Starlink Says It Will Invest in South Africa Instead of Giving Up Equity

Source: FT

The standoff between Starlink and South Africa is starting to feel like a game of who blinks first, and once again, Starlink isn’t shifting its ground. In a letter to trade minister Parks Tau, the company pushed back against claims that it’s trying to sidestep South Africa’s Black empowerment laws and made one thing clear: it’s willing to invest, just not under rules that force it to give up equity.

The Letter sent to South Africa's Trade Minister Parks Tau.

South Africa’s current licensing laws require telecom operators to be 30% locally owned. But Starlink, like in every other country it operates in, wants to keep full ownership of its subsidiaries. Instead of giving up shares, the company says it’s open to contributing via “equity equivalent” investments—things like funding education and tech skills development.

And the government may be on the same page. Communications minister Solly Malatsi recently proposed a policy shift that would let companies like Starlink invest in social impact projects instead of handing over equity. Still, the final call lies with Icasa, the independent regulator, and so far, its licensing rules haven’t caught up with the broader B-BBEE framework.

Starlink says it’s not asking for special treatment; just a path that fits how it runs its operations globally. If Icasa updates its rules, the company claims it’ll hit the ground running to connect rural communities, where internet access is still spotty at best. “Millions of children are being left behind,” the letter reads. “This is a problem we want to help solve.”