South African lawmakers put Starlink launch on hold over policy clash

Elon Musk’s Starlink may face delays in delivering satellite internet to South Africa. Lawmakers are opposing a recent policy change that would have permitted SpaceX to operate in the country without the requirement to share ownership with local investors.

A new government directive is changing how foreign companies can follow empowerment rules. Instead of requiring 30% ownership by local Black individuals, the policy lets international firms invest in programs, infrastructure projects, or community initiatives. Supporters believe this change will allow for advanced satellite internet. However, critics say it ignores important efforts for economic change that have taken many years.

Communications Minister Solly Malatsi announced plans to expand Starlink internet service across rural and urban areas in South Africa. He said this decision comes after listening to public feedback, which strongly supported the change. If the plan goes ahead, Starlink will be able to operate without needing to give up any ownership, which is something Elon Musk has not agreed to in other countries.

Starlink and the tension between fairness and access

Some people believe the policy could harm progress toward fairness. Khusela Sangoni Diko, who leads the parliamentary communications committee, called it a “step backwards” for ensuring that historically disadvantaged groups benefit from major industries in South Africa. The ruling African National Congress shared her worries, saying that if the directive stays in place, foreign companies might take control of an important sector.

For South Africans, this conversation is personal, not just political. Right now, very few rural households have internet access. Satellite internet could greatly improve education, business, and daily life in these areas. Experts in telecommunications suggest that flexible investment programs, instead of strict ownership rules, could help bring infrastructure and digital inclusion projects to underserved communities more quickly.

Read also: Starlink decries South Africa’s delay in approving its entry into the country

Other industries have similar models. In South Africa’s auto sector, companies like BMW, Ford, and Toyota have created funds to support historically marginalised groups without giving away ownership. The question now is whether satellite operators like Starlink can take a similar approach without causing more political or legal issues.

The committee will review the issue next year, which means the timeline for Starlink’s rollout is still uncertain. How South Africa manages technological progress while ensuring long-term economic fairness could set an example for other African countries. They want to adopt new digital infrastructure while also protecting local interests.