Elon Musk's racially-charged row with South Africa over Starlink
A bitter dispute has unfolded between Starlink boss Elon Musk and South Africa after Musk claimed his satellite internet service was barred due to racial laws. The row centres around the country's black empowerment policies, which could fuel diplomatic tensions between the US and South Africa.
Elon Musk, CEO of Starlink, had previously sparked controversy by claiming that his satellite internet service was "not allowed to operate in South Africa simply because I'm not black." Musk, with over 219 million followers on X, made the racially charged statement, but the South African government has denied the claim.
Starlink is not allowed to operate in South Africa, because I’m not black https://t.co/yOFafNValQ
The Independent Communications Authority of South Africa (Icasa) noted that Starlink has not applied for a licence, and the Foreign Ministry stated the company could operate if it complies with local laws, particularly black empowerment requirements.
South Africa’s black empowerment laws mandate that foreign companies must ensure 30% ownership by historically disadvantaged groups, primarily the black population. These laws, introduced after apartheid ended in 1994, aim to address racial economic disparities.
Musk has pointed to these laws as the key obstacle for Starlink. The company claims the laws exclude many foreign operators, but South Africa’s Foreign Ministry emphasized that more than 600 US companies, including Microsoft, successfully operate in compliance with these regulations.
Communications Minister Solly Malatsi has proposed finding alternatives to the 30% ownership requirement, which could allow Starlink to operate without a local black partner. However, no progress has been made, with political resistance from lawmakers in the ruling African National Congress (ANC).
Khusela Diko, chairperson of the parliamentary communications committee, reaffirmed the ANC’s stance, arguing that transformation in the tech sector is non-negotiable and that bypassing the laws is not an option.
This dispute adds to broader tensions between the US and South Africa, exacerbated by Musk’s vocal criticism of the country’s policies. Former US President Donald Trump has also contributed to the rift, accusing South Africa of persecuting white farmers, a claim widely dismissed. Musk has linked these allegations to his Starlink struggles.
Although Musk met with South African President Cyril Ramaphosa in 2023 to discuss investments, the relationship has soured. Musk now aligns with South Africa’s right-wing factions, which oppose black empowerment policies, particularly within the Democratic Alliance (DA).
Starlink has faced similar challenges elsewhere in Africa. Lesotho recently granted a 10-year licence to the company after pressure from the US, while Namibia is considering an exemption to its local ownership laws. Despite these hurdles, Starlink is operating in over 20 African countries, with success in Nigeria and Somalia.
The situation in South Africa, where 20% of the population lacks internet access, shows the potential benefits of Starlink’s satellite internet service. A resolution between the government and Musk could help bridge the digital divide and contribute to the country’s goal of universal internet access by 2030.
To address strained US-South Africa relations, President Ramaphosa has appointed Mcebisi Jonas as his special envoy to the US. However, the road ahead remains challenging, with the potential for further political and economic fallout if the impasse over Starlink continues.