Elon Musk Slams SA’s B-BBEE as ‘Extremely Racist’ as Starlink Licence Stalls

The world’s richest man and business magnate, Elon Musk , who was born in South Africa, continues to target and criticise the country’s transformative policies, particularly the Broad-Based Black Economic Empowerment (B-BBEE) , which he has labelled as “extremely racist.”

This comes after he alleged that his satellite internet service, Starlink , was denied a licence to operate in South Africa because he is not Black, even though he was born in the country.

He described the regulations as “extremely racist” and a “shameful disgrace” to Nelson Mandela’s legacy, calling for sanctions to be imposed on politicians who are protecting the B-BBEE laws.

The Starlink Licence Delay

For years, Starlink was unable to obtain an operating licence from the Independent Communications Authority of South Africa (ICASA) due to the Electronic Communications Act, which is part of the B-BBEE laws requiring 30% equity ownership by historically disadvantaged individuals.

Although Musk has previously discussed entering the market, ICASA confirmed in March 2025 that Starlink had not officially applied for the necessary licences, despite complaining about the regulations.

Musk alleged that his company was repeatedly offered opportunities to “bribe” its way to a licence by misrepresenting its ownership to bypass race-based requirements, which he refused on principle.

“Racism should not be rewarded, no matter to which race it is applied. Shame on the racist politicians in South Africa. They should be shown no respect whatsoever anywhere in the world and shunned for being unashamedly racist.”

The Call for Sanctions

Musk said all South African politicians who “push their viciously racist laws” should be sanctioned, barred from travel, declared criminals, and have their international assets seized.

This comes after AfriForum last month called on the US to impose targeted sanctions on ANC Secretary-General Fikile Mbalula , following threats from the US government to sanction South African officials.

The Trump Administration Context

Musk is also the former senior advisor to US President Donald Trump . After returning to office in January 2025, Trump and his administration moved to review US-South Africa relations and threatened sanctions against ANC leaders.

The proposed US-South Africa Bilateral Relations Review Act of 2025 aimed to identify leaders involved in corruption or human rights abuses for sanctions under the Global Magnitsky Act.

Alongside individual sanction threats, the Trump administration imposed 30% tariffs on South African goods.

The ANC’s Response

During a media briefing following an ANC National Executive Committee (NEC) meeting in August 2025, Mbalula stated that ANC leaders are prepared to face sanctions from the US rather than abandon sovereign policy goals, particularly regarding economic transformation and B-BBEE laws.

The DIRCO Exchange

Musk engaged in a heated public exchange on X with Clayson Monyela , the Deputy Director-General at DIRCO, after Monyela challenged his honesty, stating that the licensing delay has nothing to do with skin colour.

Monyela highlighted that over 600 US companies , including giants like Microsoft, are currently “complying and thriving” in South Africa under the same legal framework.

Analysts’ Views

Political analyst Sandile Swana said this was an agenda of “Make America Great Again” to abolish diversity, inclusivity, and equality, or affirmative action in every country that the US has influence.

“He is pursuing an agenda of wanting to change the laws of South Africa.”

Another political analyst, Ntsikelelo Breakfast , said this shows Musk’s lack of historical appreciation.

“South Africa is a product of history. We have these contradictions regarding social relations in terms of who owns what. These legislations (B-BBEE) are meant to bridge the gap.”

The International Relations Expert

Professor Andre Thomashausen argues that South Africa’s localisation laws are unique and problematic because they are specifically tied to race.

“In South Africa, localisation requirements can only be complied with if the enforced local partner is ‘black’ and, in too many cases, somebody who has been chosen or endorsed by the ANC. This reality offends fundamental equality rights and has dropped South African foreign direct investment levels to the lowest levels in Africa.”

The Bottom Line

Elon Musk says B-BBEE is “extremely racist.” He wants sanctions on politicians who protect it. He says Starlink was denied a licence because he is not Black.

The ANC says it will not abandon transformation. DIRCO says 600 US companies are thriving under the same rules.

The debate is fierce. The stakes are high. And Starlink is still not licensed.

{Source: IOL}

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