Elon Musk’s SpaceX-owned satellite internet business, Starlink, is in advanced talks with the South African government about expanding its high-speed satellite service to Africa’s most industrialized country.
President Cyril Ramaphosa acknowledged the meetings, highlighting the possibility of further engagement with the billionaire from the United States, who has strong ties to South Africa, his birthplace.
Ramaphosa stated his excitement about the deal during a press briefing in Pretoria. “I’ve told Elon, with his success and global investments, that we would like him to bring some of that success home,” according to the president. He noted that Musk has expressed interest in the proposal, with more discussions planned in the coming months.
The regulatory framework in South Africa may present hurdles for Starlink’s arrival. Musk said on Sunday via X (previously Twitter) that the company is “waiting for regulatory approval” before launching in the country.
While Starlink’s technical capabilities have been extensively acknowledged, its possible entry into South Africa faces challenges due to the country’s Black Economic Empowerment (BEE) legislation.
The policies, which seek to correct past imbalances by encouraging Black ownership in industries, require compliance from international corporations having stakes in the country. Starlink’s launch is contingent on talks, which may result in different ownership or compliance structures.
Starlink’s influence in Africa has increased dramatically since its initial incursion into the continent in 2022. The satellite-based internet provider has created a network of about 6,000 satellites, more than 5,200 of which are active. This network serves over 3 million users over 100 countries and territories, including several African states.
In June 2023, Starlink started in Sierra Leone, its 100th country, demonstrating its commitment to providing internet access in remote and underserved places. Just last month, Starlink expanded its service to Zimbabwe, making it the 16th African country to join the network.
Despite its rapid growth, Starlink has struggled to penetrate several large areas due to legislative barriers. Taiwan is one such country where ownership regulations have slowed entry, and South Africa now faces a similar dilemma.
Musk, the world’s wealthiest person with a net worth of $248 billion according to the Bloomberg Billionaires Index, aims to expand Starlink’s reach.
The company’s objectives extend beyond ground-based services. Starlink has inked an agreement with United Airlines Holdings to provide satellite-based inflight Wi-Fi, marking its first big relationship with a US airline. This partnership is considered as part of Musk’s wider plan to transform Starlink into a global provider of dependable and high-speed internet services.