• Starlink seeks South Africa entry via equity-equivalent investment plan
• Pledges R500m for school internet, eyes local ISP status
• Regulatory delays stall launch despite broad African presence

Starlink is intensifying its efforts to enter the South African market without giving up the mandatory 30% equity stake reserved for historically disadvantaged individuals, as required by the country’s telecommunications regulator.

The satellite internet provider is relying on the Equity Equivalent Investment Programme (EEIP) proposed by the Communications Ministry. The company recently announced plans to create a new entity compliant with the Broad-Based Black Economic Empowerment (B-BBEE) framework, in addition to its existing local commitments.

Ryan Goodnight, Starlink’s Senior Director of Market Access, revealed the initiative on Tuesday, October 7, at the Annual General Meeting of the Internet Service Providers’ Association of South Africa (ISPA), according to local media reports. He indicated that the entity would be established once the regulator amends the telecommunications licensing framework.

"And we set up our own entity in the country, and we seek our own licensing in the country, to become a local ISP," Goodnight said, as quoted by ITWeb. "What that means is that we are paying local taxes, we are paying the same local regulatory fees as all other ISPs... we're also subject to all of the same local laws."

Local Investment and Challenges

Starlink has also pledged 500 million rand ($29.15 million) to provide free high-speed internet access to 5,000 schools, benefiting an estimated 2.4 million students. The company plans to invest nearly 2 billion rand to build local infrastructure, work with South African ISPs on the installation and maintenance of school equipment, and adopt an open-access model.

Goodnight noted that Starlink has been interested in serving South Africa since deploying its satellite constellation. South Africa, the birthplace of Starlink owner Elon Musk, had a population of about 64 million in 2024. Internet penetration reached 75.7% in 2023, according to the International Telecommunication Union (ITU).

Fixed internet usage is also expanding rapidly, growing from about 1.5 million subscribers in 2020 to 2.7 million in 2024, according to ICASA. Starlink aims to capture this demand by leveraging its widespread satellite network, a key advantage over the fiber providers currently dominating the market.

Regulatory Hurdles Remain

Starlink’s entry depends on approval of the draft directive on investment-equivalence programs, proposed in May. The initiative has drawn criticism from some industry players and politicians who see it as a way to circumvent existing empowerment rules. ISPA has maintained that Starlink should meet the same requirements as its members. Despite this, the proposal is supported by President Cyril Ramaphosa. Experts have warned that even if approved, implementation could take up to two years.

Starlink is already active in 150 countries worldwide, including about 20 in Africa, since entering the market in January 2023. It operates in Nigeria, Rwanda, and Kenya, and across much of Southern Africa, including Lesotho, Eswatini, Mozambique, Madagascar, Botswana, Malawi, Zambia, and Zimbabwe. South Africa, however, remains the key missing market on the company’s African map. Starlink plans to launch services in Namibia and Angola this year, but for South Africa, the service launch date remains unknown at this time.

Isaac K. Kassouwi