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Starlink's Potential Launch in South Africa: Breaking Down Regulatory Barriers

A policy shift may allow Elon Musk's satellite service to operate in South Africa without mandatory local ownership.

By John EligonSource: nytimes.com1 min read
Starlink's Potential Launch in South Africa: Breaking Down Regulatory Barriers
Image via nytimes.com

In brief

The South African government is reviewing regulations that could facilitate the arrival of Starlink, Elon Musk's satellite internet service, without the existing requirement for partial ownership by Black South Africans.

In a significant policy shift, the South African government is embarking on a review which could lead to the approval of Starlink, the satellite internet service spearheaded by Elon Musk. Currently, South Africa's laws dictate that foreign companies must include historically disadvantaged groups in their ownership structure, a measure designed to repair the economic imbalances rooted in the apartheid era. Musk, a South African native, has openly criticized these regulations, labeling them as discriminatory.As the government moves forward with this review, it follows a recent high-profile meeting between Musk and President Trump, where diplomatic ties with South Africa were in focus. During this gathering, Trump raised controversial claims regarding violence against white farmers in South Africa, casting a spotlight on the complexities of U.S.-South African relations.Officials suggest that American companies, including Musk's enterprises, could be granted exemptions from existing ownership requirements, positioning this potential change as a way to stimulate trade and mend relations with the U.S. This development is being seen as a strategic opportunity for President Cyril Ramaphosa, who is hoping to engage more deeply with American markets while navigating lingering tensions.If successful, the approval of Starlink could have far-reaching implications for internet accessibility in South Africa, addressing issues of connectivity that have long plagued many communities. The government's willingness to reconsider its regulatory stance could signify a shift toward fostering foreign investment while also grappling with the legacy of its past policies.

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