South Africa is signaling a fresh opening for Elon Musk’s Starlink, but the SpaceX-operated satellite internet service still faces a 30% ownership requirement before it can secure the licenses needed to operate commercially.

Deputy Communications and Digital Technologies Minister Mondli Gungubele said the government wants Starlink in the market while pursuing broader economic transformation.

Speaking at Bloomberg’s 2026 Africa Business Media Innovators gathering in Hermanus on Sept. 28, Gungubele said Starlink could help the government expand connectivity. He urged multinational companies to work with South Africa on reducing inequality and building local technical expertise, rather than simply deploying foreign technology and operating independently.

A 30% hurdle remains

South Africa’s telecommunications licensing framework requires individual license holders to have at least 30% ownership by historically disadvantaged groups. Starlink has maintained that the rule prevents it from launching because its global structure requires sole ownership of its operating subsidiaries.

The dispute has also exposed a policy divide between the government and the Independent Communications Authority of South Africa. Communications Minister Solly Malatsi has backed equity equivalent investment programs, or EEIPs, as an alternative to direct ownership, while ICASA has said legislative changes would be needed to implement that approach.

For Gungubele, the issue goes beyond the percentage of shares Starlink may need to surrender. He said foreign companies should help transfer technology and skills to South African engineers and institutions, arguing that stronger domestic capabilities would reduce dependence on overseas suppliers when global disruptions affect critical technology and supply chains.

Musk faces regulatory choice

The government’s position creates a potential path for Starlink, but not an immediate one. The company would still need to navigate South Africa’s licensing regime, while any move toward EEIPs would have to fit within the legal framework governing telecommunications licenses. ICASA’s position in May underscored the unresolved regulatory barrier.

Musk has publicly criticized South Africa’s ownership rules. In an April post on X, he said Starlink could not obtain an operating license because he was not Black. Starlink has separately said it is not seeking an exemption from empowerment laws and has pointed to EEIPs as an existing mechanism for meeting transformation objectives.

Starlink, operated by SpaceX, uses a low-Earth orbit satellite network to provide broadband in areas where traditional infrastructure can be limited or unavailable. The company says its service now reaches more than 160 countries, territories and other markets, underscoring the scale of the network Musk is seeking to extend into South Africa.

South Africa weighs next move

For South Africa, Starlink offers another potential provider of high-speed internet, particularly in areas where conventional broadband infrastructure is weaker. For Musk, the market presents a regulatory test: access depends not only on technology and investment, but also on how the company addresses the country’s ownership and transformation requirements.

Gungubele said the government remains engaged with Starlink and hopes the two sides can find common ground. That leaves the company with a potential route into one of Africa’s largest economies, but the 30% ownership rule and ICASA’s legal position remain central to whether that route can become a commercial launch.