EFF Threatens Legal Action Over Starlink’s Proposed BEE Exemption

The Economic Freedom Fighters (EFF) has vowed to take legal action against the South African government over reports that it plans to offer Elon Musk’s Starlink a special exemption from Black Economic Empowerment (BEE) laws.

The party has condemned the move as unconstitutional, warning that it compromises the country’s sovereignty.

EFF Condemns “Unlawful” Starlink Deal

EFF spokesperson Sinawo Thambo argued that if Musk were genuinely concerned about South Africans, he would advocate for sanctions and disinvestment rather than pushing for Starlink’s entry into the market.

“This decision undermines our laws and economic transformation agenda,” Thambo stated. “If Elon Musk truly cared about the people, he would respect South Africa’s policies instead of seeking preferential treatment.”

Government’s Reported Workaround for Starlink

According to a Bloomberg report, South African officials are set to meet with Musk or his representatives to discuss a last-minute exemption from BEE requirements. The talks are expected to take place during President Cyril Ramaphosa’s delegation visit, aiming to ease tensions with both Musk and former US President Donald Trump.

Sources suggest the government is keen to fast-track Starlink’s operations in South Africa, where high internet costs and connectivity gaps remain major challenges. However, critics argue that bypassing BEE laws sets a dangerous precedent for foreign investors.

Legal and Political Backlash

The EFF insists that any exemption for Starlink would violate South Africa’s constitutional commitment to economic redress. The party has warned of court action if the deal proceeds without adherence to local ownership laws.

As the debate intensifies, the government faces mounting pressure to balance foreign investment with equitable economic policies. The outcome of the proposed Starlink deal could set a significant precedent for future tech investments in South Africa.

SA loses out on Starlink’s affordable pricing and reliable, high-speed connections. Picture: SCOTT OLSON/GETTY IMAGES

All rules have their exceptions — in other words, it is the exception that proves the rule. This basic principle explains why SA’s rigid insistence on enforcing BEE compliance for Starlink amounts to economic self-sabotage.

While Elon Musk’s dismissal of BEE as racial bias is misguided, the government’s refusal to grant operational flexibility to a transformative digital provider ignores SA’s deepening crisis, which includes stagnant GDP growth, mass unemployment and more than half of the population living in poverty.

In an era where connectivity drives development, regulatory obstinance is costing SA jobs, investment and technological progress. Yet across Africa nations are racing to embrace satellite internet. Rwanda, Nigeria, Kenya and even Lesotho have licensed Starlink, recognising its potential to bridge digital divides to spur innovation and development.

SA, however, remains entangled in ideological debates while its citizens endure inadequate and expensive internet. More than 600 US companies already operate in SA under equity-equivalent programmes, complying with BEE rules through skills development rather than forced ownership.

Why should US-based Starlink, a potential game-changer for rural connectivity, be held to a different standard? This is a pertinent question considering that SA’s internet inequality is so pronounced. Millions in townships and rural areas rely on sluggish, unreliable connections, while urban businesses pay premium prices for less-than-satisfactory speeds.