The Economic Freedom Fighters (EFF) has issued a stern warning to the South African government, vowing legal action should it proceed with plans to exempt Elon Musk’s satellite internet provider, Starlink, from Black Economic Empowerment (BEE) regulations. The party argues that such a move would be unconstitutional and an affront to South Africa’s long-standing commitment to redressing historical economic inequalities.
EFF Slams “Unconstitutional” Exemption
EFF spokesperson Sinawo Thambo didn’t mince words, describing the exemption as a betrayal of the country’s sovereignty and its transformative policies.
“This decision undermines our laws and economic transformation agenda. If Elon Musk truly cared about the people, he would respect South Africa’s policies instead of seeking preferential treatment,” Thambo said in a media briefing.
This comes amid reports that South African officials are in high-level talks with Musk or his representatives during President Cyril Ramaphosa’s visit to Washington, D.C., aimed at easing tensions with both Musk and former US President Donald Trump.
According to Bloomberg, the government is considering a last-minute exemption to fast-track Starlink’s operations in South Africa—a country plagued by high data costs and large swathes of under-connected rural areas.
Legal and Political Stakes Rise
The EFF has vowed to challenge the exemption in court, calling it a “direct violation” of South Africa’s constitutional commitment to economic justice. The party’s stance reflects broader concerns that exempting powerful multinationals from BEE requirements could undermine the very laws designed to level the economic playing field.
Critics argue that if Starlink is allowed to bypass these laws, it could set a dangerous precedent for other foreign investors, weakening local participation in critical infrastructure sectors.
However, supporters of the exemption argue that South Africa’s rigid approach to BEE may be counterproductive in this case—potentially blocking transformative technology from entering the market during a time of economic crisis.
BEE, Broadband, and the Bigger Picture
South Africa’s digital inequality is glaring. Millions in rural areas and townships still suffer from slow, unreliable, and expensive internet access, while businesses in urban centres often overpay for subpar service. Starlink, which operates via low-Earth orbit satellites, promises high-speed, low-latency internet across underserved regions—something traditional providers have failed to deliver at scale.
Other African nations are moving quickly to embrace Starlink:
- Rwanda, Nigeria, Kenya, and Lesotho have all granted Starlink operating licences.
- These countries view Starlink as a key enabler of innovation, education, and economic growth in remote areas.
Yet South Africa remains mired in ideological debates about ownership and empowerment—even as GDP growth stagnates, unemployment soars, and over 50% of the population lives in poverty.
While Musk has drawn criticism for referring to BEE as “racist,” some analysts argue the government’s inflexibility risks economic self-sabotage. A middle ground, they suggest, might be found in equity-equivalent programmes, which over 600 US companies already use in South Africa to comply with BEE through skills development and local investment, rather than forced equity transfers.
“Why should Starlink be held to a different standard,” asked one tech policy analyst, “especially when it could revolutionize digital access in communities where it’s needed most?”
A Precedent in the Making
The outcome of the Starlink-BEE debate could reshape the landscape for foreign tech investments in South Africa. Will the government maintain its hardline stance, or will it carve out flexibility for high-impact infrastructure projects?
For now, all eyes are on the Ramaphosa delegation’s Washington visit and the ensuing discussions with both Musk’s team and US policymakers. The EFF, meanwhile, is preparing for a courtroom battle, ready to test how far South Africa’s economic transformation framework can bend in the face of 21st-century challenges.
