Big lie about Starlink in South Africa

False information is circulating in South Africa that SpaceX does not need a local entity that is 30% owned by historically disadvantaged groups to launch Starlink in South Africa.

The claim recently surfaced in a report that Johann Rupert brokered a meeting between Donald Trump and Cyril Ramaphosa after diplomatic channels failed.

A subsequent article from News24 quoted Rupert as saying that golfer Ernie Els convinced Trump to agree to a meeting.

This was amid escalating tensions between the United States and South Africa, with the Trump administration halting foreign aid and granting refugee status to Afrikaners and other minority groups.

According to the article, a major reason the United States has targeted South Africa is to help Elon Musk launch Starlink without complying with ownership equity laws.

Musk played a significant role in helping Trump get re-elected and has been a close advisor to the President. He also operated the controversial “Department of Government Efficiency”.

The article blames disinformation for spreading the belief that the only way for Starlink to launch in South Africa is for SpaceX to give away 30% of the company.

It then states that SpaceX could use equity-equivalent programmes to allow Starlink to operate legally in South Africa.

It specifically highlights activities like building satellite training centres for rural youth, providing venture capital for community startups, and grants to equip underconnected schools with terminals.

Unfortunately, this is inaccurate.

There is no equity equivalent mechanism for telecommunications licences in South Africa yet, despite such programmes being available in other sectors.

Communications minister Solly Malatsi first announced last year that government wanted to introduce equity equivalent programmes for multinationals in telecoms.

With cabinet approval, Malatsi said he would direct Icasa to consider implementing equity equivalents as a matter of urgency.

This has been included in South Africa’s Medium Term Development Plan 2024–29, which was published in March.

However, Starlink has become a political football because of Elon Musk’s association with Donald Trump.

Musk’s comments on Twitter/X that Starlink is not allowed to operate in South Africa because he’s not black have further polarised the issue.

Given that Musk owns an estimated 42% stake of SpaceX, it is accurate that Starlink may have been able to obtain licences had he been black.

However, Starlink would also be allowed to launch in South Africa if it partnered with a local company that already has the necessary operating licences.

It appears that Starlink is not interested in having middlemen in South Africa and has elected to delay its local launch until alternatives are available.

Manufactured controversy

Because Starlink has become a politically charged topic, the government’s equity equivalent plan has been met with resistance from some corners.

Khusela Diko, an ANC MP and chairperson of the Parliamentary Portfolio Committee on Communications, has fiercely opposed it.

“Minister Malatsi should know that when it comes to transformation in the ICT sector, the law is clear on compliance,” Diko said in a recent statement.

“Cutting corners and circumvention is not an option — least of all to appease business interests.”

Diko said Malatsi’s proposals appeared to be an attempt to undermine empowerment legislation by stealth.

“Should this be found to be the case, they will be fiercely opposed,” stated Diko.

“We have a problem with the fact that there seems to be an obsession with Starlink in particular, and this is a matter that’s been raised in the portfolio committee.”

In response, Malatsi, a DA MP, said the issue was being personalised and politicised but the arguments held no water.

He reiterated that the plan to introduce equity equivalents in the ICT sector was approved by cabinet and appeared in the Medium Term Development Plan.

In a recent development, Bloomberg reported on Tuesday that a South African delegation would meet Starlink officials in Washington ahead of Ramaphosa’s meeting with Trump.

According to the report, the last-minute meeting aims to defuse tensions by presenting Starlink with a path to launching in South Africa — equity equivalents.

It is not yet known whether South Africa plans to present anything more than what has already been announced. If not, it will be interesting to see if Musk accepts such an offer.