Talks between SpaceX and the South African government regarding the licensing of Starlink services have stalled due to tensions between the two parties. The disagreement started when Elon Musk questioned South Africa’s ownership laws, calling them “openly racist”.
In response, President Cyril Ramaphosa’s spokesman said South Africa would not pursue an investment by Starlink at all costs. This led to SpaceX withdrawing from public hearings on the proposed new licensing framework for satellite services in South Africa.
The main issue is South Africa’s requirement for at least 30% shareholding by historically disadvantaged groups. SpaceX argues that this rule prevents foreign satellite operators from entering the market.
Instead, SpaceX proposes an “equity equivalence” system, which would allow companies to contribute to South Africa’s socio-economic development in other ways. However, the South African government is hesitant to change its regulations.
The stalemate has put Starlink’s plans to operate in South Africa on hold. While some neighbouring countries have already approved Starlink’s services, South Africa’s regulatory hurdles remain a significant barrier.