Elon Musk’s SpaceX is urging South Africa to loosen strict Black ownership rules for telecom operators, proposing an alternative program that would let companies invest in local development instead.
Why it matters
South Africa requires 30% Black ownership in ICT firms — part of its post-apartheid empowerment laws. SpaceX argues that an “equity-equivalent” approach would speed up broadband expansion while still promoting inclusion.
The details
- In a letter to the government, SpaceX asked regulators to allow investments in infrastructure, local businesses, digital inclusion initiatives, or research as a substitute for equity stakes.
- The model mirrors exemptions granted to automakers like BMW, Ford, and Toyota in 2019, who set up a fund to integrate disadvantaged groups.
- Starlink pledged to give 5,000 rural schools free satellite internet, reaching 2.4 million students.
What they’re saying
- “Equity equivalent investment programs will provide much-needed regulatory certainty and foster investment in infrastructure,” SpaceX wrote.
- “Starlink is not seeking any type of special treatment, as these changes would apply to all current and future potential operators.”
The big picture
- South Africa introduced Black empowerment rules after apartheid to correct deep economic imbalances.
- Musk, born in Pretoria, has repeatedly criticized the laws as “openly racist.”
- Just 1.7% of rural households have internet access, according to Stats SA (2023). Starlink’s satellite network could help close that gap.
- The government’s National Development Plan aims for universal, affordable broadband by 2030.
Source: Bloomberg
