Elon Musk, South Africa clash deepens over Starlink, 14,000 users at risk

Elon Musk’s dispute with South African authorities over Starlink is intensifying, as reports suggest roughly 14,000 residents are accessing the service without authorization, despite a R500 million ($31.2 million) pledge to connect 5,000 rural schools.

Starlink, which remains unlicensed in South Africa, is caught in a regulatory standoff that has frustrated Musk, who has publicly signaled impatience with the country’s strict telecom rules. Responding to a post on X by user DogeDesigner referencing the R500 million ($31.2 million) investment, Musk said, “But it is still on hold,” underscoring the ongoing impasse.

ICASA seizes unauthorized Starlink equipment

Musk, a South African-born billionaire worth $843 billion, has previously revealed that Starlink’s local licensing hurdles are linked to racial dynamics—a claim officials have denied. The Independent Communications Authority of South Africa (ICASA) has warned that using Starlink via foreign roaming packages breaks telecom laws and has begun seizing unauthorized equipment.

The core of the dispute lies in South Africa’s Electronic Communications Act, which requires that 30 percent of licensed operators be owned by historically disadvantaged groups. Starlink does not meet this requirement, leaving it unable to secure a local license.

Starlink BEE plan, rural pressure grows

In June 2025, Starlink reportedly considered a R2.5 billion ($145.6 million) investment to meet Black Economic Empowerment (BEE) requirements. The company explored partnerships with local firms for land leases, fiber connectivity, energy, and maintenance services. When South Africa introduced Equity Equivalent Investment Programmes (EEIPs) in December 2025, Musk’s school connectivity pledge fit within the framework, but regulatory approval remains pending.

Rural communities and farmers are voicing growing frustration, citing limited connectivity as a constraint on economic activity and access to essential services. Starlink launched a public advocacy campaign in February 2026, aiming to clarify what it called “myths and facts” about its operations and urging supporters to engage with ICASA.

14,000 users face service cutoff risk

An estimated 14,000 South Africans are using Starlink through accounts registered in neighboring countries such as Mozambique, prompting warnings that services could be cut by the end of April. A legal launch could occur by late 2026, but legal challenges from competitors may push it to 2030. 

Meanwhile, Lesotho, which granted Starlink a 10-year license in April 2025, is advancing connectivity across challenging terrain. This contrasts with South Africa, where authorities continue to uphold what many see as an expensive and exclusionary status quo. In a digital economy, connectivity is infrastructure, and restrictions are more than regulation—they can slow economic progress.