South Africa denies watering down Black ownership rules for Musk's Starlink

Elon Musk's Starlink telecoms business will not be given special dispensation by South Africa to bypass the country's Black ownership requirements, Communications Minister Solly Malatsi said on Tuesday.

Malatsi was forced to deny watering down policies on foreign-owned businesses in order to curry favour with Musk and US President Donald Trump.

South Africa requires foreign companies owning communications licences to sell 30 percent of their equity in local subsidiaries to historically disadvantaged groups.

The requirement has come under fierce criticism from Starlink and last week, just one day after President Cyril Ramaphosa's contentious White House meeting with Trump, Malatsi published changes to the policy: Communications companies including Starlink, would be allowed to bypass the 30 percent rule if they instead showed equity equivalent investments in broadband and other digital infrastructure.

'No conspiracy'

On Tuesday Malatsi appeared before Parliament in Cape Town to defend the move and denied suggestions it was introduced specifically for Starlink.

Lawmakers questioned whether the directives were correctly opening up the playing field for foreign players or tampering with the government’s economic empowerment agenda by catering to Starlink.

Malatsi said the changes would allow more new operators to enter the market and be good for competition and had nothing to do with Ramaphosa's recent meeting with Trump.

“We are not attempting to open a special dispensation for Starlink or any other company or an individual,” Malatsi told lawmakers, adding that work on the policy direction started around September, and was not prompted by the recent meeting between Trump and Ramaphosa.

"There is no conspiracy on our part with regard to this policy direction,” said the minister.

Stakeholders, industry players and the public have been given 30 days to send in submissions and provide comment before the framework is finalized.

South African born Musk has repeatedly denounced the Black ownership laws and said he can't get a licence in the country because he is White. South African authorities say Starlink hasn't formally applied.