Elon Musk's Starlink faces fresh roadblock in South Africa amid tech sovereignty dispute

Business Insider

11 hours ago

South Africa's heated political battle over foreign investment and digital sovereignty has intensified, with Julius Malema's party, Economic Freedom Fighters (EFF), declaring that Elon Musk's Starlink satellite service must 'never be allowed' to operate in the country
South Africa is facing a heated political debate over foreign investment and digital sovereignty, centered on the Starlink satellite service.
The Economic Freedom Fighters (EFF) party opposed Starlink's entry, citing security threats and potential impacts on national ICT policies.
Critics argue the policy changes are specifically designed to allow Starlink to bypass existing licensing requirements.
In an address to Parliament during the Department of Communications and Digital Technologies' budget vote debate on Friday, EFF MP Sinawo Thambo, a member of the South Africa's fourth-largest political party, accused the government of trying to amend the country's ICT licensing regime solely to accommodate Starlink.
He said, 'There's a security threat that it poses. It must never be allowed to operate in South Africa.'
At the heart of the issue is a draft policy proposed by Communications Minister Solly Malatsi, which introduces Equity Equivalence Investment Programmes (EEIPs) in the ICT sector.
This alternative approach would replace the current requirement for foreign companies to sell 30% equity to black South Africans, a model already used in sectors like manufacturing and automotive.
Minister Malatsi insisted that the EEIPs are not designed specifically for Starlink but aim to unlock investment and modernize the ICT sector.
However, EFF MP Sinawo Thambo dismissed the proposal, labeling it as a broader attempt to create a legal pathway for Starlink's entry into South Africa.
'In our view, this is all in service of allowing Starlink to operate in South Africa, and we must be clear that we will never allow Starlink, which has weaponised misinformation and captured the White House, to erode US and South African diplomatic relations in order to ease business access in South Africa,' he said.
'We view that as economic and diplomatic terrorism and … even if Starlink were to meet equity equivalence requirements, there's a security threat that it poses that [means it] must never be allowed to operate in South Africa, and we will never allow it to do so,' he added.
The proposal has also drawn critics within the ruling party, ANC, including Parliamentary Communications Committee chair Khusela Diko, who also labelled the proposed policy as 'shortcut' designed specifically for Starlink.
'Many satellite operators have obtained their operating licences by complying with the laws as they currently stand,' she said, accusing Starlink of trying to bypass South Africa's transformation goals.
A long-running feud with Elon Musk
The Economic Freedom Fighters (EFF) party's opposition to Starlink is rooted in a long-standing feud between its leader, Julius Malema, and Elon Musk.
The two have repeatedly clashed on Musk's platform, X (formerly Twitter), with Musk accusing Malema of inciting white genocide and calling for him to be sanctioned and declared an international criminal. Malema responded by branding Musk a " typical racist"
It's rather ironic that despite Starlink's widespread presence across the globe, it has yet to enter the South African market.
Musk has previously criticised the country's Black Economic Empowerment (BEE) policies, stating that Starlink cannot launch there 'because I'm not black.'
Meanwhile, regulatory expert Dominic Cull cautions that changes to licensing rules won't happen quickly.
he said.