Musk vs South Africa: Starlink Standoff Sparks Racial, Legal and Diplomatic Fallout

A fiery war of words has erupted between billionaire Elon Musk and the South African government over Starlink’s absence from the country’s digital landscape. At the heart of the dispute is South Africa’s Black Economic Empowerment (BEE) legislation, which Musk claims is racially discriminatory.

Posting to his 219 million followers on X (formerly Twitter), Musk asserted that Starlink is “not allowed to operate in South Africa simply because I’m not black.” The comment has reignited debate about the country’s transformation laws and strained relations between Pretoria and Washington, especially as tensions grow during Donald Trump’s second presidential term.

However, South Africa’s communications regulator, the Independent Communications Authority of South Africa (Icasa), has refuted Musk’s claims, stating that Starlink has never applied for a licence. According to South African law, any telecom service provider must have at least 30% ownership by historically disadvantaged groups, a policy rooted in post-apartheid efforts to address decades of racial exclusion.

A Policy Wall – or a Missed Opportunity?

The licensing issue places Starlink in a tough spot. As a foreign entity, the company is reluctant to give up equity stakes to meet BEE requirements. In a submission to Icasa, Starlink argued that these ownership laws deter many foreign satellite operators from entering the market.

Yet, more than 600 US companies, including Microsoft, currently operate in South Africa under these same laws. The foreign ministry emphasized this in a statement, making clear that Starlink is welcome—as long as it plays by the rules.

Communications Minister Solly Malatsi, from the Democratic Alliance (DA), has hinted at the possibility of equity-equivalent investments as an alternative compliance route. This could allow Starlink to invest in socio-economic programs instead of giving up equity. However, six months later, no policy shift has been announced, and Malatsi faces political resistance from ANC lawmakers.

The Broader Picture: US-Africa Relations on Ice

Starlink’s licensing limbo is just one piece of a much larger diplomatic puzzle. Relations between South Africa and the US have cooled under Trump, who recently threatened to boycott the G20 summit in Johannesburg over claims of “land confiscation and genocide” targeting white farmers. These claims, echoed by Musk, have been widely dismissed by analysts and human rights organizations.

Musk has also accused South Africa’s left-wing EFF party of “actively promoting white genocide,” adding fuel to an already volatile situation. These remarks come despite Musk previously meeting President Cyril Ramaphosa in New York to discuss potential investment.

At the time, Ramaphosa described their interaction as positive, saying: “Meeting Elon Musk was a clear intention of mine… Some call it bromance.” But since then, the relationship appears to have soured significantly.

Starlink’s Africa Push: Success Elsewhere, Deadlock in SA

While Starlink is making significant headway in Africa—with licenses in over 20 countries, including Nigeria, Somalia, and Lesotho—South Africa remains off the map.

Lesotho’s recent decision to grant Starlink a 10-year licence has drawn criticism from civil society for lack of local ownership. Meanwhile, Namibia is still reviewing whether to exempt Starlink from its 51% local ownership requirement.

Back in South Africa, Starlink previously operated unofficially through roaming subscriptions from other African countries. That loophole was closed last year after Icasa cracked down, warning that local distributors could face steep fines.

This is despite the fact that roughly 20% of South Africans lack internet access, particularly in rural areas. Starlink could potentially fill that gap, helping the country meet its goal of universal internet access by 2030.

Is a Compromise Possible?

With Starlink holding out for legal exemptions and the South African government standing firm on transformation laws, a solution appears distant. Yet both sides have strong incentives to reach one.

For Starlink, South Africa represents a lucrative untapped market. For the government, expanding rural connectivity through satellite broadband could support national development goals.

President Ramaphosa recently appointed Mcebisi Jonas—former deputy finance minister—as a special envoy to the US, signaling efforts to repair bilateral ties. But Jonas’ past criticisms of Trump have stirred backlash among right-wing factions, complicating his mission.

As political rhetoric escalates, the bigger question remains: can South Africa and one of its most famous sons find common ground in a digital age shaped by equity, regulation, and power?

{Source: BBC}

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