Open to Compromise
In response, Communications and Digital Technologies Minister Solly Malatsi has hinted at possible policy adjustments.
His department has floated new ideas for satellite providers, such as investing in Black-owned businesses and local infrastructure as alternative ways to meet empowerment goals—without demanding equity.
Malatsi emphasized the need for “tangible investment” that can uplift disadvantaged communities across the country.
The message is clear: South Africa is open to new ideas, as long as the benefits are felt locally.
ICASA Holds the Final Say
While the Department of Communications can influence the criteria, the final decision about whether Starlink gets a green light lies with ICASA, South Africa’s communications regulator.
All eyes are now on how ICASA will respond to Starlink’s proposal.
Racing Against the G20 Deadline
Starlink is reportedly hoping to seal a deal before the G20 Summit takes place in Johannesburg this November.
It would be a major symbolic moment—Musk returning to his birth country with a potentially transformative tech project in hand.
If things go according to plan, Starlink’s arrival could mean massive improvements in internet access, particularly in rural and underserved areas that currently struggle with reliable connectivity.
A Game-Changer for the Region?
For South Africans—especially those in more remote areas—this could be a big step forward.
Reliable, high-speed satellite internet could open up education, healthcare, and economic opportunities like never before.