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South Africa Denies Trying to Bend Rules to Give Musk's Starlink Preferential Treatment

Under South African law, foreign-owned companies are required to sell 30% of their subsidiaries to shareholders from historically disadvantaged groups in order to get a license.

Associated Press

May 27, 2025 — 3 min read

Photo of South African President Cyril Ramaphosa meeting in the Oval Office of the White House with President Donald Trump on Wednesday, May 21, 2025 by Evan Vucci/AP

JOHANNESBURG, May 27, 2025 (AP) — South Africa’s communications minister Tuesday denied accusations that a draft policy watering down Black ownership requirements for tech firms was proposed to benefit the Starlink business of white South African-born billionaire Elon Musk.

Under South African law, foreign-owned companies are required to sell 30% of their subsidiaries to shareholders who are Black, or from other racial groups disadvantaged under the former apartheid system of white minority rule, in order to acquire a license.

However, Communications Minister Solly Malatsi on Friday proposed easing the requirement, prompting criticism from various political parties. The proposed change would allow Starlink and others to fulfill their empowerment requirements through things like investing in skills development and job programs and striking deals with local suppliers.