South Africa May Alter Ownership Guidelines to Accelerate Starlink Deployment
In a series of significant developments, talks are underway between South African officials and Elon Musk's Starlink team to find a resolution for the satellite internet provider's entry into the country. The ongoing discussions aim to find a workaround for South Africa's Black Economic Empowerment (BEE) laws, which require foreign telecom firms to sell 30% equity in local units to historically disadvantaged South Africans.
The South African government is considering policy changes like Equity Equivalence Investment Programmes (EEIPs) to ease BEE ownership rules for Starlink. These changes could potentially open the door for Starlink, which could expand high-speed internet access in underserved areas of South Africa.
However, the path is not without opposition. There is significant domestic political resistance, notably from the Economic Freedom Fighters (EFF) party, which opposes Starlink on grounds of national security and digital sovereignty. The policy shifts are seen as tailored specifically to benefit Starlink.
External pressure from the United States, linked to trade relations and connections between President Ramaphosa and influencers close to former US President Trump, is also reportedly a factor pushing for accommodation of Starlink despite South Africa's ownership laws.
Elon Musk has met with President Ramaphosa to discuss these issues, indicating talks are active but complex. Musk previously claimed that Starlink was blocked in South Africa, a statement that many saw as a dig at the country's BEE rules.
President Ramaphosa is currently in Washington for meetings aimed at repairing U.S.-South Africa relations. The Starlink issue is expected to be raised in his meeting with U.S. President Trump on Wednesday. The meeting is intended to discuss a path forward for Starlink's operation in South Africa.
The talks between South African officials and Musk's team are significant as they could potentially lead to a resolution for Starlink's launch in South Africa. The potential workaround by the South African government for Starlink to operate is still a significant development in the ongoing issue.
The resolution of the Starlink issue could have implications for U.S.-South Africa relations, adding a diplomatic layer to the discussions. As the talks continue, both parties are working towards finding a solution that addresses the regulatory challenges while ensuring fair and equitable practices.
Sources: 1. Gazette Notice 43230 2. Business Day 3. Times Live 4. Fin24 5. CNN
The South African government's exploration of Equity Equivalence Investment Programmes (EEIPs) to reconsider BEE ownership rules for Starlink could signal a potential expansion of high-speed internet access for underserved areas in South Africa, while facing resistance from domestic political parties like the Economic Freedom Fighters (EFF) due to concerns about national security and digital sovereignty. These discussions may have implications for U.S.-South Africa relations, with reports suggesting external pressure from the United States, linked to trade relations and connections between President Ramaphosa and influencers close to former US President Trump.
The ongoing negotiations between South African officials and Elon Musk's Starlink team are significant, as they could potentially lead to a resolution that addresses South Africa's regulatory challenges while ensuring fair and equitable practices, benefiting both parties in finance, business, technology, politics, and general-news sectors.
