Tony Leon says Elon Musk’s Starlink SHOULD operate in SA

Like many South Africans, Tony Leon believes that Elon Musk’s internet satellite Starlink should operate in the country, despite BEE laws.

Tony Leon believes that South Africa must invest in Starlink. Images via X: @tonyleonsa/ @elonmusk

Like many South Africans, former DA leader Tony Leon believes Elon Musk’s Starlink should operate in the country.

The internet satellite service has been a bone of contention between the world’s richest man and the country’s Black Economic Empowerment (BEE) legislature, which requires almost a third of his company to have a local shareholding.

Elon has claimed that the company’s bid to operate in the country is because of the “racist law.”

TONY LEON ADVOCATES FOR STARLINK IN SA

Speaking to eNCA, Tony Leon shared his views on the strained diplomatic relations between South Africa and the US. This includes comments made by US President Donald Trump and Elon Musk and the recent sacking of Ambassador Ebrahim Rasool.

Tony referred to Elon’s Starlink company – which falls under SpaceX –  which he claims would “massively benefit South Africa.”

He said: “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.

Tony Leon believes that bringing Starlink to SA would not only benefit the country but “deescalate the conflict with Elon Musk, who is Trump’s whisperer.”

He added: “That would be an easy win”.

SOUTH AFRICA’S LOSS?

According to the South African Institute for Race Relations, Starlink’s BEE hindrances could have had a positive impact on foreign investment, job creation, and affordable, high-speed internet, particularly in rural areas.

The research and policy organisation is calling on MPs who sit on key committees overseeing economic policy to “hold the government accountable for BEE failures.”

Late last year, Minister of Communications and Digital Technologies Solly Malatsi met with Elon Musk to discuss his potential investment in South Africa. The minister suggested that South Africa examine telecoms regulations – i.e. the BEE requirement – impeding digital inclusion for the “overall benefit of the sector and the country.”

The minister told MyBroadband that Starlink could “have the enormous potential to bring meaningful connectivity to the most underserved communities with no infrastructure investments on the part of the South African government,”

He added: “This makes it crucial that we find a way to introduce these services to the people that need it the most while simultaneously striking the right balance between market competition, fairness, transparency, consistency, and compliance in the sector.”

Fast forward a few months, and SpaceX argued that SA’s BEE requirement would drive away foreign investors, who have global policies that prevent local shareholding.

Last month, Starlink ultimately withdrew its proposal to establish a license to operate in South Africa. The company reportedly handed in a written submission to ICASA to “rethink” its BEE legislature.