The impasse appears to increasingly irk the billionaire, whose home country has yet to approve Starlink’s operations even as the service gains regulatory acceptance across much of the continent.
Responding to a post on X by user DogeDesigner referencing the R500 million investment, Musk said: “But it is still on hold,” signalling continued frustration over regulatory barriers.
Musk, who was born in South Africa, has previously claimed that Starlink is blocked from operating in the country because he is “not Black”, a statement South African officials have publicly denied
The regulator has begun inspecting and seizing unauthorised equipment, even as analysts note rising demand for satellite broadband in underserved areas.
Ownership rules block licence
At the centre of the dispute are ownership requirements under South Africa’s Electronic Communications Act, which mandate that 30% of licensed telecommunications operators be owned by historically disadvantaged groups.
Because it does not meet this threshold, Starlink has been unable to secure an operating licence.
In June 2025, the company was reported to be considering a R2.5 billion ($145.6 million) investment as a potential alternative to meeting Black Economic Empowerment (BEE) requirements.
According to Business Day, Starlink proposed partnerships with local firms for land leasing, fibre connectivity, energy services and maintenance to align with compliance obligations.
The proposal gained relevance after South Africa introduced a policy shift in December 2025 allowing foreign satellite operators to meet empowerment targets through Equity Equivalent Investment Programmes (EEIPs), which permit developmental investment in place of equity transfer.
Musk’s school connectivity pledge falls within this framework, though regulatory approval has yet to be granted.
The dispute has increased pressure from farmers and rural communities, who say limited connectivity is constraining economic activity and access to essential services.
In February 2026, Starlink launched a public advocacy campaign to address what it described as “myths and facts” about its operations and encouraged supporters to contact ICASA regarding regulatory reform.
Illegal access and enforcement
Even as the licensing dispute continues, an estimated 14,000 or more South Africans are accessing Starlink without authorisation through roaming packages registered in neighbouring countries such as Mozambique.
According to Eyes Witness, “there are resellers that are stationed in countries where Starlink is available, they manage the account for you”.
Starlink has warned that South African users breaching its roaming terms could have their satellite internet services terminated by the end of April.
Industry analysts say a legal launch could be possible by late 2026 if regulatory issues are resolved.
However, legal challenges from local competitors may delay authorisation until as late as 2030.
