Johannesburg, South Africa – SpaceX’s satellite internet service, Starlink, is preparing a landmark R2 billion ($116 million USD) investment in South Africa to expand satellite internet access across the country.
The initiative is part of an Equity Equivalent Investment Program (EEIP) designed to help foreign companies meet South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) regulations while supporting local development.
At the Internet Service Providers’ Association (ISPA) annual general meeting, Ryan Goodnight, Starlink’s Senior Director of Market Access, announced that the company will partner with local internet service providers (ISPs) to build and maintain infrastructure especially in public schools.
The investment, Goodnight explained, will provide high-speed internet access to thousands of schools, directly benefiting more than 2.4 million students across the nation.
The program, valued at R500 million ($29.1 million USD), aims to strengthen South Africa’s digital education infrastructure through an open-access model, bridging the gap between rural and urban learners.
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Balancing Investment and Regulation
South Africa’s telecoms sector mandates that 30% of telecommunications licenses be held by historically disadvantaged persons.
For multinational companies unable to meet that threshold due to global corporate structures, the government created Equity Equivalent Investment Programs (EEIPs) as an alternative.
These schemes allow foreign operators to contribute to national development goals through equivalent investments in education, technology, and entrepreneurship. Starlink’s investment marks one of the largest commitments yet under this framework.
Earlier this year, Communications Minister Solly Malatsi introduced EEIPs with cabinet approval, stating that the policy would expand broadband access, encourage foreign investment, and boost competition in South Africa’s digital economy.
However, the move has faced criticism. Khusela Diko, chair of the Parliamentary Portfolio Committee on Communications, argued that the EEIP policy could be seen as “a special arrangement” benefiting a foreign company.
Despite opposition, public feedback was overwhelmingly positive — the government reported receiving over 19,000 supportive comments during its 30-day consultation period.
Connecting Africa’s Digital Future
The Department of Trade, Industry, and Competition emphasized that EEIPs are not exclusive to Starlink.
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Similar frameworks have allowed global tech giants such as Google, Amazon, and Microsoft to operate in South Africa by investing in local innovation and digital literacy programs rather than transferring ownership stakes.
By investing directly in education and infrastructure, Starlink’s model demonstrates how multinationals can align with South African regulatory goals while accelerating access to technology in underserved areas.
“Connecting schools is not just about internet access,” one senior official familiar with the plan told reporters. “It’s about giving every child the tools to participate in the digital economy.”
A Step Toward Inclusive Connectivity
Starlink’s arrival in South Africa could mark a major shift in the telecommunications landscape. Its Direct to Cell service already operating across five continents allows any standard LTE phone to connect directly to satellites, bypassing traditional towers and ground infrastructure.
The service, launched globally in 2024, initially supported text messaging but has since expanded to include data, Iot connectivity, and soon, voice services. The technology could bring reliable high-speed broadband to areas long underserved by traditional telecom providers such as MTN, Airtel, and Glo.
Industry analysts say Starlink’s entry will likely intensify competition while pushing legacy operators to upgrade rural networks. It could also attract further foreign investment into South Africa’s growing digital economy.
Why It Matters
Starlink’s R2 billion commitment is more than just a business expansion it represents a model for how foreign technology companies can comply with local empowerment laws while driving social progress.
If successful, the initiative could help close the connectivity gap, provide millions of students with digital learning tools, and strengthen South Africa’s position as one of Africa’s most connected economies.
As one analyst put it, Starlink’s investment is not only about broadband it’s about broadband equity.”
