South African authorities moved to amend rules on Black ownership requirements, potentially paving the way for Elon Musk’s Starlink and other satellite-internet companies to operate in Africa’s biggest economy.
Telecoms Minister Solly Malatsi last week told the industry regulator to allow equity-equivalent investment programs to count toward empowerment rather than insisting on 30% local Black-ownership, a policy introduced nearly 30 years ago to reduce apartheid-era inequality.
Pretoria-born Musk has refused to relinquish equity to comply with laws the billionaire has called “openly racist.” Semafor first reported in February that the government was considering using an “equity equivalent” option, such as digital infrastructure investment, to bypass the existing rules.
The directive follows a study, published this month, that found most South Africans want the Black empowerment policy to be scrapped, amid criticisms that it has enriched a small group of people at the expense of broader reform. Amending the rules could drive investment but would deepen political divisions: A parliamentary committee has called for the minister’s recent directive to be rescinded, and the row could spark fresh infighting within the coalition government. The ANC said it was “deeply concerned” by the directive issued by Malatsi, a member of the Democratic Alliance party that has long called for the ownership quota to be scrapped.