South Africa’s government has rejected claims that it is bending its Black Economic Empowerment (BEE) laws to accommodate Elon Musk’s satellite internet firm, Starlink. Communications Minister Solly Malatsi told a parliamentary committee on Tuesday that the recent draft policy changes are not tailored for any individual company or foreign investor, but are aimed at improving digital access and maintaining the country’s transformation agenda.
The controversy stems from a proposed directive that would allow telecommunications companies, including multinationals like Starlink, to participate in “equity equivalent” programmes instead of being required to sell 30% of their local equity to historically disadvantaged South Africans. The new framework would allow firms to invest in digital infrastructure and other development initiatives in lieu of equity transfer.
The timing of the announcement raised eyebrows, as the draft policy was published just a day after President Cyril Ramaphosa returned from the United States, where he met former President Donald Trump. Ramaphosa’s spokesperson had indicated that business prospects involving Elon Musk—Trump’s high-profile ally—could be on the agenda. However, Ramaphosa later stated that Starlink was not discussed in the meeting.
Opposition lawmakers and members of the parliamentary communications committee questioned Malatsi’s motivations, accusing him of prioritising foreign business interests over local empowerment goals. Critics argue the timing of the policy release suggests it may have been influenced by diplomatic or business discussions abroad.
Malatsi, however, remained firm. “We are not attempting to open a special dispensation for Starlink or any other company,” he said. “Transformation is sacrosanct in our country. It’s a non-negotiable.”
He added that the equity equivalent policy had been in development since last year and was designed to attract multinational tech firms while upholding the spirit of BEE laws. The minister emphasised that the proposed changes do not dilute empowerment regulations but offer an alternative compliance route for companies unable to meet traditional ownership requirements.
South Africa’s BEE framework, introduced to redress historical racial inequalities, applies across all sectors, with specific guidelines for different industries. The debate over Starlink has now reignited discussions about how best to balance foreign investment with socio-economic transformation.
