South African-born billionaire Elon Musk has taken another swipe at his home country’s decision to grant his internet satellite service, Starlink, a licence to operate in the country.
Musk’s company – which falls under SpaceX – has thus far refused to comply with transformative legislation – like Black Economic Empowerment (BEE) – which governs telecom licences in South Africa. This requires a 30% local shareholding to foreign investors.
Musk has argued that the law is “racist” and discriminates against him as he is “not black”.
ELON MUSK SLAMS ‘RACIST LAWS’
On the X app – which Elon Musk owns – he agreed with a user who condemned South Africa’s enforcement of BEE in the telecoms sector.
User @gailalfaratx stated that “Elon’s Starlink wants to drop free, unlimited, super-fast internet into 5 000 rural South African schools, but SA’s bureaucracy insists on saying no”.
The user added: “All they’re asking? A normal licence to operate in SA”.
The X user suggested that Starlink would invest R500 million in providing internet services at rural schools, as an alternative to the transformative legislation.
The post continued: “Come on, South Africa, don’t be the only country turning down free internet for millions of learners.
“Elon Musk was born in South Africa, the very place that is telling him no to such a generous offer!”
Musk agreed with the X user’s views, adding, “The South African government is super racist against anyone who isn’t Black. Just a fact. It’s literally in the laws”.
STARLINK TO SOUTH AFRICA
In May, Minister of Communications Solly Malatsi was accused of being in favour of granting Elon Musk an operating licence in South Africa, by allegedly “side-stepping” Black Economic Empowerment (BEE).
Musk initially slammed the legislature that his company was required to adhere to a 30% local shareholding investment as a “racist law”, as he was “not black”.
Minister Malatsi gazetted a policy direction for his department on “alternatives” such as equity equivalent investment programmes (EEIPs).
Images via X: @starlink
Without mentioning Starlink, the minister claimed that the policy would “attract investment,” specifically in operating licensing.
The minister revealed that a 30% local shareholding BEE requirement for foreign investments “did not allow companies to contribute to transformation goals in ways other than traditional ownership”.
As such, Malatsi revealed that the EEIP policy direction would allow qualifying multinationals to engage with the department through “alternatives” to local ownership.
This included investments in :
- Local suppliers
- Enterprise and skills development
- Job creation
- Infrastructure support
- Research and innovation,
- Digital inclusion initiatives,
- and funding for SMMEs.
The minister emphasised that Starlink must meet licensing conditions before being granted a license.
