In a significant setback for Elon Musk’s satellite internet ambitions, South Africa has ruled out any possibility of Starlink operating in the country under alternative ownership structures. Communications Minister Solly Malatsi proposed an equity equivalence program that would have allowed Starlink to bypass the stringent Black Economic Empowerment (BEE) rules requiring 30% local ownership.
The Independent Communications Authority of South Africa (ICASA), however, has firmly rejected this approach, citing the Electronic Communications Act which mandates the 30% BEE requirement for telecom licenses. ICASA maintains that this is non-negotiable unless Parliament amends the law.
This decision effectively ends talks about Starlink’s entry into South Africa, leaving Musk with limited options: either comply with the 30% ownership rule or abandon the market entirely. The situation is further complicated by Musk’s strained relationship with South African officials following public criticism earlier this year.
Meanwhile, Cameroon has completed its acquisition of Société Générale’s local bank subsidiary, pushing government ownership to over 83%. This follows a trend of African governments temporarily taking control of financial institutions during transitions before seeking new investors.
The broader context is a gradual retreat by European banks from certain African markets as they prioritize investments in regions with greater scale and profitability. While this doesn’t necessarily indicate Africa is an unfavorable investment destination, it reflects a strategic realignment by global lenders.