During the 2025 Qatar Economic Forum, Elon Musk, CEO of SpaceX, stated that his satellite internet service, Starlink, is not permitted to operate in South Africa “because I’m not black.” The comment, made in a public interview, referred to South Africa’s Black Economic Empowerment (BEE) laws, which impose requirements on foreign companies seeking to operate in the country’s telecommunications sector.
South Africa’s Black Economic Empowerment Laws
The Black Economic Empowerment (BEE) policy, implemented in 2003, aims to address economic inequalities stemming from apartheid. Under BEE regulations, foreign telecommunications companies must allocate 30% ownership to historically disadvantaged groups, primarily black South Africans, to obtain operating licenses from the Independent Communications Authority of South Africa (ICASA). This requirement applies to Starlink, which seeks to provide satellite internet services in South Africa.
Musk’s Statement and Regulatory Context
Musk’s claim at the Qatar Economic Forum highlighted the 30% black ownership rule as the reason Starlink has not been granted a license. ICASA has stated that Starlink has not formally applied for a license. SpaceX, Starlink’s parent company, has submitted comments to ICASA, noting that the ownership requirement poses a challenge for foreign satellite operators.
South African officials, including Clayson Monyela from the foreign affairs department, have responded to Musk’s statement, clarifying that Starlink must comply with BEE regulations, a standard applied to all foreign telecom firms. Over 600 U.S. companies currently operate in South Africa under these rules
JUST IN: 🇺🇸🇿🇦 Elon Musk says Starlink is not allowed to operate in South Africa "because I'm not black." pic.twitter.com/oHEPeBvKL3
— Watcher.Guru (@WatcherGuru) May 20, 2025
Ongoing Discussions
Communications Minister Solly Malatsi has proposed an “equity equivalent” option, which would allow Starlink to meet BEE requirements by investing in initiatives benefiting black communities, such as rural connectivity programs, instead of transferring 30% ownership. As of May 2025, discussions about this proposal continue, with no final agreement reached.
Starlink’s Potential in South Africa
Starlink aims to provide high-speed internet to South Africa, where 75% of the population has internet access, but only 1.7% of rural households are connected. The company operates in 20 other African countries, navigating various local regulations.