Elon Musk, CEO of SpaceX and Tesla, is in talks with South African President Cyril Ramaphosa about a potential deal to bring Starlink satellite internet services to the country, with Tesla possibly establishing a battery production facility.
Why it matters
The deal could give Starlink access to South Africa’s market, while Tesla’s investment would boost local job creation and advance renewable energy efforts.
The big picture
- South Africa’s regulations currently require foreign companies to be at least 30% Black-owned to operate legally, a policy designed to address historical inequities.
- Musk is seeking regulatory flexibility for SpaceX’s Starlink, proposing local investments, such as a Tesla battery plant, as a trade-off.
Between the lines
South African officials are exploring ways to balance regulatory goals with Musk’s proposals, including alternatives like commitments to local investment and job creation.
Context
- Starlink already operates in other African nations like Nigeria, Ghana, and Botswana, providing high-speed internet to underserved areas.
- Expanding to South Africa would cement Starlink’s presence on the continent and potentially enhance connectivity for millions.
What they’re saying
- President Ramaphosa sees this as more than an internet deal — it’s a gateway to attract significant investments from Musk’s ventures, aligning with the country’s renewable energy ambitions.
- Similar pitches to Musk have been made elsewhere, like Indonesia, which proposed pairing Starlink services with Tesla’s EV battery production, though logistical challenges stalled that collaboration.
What to watch
Whether South Africa can navigate regulatory hurdles to secure Musk’s investments, positioning the nation as a tech and energy innovation hub in Africa.
Source: First Post
