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If you follow tech news — or Elon Musk’s social media rants — you might have come across the claim that Starlink can’t operate in South Africa because of “racist laws.” He once said, “Starlink can’t get a license to operate in South Africa simply because I’m not Black. How is that right?” That statement is not only misleading, it’s outright false.
Interestingly, it now seems the company has changed its tune after previously abandoning the pursuit. On 14 June 2025, Starlink sent a letter to Minister Mpho Parks Tau (DTIC) reaffirming its interest in operating in South Africa.
Yes, South Africa has Black Economic Empowerment (BEE) laws, and yes, they require local economic inclusion.
But BEE itself isn’t the problem. In fact, South Africa’s BEE legal framework allows alternatives for foreign tech companies like Equity Equivalent Investment Programmes (EEIPs).
The real blocker?
A mismatch between ICASA’s outdated licensing regulations and the updated BEE policies that most other industries already follow.
The Real Issue: ICASA’s 30% Local Ownership Rule
To operate as a telecoms provider in SA, a company must apply for two licenses from ICASA:
- An I-ECNS (Electronic Communications Network Service)license
- An I-ECS (Electronic Communications Service) license
According to Section 9(2)(b) of the Electronic Communications Act, ICASA requires all license holders to be 30% owned by Historically Disadvantaged Individuals (HDIs) — a rule embedded in ICASA’s Ownership and Control Regulations (2021).
The catch? ICASA does not currently allow Equity Equivalent Programmes (EEIPs) to meet this requirement, unlike most other departments.
Starlink addressed this clearly the letter.
“To be clear, the only reason Starlink is not in South Africa today is because ICASA’s license regulations stipulate that all license holders must be 30% locally owned.”
— Ryan Goodnight, Sr. Director, Starlink Market Access
Starlink, like Amazon or Microsoft, can’t surrender direct equity due to its global satellite architecture. But they’re not opposed to transformation — they propose an EEIP, as allowed by B-BBEE laws and used in other sectors.
What the Law Allows (But ICASA Doesn’t) – The Catch-22
The B-BBEE Act, along with the ICT Sector Code, explicitly allows Equity Equivalent Programmes.
They’re alternatives that let foreign-owned companies invest in local development — without giving up direct shareholding — by funding skills, enterprise development, or social initiatives.
“EEIPs are already accepted and successfully implemented across most economic sectors in South Africa… including Microsoft, IBM, and Amazon.”
— Starlink letter to Minister Parks Tau
But here’s the bottleneck: ICASA never aligned its licensing rules to match theseallowances. The result?
A company can legally comply with transformation law, but still be locked out of operating due to misaligned telecoms regulations.
The Bureaucratic Limbo: Necessary but Slow
To be fair, telecom licensing has national security implications. Internet provision is not just commercial — it’s part of sovereign control.
So yes, it must be regulated tightly, and foreign satellite systems need proper oversight.
But South Africa now faces a bureaucratic contradiction:
- BEE is progressive enough to allow EEIPs.
- ICASA’s regulations are not dynamic enoughto reflect this.
BEE is a good policy, but can be slow to adapt to technological shifts.What’s needed is faster, responsive legislative updating — especially in tech sectors where speed matters.
What Starlink Is Actually Offering
Starlink’s letter outlines a compelling Equity Equivalent proposal:
- 5000 fully-funded rural school Starlink kits
- Annual impact to 2.4 million schoolchildren
- Partnerships with local installers and tech teams
- A solution aligned with SA Connect goals
“We want to help South Africa solve rural broadband access. And we are ready to act immediately if ICASA updates its licensing framework.”
— Starlink letter
Recent Developments: A Path Forward
In May 2025, Minister Solly Malatsi issued a draft policy directive calling on ICASA to amend its rules to accept EEIPs.
If implemented, this change could:
- Unlock Starlink’s legal entry
- Maintain transformation goals
- Expand internet access rapidly