President Cyril Ramaphosa said billionaire Elon Musk could use equity-equivalence programmes to meet South Africa\u2019s racial-equity rules and roll out his Starlink internet service locally.<\/p>\n\n\n\n
The President pointed to US firms that comply through alternative investments rather than ownership.<\/p>\n\n\n\n
Mines and telecommunications operators such as Musk\u2019s Starlink are, however, subject to licensing regulations that require 30% ownership by Black citizens, limiting the use of such alternatives. <\/p>\n\n\n\n
Communications Minister Solly Malatsi of the Democratic Alliance party has proposed extending equity-equivalence structures to the sector, but some lawmakers overseeing the industry in December called for him to withdraw the policy, with Ramaphosa\u2019s African National Congress \u201cdeeply concerned\u201d with the plan.<\/p>\n\n\n\n
International companies \u201care given an opportunity through the equity-equivalence process where they can do other things that are empowering,\u201d Ramaphosa told reporters Wednesday. <\/p>\n\n\n\n
Singling out Black-economic empowerment laws \u201cis, to me, quite dishonest, because if you look at our laws, you\u2019ll find that they are empowering,\u201d he said. <\/p>\n\n\n\n
Musk, on April 12, wrote on his X social-media platform that the country of his birth won\u2019t license his satellite Internet service \u201csimply because I am not Black.\u201d<\/p>\n\n\n\n
Satellite technologies that rely on a constellation of low-Earth orbit satellites would be a potential game-changer for South African users who\u2019ve historically faced expensive or unreliable internet options. <\/p>\n\n\n\n
Only 1.7% of rural households have access, according to a 2023 survey compiled by the nation\u2019s statistics agency.<\/p>\n\n\n\n
South Africa introduced empowerment policies after the end of apartheid, compelling companies in industries including banking, mining and telecommunications to sell stakes to Black people who were systematically excluded from the economy during White-minority rule.<\/p>\n\n\n\n
A change to the industry rules would allow telecoms companies to invest in projects such as infrastructure, digital-inclusion initiatives or research that benefits previously disadvantaged communities. <\/p>\n\n\n\n
The exemption is already standard for a number of industries, including the nation\u2019s auto sector. <\/p>\n\n\n\n
In 2019, car manufacturers \u2014 including BMW AG, Ford Motor Co. and Toyota Motor Corp. \u2014 established a fund that would bring disenfranchised groups into the sector.<\/p>\n\n\n\n
Written by Ana Monteiro for Bloomberg. <\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" President Cyril Ramaphosa has told the world’s richest man, Elon Musk, that Starlink can come to South Africa using equity-equivalence programmes. <\/p>\n","protected":false},"author":59,"featured_media":792171,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[18568],"class_list":["post-857320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-starlink"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=857320"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857320\/revisions"}],"predecessor-version":[{"id":857326,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/857320\/revisions\/857326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/792171"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=857320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=857320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=857320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}