- Elon Musk's Starlink submitted a R500 million plan to bring high-speed internet to 5,000 rural South African schools
- The offer targeted more than 2.4 million learners in remote areas with no access to cables or cell towers
- South Africa's communications regulator blocked the deal over strict ownership requirements that Starlink would not meet
Source: Getty Images
Elon Musk's satellite internet company, Starlink, offered to connect millions of South African schoolchildren to high-speed internet before the deal hit a wall over local ownership laws.
According to reports, American diplomatic representatives revealed that the company submitted a commercial proposal worth R500 million, aimed at installing satellite terminals across 5,000 schools. The focus was on rural and historically neglected communities where traditional infrastructure, such as fibre cables and mobile towers, simply does not exist. Starlink estimated that the rollout would benefit more than 2.4 million learners every year.
Why the deal fell apart
The proposal never got off the ground because of equity requirements enforced by the Independent Communications Authority of South Africa (ICASA). Under South African communications law, any telecommunications operator seeking a local licence must ensure that at least 30% of its equity is held by people from historically marginalised groups, including Black citizens, women, youth, and people with disabilities.
Many foreign technology companies meet similar transformation requirements through alternative investment arrangements, channelling funds into local development projects rather than giving up company shares. ICASA, however, refused to allow Starlink that same flexibility for satellite services, insisting the law demands direct equity stakes at or above the prescribed threshold.
US ambassador weighs in
The regulatory deadlock drew a strong public response from the United States ambassador to South Africa. The envoy argued that forcing foreign technology firms to hand over significant ownership stakes discourages foreign direct investment at a time when South Africa needs it most.
The ambassador also pointed to the practical consequences of the collapse. Reliable satellite connectivity, the envoy noted, could give remote farming communities a way to report urgent criminal incidents, while also modernising rural clinics and primary schools that currently have no digital access at all.
With ICASA holding firm on its statutory requirements, South Africa finds itself on the sidelines of a technology that neighbouring countries across the continent have already moved to adopt.
Source: Getty Images
More on Elon Musk and Starlink
- Briefly News recently reported that Elon Musk unveiled a flying Tesla Roadster prototype at a SpaceX event in Texas.
- South Africans questioned Musk’s decision to give SpaceX shares to children in the US while leaving his home country out of the pledge.
- A hilarious AI video imagining Elon Musk’s flying Tesla on South African roads had Mzansi laughing at the local twist.
Source: Briefly News
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