Starlink’s South African dream may face a two-year delay

South Africa’s quest for high-speed satellite internet via Starlink has hit a significant roadblock. According to ICT regulatory expert Dominic Cull, it may take at least two years for Starlink to secure a licence to operate in South Africa owing to the country’s complex Black Economic Empowerment (BEE) regulations.

Speaking at the Wapaloza 2025 conference, Cull highlighted the slow pace of regulatory reform, dashing hopes for a swift Starlink South Africa rollout.

South Africa’s telecommunications landscape is governed by a set of stringent rules. These include a stipulation that 30% of a licensee’s equity be held by historically disadvantaged persons.

This BEE mandate, designed to address apartheid-era inequities, poses a challenge for global companies like Starlink, which seeks to retain full ownership of its subsidiaries for operational reasons.

Dominic Cull, a regulatory expert at Ellipsis, emphasised the excruciating pace of legislative change. “On average, it takes a minimum of five years to develop a piece of legislation in South Africa and another three years to translate that into a regulatory framework,” he said.

He predicted that even an optimistic timeline for new equity equivalence investment programmes (EEIPs) would push the satellite internet provider’s licensing to late 2027.

Communications Minister Solly Malatsi has proposed EEIPs as an alternative to the 30% equity rule, allowing companies to invest in areas like education or small Black-owned businesses instead of relinquishing shares.

This draft policy, issued in May 2025, aims to ease entry for foreign investors like Starlink. However, the proposal has sparked controversy.

Khusela Diko, chair of parliament’s communications portfolio, accused Malatsi of creating a “shortcut” for Musk-owned company, a claim he denies. Diko argued that other satellite operators have complied with existing BEE laws, questioning why the company should receive special treatment.

This political friction underscores the broader tension between economic transformation goals and attracting global investment.

Starlink’s commitment to South Africa

Despite the hurdles, Starlink remains eager to enter the South African market. In a letter to Trade, Industry & Competition Minister Parks Tau, the company refutes claims that it seeks exemptions from BEE laws.

“We are fully committed to providing the service as a legally compliant company, as we do all around the world,” said Ryan Goodnight, Starlink’s senior director of market access.

The company has proposed a R500-million ($27 million) investment to provide free Starlink kits and services to 5,000 rural schools, potentially benefiting 2.4 million students.

This initiative highlights its potential to bridge South Africa’s digital divide, where internet penetration stands at 70% but rural areas often lack reliable connectivity.

Broader implications for South Africa

The delay in Starlink’s launch has significant implications. South Africa risks falling behind its neighbours, as all other Southern African Development Community (SADC) nations are set to welcome the company by the end of the year.

Lesotho, for instance, recently launched the service, with plans for AI-powered data centres and community internet hotspots.

The absence of Starlink could hinder efforts to expand broadband access in remote regions, where fibre and mobile networks are often uneconomical.

Moreover, astronomers have raised concerns about Starlink’s satellites interfering with South Africa’s Square Kilometre Array (SKA) telescope, adding another layer of complexity to licensing discussions.

Political and social tensions

The delays and saga have also fuelled political debates. EFF leader Julius Malema vowed that the company would not operate in South Africa unless it complies with BEE laws, reflecting strong resistance from some quarters.

Meanwhile, Elon Musk’s controversial claim that the firm was barred “because I’m not Black” drew sharp rebukes, with critics clarifying that the issue lies in regulatory compliance, not race.

South African billionaire Johann Rupert, during a White House visit in June 2025, underscored Starlink’s potential to combat crime through enhanced connectivity, amplifying the stakes of the debate.

Globally, Starlink has transformed internet access in over 140 markets, offering median download speeds above 100 Mbit/s in 14 countries. In Africa, about 24 countries have embraced the service, though oversubscription has led to “sold out” statuses in some urban centres.

South Africa’s robust fibre and mobile networks may mitigate such congestion, but rural communities stand to benefit most from Starlink’s satellite internet.

For comparison, Zambia offers Starlink’s standard plan at R666/month, significantly cheaper than the U.S.’s R1,604. This affordability could make the service a viable option for South Africans, provided regulatory barriers are overcome.

The road to Starlink South Africa remains fraught with challenges. While Malatsi’s EEIP proposal offers hope, the slow pace of regulatory reform and political pushback suggest a lengthy wait. Cull’s warning that “Starlink perhaps is not taking into account just how slowly things move here” rings true, as South Africa balances economic transformation with global innovation.

For now, South Africans eager for Starlink’s high-speed internet must wait, while rural communities miss out on connectivity that could transform education, business, and security.