Elon Musk’s SpaceX has formally applied for a licence to operate its Starlink satellite service in South Africa, according to Independent Online news.
Musk has been a vocal opponent of South Africa’s Broad-Based Black Economic Empowerment (BBBEE) policy that, up until recently, required licence holders in the ICT sector to be at least 30% black owned. However, a new draft ICT policy proposes an ‘equity equivalent’ alternative to BBBEE, a move intended to promote foreign investment but facing some local political opposition.
“The company (SpaceX) has made a formal submission to the South African authorities asking to be granted a licence via the equity equivalent investment programmes (EEIPs) route instead of the Broad-Based Black Economic Empowerment (BBBEE) avenue,” Independent Online reported this week.
In its formal submission the company reportedly reiterated its concerns about ‘significant regulatory uncertainty and complexity’, IOL reported. SpaceX’s equity equivalent programme would include substantial investment in free internet services for rural South African schools., the report said.
South Africa’s National Sea Rescue Institute last year added their voice to those clamouring for the high-speed satellite service. “We are keenly interested in the recent South African government meetings with Starlink, recognising the opportunities it presents for our service and our beneficiary community, which is 98% historically disadvantaged,” former NSRI CEO Dr Cleeve Robertson said at the time.
Some South African political stakeholders have criticised the equity equivalent proposal, claiming it was specifically designed to appease Musk rather than promote broad-based empowerment. However, government stakeholders point out that similar equity equivalent policies are already in place in other economic sectors.