SpaceX‘s Starlink satellite internet service is set to inject nearly R2 billion (approximately $116 million USD) into South Africa as it prepares to launch its satellite broadband offering in the country. To align with South African regulations governing foreign enterprises, SpaceX will form a Broad-Based Black Economic Empowerment (BEE) entity and implement an Equity Equivalent Investment Program (EEIP). This strategic move will enable Starlink to extend internet connectivity to millions across South Africa.
During the annual general meeting of the Internet Service Providers’ Association, Ryan Goodnight, Starlink’s Senior Director of Market Access, revealed plans to collaborate with local ISPs to deploy and maintain internet infrastructure in schools. This initiative will follow an open-access framework, ensuring broad-based benefits. Media outlets have shared video evidence confirming these intentions.
Beyond the licensing investment, Starlink intends to allocate an additional R500 million (around $29.1 million USD) to connect thousands of educational institutions nationwide. This project aims to enhance digital learning environments for roughly 2.4 million students by providing them with reliable, high-speed internet access.
To navigate the legal landscape requiring 30% ownership by historically disadvantaged South Africans in telecommunications licenses, the government introduced Equity Equivalent Investment Programs (EEIPs). These programs offer a pathway for multinational companies to meet empowerment criteria without direct ownership transfer.
EEIPs serve as mechanisms that allow foreign operators to satisfy empowerment mandates, stimulate local economic growth, and broaden access to essential services, all while maintaining their ownership stakes.
Understanding Starlink’s Investment Strategy in South Africa
To comply with South African licensing laws and contribute to national economic objectives, Starlink is investing in a BEE-compliant company alongside an EEIP. This dual approach facilitates its market entry and supports broader development goals.
In May 2025, Communications Minister Solly Malatsi, backed by cabinet and President Cyril Ramaphosa, introduced EEIPs as a flexible alternative to rigid ownership quotas. Malatsi emphasized that these programs would expand broadband reach, narrow the digital divide, attract foreign capital, and enhance market competition.
However, some parliamentarians voiced concerns, suggesting the policy was tailored to benefit Starlink by circumventing traditional BEE requirements. Khusela Diko, chairperson of the Parliamentary Portfolio Committee on Communications, criticized the initiative for disproportionately favoring a foreign entity.
Despite such critiques, public sentiment leaned favorably, with the government receiving nearly 19,000 supportive submissions during the 30-day public consultation phase.
The Department of Trade, Industry, and Competition highlighted that EEIPs enable global tech giants like Google, Amazon, and Microsoft to operate in South Africa by fulfilling empowerment obligations through alternative contributions when direct ownership is restricted by their global policies.
Related read: Starlink advocates for reform of South Africa’s 30% black ownership mandate
Starlink’s strategy not only meets regulatory demands but also facilitates the construction of critical infrastructure and school networks, delivering high-speed internet to students who previously lacked connectivity. This model exemplifies how multinational firms can harmonize compliance with local laws while advancing educational and digital inclusion.
Starlink’s Direct to Cell: Revolutionizing Connectivity Beyond Conventional Networks
Starlink’s Direct to Cell service stands as the world’s largest 4G network, currently serving over 7 million LTE users across five continents, including regions without traditional cellular infrastructure. Its coverage spans terrestrial, maritime, and remote areas beyond the reach of conventional networks.
Introduced in 2024 with basic text messaging capabilities, Direct to Cell expanded in 2025 to include data and Internet of Things (IoT) connectivity. Voice services are anticipated soon via mobile applications. The service requires no specialized devices, firmware updates, or proprietary software-any standard LTE-enabled phone with a clear sky view can connect directly to Starlink satellites.
This technology delivers comprehensive communication services-data, voice, video, and messaging-globally, showcasing satellite internet’s potential to bridge connectivity gaps. Its rollout in South Africa promises to bring high-speed internet to underserved rural areas, schools, and communities.
Starlink’s adherence to BEE regulations, acquisition of licenses, and focus on educational infrastructure illustrate how international companies navigate local legal frameworks. By empowering communities and investing in critical regions, Starlink aims to introduce cutting-edge technology while supporting South Africa’s socio-economic progress.
The rise of satellite internet reflects a broader shift in telecommunications, becoming a vital solution where traditional networks fall short. Starlink’s expansion into South Africa is poised to provide fast, dependable internet access to new users, aligning with local regulations and community priorities.
This development will enhance educational opportunities, improve communication for farmers and rural populations, attract foreign investment, and drive technological advancement throughout the nation.