Talks over licensing SpaceX’s Starlink service in South Africa have stalled over the nation’s tensions with the Donald Trump administration within the US.
That is based on a current report in Bloomberg Information (paywall), which mentioned that “negotiators plan to attend till the dispute between the US and South Africa calms down, with the intention to return to a attainable deal at a later stage”, Bloomberg reported, citing unnamed sources “accustomed to the matter”.
SpaceX, which is managed by US billionaire and Trump ally Elon Musk, has for a while been in search of a licence to function in South Africa. Nonetheless, the method has been delayed over a request by SpaceX for “fairness equivalents”, by way of which it will not be required to promote a 30% stake in its South African operation however quite to make investments in different ways in which advance South Africa’s programme of black financial empowerment.
Final yr, communications minister Solly Malatsi requested Icasa, the communications regulator which is finally answerable for licensing Starlink in South Africa, to contemplate revising the rules in order that fairness equivalents are permitted within the licensing course of, significantly to make sure international buyers should not chased away earlier than they even decide to spend money on the nation.
Malatsi has repeatedly mentioned his request to Icasa isn’t meant to help Starlink particularly, however to encourage higher international direct funding throughout the sector, in step with the fairness equivalence programmes allowed in different industries.
SpaceX lately withdrew from Icasa’s public hearings this month into the proposed new licensing framework for satellite tv for pc companies in South Africa. It had been scheduled to make a presentation to Icasa earlier this month however withdrew its participation on the final minute.
Tensions
The withdrawal by SpaceX adopted a publish by Musk on his social media platform X that requested President Cyril Ramaphosa why the nation had what he known as “overtly racist possession legal guidelines”.
Tensions between the events now look like escalating additional, with President Cyril Ramaphosa’s spokesman, Vincent Ngwenya, reportedly telling Bloomberg Information that South Africa wouldn’t pursue an funding by Starlink in any respect prices.
Learn: SpaceX formally withdraws from Icasa satellite tv for pc hearings
“If a number one enterprise determine like Elon Musk harbours the sort of unprogressive, racist views that we’ve witnessed and the peddling of lies that we’ve been confronted with, then we’re not going to pursue having his investments,” Magwenya reportedly mentioned.
Why do you could have overtly racist possession legal guidelines? https://t.co/tHWVsmB04F
— Elon Musk (@elonmusk) February 3, 2025
In its written submission to Icasa forward of this week’s public hearings, SpaceX informed the regulator that it should rethink the foundations requiring 30% shareholding by “traditionally deprived” teams, TechCentral first reported earlier this month.
“Many international satellite tv for pc operators, significantly these with direct-to-consumer enterprise fashions, have international insurance policies that forestall native shareholding, thus excluding them from the South African market. This holds true even when these operators are prepared to adjust to B-BBEE necessities and spend money on initiatives that instantly profit the goal communities,” the submission mentioned, referencing the empowerment guidelines within the licensing course of.
“By aligning the licensing and possession rules with the ICT sector code – which recognises fairness equal programmes as an alternative choice to native shareholding – Icasa may take away a major barrier to international satellite tv for pc operators. This may not solely enhance international funding in South Africa however would additionally create broader trade advantages, supporting innovation, competitors and long-term development,” SpaceX mentioned. – © 2025 NewsCentral Media
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