South Africa has no intention of diluting its Black Economic Empowerment (BEE) laws to accommodate Elon Musk’s satellite internet company, Starlink, a government minister said on Tuesday, May 27, 2025, countering claims that recent policy amendments were crafted to appease foreign interests following President Cyril Ramaphosa’s visit to the United States.
The proposed policy changes, unveiled on Friday, would allow telecom firms such as Starlink to meet empowerment requirements through alternative investments like digital infrastructure rather than the existing mandate to sell 30% equity in local subsidiaries to historically disadvantaged South Africans.
The announcement came just a day after President Ramaphosa returned from a trip to the U.S., where he met former President Donald Trump to promote investment opportunities. Prior to the meeting, Ramaphosa’s spokesperson had indicated that potential business avenues for companies linked to Musk might be discussed. However, Ramaphosa later clarified that Starlink was not part of the conversation.
“We are not attempting to open a special dispensation for Starlink or any other company or an individual,” Communications Minister Solly Malatsi told a parliamentary committee.
“Transformation is sacrosanct in our country … it’s a non-negotiable in order for the country to achieve its aspirations,” Malatsi emphasized, referring to efforts to redress historical inequalities stemming from South Africa’s colonial and apartheid past.
Malatsi initiated the development of a policy directive last year to enable “equity equivalent” programmes, citing the need to expand broadband access and attract multinational firms unable to fulfill traditional equity ownership requirements.
SpaceX, the parent company of Starlink, responded by formally objecting to South Africa’s local shareholding laws and expressed support for equity equivalent alternatives.
The timing of the policy draft has sparked criticism from opposition lawmakers and the chairperson of the parliamentary communications committee, who accused Malatsi of catering to foreign business interests. They raised concerns over the proximity of the draft’s release to Ramaphosa’s return from the U.S.
Malatsi defended the policy, maintaining it aligns with existing empowerment legislation and was not influenced by international pressure.
“There is no underhand effort … to railroad this into the South African public,” he asserted.
South Africa’s Black empowerment laws extend across all sectors, with varying ownership requirements, and remain a cornerstone of government policy to drive inclusive economic growth.
