SpaceX’s satellite internet division, Starlink, has announced an investment of nearly R2 billion (approximately $116 million USD) to expand its operations in South Africa. This initiative aims to deliver high-speed internet to underserved areas while aligning with the country’s Broad-Based Black Economic Empowerment (B-BBEE) regulations.
To meet South Africa’s telecom licensing requirements—which stipulate that 30% of equity must be owned by historically disadvantaged individuals—Starlink intends to establish a Broad-Based Black Economic Empowerment (BEE) company. The firm will also take advantage of the Equity Equivalent Investment Program (EEIP), a policy introduced in May 2025, allowing foreign companies to fulfill local empowerment obligations through alternative investments.
As part of this commitment, Starlink has pledged R500 million (around $29.1 million USD) to connect 5,000 schools across the country, benefiting approximately 2.4 million students. The initiative will involve partnerships with local internet service providers (ISPs) to install and maintain the required infrastructure, operating under an open-access model.
Ryan Goodnight, Starlink’s Senior Director of Market Access, emphasized the company’s dedication to complying with South African laws and contributing to the nation’s digital development. He stated, “We are paying local taxes, we are paying the same local regulatory fees as all other ISPs… we’re also subject to all of the same local laws.”
This investment represents a major milestone in bridging South Africa’s digital divide, bringing dependable internet access to regions that have historically lacked connectivity. By leveraging satellite technology, Starlink aims to enhance educational opportunities and stimulate economic growth in these communities.
The South African government’s introduction of the EEIP policy has generated both support and criticism. While some view it as a progressive effort to promote inclusive economic growth, others argue that it may favor foreign companies over local enterprises. Nevertheless, the policy has enjoyed widespread public backing, with over 19,000 positive submissions during its consultation phase.
Ultimately, Starlink’s investment is anticipated to not only improve internet connectivity but also boost local economies by creating jobs and fostering technological innovation. As the project unfolds, its impact on South Africa’s digital landscape and broader socio-economic development will be closely observed.
