Musk didn't take offense to South Africa after all? Starlink plans to invest $113 million

Billionaire Elon Musk's satellite internet company Starlink is considering investing 2 billion rand, or $112.7 million, in internet services in the South African country, despite recent accusations that South African authorities closed it to the market for racist reasons.

Starlink currently provides internet to 17 African countries, including neighboring South Africa, Namibia, Botswana, and Mozambique. It has no presence in South Africa itself, however, because of the country’s Black Economic Empowerment (BEE) law, which requires black citizens to participate in any company operating in the country. Musk has refused to give up any shares in his company to comply with the black empowerment law, a law he has called “openly racist,” and has complained that his company is struggling because he is not black.

According to the South African newspaper Business Day, Musk would like to conclude a deal with the South African government before the G20 summit, which is scheduled to be held in Johannesburg in November.

In May, South African media reported that the Johannesburg government was considering offering Musk a special exemption from South Africa’s black ownership laws to allow Starlink to operate legally. The country’s president, Cyril Ramaphosa, was keen to smooth over strained relations with the United States, whose view of the African country has been largely shaped by Musk, who was until recently a close ally of President Donald Trump.

Both sides need each other, Pretoria-born Musk wants to grow his company in Africa's largest economy, and that economy badly needs cheap and fast internet. According to a 2023 study by the state statistics agency, SSA, only 1.7 percent of rural households in South Africa have access to the internet. (PAP)

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