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The offer is expected to come at a last-minute meeting planned for Tuesday night between Musk or his representatives and a delegation of South African officials.
SA-born businessman Elon Musk is set to have an influential role in SA-US talks this week. Picture: Frederic J Brown/AFP
South Africans will finally be getting Elon Musk’s Starlink satellite internet service, according to reports on Tuesday.
Government plans to offer a workaround to local black ownership laws so that Starlink can operate in the country, Bloomberg News reported on Tuesday.
Starlink offer
The offer is expected to come at a last-minute meeting planned for Tuesday night between Elon Musk or his representatives and a delegation of South African officials travelling with President Cyril Ramaphosa, according to three people familiar with the discussions.
According to sources who spoke anonymously because they are not authorised to discuss the matter, the move aims to defuse the wave of criticism from Musk and US President Donald Trump — who have spread misinformation alleging a genocide against white people in Africa’s most industrialised nation — ahead of Ramaphosa’s visit to the White House on Wednesday.
Black Economic Empowerment
The people said the alternative to so-called Black Economic Empowerment (BEE) laws, which in some cases require 30% black ownership, is not specific to Starlink and Musk.
It would be applied to all information and communication technology companies, including those from China and the Middle East, the people said.
A so-called Equity Equivalent option would instead involve investments in infrastructure or training, or providing Starlink kits to rural areas in order to help improve Internet access.
BEE rules were introduced after the end of apartheid, during which black people were subjugated and excluded from the formal economy by the ruling white minority. Today, white people earn on average five times what black people earn, according to official statistics, and own the vast majority of farmland despite making up 7% of the population.
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Stalled talks
The new rules for ICT companies aren’t about “providing access to a single company, but rather part of a broader strategy to create an enabling environment for international investment and expand digital connectivity across South Africa,” South Africa’s Department of Communications and Digital Technologies said in a response to a request for comment.
Talks on launching Starlink in South Africa stalled earlier this year after Musk and Trump ramped up public rhetoric against policies such as BEE laws.
Musk, who is South African-born, previously claimed Starlink was barred from operating in South Africa because he is not black, an allegation South African officials refuted.
The Independent Communications Authority of South Africa said in March that Starlink had not applied for a licence.
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What is Starlink
With its wide coverage and increasing affordability, Starlink presents a chance to close the connectivity gap in rural areas while also appealing to urban users.
Starlink operates thousands of low-earth orbit (LEO) satellites to provide high-speed internet globally. With 4.6 million customers globally, the service targets expansion in underserved markets, such as Africa, to drive its growth.
Since its launch in 2019, the network has expanded to more than 7 000 satellites, covering most of the globe.
Starlink’s rapid expansion across Africa began with Nigeria in February 2023 and Rwanda in March 2023. The service now reaches 18 countries, with plans to add at least 10 more by the end of the year.
ALSO READ: Starlink making strides in transforming broadband access — Report
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