Elon Musk's Starlink plans R2 billion investment to avoid BEE challenges
Elon Musk's satellite internet company Starlink is reportedly planning a R2 billion investment in South Africa, potentially paving the way for its entry into the country despite ongoing regulatory challenges tied to Black Economic Empowerment (BEE) laws.
According to reports, the investment would support infrastructure development to serve not only South Africa but also the Southern African Development Community (SADC) – a 16-member regional bloc.
In a bid to comply with local conditions without ceding equity, Starlink has proposed using South African companies for infrastructure-related needs including land leasing, fibre connectivity, power supply, security, and maintenance services.
The reported strategy is viewed as a workaround to South Africa's existing empowerment rules, which require foreign tech firms to partner with Black shareholders to obtain operating licences.
South Africa-born Elon Musk has publicly criticised these laws, calling them 'openly racist' and indicating he would not give up equity in Starlink.
However, Communications and Digital Technologies Minister Solly Malatsi is considering a revision to current policy.
His department has proposed alternatives to equity partnerships for satellite providers – such as investment in Black-owned businesses and infrastructure as qualifying criteria.
'We want to see tangible investment into the South African economy, especially in marginalised communities,' Malatsi noted in a previous statement.
The decision to grant Starlink an operating license ultimately lies with the Independent Communications Authority of South Africa (ICASA), although Malatsi's department plays a key role in shaping licensing criteria.
Starlink is aiming to finalise a deal before South Africa hosts the G20 Summit in Johannesburg in November, a high-profile platform that could highlight Musk's return to his country of birth in a transformative digital initiative.
If successful, Starlink's investment could significantly enhance internet access and connectivity across the region, especially in underserved rural areas.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
7 hours ago
- IOL News
Calls for government to create its own tech platforms
GovChat founder Professor Eldrid Jordaan speaking at the Social Media Summit for Government at the University of Johannesburg, in conversation with DeCode Communications CEO Lorato Tshenkeng. Image: Supplied GovChat founder Professor Eldrid Jordaan has implored the South African government to start, own and run its own technology platforms for the benefit of all South Africans. Jordaan has slammed big tech, particularly Meta - which owns the likes of Facebook, WhatsApp and Instagram, saying they posed a threat to the digital sovereignty of countries like South Africa. Jordaan, who was a key figure during the Mxit days and who later founded GovChat, which aims to enhance governance transparency and accountability through the provision of tools for citizens to measure service levels, was the keynote speaker at the Social Media Summit for Government, which is being hosted by the University of Johannesburg. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading His speech was on the topic of Technology, Trust, and Transformation: Bridging the Digital Divide in Citizen Engagement. He said big tech, particularly Meta, wanted to be the player and the referee. This comes after a long standing dispute between GovChat and Meta, which stems from 2020, where the civic organisation was accused of violating the terms of service of the WhatsApp Business API, despite the fact that GovChat had signed agreements with the SA government, allowing it to communicate on the governments behalf. 'The government needs to beware of public private partnerships that profit from public infrastructure,' Jordaan warned. 'Public goods should serve our people, not the private sector. GovChat was built to serve South Africans, it was not built to serve algorithms and shareholders. 'We can no longer afford to be digital tenants. We must use these tools, but not lose the power. We need to partner with big tech, do not depend on them,' said Jordaan. Jordaan said South Africa had 1.5 million public servants who needed to be upskilled to navigate a changing world driven by artificial intelligence. 'We don't need to go to the private sector, we are seeing too many people hand over their responsibilities to the private sector, the private sector should strengthen government, it should not replace the work that is done by the government, there should be a big difference between mandate, scope of work,' he said. Jordaan said it was important that big tech treats Africa with the same respect that it treated countries in the West, including how it harvested data of people on the continent. He said recently, authorities in Nigeria had issued a $200 million fine for the use of people's data without consent. 'We are not saying that the private sector should not profit because that's their model, just like how you have a business model in the government. The private sector is important, we need the private sector, but we must guard against the dependency. 'When you are dependent on something they hold the stick, they hold the power - I'm nervous about that, we need to be careful around what the intentions are,' said Jordaan. Sassa own platform Jordaan said a state institution like Sassa, should have its own platform to administer the millions of social welfare payments it administers monthly. 'The private sector is lucky there is so much inefficiency in government,' he remarked. 'Look at Sassa, if the South African government wanted to own a platform, I would start there. You have more than half population on Sassa, but you choose to use platforms that exist. If I were the government, I would use my own platform and make it mandatory. 'I say it again, the private sector is lucky there are inefficiencies in the government,' said Jordaan. IOL editor Lance Witten speaking at the Social Media Summit for Government. Image: Supplied Earlier, IOL's editor-in-chief Lance Witten urged government communicators to listen to the people in developing narratives and content around their government departments. Witten made the comments during a fireside chat with SABC journalist Bongiwe Zwane at the summit. 'There is a steady decline in audiences engaging with platforms like news websites, which are now seen as legacy media. You can build the best content, but if you are not where your audience is, there is no point in creating that content,' he said. Witten said tailored and platform specific content and messaging was key for audiences. 'What we have discovered is that we need to be where the audiences are… you need to create specific native for the platform you are on, if it is all tailored for the platform, that is where and how the audience will engage with it,' he said. With shrinking revenues, Witten said it was important for communications teams to be clear about their identity, their narrative and to be unequivocal about a political stance. He also said the impact of the changing consumption habits and technology such as AI, had a big impact on news publishers, and content teams needed to be aware of AI optimization, as the AI and search engines like Google became more of answer engines rather than search engines. 'Am I creating the content on my platform? Is it good for the crawler? Is it good for ChatGpt? Are you creating content helping the answer engine? How am I answering the audience needs? 'From a news content provider perspective, it has impacted our concept of how we create content and the credibility, our audiences are on social media, they are good at spotting authenticity, they are less likely to trust a brand,' said Witten. IOL
IOL News
7 hours ago
- IOL News
South Africa's Reserve Bank and National Treasury prepare to lower inflation target
South Africa Reserve Bank governor Lesetja Kganyago and Finance Minister Enoch Godongwana. The Sarb and Treasury are nearing the completion of their joint efforts to review and refine the nation's inflation target strategy. Image: Supplied/SARB The South African Reserve Bank (Sarb) and the National Treasury are nearing the completion of their joint efforts to review and refine the nation's inflation target strategy. A team consisting of experts and policymakers has been working diligently to formulate recommendations that aim to enhance the economic stability of South Africa, particularly in these challenging times characterised by global uncertainties. 'The joint South African Reserve Bank and the National Treasury team is almost done with its work on the inflation target and will soon present its recommendations to the Governor and the Minister of Finance,' the Sarb said in its annual report on Monday. Recently, discussions have emerged regarding whether South Africa's current inflation target midpoint of 4.5% is consistent with price stability of the 3-6% target range, and whether adjusting it to a lower rate might help secure the current trend of low inflation. Analyses undertaken by the Sarb, Treasury and other experts have highlighted significant potential benefits from reducing the inflation target to 3%, and recommendations are expected to be a vital step in addressing these economic challenges. Modelling by the Sarb for the Monetary Policy Committee meeting in May supports this, indicating that inflation expectations could decline quickly given the recent history of inflation hovering around the lower end of the target band, along with enhanced Sarb credibility. Consequently, borrowing costs would fall more significantly under the 3% scenario compared to the baseline forecast over the projected period. Sarb Governor Lesetja Kganyago, in the bank's annual report for the year ending 31 March, said underlying measures of inflation also appear to be contained. Kganyago said while risks to the outlook remained, there can be little doubt that inflation has been brought back under control for now. 'The main concern with South African inflation is not our ability to hit the target. Rather, it is that our target is high compared to other countries. For this reason, despite our success in stabilising inflation, the price level is almost 20% higher than it was in 2021,' Kganyago said. 'Although an inflation rate of 4.5% may seem moderate, it still causes prices to double every 16 years. This is hard to reconcile with our constitutional obligation to safeguard the value of the currency. For this reason, we continue to make the case for a lower target, one that aligns with international peers and promotes price stability.' According to the Sarb, headline inflation is projected to average 3.2% this year, increasing to 4.2% in 2026 before reverting to the target midpoint by 2027. This muted trajectory reflects lower inflation projections across all key components of headline inflation, supported by a favourable starting point, lower assumptions for fuel and electricity price increases and a relatively strong rand exchange rate. The trajectory of core inflation is forecast to closely track headline inflation. Inflation risks appear balanced overall, with trade policy uncertainties and potential rand depreciation posing as the main upside risks. A shift to a lower, more precise inflation target – such as a 3% headline inflation rate could bring about a range of macroeconomic benefits. These include reduced inflation and borrowing costs, improved policy transmission, and stronger economic growth. However, Citadel Global director Bianca Botes said the transition must be carefully managed to avoid unintended consequences for investment and employment. Botes said the success of a lower inflation target depends on clear communication and strong policy credibility.
TimesLIVE
9 hours ago
- TimesLIVE
Rethinking resilience
Resilience is no longer about having a backup plan. It means being able to adapt – faster than the market shifts, the threats evolve, or the next compliance requirement lands on your desk. In this issue of Digital Business, we explore how South African businesses are rethinking resilience in a landscape that's as complex as it is fast-moving. Cloud adoption is no longer novel; it's foundational. But cost pressures, skills shortages, and fragmented architectures are pushing CIOs to do more with less – while still promising scalability, security, and service continuity. AI adds a new layer of pressure. It's helping teams automate threat detection and close talent gaps. But it's also arming attackers with better tools, faster tactics, and increasingly sophisticated deepfakes. In this environment, relying on outdated systems or legacy playbooks isn't just risky – it's negligent. What's becoming clearer is this: the tech alone isn't enough. The real competitive edge lies in people – whether that means security teams being upskilled through local bootcamps, business leaders embracing cloud strategy as a boardroom priority, or organisations maturing their operations to unlock long-term value. You'll find stories in this issue that span deep technical insight, human-centred innovation, and forward-looking strategy. From the economics of cloud optimisation to the ethics of AI in an African context, these are the conversations shaping digital business – not just in 2025, but from here on out. We hope it helps you see not just where the future's going – but how to meet it on your own terms. Brendon Petersen. Editor
