PRETORIA, South Africa – South African officials are preparing to propose a temporary exemption from Black Economic Empowerment (BEE) ownership rules for Elon Musk’s Starlink satellite internet service, according to government sources familiar with the matter.
The proposal aims to fast-track Starlink’s entry into the South African market while a permanent BEE-compliant ownership structure is developed. This development comes amid growing pressure to improve internet connectivity across the country’s rural regions.
South Africa’s Minister of Communications and Digital Technologies Solly Malatsi confirmed the discussions. “We are exploring regulatory pathways that balance our commitment to economic transformation with the urgent need for advanced connectivity solutions,” Malatsi said in a statement released Tuesday.
Starlink, which provides high-speed internet via a constellation of low-Earth orbit satellites, has faced regulatory hurdles in South Africa since 2022. Current regulations require foreign telecommunications operators to have 30% ownership by historically disadvantaged South Africans.
Musk, who was born in Pretoria before emigrating to North America, has previously expressed frustration with the regulatory environment. “We’re ready to deploy services tomorrow if given regulatory approval,” a Starlink spokesperson told Reuters.
The Independent Communications Authority of South Africa (ICASA) would need to approve any exemption. ICASA chairperson Dr. Keabetswe Modimoeng emphasized that any solution must comply with broader policy objectives.
“While we recognize the potential benefits of satellite internet technology, we must ensure that all market entrants contribute meaningfully to South Africa’s economic transformation agenda,” Modimoeng said.
Industry analysts suggest the temporary exemption could last 24-36 months, during which Starlink would be required to develop a localization plan. This follows similar approaches taken in other African nations including Nigeria and Mozambique, where Starlink has launched operations.
Internet access remains a critical development issue in South Africa, with only 68% of the population connected according to the latest government statistics. Rural connectivity lags significantly behind urban areas.
“This proposed compromise reflects a pragmatic approach to balancing transformation goals with the urgent need for technological advancement,” said Dr. Nomsa Khumalo, telecommunications policy expert at the University of Cape Town.
The Department of Communications and Digital Technologies has scheduled a public consultation for June 15, 2025 (10:00 local time, 08:00 GMT) to discuss the proposed regulatory framework.
If approved, Starlink could begin operations in South Africa by September 2025, potentially transforming internet access for millions of underserved citizens.
