SpaceX’s satellite internet service, Starlink, will invest almost R2 billion ($116 million USD) in South Africa to start its Starlink satellite internet service. To comply with South African regulations for foreign companies, SpaceX will establish a Broad-Based Black Economic Empowerment (BEE) company and utilise an Equity Equivalent Investment Program (EEIP). This investment will allow Starlink to offer internet access to millions of South Africans.
At the Internet Service Providers’ Association annual general meeting, Starlink’s Senior Director of Market Access, Ryan Goodnight, announced plans to partner with local internet service providers to install and maintain internet infrastructure in schools, using an open-access model. Video recordings shared with the media confirm this announcement.
In addition to the license investment, Starlink plans to invest R500 million ($29.1 million USD) to connect thousands of schools to high-speed internet, benefiting approximately 2.4 million learners nationwide by enhancing classroom and e‑learning capabilities.
To address challenges faced by multinationals entering the market due to legal requirements for 30% ownership by historically disadvantaged persons in telecommunications licenses, the government introduced Equity Equivalent Investment Programmes (EEIPs).
These schemes allow foreign operators to fulfil empowerment requirements, foster local economic development, and increase access to basic services, all while retaining ownership.
How Starlink’s South African investment will work
Starlink is investing in a BEE company and an EEIP to meet South African licensing requirements, establish its presence, and support the country’s economic development goals.
In May 2025, South African Communications Minister Solly Malatsi, with the approval of the cabinet and President Cyril Ramaphosa, introduced EEIPs as an alternative to strict ownership requirements. Malatsi asserted that EEIPs would broaden broadband access, bridge the digital divide, increase foreign investment, and foster competition.
Other members of parliament criticised the policy, arguing that it was created to allow Starlink to avoid normal BEE (Black Economic Empowerment) regulations. Khusela Diko, the head of the Parliamentary Portfolio Committee on Communications, strongly criticised the proposal, stating that it favoured a foreign company.
Despite opposition, the public generally reacted positively, with the government receiving approximately 19,000 comments supporting the EEIPs during a 30‑day public comment period.
The Department of Trade, Industry, and Competition stated that EEIPs enable multinational corporations, such as Google, Amazon, and Microsoft, to operate in South Africa by contributing in alternative ways when their global policies prevent them from meeting the country’s ownership requirements.
Starlink’s approach enables it to address local requirements, build infrastructure, and establish school networks, thereby providing high‑speed broadband to students who previously lacked internet access. This initiative exemplifies how multinational corporations can adhere to local regulations while promoting education and digital inclusion.
Starlink’s Direct to Cell: extending beyond traditional networks
Starlink’s Direct to Cell service is the largest global 4G provider, connecting over 7 million LTE subscribers across five continents, even in areas lacking traditional cell coverage. Its network extends to land, sea, and remote locations beyond terrestrial networks.
Launched in 2024 with text messaging, Direct to Cell added data and IoT connectivity in 2025. Voice services are coming soon through mobile apps. It requires no special hardware, firmware updates, or proprietary apps; any standard LTE phone with a clear view of the sky can connect directly to Starlink satellites.
Starlink Direct to Cell delivers data, voice, video, and messaging globally, demonstrating satellite internet’s capacity to connect unconnected areas. Launching in South Africa could bring high‑speed internet to underserved rural communities, schools, and villages.
Starlink’s actions, such as following BEE rules, getting licenses, and connecting schools, show how global companies deal with rules in different countries. By following local rules about empowering people and building in areas that need it most, Starlink aims to offer advanced technology and help the country develop.
Satellite internet’s growth mirrors a trend in the telecommunications industry. It’s becoming a key way to provide internet access where traditional networks are lacking. Starlink’s expansion into South Africa aims to deliver fast, reliable internet to new users while complying with local regulations and community needs.
This enhances education, communication, and internet access for farmers, students, and rural communities, while attracting foreign investment and fostering technological progress for the country.