Billionaire Elon Musk’s satellite internet company Starlink is preparing to invest an estimated 2 billion rand ($112.7 million) in South Africa as part of an effort to secure an operating license under revised Black-empowerment rules, according to a Bloomberg report.
The planned investment is expected to fund the development of infrastructure to serve the broader Southern African Development Community (SADC), a regional bloc of 16 countries.
The Johannesburg-based newspaper said Starlink intends to channel the funding into local companies that will provide services such as land leasing, fiber network deployment, energy supply, security, and ongoing maintenance.
Starlink, which is controlled by Pretoria-born Musk, is seeking to finalize a licensing agreement with South African authorities before the country hosts the Group of 20 summit in Johannesburg this November.
The company has faced a prolonged licensing hurdle over South Africa’s Black Economic Empowerment (BEE) requirements, which mandate that foreign firms cede a portion of equity to Black investors as part of local ownership laws.
Musk has openly criticized the BEE policy, calling it “openly racist” and rejecting any plan to sell equity to comply. Instead, Starlink has offered an alternative proposal to satisfy empowerment criteria through targeted investments in infrastructure and procurement from Black-owned firms.
Communications and Digital Technologies Minister Solly Malatsi confirmed this month that the government is considering revisions to BEE conditions for multinational satellite providers.
Under the proposed changes, foreign operators like Starlink may qualify for licenses by committing to meaningful local economic participation through partnerships with Black-owned suppliers and contractors, rather than surrendering ownership stakes.
“The decision to award Starlink an operating license in South Africa will ultimately rest with the country’s industry regulator,” Malatsi said earlier in June, signaling that discussions remain ongoing.
Analysts say the proposal could help the government balance its long-standing empowerment goals with growing pressure to improve internet connectivity in Africa’s most industrialized economy. South Africa’s digital inclusion gap remains significant, particularly in rural areas where broadband penetration is limited and data costs are high.
Musk has long emphasized that Starlink could transform connectivity in under-served African markets by providing low-Earth-orbit satellite internet coverage. The service, which is already operational in several African countries, has been widely adopted in Nigeria and Mozambique, among others.
Starlink’s plan to expand in South Africa could also strengthen its footprint across the SADC region, aligning with broader continental digital integration goals. By pledging local procurement and infrastructure partnerships, Starlink appears to be positioning itself as a major investor in regional broadband development, pending regulatory approval.
Industry stakeholders have pointed out that the company’s $112 million plan would represent one of the largest direct foreign investments in South Africa’s satellite broadband segment to date.
However, labor unions and empowerment advocates remain cautious about any potential dilution of BEE principles and are calling for firm guarantees that local communities will see tangible benefits.
South Africa’s Independent Communications Authority (ICASA) will make the final determination on Starlink’s license application. A decision is expected ahead of the G20 summit, where South Africa will seek to showcase its digital economy credentials to global leaders and potential investors.
