Business

Black Business Council Pushes Back on BEE Law Exemption for Elon Musk’s Starlink

Published

4 months ago

May 21, 2025

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As talks swirl around Elon Musk’s satellite internet venture, Starlink, entering South Africa, the Black Business Council (BBC) has made its stance crystal clear: transformation laws are not up for negotiation.

Kganki Matabane, CEO of the Black Business Council, cautioned against suggestions that the government might bend Broad-Based Black Economic Empowerment (B-BBEE) regulations to accommodate Starlink. This comes amid speculation that South Africa could tweak its laws to secure Starlink’s entry—allegedly to maintain favourable diplomatic and commercial ties with the US and Musk himself.

But Matabane isn’t buying the narrative that Musk’s company has been blocked from operating because of his race. Instead, he points to something far simpler: non-compliance with local laws.

“Elon Musk knows he’s not telling the truth. The issue isn’t about his race—it’s about not wanting to follow the rules every other company abides by,” Matabane said in an interview with Newzroom Afrika.

Starlink has not yet been granted an operating licence in South Africa, and Musk has publicly blamed the country’s affirmative action policies, claiming he was sidelined because he’s not black. But industry insiders and policy advocates say this is a misrepresentation.

Transformation Isn’t Optional

Matabane stressed that laws built to address historical inequality should not be casually rewritten to suit high-profile businesspeople or multinational companies. Doing so, he warned, could unravel South Africa’s efforts to build a fair and inclusive economy.

“You cannot change legislation to benefit an individual. We are a constitutional democracy. If we allow one company to bypass the law, we’d have to allow everyone else too,” he said.

Instead of rewriting rules, Matabane encouraged companies like Starlink to explore the equity equivalent programmes already in place—mechanisms that allow foreign businesses to meet transformation requirements without direct ownership transfers.

“Several ICT firms have qualified for equity equivalents in the past. If Musk’s company qualifies, that’s fair. But we cannot start making Musk-specific exceptions,” he added.

What’s at Stake?

The conversation around Starlink taps into broader tensions in South Africa’s economic landscape—how to balance global investment with local development goals. As internet connectivity becomes essential for economic growth, the potential of Starlink is undeniable. However, critics say that bending the rules could send the wrong message about the country’s commitment to inclusive growth.

The government has not yet formally announced whether it will make adjustments to accommodate Starlink, but the BBC’s position adds pressure on policymakers to ensure any deal respects South Africa’s existing regulatory framework.

For now, the message from the Black Business Council is loud and clear: transformation is not a favour—it’s a national priority.