South Africa MPs Resist Starlink Entry Over Equity Rules

A parliamentary clash is unfolding in South Africa over a proposal that could pave the way for Elon Musk’s Starlink to enter the country without complying with Black ownership requirements—an issue now at the heart of a wider debate over economic equity, national sovereignty, and the influence of global tech giants.

On Tuesday, Members of Parliament from across the political spectrum challenged Communications Minister Solly Malatsi’s directive proposing alternative compliance mechanisms to the country’s strict Black Economic Empowerment (BEE) rules.

Malatsi, a member of the Democratic Alliance (DA), suggested allowing foreign firms to either meet traditional Black ownership criteria or implement an “equity equivalent” scheme.

 

The move comes just days after President Cyril Ramaphosa met with former U.S. President Donald Trump in Washington, where Musk—born in Pretoria and a vocal critic of South Africa’s race-based laws—was also present. The timing has raised suspicions that the policy shift may have been externally influenced.

“We are not going to accept a situation where our laws are going to be rewritten in Washington,” declared Sixolisa Gcilishe of the Economic Freedom Fighters, voicing concerns over sovereignty and economic self-determination.

The African National Congress (ANC), the senior partner in South Africa’s new coalition government, also criticised the proposal. “This is leaving an opportunity for international players to come through the back door,” said ANC MP Tshehofatso Chauke. “It favours big business rather than the interests of South Africans and those who are previously disadvantaged.”

The Electronic Communications Act currently governs licensing in South Africa’s telecoms sector, and lawmakers are divided on whether Malatsi’s directive can stand without formal amendments to existing legislation. Some have called for a legal review to determine its constitutionality.

Malatsi defended the plan, arguing it fills a regulatory gap and provides flexibility for attracting investment and innovation, especially in underserved areas. Starlink’s satellite-based internet service, for instance, could transform digital access in rural communities, where only 1.7% of households have internet connectivity.

While MTN Group has begun trial partnerships with Starlink in other African markets, it remains cautious at home. The telecoms giant said it would study the directive and submit feedback within the 30-day consultation window.

The broader debate, however, touches on the country’s painful apartheid legacy and ongoing economic imbalances. President Ramaphosa, speaking in Parliament, fiercely defended BEE policies, saying they are essential to transforming a society still dominated by economic exclusion.

“I find it very worrying that we continue to have this notion that broad-based Black economic empowerment is holding the economy back,” Ramaphosa said. He cited international studies showing that a privileged minority still controls most of the nation’s wealth.

“What do you want to see happening? Do you want to see Black people continuing to play the role of labourers, drawers of water, hewers of wood and consumers only?” he asked. “Black people must play a productive role as well and should be able to become rich.”

Ramaphosa, who became one of the wealthiest Black businessmen under BEE initiatives, is seen by critics and supporters alike as a living example of the policy’s potential impact—though detractors like Musk argue it perpetuates reverse discrimination.

For now, the future of Starlink in South Africa remains uncertain. The outcome of this legal and political debate could set a precedent not just for the country’s tech sector, but for how South Africa balances global investment with its pursuit of social justice.