South Africa Denies Draft Policy Favoring Musk’s Starlink

JOHANNESBURG (AP) — South Africa’s Minister of Communications on Tuesday denied accusations that a draft policy intended to relax Black ownership requirements for technology firms was created to benefit Elon Musk‘s Starlink.

The minister stated that the proposal was unfairly connected to Musk, a billionaire who was born in South Africa. Under current South African law, foreign-owned companies must sell at least 30% of their subsidiaries to Black shareholders or other racial groups that were historically disadvantaged by apartheid to obtain a license.

This law is part of efforts to correct disparities created during decades of institutional racism. Critics argue that changing these requirements would undermine progress made toward economic equity for disadvantaged communities.

Musk’s involvement with Starlink has drawn scrutiny in South Africa, raising questions about whether a relaxation of ownership rules might favor foreign interests over local empowerment.

“The policy proposal is aimed at ensuring a fair market, not at benefiting any specific individual or business,” the minister said during a press briefing.

A source within the government described the allegations as part of a larger narrative that seeks to discredit initiatives promoting the participation of Black shareholders in the tech sector.

The opposition will continue to monitor the situation to ensure that the interests of historically marginalized groups are protected.