South Africa may be on the verge of a major policy shift, as reports suggest it is preparing to grant Elon Musk’s Starlink a special exemption from Black Economic Empowerment (BEE) requirements.
The government is proposing a workaround to South Africa’s BEE laws, which currently require a minimum of 30% Black ownership in foreign telecom ventures operating in the country.
To facilitate Starlink’s entry without requiring equity transfer, the government is now exploring an ‘equity equivalent’ programme — a regulatory alternative that allows companies to contribute to empowerment objectives through other means, such as skills development, enterprise support, or community investment.
This move could signal a departure from long-held telecoms regulations to appease foreign investors and mend strained diplomatic ties with the US.
