Elon Musk’s Starlink is reportedly set to invest over R2 billion into South Africa’s economy, as a means of “working around” Black Economic Empowerment (BEE) policies, which requires a stake in local shareholding for foreign investors.
Instead, the internet satellite service could offer equity equivalent investment programmes (EEIPs), as recently gazetted by the Department of Communications and Digital Technologies.
Elon initially slammed the transformative legislation as a “racist law”, as he was “not black”.
STARLINK TO INVEST R2 BILLION IN SOUTH AFRICA?
According to reports, Starlink, which falls under SpaceX, is looking to invest over R2 billion in South Africa as part of its prospective deal to operate in the country.
Business Day reports that the company would finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries.
The move is thought to be a way to “work around” local BEE policies, which require 30% local shareholding for foreign investors.
Images via X: @starlink
In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on EEIPs, which are considered “alternatives” to transformative legislation.
Without mentioning Starlink, the minister claimed that the policy would “attract investment,” specifically in operating licensing.
The minister revealed that current legislation for foreign investments “did not allow companies to contribute to transformation goals in ways other than traditional ownership”.
MIXED REACTIONS FROM PUBLIC
The news that Starlink could operate in South Africa, and potentially “bypass” BEE requirements, has seen mixed reactions on social media.
@PrayerTmos: “Elon Musk tried to tank the South African economy, and create boiling racial tensions, and never apologized. It means he still plans to continue with the sabotage of SA, and with such communications business, espionage and spying will become easier.”
@XnBoeremeisie: “With a 75%+ debt-to-GDP ratio, the government better accept Elon’s investment offer!”
@Squirrel1980021: “We have a BEE policy and is not it going away. The Chinese and Russians will comply.”
@stallionheat02: “Starlink is a game changer for rural and underserved areas. Just imagine having internet everywhere in the world with one subscription for less than 1K. Bring Starlink, and let those who want to use it use it”.
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