Elizabeth Antidius Shumbusho | Africa Guardian
Elon Musk recently met with South African President Cyril Ramaphosa to discuss a potential deal that could enable SpaceX’s Starlink service in the country. The agreement would involve the South African government relaxing rules regarding Black ownership, which currently hinder Starlink’s operations there.
Musk, leveraging his growing influence in U.S. politics, is now turning his attention to his home country of South Africa. According to Bloomberg, the key focus of the discussion was the need to amend a regulation requiring Starlink to have at least 30% Black ownership through local equity partnerships. To address this, South African officials are exploring options that would allow foreign companies like SpaceX to meet local investment and employment targets in exchange for regulatory changes.
In return for the regulatory adjustments, President Ramaphosa is hoping for broader investments from Musk’s ventures, particularly from Tesla, which he wants to establish a battery production facility in South Africa, Bloomberg reports.
The ongoing talks have gained traction in the wake of Musk’s active role in U.S. politics, especially after President-elect Donald Trump’s victory in 2016. Musk spent millions to support Trump’s campaign and has continued to engage with foreign leaders, including Ukrainian President Volodymyr Zelensky. Musk’s involvement with the U.S. government includes overseeing an audit of government spending and participating in high-level discussions on global issues.
Starlink, SpaceX’s satellite-based internet service, faces strict regulations in many countries, particularly where governments protect local internet providers. Despite this, Starlink has made significant inroads, particularly in Africa, where it is available in Nigeria, Ghana, and Botswana. In November, Musk announced that Starlink had temporarily halted new sign-ups for its African service due to overwhelming demand.
Though Starlink faces challenges from dominant local telecom companies, it has expanded into over 100 countries, including those at the heart of geopolitical conflicts like Ukraine and Yemen. Musk’s close ties with Trump add complexity to the situation, especially with SpaceX’s growing role as a key U.S. defense contractor.
South Africa is not the only country to pitch Musk on a deal combining Starlink expansion and Tesla investment. Indonesia previously proposed a similar arrangement to Musk, asking him to establish a Tesla battery plant in exchange for Starlink access in rural parts of Bali. However, Musk rejected the proposal, citing logistical challenges. Undeterred, Indonesian officials are now offering to build data centers for Musk’s artificial intelligence company, xAI.
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