Race & Regulations: Musk’s Starlink Standoff with South Africa

A dispute between Elon Musk and South Africa over his satellite internet company Starlink has escalated into a racially charged standoff,exacerbating tensions between the United States and the Southern African country.

Musk claimed on his social media platform X that Starlink was “not allowed to operate in South Africa simply because I’m not black,” referencing the country’s Black Economic Empowerment (BEE) laws that require 30% ownership by historically disadvantaged groups.

South African regulators countered that Starlink has never formally applied for an operating license. “The company is welcome to operate provided there’s compliance with local laws,” the foreign ministry stated,noting that over 600 US companies operate successfully within these regulations.

The impasse coincides with deteriorating US-South African relations during Donald Trump’s second term. Trump has threatened to boycott the G20 summit in South Africa,while Musk,part of Trump’s inner circle,has made inflammatory claims about “racist ownership laws” and alleged “white genocide” in the country.

Communications Minister Solly Malatsi,from the opposition Democratic Alliance party now in coalition government,has hinted at seeking exemptions to the 30% black equity requirement for Starlink. However,he faces resistance from the parliamentary communications committee,which warned that “cutting corners and circumvention is not an option – least of all to appease business interests.”

Meanwhile,Starlink’s expansion across Africa continues,with recent launches in Somalia and Lesotho,bringing its presence to over 20 African countries. In Lesotho,the company received a license shortly after Trump imposed tariffs on the country,though officials deny any connection between the two events.

South African President Cyril Ramaphosa has appointed former deputy finance minister Mcebisi Jonas as special envoy to the US,signaling his determination to repair relations despite the Starlink controversy. With Trump threatening a 30% tariff on South African goods,Ramaphosa cannot afford further deterioration in economic ties with a major trading partner.