Civil rights group AfriForum has called on the government to prioritise rural school children over ownership requirements and accept SpaceX’s offer to provide free internet connectivity to more than 5,000 rural schools in South Africa.
The offer, made by the parent company of internet service provider Starlink last year, remains conditional on the company receiving access to the local market. More than a year later, the government continues to require that at least 30% of any licence-holder company be owned by black people, which can legally include youths or people with disabilities.
In a letter to Trade, Industry and Competition Minister Parks Tau dated 14 June 2025, SpaceX proposed launching an Equity Equivalent Investment Programme (EEIP) in South Africa. The letter noted that such programmes already operate across various sectors in the country, with companies including Microsoft and Amazon using EEIPs to meet local ownership obligations.
As part of the programme, Starlink offered to provide free internet access to more than 5,000 rural schools – nearly half of all rural schools in the country. The proposal included fully funded Starlink kits, service subscriptions, solar power, devices and long-term monitoring, valued at about R500 million. Starlink estimated the programme would benefit about 2,4 million schoolchildren annually.
Both the Department of Trade, Industry and Competition and the Independent Communications Authority of South Africa (ICASA) have not accepted this offer, according to AfriForum spokesperson Louis Boshoff.
“Providing free internet access to rural schools would benefit predominantly poor, black children. In contrast, a 30% black ownership stake in Starlink would benefit only a small group of businesspeople,” Boshoff said.
He said the government prioritises the interests of the elite over those of the poorest segments of society.
Regulatory requirements remain unchanged
Under ICASA’s 2021 regulations, individual telecommunications licensees must have at least 30% of their ownership equity held by historically disadvantaged groups. The regulations require evidence of compliance when making licence applications, transfers, renewals or amendments.
In May, ICASA confirmed that the current Electronic Communications Act still requires minimum 30% ownership by historically disadvantaged groups for individual licence holders. ICASA said full recognition of EEIPs would require an amendment to the act.
A parliamentary answer in June 2026 confirmed that ICASA had received no Starlink applications for spectrum, individual electronic communications network service or individual electronic communications service licences.
SpaceX submitted written representations to ICASA in June, stating it intended to provide Starlink services to South African consumers and businesses through a South African subsidiary. The company requested clarifications on gateway and user-terminal licensing, fee calculations and the interaction with ownership requirements.
Parliament’s Communications Committee chairperson said earlier this year that entities seeking to operate in the sector must comply with existing licensing and transformation law. She also argued that Starlink was not the only potential low Earth orbit provider.
Current school connectivity efforts
According to a September parliamentary reply, SA Connect Phase 1 had connected 3,477 schools, including 2,098 rural schools. Another 2,226 rural schools had connectivity through operators meeting Universal Service Obligations.
The Department of Basic Education has not supplied a verified national percentage of schools with reliable broadband suitable for sustained teaching and learning. Reported problems include unreliable electricity, weak coverage, dependence on mobile connectivity, funding constraints, equipment maintenance and limited technical support.
The strategic target remains 16 139 schools through the Universal Service Obligation programme by 2029.
In July 2026, Deputy President Paul Mashatile launched BrainSAT Satellite Services, a state-backed satellite communications initiative.
Broader diplomatic context
AfriForum warned that ideologically driven decisions jeopardise the continuation of tariff-free trade with the United States. The organisation argues that granting the necessary licence to Starlink should be considered part of the solution to the diplomatic crisis with the US.
Diplomatic and trade relations between South Africa and the US experienced significant strain in 2025, characterised by reciprocal tariffs and policy disagreements. In August 2025, a 30% tariff on South African goods was implemented.
Elon Musk, founder and chief executive of SpaceX, has publicly condemned the South African government’s broad-based black economic empowerment requirements and refused to comply with what he termed racially discriminatory requirements.
As of 25 October, Starlink does not hold a South African licence from ICASA and has not officially launched in the country. Users who relied on imported terminals and international roaming reportedly began receiving notifications from Starlink on 23 October requiring travel registration to restore service.
The government’s July 2026 parliamentary reply confirmed that no exemption had been granted exclusively to Starlink. The reply said the proposed policy direction was general, not a Starlink-only exemption, and sought to align ICASA’s rules with the broader broad-based black economic empowerment framework.
Communications Minister Solly Malatsi issued a policy direction in December 2025 instructing ICASA to consider aligning its ownership regulations with the amended ICT Sector Code, including recognition of EEIPs. However, legislative amendment is required before ICASA can treat an EEIP as a substitute for the statutory ownership requirement.
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