KEY POINTS
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Starlink satellite internet could enter South Africa under revised ownership rules.
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Starlink satellite internet may qualify through equity-equivalent investment programmes.
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Starlink satellite internet targets underserved and rural communities.
Starlink, the satellite internet service operated by Elon Musk’s SpaceX, is moving closer to launching in South Africa as the government signals a shift in long-standing rules governing foreign ownership in the telecommunications sector. The policy adjustment could allow the company to offer services in Africa’s most industrialised economy without surrendering equity, removing a key obstacle that has delayed its entry.
Starlink satellite internet rules
Solly Malatsi, South Africa’s minister of telecommunications and digital technologies, has instructed the Independent Communications Authority of South Africa, known as Icasa, to revisit its local ownership requirements. In a government gazette published on Friday, Malatsi said public consultation showed broad backing for reform. About 90 percent of the more than 15,000 submissions supported changes that would let companies meet empowerment obligations through equity-equivalent investment programmes rather than a fixed 30 percent local shareholding.
Malatsi said revising the rules could clear a regulatory path not only for Starlink but also for other satellite internet providers seeking to operate in South Africa while still contributing to the domestic economy. He first outlined the proposed changes in May after reviewing responses gathered during the consultation process.
At the heart of the proposed changes is the treatment of equity-equivalent investment programmes, known as EEIPs. Under existing rules, Icasa does not fully recognise these programmes, which allow foreign companies to support local development without transferring ownership. EEIPs typically channel funding into infrastructure, education and digital inclusion projects, offering an alternative route for participation in economic transformation.
Starlink satellite internet expansion
Supporters of the policy shift say revised rules could unlock funding for initiatives that expand connectivity in rural and underserved areas. Satellite broadband delivered through low-Earth orbit constellations is seen as a practical option in regions poorly served by terrestrial networks. According to a 2023 national survey, only 1.7 percent of South African households currently have internet access in some of these areas.
According to billionaires Africa, South Africa would not be breaking new ground by granting such flexibility. Similar exemptions already apply in sectors such as automotive manufacturing, where global firms meet empowerment targets by financing programmes that broaden participation among historically disadvantaged communities.
Starlink has been building its African footprint since it began operations on the continent in 2022, securing approvals country by country. In Namibia, the licensing process recently advanced after the Communications Regulatory Authority published Starlink’s application in the gazette and opened it for public comment. Cameroon has also moved forward. The Telecommunications Regulatory Board there has submitted a draft concession agreement and technical specifications for Starlink Cameroun Sarl, disclosures made during the presentation of the country’s 2025 budget to lawmakers.
