South Africa has dismissed Elon Musk’s assertion that his Starlink satellite internet service cannot operate in the country due to his race, calling the claim “untrue” and emphasizing that regulatory adherence—not ethnicity—dictates market access.
The dispute erupted after Musk, CEO of SpaceX and Tesla, posted on social media platform X that “Starlink is not allowed to operate in South Africa because I’m not Black,” prompting a sharp rebuke from Pretoria.
Clayson Monyela, a senior official at South Africa’s Department of International Relations and Cooperation, countered Musk’s remarks, stating: “Starlink is welcome to operate here provided it complies with local laws. This is a global trade principle, not a racial issue.” Monyela’s response alluded to South Africa’s Black Economic Empowerment (BEE) framework, which mandates that foreign telecom license holders sell at least 30% of their local subsidiaries to “historically disadvantaged groups,” including Black South Africans.
Starlink, a division of SpaceX, has pending applications with South Africa’s telecom regulator, which has yet to approve its services. Industry analysts note that the BEE rules, designed to redress apartheid-era economic disparities, have long been a hurdle for foreign firms entering sectors like telecoms. Similar requirements apply to other operators, including Amazon’s Project Kuiper.
Musk’s comments ignited debate over South Africa’s empowerment policies, which critics argue can deter investment, while supporters view them as vital for inclusive growth. The government has not publicly detailed Starlink’s compliance status, but officials stress that approvals hinge on meeting ownership and operational benchmarks, not racial identity.
The spat underscores broader tensions between global tech giants and emerging markets balancing equity mandates with investment incentives. South Africa, grappling with high unemployment and internet access gaps, faces pressure to expand connectivity while upholding BEE goals. Starlink’s low-orbit satellites could potentially bridge digital divides in rural areas, where fewer than half of households have reliable internet.
Musk has not elaborated on his initial claim, and SpaceX did not respond to requests for comment. Local regulators have not provided a timeline for Starlink’s application review. For now, the impasse highlights the complexities foreign firms face navigating South Africa’s post-apartheid economic landscape—a reality shaped less by race than by rigid compliance frameworks.
Additional context: The BEE policy, enacted in 2003, aims to boost Black ownership in industries still dominated by white and foreign entities. While praised for fostering inclusivity, it has faced criticism for bureaucratic delays and deterring capital inflows. South Africa’s telecom sector, led by MTN and Vodacom, remains among Africa’s most regulated.
