Tech billionaire and Tesla boss Elon Musk on Tuesday launched a sharp attack on South Africa's race-based ownership laws, claiming they were the reason his satellite internet service Starlink remained blocked in the country of his birth. In response, a South African official retorted that Musk should move on to other markets if he did not abide by the laws of the land.
In a series of posts on X, the Tesla and SpaceX CEO described the regulations as "openly racist" and alleged that officials repeatedly offered Starlink a way around the rules by installing a pretend Black executive — an offer he says he rejected as a bribe.
WHY HAS SOUTH AFRICA'S MINORITY POLICY RILED ELON MUSK?
The dispute centres on South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) policy. Introduced after the end of Apartheid in 1994, B-BBEE aims to redress historical economic inequalities by requiring companies — especially in sectors like telecommunications — to promote participation by "historically disadvantaged individuals", primarily Black South Africans, as well as women and people with disabilities, reported the BBC.
According to the BBC report, under South Africa's Electronic Communications Act, telecom licensees must typically ensure at least 30% ownership by such groups to qualify for an operating licence from the Independent Communications Authority of South Africa (ICASA).
This applies to foreign-owned entities like Starlink. Compliance is scored across multiple elements, including ownership, management control, skills development, and enterprise development. Failure to meet the thresholds can prevent licencing, even if technical and financial requirements are satisfied.
WHY HAS MUSK CALLED SOUTH AFRICA'S LAW EVIL?
Musk, who was born in the South African city of Pretoria in 1971, has repeatedly highlighted this personal angle in his broadsides against South Africa.
On April 12, he posted: "South Africa won’t allow Starlink to be licenced, even though I was BORN THERE, simply because I am not Black! We were offered many times the opportunity to bribe our way to a licence by pretending that a Black guy runs Starlink SA, but I have refused to do so on principle. Racism should not be rewarded no matter to which race it is applied. Shame on the racist politicians in South Africa."
He added that such laws are "evil" and called for those supporting them to face international sanctions.
It must be noted that Musk, who, according to a Bloomberg report, left South Africa at the end of the Apartheid regime, has previously spread unsubstantiated facts about an alleged "genocide" against white people in the country, which was further promoted by US President Donald Trump. The US offered expedited refugee status to White Afrikaners, making the false claim they’d already had their land seized. "Terrible things are happening in South Africa," Trump had said last year.
SOUTH AFRICAN OFFICIAL ASKS MUSK TO MOVE ON
The South African government has pushed back firmly.
Presidential spokesperson Vincent Magwenya was reported by Business Insider Africa as having delivered a pointed rebuttal, signalling that Pretoria is unwilling to bend its regulatory framework to accommodate the billionaire’s satellite internet venture.
"There are currently 193 member states in the United Nations. Surely, there’s good money to be made out of 192 markets. It’s okay to move on," Magwenya was quoted as saying, in what analysts interpret as a clear message that Starlink must either comply or look elsewhere.
Another government voice, Clayson Monyela, head of public diplomacy at the Department of Relations and Cooperation, was reported by the British news website Indy100 as having pointed out that more than 600 US companies operate successfully in South Africa by complying with local legislation.
He previously stated when similar claims arose: "Sir, that's not true and you know it! It's got nothing to do with your skin colour. Starlink is welcome to operate in South Africa provided there’s compliance with local laws."
STARLINK YET TO APPLY FOR SOUTH AFRICA LICENCE, LOBBYING FOR CHANGE IN RULES: REPORT
Starlink has successfully launched in several other African countries, including Nigeria and Kenya, where regulatory hurdles were lower. In South Africa, however, the company has not yet submitted a formal licence application, according to the Independent Communications Authority of South Africa (ICASA) and reports by Bloomberg.
Instead, Starlink has been actively lobbying for changes to the country’s strict Black Economic Empowerment (B-BBEE) rules.
In December 2025, Communications Minister Solly Malatsi issued a policy directive allowing "equity equivalent investment programmes" (EEIPs) as an alternative to the mandatory 30% Black ownership requirement. This would enable foreign telecom operators like Starlink to invest in local communities, infrastructure, or digital inclusion initiatives rather than selling equity.
Bloomberg has reported that several automotive companies, such as Toyota and BMW, have successfully used similar equity-equivalent routes to maintain and expand operations in South Africa.
However, the move has divided the coalition government, with figures from the African Congress (ANC) strongly opposing any perceived dilution of B-BBEE requirements. South African President Cyril Ramaphosa was reported by the news website Visegrad 24 as saying that the country will not abandon its affirmative action policies like Black Economic Empowerment (BEE).
"Those who say BEE and affirmative action must stop are just dreaming," he said.
As the row continues, Musk has urged global shunning of what he calls "anti-White racism" in South Africa. Pretoria, meanwhile, shows little sign of bending further, telling the world’s richest man there are plenty of other markets available.
- Ends
Published By:
Shounak Sanyal
Published On:
Apr 14, 2026 18:12 IST

3 hours ago
