The standoff between South Africa and Elon Musk over Starlink’s licensing deepened this week. The Presidency told the billionaire to “move on” after he accused the country of blocking his satellite internet service on racial grounds.

Why it matters: South Africa’s telecoms sector needs competition, and Starlink could bring broadband to underserved rural areas. But the dispute raises a broader question about whether empowerment requirements deter foreign investment or protect a constitutional mandate.

Musk’s position

Musk posted on X that “South Africa won’t allow Starlink to be licensed, even though I was BORN THERE, simply because I am not Black.” He alleged that unnamed officials offered him a pathway to circumvent empowerment rules through bribery.

Starlink has not applied for a South African licence. Musk has refused to submit the paperwork because of the Independent Communications Authority of South Africa’s requirement that telecoms licensees have at least 30% equity ownership by historically disadvantaged South Africans.

The government’s response

President Ramaphosa, speaking near OR Tambo International Airport at the National Local Economic Development Summit, said he pays “little attention” to the criticism. He said empowerment legislation exists to address historical discrimination, not to exclude anyone.

Presidential spokesperson Vincent Magwenya said Musk should “move on.” Head of Diplomacy Clayson Monyela rejected the bribery allegation, saying “there’s certainly no request from the South African government for any bribe.”

The existing workaround

A December 2025 directive by Communications Minister Solly Malatsi instructed ICASA to recognise equity equivalent investment programmes as a substitute for direct share transfers. Under this framework, Starlink’s proposal to connect 5,000 rural schools with free satellite internet, an investment valued at roughly R500 million, would count toward empowerment targets without requiring Musk to sell equity.

What happens next

The Financial Mail argued in an editorial on Wednesday that South Africa should rewrite its telecoms rules to accommodate satellite providers. ICASA has not publicly commented on the equity equivalent pathway’s status. Musk has not indicated whether Starlink will apply under the revised framework.