South Africa Faces Backlash Over Proposed Starlink Deal Amid BEE Law Adjustments

Elon Musk’s Starlink has become the center of a political storm in South Africa as the government moves to relax Black Economic Empowerment (BEE) laws to accommodate the satellite internet provider. The proposed changes WOULD allow telecom companies to bypass the 30% Black ownership requirement by investing in alternative empowerment initiatives, sparking accusations of preferential treatment for foreign entities.

Opposition parties, including Build One South Africa (BOSA) and the Economic Freedom Fighters (EFF), have condemned the MOVE as a "backdoor deal" that prioritizes foreign capital over domestic equity. The government defends the decision as part of broader economic reforms aimed at improving internet access and modernizing telecommunications infrastructure.

The controversy highlights the tension between attracting global tech investment and maintaining local empowerment policies. Critics warn the precedent could undermine South Africa’s commitment to economic transformation.