Starlink’s BEE battle: Tony Leon joins calls for change in South Africa
Former DA leader Tony Leon backs Starlink’s entry into South Africa, calling for regulatory changes to unlock its benefits.
As debates around Starlink’s entry into South Africa continue, former Democratic Alliance (DA) leader Tony Leon has voiced his support for the satellite internet service, highlighting its potential benefits for the country.
Tony Leon backs Starlink for SA
Speaking to eNCA, Leon discussed South Africa’s diplomatic tensions with the United States, touching on comments by former US President Donald Trump and billionaire Elon Musk, as well as the recent dismissal of Ambassador Ebrahim Rasool.
He emphasised that Starlink, a division of Musk’s SpaceX, could provide a major technological boost to South Africa but is currently hindered by regulatory barriers.
“For some reason, since we’re not a very big market, he’s keen to bring it here. There has been an obstacle to Starlink arriving here, and that relates to the domestic requirements we have for foreign businesses operating in South Africa,” Leon stated.
According to Leon, easing these restrictions could not only benefit the country but also mend relations with Musk, whom he described as “Trump’s whisperer.” He added, “That would be an easy win.”
BEE regulations: A stumbling block for foreign investment?
South Africa’s Broad-Based Black Economic Empowerment (BEE) requirements mandate that nearly a third of any foreign-owned company must be locally held. Musk has strongly opposed this condition, calling it a “racist law.”
The South African Institute for Race Relations has argued that these restrictions may be discouraging investment, limiting job creation, and preventing affordable, high-speed internet access in rural areas. The organization has urged lawmakers to reassess the policy’s impact on economic growth.
Government’s response and Starlink’s withdrawal
In a bid to address the impasse, Minister of Communications and Digital Technologies Solly Malatsi met with Musk late last year to discuss potential regulatory adjustments. Malatsi acknowledged Starlink’s ability to expand digital access without requiring infrastructure investment from the government, calling for a balance between market competition, fairness, and compliance.
Despite discussions, SpaceX recently withdrew its application to operate in South Africa, citing global policies that prevent local shareholding. The company also submitted a formal appeal to the Independent Communications Authority of South Africa (ICASA), urging officials to reconsider the country’s BEE legislation.
With high-speed internet access remaining a critical issue, Starlink’s exit raises questions about how South Africa will navigate the balance between economic empowerment policies and attracting global tech investment.