Elon Musk’s Starlink plans South Africa launch despite regulatory hurdles

Timilehin Adejumobi -
Key Points
  • Starlink, led by Elon Musk, is negotiating with South Africa to launch its high-speed satellite Internet service.
  • South Africa’s Black Economic Empowerment policies may complicate Starlink's launch, with regulatory approval still pending.
  • Starlink has expanded to 16 African countries, recently launching in Zimbabwe and partnering with United Airlines for inflight Wi-Fi.

Starlink, the satellite internet service owned by Elon Musk’s SpaceX, is in advanced talks with the South African government to bring its high-speed satellite service to Africa’s most industrialized economy.

South African President Cyril Ramaphosa confirmed the discussions, underscoring the potential for deeper collaboration with the U.S. billionaire, who has strong ties to South Africa, his country of birth.

Speaking at a press briefing in Pretoria, Ramaphosa expressed optimism about the deal. “I’ve told Elon, with his success and global investments, that we would like him to bring some of that success home,” the president said. He added that Musk has shown interest in the proposition, with further talks expected in the coming months.

Ownership hurdles in South Africa

The regulatory landscape in South Africa could pose challenges for Starlink’s entry. In a social media post on Sunday, Musk confirmed via X (formerly Twitter) that the company is “waiting for regulatory approval” to launch in the country.

While the technical capabilities of Starlink have been widely praised, its potential entry into South Africa faces hurdles related to the country's Black Economic Empowerment (BEE) policies.

The regulations, aimed at addressing historical inequalities by promoting Black ownership in industries, require compliance for foreign companies with interests in the country. Starlink’s launch hinges on negotiations that may lead to alternative models of ownership or compliance.

Starlink’s presence in Africa has grown significantly since its first foray into the continent in 2022. The satellite-based internet provider has built a constellation of nearly 6,000 satellites, with more than 5,200 of them operational. This network serves more than 3 million subscribers in 100 countries and territories, including several African nations.

In June 2023, Starlink launched in Sierra Leone, marking the company’s 100th country and signaling its continued commitment to expanding internet access in remote and underserved areas. Just last month, Starlink extended its service to Zimbabwe, making it the 16th African nation to join the Starlink network.

Broader global strategy

Despite its rapid expansion, Starlink has yet to break into several major markets due to regulatory hurdles. Taiwan is one such country where ownership laws have delayed entry, while South Africa now presents a similar challenge.

Musk, who remains the world’s wealthiest person with a net worth of $248 billion according to the Bloomberg Billionaires Index, is pushing to broaden Starlink’s reach.

The company’s ambitions are not limited to ground-based services. Recently, Starlink signed a deal with United Airlines Holdings to provide satellite-based inflight Wi-Fi, marking its first major partnership with a U.S. airline. This agreement is seen as part of Musk’s larger goal of turning Starlink into a global provider of reliable and high-speed internet services.