At a Glance
- SpaceX commits $28 million to boost Starlink internet in rural South Africa.
- Starlink aims to connect 5,000 rural schools with free high-speed satellite internet.
- Policy approval sought to meet B-BBEE rules and fast-track broadband rollout.
SpaceX has announced a significant $28 million (R500 million) investment to expand its Starlink satellite internet service in South Africa.
The initiative aims to deliver free, high-speed broadband connectivity to 5,000 rural schools, potentially benefiting around 2.4 million students nationwide.
This ambitious expansion builds on advanced negotiations started last year with the South African government, seeking to transform internet access across the country’s underserved rural and township areas.
Starlink pushes for regulatory approval under South Africa’s ICT framework
The funding pledge was disclosed in a recent communication from SpaceX to South Africans interested in Starlink, urging support for the government’s proposed Digital Technologies Policy Direction No. 3218.
This policy would introduce Equity Equivalence Investment Programs (EEIPs) in the ICT sector, allowing multinational companies to comply with South Africa’s broad-based black economic empowerment (B-BBEE) regulations without the strict 30 percent local ownership threshold.
EEIPs have already been successfully implemented in sectors such as banking, manufacturing, and technology.
Starlink says the program’s adoption would accelerate broadband rollout to underserved townships, farms, and rural schools, helping bridge the country’s digital divide.
“Starlink proposes fully funded kits and installation support for over 5,000 rural schools, collaborating with local companies,” said Ryan D. Goodnight, Starlink’s Market Access senior director.
He emphasized that the initiative aligns with South Africa’s SA Connect objectives to expand internet access.
Commitment to compliance and operational integrity
Goodnight stressed that Starlink respects South Africa’s regulatory environment and has not sought any exemptions from B-BBEE laws.
The company insists on maintaining full global ownership of its subsidiaries for operational integrity—a practice consistent across nearly 150 countries where Starlink operates.
“Fortunately, South Africa’s Electronic Communications Act and the B-BBEE ICT Sector Code offer multiple compliance pathways, including EEIPs,” he said.
Goodnight also cited support from government officials and examples from tech giants like Microsoft, IBM, and Amazon that use EEIPs to meet local ownership rules while committing to economic transformation.
While this policy shift could clear regulatory hurdles, the Independent Communications Authority of South Africa (Icasa) still holds the final decision on granting Starlink’s operating license.
Starlink’s African expansion accelerates
Starlink, the world’s largest satellite internet venture from Elon Musk’s Space X,is rapidly expanding across Africa, having recently secured market entry in Lesotho, Somalia, and Congo despite regulatory challenges.
Elon Musk, founder and CEO of SpaceX and Tesla, currently ranked the world’s richest person with a net worth of $371 billion (Bloomberg Billionaires Index), remains focused on delivering affordable, low-latency satellite internet to remote, underserved regions worldwide.
The South African expansion follows SpaceX’s partnership with Airtel Africa, jointly targeting improved rural broadband connectivity across the continent.
This collaboration underscores a shared vision to leverage satellite technology in bridging the continent’s persistent digital divide.
