Musk Sparks Controversy Over Starlink Ban in South Africa, Blames Race-Based Policies

iNewsAfrica | Cape Town Bureau | May 29, 2025

Elon Musk has ignited a firestorm after claiming that Starlink cannot operate in South Africa due to his race. South African regulators and government officials dispute the claim, citing the country’s Black Economic Empowerment (BEE) laws—not Musk’s skin color—as the key regulatory hurdle.

• Elon Musk alleges Starlink blocked in South Africa because he’s “not Black.”

• Government and regulators deny claim, say Starlink never applied for a license.

• BEE laws require 30% local Black ownership for telecom operations.

• Proposed reforms may allow “equity equivalent” options for foreign investors.

• ICASA warns against unauthorized Starlink use in South Africa.

Johannesburg, South Africa — Tech billionaire Elon Musk has stirred national debate with his assertion that Starlink, his satellite internet venture, cannot operate in South Africa because he is “not Black.” The claim, posted on X (formerly Twitter), references the country’s Black Economic Empowerment (BEE) regulations, which require at least 30% local Black ownership for telecommunications licenses.

Musk labeled the policy as “blatantly racist,” adding that it excludes companies like his from doing business in the country. However, South Africa’s communications watchdog, the Independent Communications Authority of South Africa (ICASA), responded swiftly, clarifying that Starlink has not formally applied for the necessary licenses to begin operations in the country.

Government officials also rejected Musk’s claim. “This is not about skin color. It’s about compliance with our national laws designed to rectify the injustices of apartheid,” said Communications Minister Solly Malatsi. The minister emphasized that any company, regardless of ownership, is welcome if it adheres to the rules.

In a bid to address challenges faced by foreign investors, the government recently introduced a draft policy amendment allowing “equity equivalent” programs. These alternatives would let foreign firms meet BEE requirements by investing in local infrastructure, education, and small Black-owned businesses, rather than transferring direct ownership.

While some observers believe the policy revision aims to ease the entry of Starlink, critics argue it could compromise South Africa’s empowerment objectives. “We cannot afford to backslide on economic justice just to please billionaires,” said a spokesperson from the opposition Economic Freedom Fighters (EFF).

Despite lacking regulatory approval, Starlink devices have reportedly been used in South Africa via roaming from neighboring countries. ICASA has issued warnings that such use is unauthorized and will face enforcement action.

The Starlink saga highlights the broader tension between global tech ambitions and national transformation policies. As South Africa balances economic inclusion with digital advancement, the Starlink case may well shape the future of foreign investment in the country’s critical infrastructure sectors.