South African opposition parties have sharply criticized the government for proposing a legal exemption that could pave the way for Elon Musk’s Starlink to operate in the country without complying with existing Black Economic Empowerment (BEE) laws. The uproar, as reported by the Financial Times, centers around a controversial move by Communications Minister Solly Malatsi to loosen equity ownership requirements for telecoms firms — a change widely perceived as tailored to meet Musk’s conditions.
Build One South Africa (Bosa), a rising opposition party, has formally called on Parliament to disclose any records related to what it described as a “backdoor deal” with the U.S. billionaire’s satellite internet venture. “The message being sent is that if you are a powerful foreign billionaire, you can sidestep South Africa’s laws, while our local businesses are forced to jump through hoops,” said Nobuntu Hlazo-Webster, Bosa’s deputy leader.
Bosa spokesperson Roger Solomons added that the new exemption — published recently in the government gazette — was an “impulsive move” that created preferential conditions for Starlink “not favourable to the country.”
Starlink, Musk’s fast-growing satellite broadband provider, has faced regulatory barriers in South Africa due to its refusal to comply with BEE rules, which require 30% of local ownership by historically disadvantaged groups. Musk previously remarked that he couldn’t secure a license in South Africa “because I am not Black.”
In place of equity transfer, the proposed regulation allows foreign telecom firms to meet BEE requirements through “equity equivalence programmes,” such as job creation, local procurement, and funding for small businesses — a move many interpret as a strategic workaround for Starlink’s entry.
The reaction has been politically explosive. Julius Malema, leader of the leftist Economic Freedom Fighters, vowed to oppose Starlink’s entry in Parliament, saying he would not allow South Africa to be “dictated to by business.”
While global telecom players like Vodacom, a unit of UK-based Vodafone, have complied with local ownership rules, critics argue the framework has failed to broaden economic opportunity. Instead, they say it has benefited a small elite while discouraging much-needed foreign investment.
The Financial Times reports that this shift in telecom policy has reignited debate around broader economic empowerment laws — particularly in the mining sector. The Minerals Council South Africa, the country’s main mining industry body, has called for similar exemptions for exploration companies, which are typically high-risk ventures. “Every cent that they raise should ideally go towards drilling out or finding a resource,” said Allan Seccombe, the Council’s communications director.
However, the ruling African National Congress (ANC) remains firm in its commitment to BEE as a tool of economic redress. President Cyril Ramaphosa, speaking in Parliament this week, dismissed calls to scrap or dilute empowerment legislation. “It is the partial and exclusive ownership of the means of production in our country that is holding this economy from growing,” he said.
The Democratic Alliance, South Africa’s second-largest party, is currently challenging the ANC’s empowerment framework in court, arguing that the equity requirements are unconstitutional and economically damaging. DA MP James Lorimer warned that proposed rules in the draft mining bill could “effectively end the already tottering case for foreign investment in South African mining.”
The controversy comes at a politically fragile moment for the ANC, which lost its parliamentary majority for the first time last year and now governs in coalition. With frustration mounting over crime, unemployment, and economic stagnation, the party faces growing pressure over its legacy policies — and its apparent willingness to make exceptions for global tech giants.
