Elon Musk’s SpaceX to invest $28 million to expand Starlink in South Africa

Key Points

• Elon Musk’s SpaceX commits $28 million to expand Starlink internet in South Africa, targeting 5,000 rural schools and 2.4 million students. 
• Starlink seeks regulatory approval via B-BBEE-compliant EEIP to fast-track satellite broadband rollout under South Africa’s Digital Technologies Policy. 
• SpaceX pushes African expansion as Starlink enters South Africa, Lesotho, Somalia, and Congo to bridge the continent’s digital divide. 

SpaceX, the pioneering spacecraft manufacturer and satellite communications corporation led by the world’s richest man and tech billionaire, Elon Musk, has committed R500 million ($28 million) to expand its Starlink satellite internet service in South Africa. 

The proposed investment aims to provide free high-speed broadband connectivity to 5,000 rural schools, reaching approximately 2.4 million children nationwide. Last year, Starlink initiated advanced negotiations with the South African government to launch its satellite internet service, aiming to transform connectivity in Africa’s largest industrial economy.

Starlink pushes for policy approval under South Africa’s ICT framework

The funding pledge was disclosed in a recent communication from SpaceX to South Africans interested in Starlink, urging support for the government’s proposed Digital Technologies Policy Direction No. 3218.

This policy would introduce Equity Equivalence Investment Programs (EEIPs) in the ICT sector, allowing multinational companies to comply with South Africa’s broad-based black economic empowerment (B-BBEE) regulations without the strict 30 percent local ownership threshold. 

EEIPs have already been successfully implemented in sectors such as banking, manufacturing, and technology. Starlink says the program’s adoption would accelerate broadband rollout to underserved townships, farms, and rural schools, helping bridge the country’s digital divide. 

“Starlink proposes fully funded kits and installation support for over 5,000 rural schools, collaborating with local companies,” said Ryan D. Goodnight, Starlink’s Market Access senior director. He emphasized that the initiative aligns with South Africa’s SA Connect objectives to expand internet access.

Starlink committed to compliance, seeks level playing field

Goodnight stressed that Starlink respects South Africa’s regulatory environment and has not sought any exemptions from B-BBEE laws. The company insists on maintaining full global ownership of its subsidiaries for operational integrity—a practice consistent across nearly 150 countries where Starlink operates. 

“Fortunately, South Africa’s Electronic Communications Act and the B-BBEE ICT Sector Code offer multiple compliance pathways, including EEIPs,” he said. Goodnight also cited support from government officials and examples from tech giants like Microsoft, IBM, and Amazon that use EEIPs to meet local ownership rules while committing to economic transformation.

While this policy shift could clear regulatory hurdles, the Independent Communications Authority of South Africa (Icasa) still holds the final decision on granting Starlink’s operating license.

Starlink expands across Africa, bridging the digital divide

Starlink, the world’s largest satellite internet venture from Elon Musk’s Space X, is accelerating its African expansion. It recently secured market entry in Lesotho, Somalia, and Congo, overcoming previous regulatory challenges. 

Elon Musk, currently the world’s richest person with a net worth of $371 billion (Bloomberg Billionaires Index), has prioritized bringing affordable, low-latency internet to remote and underserved regions. The latest South Africa move follows SpaceX’s partnership with Airtel Africa, jointly targeting rural connectivity improvements with satellite broadband.