SpaceX’s satellite internet service, Starlink, has announced a significant investment of nearly R2 billion (approximately $116 million USD) to expand its operations in South Africa. This move aims to provide high-speed internet access to underserved regions and align with the country’s Broad-Based Black Economic Empowerment (B-BBEE) regulations.
To comply with South Africa’s telecom licensing requirements, which mandate that 30% of equity be owned by historically disadvantaged individuals, Starlink plans to establish a Broad-Based Black Economic Empowerment (BEE) company. Additionally, the company will utilize the Equity Equivalent Investment Program (EEIP), a policy introduced in May 2025 to allow foreign companies to meet local empowerment obligations through alternative investments.
As part of its commitment, Starlink has pledged R500 million (approximately $29.1 million USD) to connect 5,000 schools across South Africa, benefiting approximately 2.4 million students. The initiative will involve partnerships with local internet service providers to install and maintain the necessary infrastructure, operating on an open-access model.
Ryan Goodnight, Starlink’s Senior Director of Market Access, emphasized that the company is dedicated to complying with South African laws and contributing to the country’s digital development. He stated, “We are paying local taxes, we are paying the same local regulatory fees as all other ISPs… we’re also subject to all of the same local laws.”
This investment marks a significant step in bridging the digital divide in South Africa, providing reliable internet access to areas that have historically been underserved. By leveraging satellite technology, Starlink aims to enhance educational opportunities and stimulate economic growth in these regions.
The South African government’s introduction of the EEIP policy has been met with both support and criticism. While some view it as a progressive step towards inclusive economic growth, others argue that it may favor foreign companies over local businesses. Despite the debate, the policy has garnered significant public support, with over 19,000 positive submissions during the consultation period.
Starlink’s investment is expected to not only improve internet connectivity but also stimulate local economies by creating jobs and fostering innovation in the tech sector. As the project progresses, it will be crucial to monitor its impact on both the digital landscape and the broader socio-economic environment in South Africa.
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