Public Interest SA, a non-profit organisation, has called on the South African government to maintain its transformation policies as it considers the launch of Elon Musk’s Starlink low-Earth orbit (LEO) satellite internet service in the country.
Despite the anticipation for Starlink’s satellite internet in South Africa, the service is currently available in neighbouring countries like Botswana, Mozambique, Nigeria, and Zambia, raising questions about its delayed introduction in South Africa. Starlink, a satellite internet constellation created by Musk’s SpaceX, has been operational since 2019 and provides coverage to over 60 countries. In South Africa, however, residents have been awaiting the service since 2021, with the company’s coverage map indicating an “unknown” availability date.
There was some optimism around the launch after President Cyril Ramaphosa met with Musk in New York last year. However, the Independent Communications Authority of South Africa (ICASA) recently stated that it has not yet received a formal application from Starlink to operate within the country. In December, ICASA announced it would unveil its licensing framework for satellite internet services by 2025.
Tebogo Khaas, chairman of Public Interest SA, highlighted that Starlink’s delayed entry is largely due to its reluctance to comply with South Africa’s regulatory requirement for major players, including multinationals, to allocate at least 30% equity for black ownership. Khaas remarked on the double standard when global corporations push back against such regulations in South Africa while similar protective measures are enforced in the US.
He noted that while the US champions its national interests, South Africa’s transformation agenda often faces scepticism from international firms. “If the US government can defend its policies to protect national interests, why should South Africa compromise its transformation objectives for the sake of a billionaire tech mogul?” Khaas said.
He further defended broad-based black economic empowerment (B-BBEE) as a vital component of South Africa’s socio-economic reform, designed to rectify decades of racial and economic injustices. Khaas emphasised that allowing Starlink or any other company to bypass these policies would sabotage the goals of B-BBEE and risk setting a dangerous precedent in various industries.
Khaas also challenged the notion that B-BBEE hinders business growth, arguing that it overlooks the successes enjoyed by companies adopting transformation. He believes that instead of seeking exemptions, corporations like Starlink should strive to incorporate black ownership into their business models—this would comply with South African laws and build goodwill within the local community, which is crucial for long-term success.
He urged ICASA to uphold its regulatory standards, insisting that the authority’s role extends beyond simply approving foreign investments; it must ensure that businesses operate within the framework of national policy and the public interest. Offering Starlink an exception would risk undermining the integrity of these regulatory systems and could lead to similar expectations from other multinational companies.
While recognising the importance of attracting foreign investments, Khaas stressed that such efforts should not come at the expense of South Africa’s sovereignty, fairness, or inclusivity. Economic growth must involve the equitable participation of all citizens rather than just capital influx.
Khaas acknowledged that Starlink presents a significant opportunity to address South Africa’s digital divide, especially in underserved rural communities. However, he firmly stated that this opportunity must not come at the cost of diluting the hard-won progress of transformation, conveying a clear message to Musk and other international firms about the importance of respecting local policies and priorities.
