Tech billionaire and SpaceX CEO Elon Musk has ignited a heated debate over South Africa’s racial policies, claiming that his satellite internet service, Starlink, is not allowed to operate in the country because he is “not black.” The statement, made on X (formerly Twitter), has led to a sharp response from South African officials, who insist that race has nothing to do with the restrictions placed on Starlink’s entry into the market.

Musk’s remarks were prompted by a podcast featuring South African businessman Rob Hersov, who argued that race-based laws in South Africa are “anti-white” and that the country has been “infected with an evil woke mind virus.” Musk, who was born in Pretoria but resides primarily in the United States, responded by stating, “Starlink is not allowed to operate in South Africa, because I’m not black.”

South African officials swiftly rejected Musk’s claim. Clayson Monyela, a spokesman for the South African Department of International Relations and Cooperation, responded on X, stating, “Sir, that’s NOT true and you know it! It’s got nothing to do with your skin color.” He clarified that Starlink is welcome to operate in South Africa “provided there’s compliance with local laws.”

One of the primary legal barriers cited by officials is the country’s Broad-Based Black Economic Empowerment (B-BBEE) policy, which mandates that foreign telecommunications firms must be at least 30% owned by “persons from historically disadvantaged groups.” This policy, designed to address racial inequalities left over from the Apartheid era, applies to all companies in the sector, not just Starlink.

Starlink, a subsidiary of Musk’s SpaceX, does not sell its shares publicly, making it impossible for the company to comply with the ownership requirement. In 2023, SpaceX wrote a letter to South Africa’s telecommunications regulator, the Independent Communications Authority of South Africa (ICASA), describing the 30% shareholding requirement as a “significant barrier” to investment.

Musk’s criticism of South Africa’s regulatory framework comes amid rising tensions between Pretoria and Washington, particularly after US President Donald Trump threatened to cut off aid to South Africa. Trump accused the country of aligning with Iran and criticized its lawsuit at the International Court of Justice, which alleges that Israel is committing genocide in Gaza. He also condemned South Africa’s land reform policies, arguing that they violate human rights.

South African President Cyril Ramaphosa has responded defiantly, stating, “We will not be bullied,” and dismissing claims that his government tolerates human rights abuses. Ramaphosa also met with Musk last month, with the president’s office stating that they discussed “issues of misinformation and distortions about South Africa.”

One of the policies that has drawn international criticism is South Africa’s Expropriation Act, which aims to redistribute land in an effort to address historical injustices. White farmers, despite comprising a small minority of the population, still own the majority of farmland. The government has set a target of transferring 30% of farmland to black farmers by 2030.

Critics argue that the policy has contributed to economic instability, scaring away investors and undermining property rights. Supporters, however, see it as a necessary step to redress deep-seated inequalities that persist nearly three decades after the end of Apartheid.

Musk’s comments add fuel to an already contentious debate over the balance between economic growth and racial redress. While Musk frames the issue as racial discrimination against white business owners, the South African government sees it as part of a broader effort to dismantle systemic inequality.

Despite the controversy, Starlink’s potential impact on South Africa is significant. The service provides high-speed internet access via low-earth orbit satellites, making it particularly useful in remote and rural areas with limited broadband infrastructure. Given South Africa’s digital divide, expanding internet access could provide substantial economic and educational benefits.

However, the regulatory impasse remains unresolved. Unless Starlink finds a way to comply with South Africa’s B-BBEE requirements-either through partnership with local entities or policy exemptions-it is unlikely to gain approval for commercial operation.

Some analysts believe that Musk’s influence and political connections, particularly if Trump returns to the White House, could pressure the South African government into reconsidering its stance. However, given the ruling African National Congress’s (ANC) commitment to economic transformation policies, any relaxation of B-BBEE rules for Starlink alone would be politically contentious.

Musk’s dispute with South African regulators highlights a broader global debate over national sovereignty, economic policies, and foreign investment. Similar regulatory barriers exist in other African countries, where governments seek to ensure that local businesses and historically disadvantaged groups benefit from foreign investments.

The controversy also reflects increasing polarization over race and economic policy in South Africa, where debates over “reverse discrimination” have gained traction among certain business leaders. While Musk’s statements have resonated with critics of affirmative action policies, they have also been met with strong pushback from those who argue that dismantling B-BBEE laws would entrench economic disparities.

Elon Musk’s claim that Starlink is blocked in South Africa due to his race has sparked a heated debate over the country’s economic policies and racial transformation efforts. While South African officials insist that compliance with local laws-not Musk’s race-is the issue, the dispute underscores the complexities of balancing foreign investment with historical redress.

As the global tech landscape evolves, the question remains: Will South Africa adjust its policies to attract investment from companies like Starlink, or will it maintain its commitment to racial transformation at the risk of slowing economic growth? The answer will have lasting implications for both the country’s economic future and its global standing.

Please follow Blitz on Google News Channel