South Africa Denies Elon Musk’s Starlink Investment Proposal

Elon Musk’s Starlink Investment Rejected by South Africa

South Africa has declined to approve Elon Musk’s Starlink satellite internet service due to licensing requirements mandating that 30% of the venture’s equity be owned by black-owned businesses, in line with the country’s Black Economic Empowerment (BEE) policies. Musk criticized these regulations as “openly racist,” leading to a stalemate between Starlink and South African authorities.

The situation escalated when Musk publicly condemned South Africa’s Expropriation Act, alleging that the government enforces ownership laws discriminating based on race. In response, President Cyril Ramaphosa’s spokesperson, Vincent Magwenya, dismissed Musk’s remarks, emphasizing that South Africa will not engage with investors propagating “falsehoods” and divisive rhetoric.

This dispute has broader implications, as U.S. President Donald Trump threatened to suspend nearly $500 million in annual aid to South Africa over the new land expropriation law, which allows the government to expropriate unused land for public interest without compensation. Both Trump and Musk have portrayed the law as targeting white landowners, a claim the South African government disputes, asserting that no land has been confiscated and accusing them of spreading misinformation.

As a result of these tensions, Starlink’s operations in South Africa remain on hold, with the government standing firm on its regulatory policies and Musk refusing to comply with the BEE requirements.

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