Centurion: AfricUpdate – News Desk
SpaceX’s satellite Internet service Starlink has launched a dedicated web page outlining the connectivity benefits it could bring to South Africa and how a key legislative change could enable its local launch. The page, titled “Connect the Unconnected Across South Africa”, highlights that over 18 million people in the country lack access to high-speed Internet. Starlink said it was committed to providing reliable, high-speed Internet access nationwide, especially in rural areas with less traditional connectivity coverage.
The company also reiterated that the main reason it was unable to do this was that, due to South Africa’s ownership rules, it could not apply for the necessary telecoms licences to sell the service. It acknowledged that the country’s Broad-Based Economic Empowerment (B-BBEE) laws are designed to advance economic participation and equity for historically disadvantaged groups. Starlink said the issue was that Equity Equivalent Investment Programmes (EEIPs) do not apply in the telecommunications sector.
These programmes offer global companies ways to meet B-BBEE requirements and are legally recognised in other industries. EEIPs allow multinationals to bring their business to South Africa through investments that meet the objectives of B-BBEE. Starlink emphasised that it was not seeking any type of special treatment, as these changes would apply to all current and future potential operators.
As part of its commitment to launching in South Africa, Starlink has earmarked R500 million in investment to connect 5,000 rural schools with free Internet. The company added that the impact of its service would extend far beyond the classroom. “Connectivity fuels economic growth,” Starlink said. “High-speed Internet supports people and industries across the board, from logistics and manufacturing to public safety and emergency response. It helps businesses work more efficiently, shrinks the digital divide, and gives local communities a chance to grow on their own terms.”
Starlink also provided a link to various stories explaining how people, businesses, and organisations were using Starlink in 24 countries in Africa and overseas to overcome traditional connectivity challenges. Starlink previously sent e-mails to South Africans who had shown interest in the service, calling for support for policy direction on EEIPs. Issued by the Department of Communications and Digital Technology (DCDT) on 23 May 2025, this policy direction received a monumental 19,000 submissions within the 30-day public comment period.
While the responses were still being analysed, communications minister Solly Malatsi said the department’s initial viewing suggested strong support. Malatsi previously came under fire over the policy direction, including from members of Parliament arguing that it would give Starlink a back door into South Africa’s telecoms market. However, President Cyril Ramaphosa has expressed support for the minister and the idea of extending EEIPs into the telecoms sector.
Ramaphosa said EEIPs were consistent with South African law and government’s commitment to economic transformation and black empowerment. The Department of Trade, Industry, and Competition also explains that EEIPs are specifically for multinationals whose global practices prevent them from complying with the ownership element of B-BBEE through the traditional sale of shares to black South Africans.
“Provided that it can be proven that such entities do not enter into any partnership arrangements in other countries globally, the Codes of Good Practice have made provision for the recognition of contributions in lieu of a direct sale of equity,” the DTIC’s website says. Other companies operating in South Africa through EEIPs include technology giants Google, Amazon, and Microsoft.
Starlink’s local rollout challenges are due to a combination of the lack of EEIPs specifically for the telecoms sector and the fact that it sells to and deals directly with its customers around the world. Existing satellite services in South Africa partner with third-party ISPs, which already meet the required ownership rules to obtain licences.
