Amid rising diplomatic tensions, South Africa's government is reportedly seeking a controversial workaround to Black Economic Empowerment laws to facilitate Elon Musk's Starlink launch
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As diplomatic tensions simmer between the United States and South Africa, South African government is reportedly exploring a workaround to Black Economic Empowerment (BEE) laws to pave the way for Elon Musk’s Starlink to launch in the country.
According to Bloomberg sources familiar with the matter, the South African government is preparing to offer Musk a tailored solution that circumvents existing BEE requirements—rules which Musk has publicly slammed as "racist and improper."
It is believed that this would happen during a late-night meeting between South African officials and representatives from Starlink reportedly planned for Tuesday in Washington.
Speaking at the Qatar Economic Forum this week, Musk accused South African regulations of blocking Starlink’s expansion, claiming the laws, which demand 30% Black ownership for telecom licensees, have effectively barred his satellite internet venture from entering the local market.
“Starlink is ready and the demand is there,” Musk previously said. “But we can’t operate because of laws that exclude companies based on the founder’s race.”
The Department of Communications, while denying Starlink had submitted a formal licence application, is now under pressure to make concessions.
One likely route is the implementation of “equity equivalent” arrangements—a policy tool allowing foreign firms to invest in development projects instead of giving up equity.
Communications Minister Solly Malatsi hinted at such an option last year, suggesting it could “accelerate universal internet access” without forcing multinationals into ownership transfers that clash with global corporate structures.
Sources say the offer to Musk is being fast-tracked ahead of a high-stakes meeting between South Africa President Cyril Ramaphosa and US President Donald Trump in Washington, DC, scheduled for Wednesday.
The encounter aims to ease diplomatic tension worsened by disputes over land reform, refugee claims, and U.S. cuts to HIV/AIDS funding in South Africa.
The South African delegation reportedly hopes to present a broader trade proposal that includes incentives for Tesla, Musk’s electric vehicle company, such as preferential import tariffs in exchange for infrastructure investments like charging stations.
Tesla and Starlink could both benefit from the package—if approved.
Spokesperson for the Presidency, Vincent Magwenya, confirmed that Starlink’s licensing was on the agenda during the president’s visit, though no official details have been released.
However, analysts warn that bending BEE rules—designed to redress apartheid-era inequality—may spark backlash domestically, especially if seen as compromising principles for diplomatic favour.