Did SA bend BEE rules for Elon Musk's Starlink? Ramaphosa says no

IOL News

25-06-2025

President Cyril Ramaphosa denied relaxing BBBEE to benefit South African-born tech billionaire Elon Musk after his visit to the US.
Image: Presidency
President Cyril Ramaphosa has again poured cold water on claims that South Africa proposed relaxing its black empowerment rules solely for Elon Musk's Starlink, despite the move coming days after his meeting with US President Donald Trump last month.
'Our visit to the United States did not focus on issues of Black Economic Empowerment,' Ramaphosa told Parliament on Wednesday afternoon.
'It focused on resetting the relationship with the United States and ensuring that we continue open conversations with our major trading partners.'
He was responding to a question from Nicholaas Hendricks Pienaar of the Democratic Alliance (DA) in Limpopo.
Pienaar asked whether the Government of National Unity (GNU) should revise Broad-Based Black Economic Empowerment (BBBEE) policies to attract more international investment and stimulate economic growth and job creation.
Ramaphosa reiterated the government's commitment to economic transformation.
'Our commitment to black economic empowerment, as expressed through various policy documents and statements, remains steadfast,' he said.
'Through the Statement of Intent signed by various parties in the GNU, we are committed to translating the values of our Constitution into reality - particularly social justice, redress, and equity.'
Last month, IOL News reported that, just days after a high-level meeting at the White House, attended by South African billionaire Johann Rupert and Tesla CEO Elon Musk, the South African government appeared to be easing regulations to facilitate the entry of Starlink, Musk's satellite internet service.
The alleged shift in policy has sparked debate over the influence of global business elites on national legislation and whether diplomatic lobbying is steering South Africa's tech and telecommunications framework.
Rupert, citing rising crime and economic stagnation, called for Starlink's launch to be fast-tracked.
'We need Starlink in South Africa,' he said.
Meanwhile, Ramaphosa pointed to the Constitution's Equality Clause as a foundation for transformation policies like BBBEE.
'There are a number of measures that the Equality Clause calls on us to embark on - legislative measures to protect or advance persons disadvantaged by unfair discrimination,' he said.
He emphasised that the BEE Act remains a central lever for inclusive, sustainable growth.
'We must dispense with the false notion that we must choose between transformation and growth,' Ramaphosa said.
'Black economic empowerment is not only compatible with investment and growth - it is essential to achieving broad-based prosperity.'
Ramaphosa added that BEE should not be seen as a project for a select few.
'It must be a national project. Everyone, including those who benefited under apartheid, must be involved,' he said.
'Failing to do so risks economic stagnation.'
In a follow-up question, Pienaar asked Ramaphosa if he would support foreign investments like Starlink without requiring a 30% ownership stake for local partners.
However, Ramaphosa responded by pointing to the country's equity-equivalent model, which allows foreign companies that cannot meet direct ownership requirements to instead contribute to transformation initiatives.
'For offshore-based companies with global ownership structures, we've come up with an innovative, equity-equivalent solution,' Ramaphosa said.
'They embark on initiatives that support transformation and get involved in economic development without handing over equity. And many have embraced this approach.'
He added that while South Africa is not unique in requiring local ownership, it may be the only country offering a flexible equity-equivalent system - which many multinational companies have welcomed.
'We are not averse to coming up with good solutions, so long as there is commitment to transformation,' Ramaphosa said. 'That, to us, is not negotiable.'
He reiterated the historical rationale for transformation policies.
'Our economy was structured for the benefit of a white minority,' he said.
'They passed laws to exclude others, even from menial jobs. We are turning the tables. We want all South Africans to benefit, not just a few.'
[email protected]
IOL Politics